Latest financial update
First quarter trading update 2017 - year starts well with good revenue growth
First quarter highlights
- Good progress on FX-neutral revenue growth, up 5.2%.
- Volumes increased by 0.7% in the quarter. Excluding the impact of the timing of Easter, which shifted into Q2 this year, volumes grew in the majority of our countries.
- Established markets volume down 2.2%, reflecting an improving trend, excluding the impact of Easter. Volume growth in Greece and Ireland partly offset lower volume in Switzerland, and Italy following the de-listing of low-value water brands.
- Developing markets segment volume down 3.6%, largely driven by lower volume in Poland, where our focus continues to be on driving value.
- Emerging markets segment volume up 4.0%, with broad-based growth across our markets. Russia returned to growth, outperforming a weak market, and Nigeria volume continued to grow, despite macro-economic challenges and significant price increases.
- FX-neutral revenue per case increased by 4.5%, reflecting our continued focus on revenue growth management through improved package and category mix as well as price increases.
- In Established markets, positive category and package mix was more than offset by adverse channel mix and an increase in promotional activity, leading to a decrease in FX-neutral revenue per case of 0.2%.
- In Developing markets, FX-neutral revenue per case improved by 4.1% driven by better category and package mix.
- Price increases taken in the Emerging markets segment, mainly in Nigeria, drove the 10.3%
FX-neutral revenue per case growth.
|Q1 2017 vs. Q1 2016||Volume (%)||Net sales revenue (%)||Net sales revenue per unit case (%)||FX-neutral net sales revenue per unit case1(%)|
1For details on Alternative Performance Measures (‘APMs’) refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.
The business has delivered good revenue growth in the first quarter, strong momentum in price and mix and improvement in volume despite the late Easter impact. We are pleased with the underlying trends in the business. Our commercial initiatives continue to deliver good results, and add to our confidence going into the remainder of the year. Dimitris Lois, Chief Executive Officer of Coca‑Cola HBC AG