ROBUST PERFORMANCE IN DIFFICULT MARKET CONDITIONS
Coca‑Cola HBC AG, the second largest bottler of the brands of The Coca‑Cola Company, reports its financial results for the six-month period ended 27 June 2014.
Second quarter and half-year highlights
- Gained or maintained market share in volume and value in 15 markets in Sparkling beverages and in 13 markets in NARTD1
- Increase in the pace of growth in currency-neutral net sales revenue per unit case - up 3% in the quarter - mainly as a result of continued successful implementation of our revenue growth management initiatives, pricing (including measures to mitigate incidence rate increase and foreign exchange movements) and value-accretive volume strategy in Developing markets
- Volume declined in the quarter at a slower pace than in Q1 as a result of the overall improvement in Established and Developing markets and Nigeria’s return to growth; Czech Republic, Italy, Poland, Romania and Russia drove the decline compared to the prior-year period
- Gross profit margin increased on prior year both in Q2 and the half year, driven by the acceleration in currency-neutral net sales revenue per case growth rate and the favourable input cost environment
- Operating expenses as a percentage of net sales revenue improved by 50 bps in Q2
- Comparable EBIT and EBIT margin demonstrated solid growth in Q2 compared to the first quarter and prior-year quarter
- Strong free cash flow generation in Q2, with continued reduction in the working capital balance
|Volume (m unit cases)||561||578||-3%|
|Net Sales Revenue (€ m)||1,852||1,949||-5%|
|Net Sales Revenue per Unit Case (€)||3.30||3.37||-2%|
|Currency Neutral Net Sales Revenue per Unit Case (€)||3.30||3.21||3%|
|Comparable EBIT (€ m)||194||179||8%|
|Comparable EBIT margin (%)||10.4||9.2||120bps|
|Comparable Net Profit* (€ m)||135||127||6%|
|Comparable EPS (€)||0.37||0.34||9%|
|Half year||Half year||Change|
|Volume (m unit cases)||970||1,004||-3%|
|Net Sales Revenue (€ m)||3,183||3,381||-6%|
|Net Sales Revenue per Unit Case (€)||3.28||3.37||-3%|
|Currency Neutral Net Sales Revenue per Unit Case (€)||3.28||3.20||3%|
|Comparable EBIT (€ m)||167||178||-6%|
|Comparable EBIT margin (%)||5.2||5.3||-10bps|
|Comparable Net Profit* (€ m)||99||111||-11%|
|Comparable EPS (€)||0.27||0.31||-13%|
* Comparable Net Profit refers to comparable net profit after tax attributable to owners of the parent.
Dimitris Lois, Chief Executive Officer of Coca‑Cola HBC AG, commented:
“We continue to take action to mitigate the impact of the difficult trading conditions caused by depressed consumer sentiment and foreign exchange headwinds, while input cost pressures have abated. Our ongoing initiatives produced another quarter of growth in currency-neutral net sales revenue per case, and we are pleased with our efforts to reduce operating expenses as a percentage of net sales revenue in a very challenging volume environment.
For the full year, we expect the positive trends in currency-neutral net sales revenue per case, input and operating costs, combined with less foreign exchange pressure than previously anticipated, to offset the continuing challenging volume environment in our markets.”
1 Nielsen May year-to-date data based on 23 measured markets in Sparkling beverages and 21 measured markets in NARTD.
Coca‑Cola HBC will host a conference call with financial analysts to discuss the second quarter and half year 2014 financial results on 7 August 2014 at 10:00 am, Swiss time (9:00 am London, 11:00am Athens, and 4:00 am New York time). Interested parties can access the live, audio webcast of the call through Coca‑Cola HBC’s website (www.coca-colahellenic.com/investorrelations/webcasts).
|Coca‑Cola HBC AG
Investor Relations Director
|Tel: +41 41 726 0143
Investor Relations Manager
|Tel: +30 210 618 3133
Investor Relations Manager
|Tel: +30 210 618 3124
|International media contact:|
|Tel: +44 20 7240 2486
|Greek media contact:|
|Tel: +30 211 7501219
About Coca‑Cola HBC
Coca‑Cola HBC is the second-largest bottler of brands of The Coca‑Cola Company in terms of volume with sales of more than 2 billion unit cases. It has a broad geographic footprint with operations in 28 countries serving a population of approximately 585 million people. Coca‑Cola HBC offers a diverse range of ready-to-drink non-alcoholic beverages in the sparkling, juice, water, sport, energy, tea and coffee categories.
Coca‑Cola HBC is committed to promoting sustainable development in order to create value for its business and for society. This includes providing products that meet the beverage needs of consumers, fostering an open and inclusive work environment, conducting its business in ways that protect and preserve the environment and contribute to the socio-economic development of the local communities.
Coca‑Cola HBC has a premium listing on the London Stock Exchange (LSE: CCH) and its shares are listed on the Athens Exchange (ATHEX: EEE). Coca‑Cola HBC is included in the Dow Jones Sustainability and FTSE4Good Indexes. For more information, please visit http://www.coca-colahellenic.com/.