Solid performance in a challenging cost environment

                                                                HALF YEAR HIGHLIGHTS

• Volume, excluding acquisitions, of 830 million unit cases, 10% above 2005, (reported: 835 million unit cases, 11% above 2005),

• Steady progress in underlying operating profit (EBIT) to €276 million, 11% above prior year (reported: €244 million),

• Underlying net profit of €191 million, 19% above prior year (reported: €173 million),

• Underlying EPS of €0.79, 18% above prior year (reported: €0.72).

                                                           SECOND QUARTER HIGHLIGHTS

• Volume, excluding acquisitions, of 491 million unit cases, 10% above 2005, (reported: 496 million unit cases, 12% above 2005),

• Steady progress in underlying operating profit (EBIT) to €221 million, 11% above prior year (reported: €213 million),

• Underlying net profit of €171 million, 17% above prior year (reported: €168 million),

• Underlying EPS of €0.71, 16% above prior year (reported: €0.70).

 

Note: Underlying financial indicators (Operating profit, EPS, etc.) exclude the recognition of pre-acquisition tax losses, restructuring costs, exceptional items and the results of the acquired entities in 2006 as per page 4. 

Doros Constantinou, Managing Director of Coca‑Cola HBC, commented:

“Robust organic volume growth across all of our product categories was a key driver of our performance during the second quarter. The strength of our geographic portfolio and the successful execution of our plans were core to us posting high single digit growth in CSD’s as well as double digit growth in non-CSDs despite of softness in two of our key markets. We have managed to largely offset the raw material cost pressures and increased investment in our sales force and market initiatives, mainly through revenue growth management execution and our supply chain cost efficiencies, resulting in only a slight decline of our margins. Despite the recently increased geopolitical tensions in the Middle East and the continuous softness in two of our key markets, we remain confident that our strategic and operational focus will enable us to achieve our full year guidance.”

 

                                                                                                                                           10 August 2006

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