Third quarter 2020 trading update

STRONGLY IMPROVED TRADING IN Q3

Coca-Cola HBC AG, a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, today announces its 2020 Q3 trading update.

Third quarter highlights

- Strong improvement in trading in Q3 with recovery in the out-of-home channel and growth in the at-home channel

- FX-neutral revenue -2.6% or -0.3% like-for-like¹ and showing monthly sequential improvement

• Volumes -1.4% reported and +1.0% like-for-like¹; with volumes positive in August and September
  
  
• FX-neutral revenue per case declined by -1.2% on both a reported and like-for-like¹ basis, a significantly improved trend compared to Q2, driven by better performance in channel and package mix as trading in the out-of-home channel improved compared to Q2
  
  
• Strong market share performance continues with 40bps of value share gained YTD and the majority of our markets gaining or maintaining share

- FX-neutral revenue benefited from the strong positive performance in Nigeria, Russia and Poland; three of our five largest markets

• Established: -5.4%; volume -8.6% with strong recovery in price/mix as trading improved in the out-of-home channel. Volumes -5.1% excluding Greece which was heavily impacted by lack of international tourism this summer
  
  
• Developing: -0.1%; volume +2.5% led by strong volume performance in Poland, while an improved price/mix trend compared to Q2 was broad based across our Developing segment markets
  
  
• Emerging: -1.3%; volume +1.2%, or on a like-for-like¹ basis revenue +4.2% with volume +5.8%; strong like-for-like¹ performance in Nigeria and Russia which both grew volumes double-digit
  
  

- Anticipated combined net impact of FX and raw materials for FY2020 continues unchanged vs original budget, as benefits from lower commodity costs offset weaker FX

- Strong progress on cost control leads us to increase our previous €100m cost savings target by €20m for the full year, further supporting EBIT and margin recovery

- Strong balance sheet and liquidity to meet all financial commitments as well as to operate and invest in the business

¹ Performance, unless stated otherwise, is negatively impacted by the change in classification of our Russian Juice business, Multon, from a joint operation to a joint venture, following its re-organisation. For performance measures excluding this impact, please refer to the relevant table in the ‘Supplementary information’ section.

² For details on Alternative Performance Measures (‘APMs’) refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.