Coca‑Cola HBC AG, a leading bottler of The Coca‑Cola Company, reports its financial results for the six months ended 29 June 2018.

Half-year highlights

  • Strong revenue growth, 6.4% in the first half on an FX-neutral basis; acceleration in the second quarter, supported by new product launches, good weather and the FIFA World Cup
  • FX-neutral revenue per case increased by 1.8%, delivered through pricing, as well as continued improvements in category and package mix in all three segments
  • Volume accelerated in the second quarter, resulting in 4.6% growth in the first half. Sparkling beverages volume was particularly strong, also up by 4.6%  
    - Established markets volume increased by 0.9%, with good performances in Greece and Ireland
    - Strong growth in the Developing markets continues, with volume up 8.9%, led by Poland and Hungary
    - Emerging markets delivered 5.1% volume growth, supported by a return to growth in Nigeria and Russia in the second quarter
  • Revenue growth, coupled with cost control, resulted in a 60 basis point improvement in comparable operating expenses as percentage of net sales revenue
  • Comparable operating profit margin increased by 60 basis points to 9.6%, notwithstanding a 30 basis point increase in marketing investments to support product launches and FIFA world cup activations; operating profit margin increased by 110 basis points to 9.4%
  • Comparable earnings per share was €0.603 - a 4.7% increase on the prior-year period; basic earnings per share was €0.590 - a 12.2% increase
  Half Year Change
  2018 2017  
Volume (m unit cases) 1,067.4 1,020.9 4.6%
Net sales revenue (€ m) 3,228.3 3,213.4 0.5% 
Net sales revenue per unit case (€) 3.02 3.15 -3.9%
FX-neutral net sales revenue1 (€ m) 3,228.3 3,033.2 6.4% 
FX-neutral net sales revenue per unit case1 (€) 3.02 2.97 1.8% 
Operating expenses / Net sales revenue (%) 28.1 29.1 -90bps 
Comparable operating expenses / Net sales revenue (%) 28.0  28.6 -60bps 
Operating profit (EBIT)2 (€ m) 303.9  266.4 14.1% 
Comparable EBIT1 (€ m) 310.5  291.1 6.7% 
EBIT margin (%) 9.4  8.3 110bps 
Comparable EBIT margin1 (%) 9.6  9.1 60bps 
Net profit3 (€ m) 216.9  191.6 13.2%
Comparable net profit1,3 (€ m) 221.7  209.6 5.8% 
Basic earnings per share (EPS) (€) 0.590 0.526 12.2%
Comparable EPS1 (€) 0.603 0.576 4.7%
Free cash flow1 (€) 126.8 95.1 33.3% 

1For details on APMs refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.
2Refer to the condensed consolidated income statement.
3Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.

“The evolution of our portfolio is gathering pace and gaining traction with customers across our markets. We have delivered a strong set of results as product launches and tailored commercial activation enabled us to capitalise on favourable market conditions and the FIFA World Cup. Revenue growth was excellent driven by both volume and price/mix improvements across all three of our geographic segments. Margins continue to improve as we keep our focus on driving top-line growth and cost control. We continue to make good progress against the 2020 targets and expect to deliver another year of revenue growth and improvement in margins.” Zoran Bogdanovic, Chief Executive Officer of Coca‑Cola HBC AG

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