6th Jun 2016 11:20
LONDON (Alliance News) - Coca-Cola HBC AG on Monday said it expects an "improving external environment" to support growth in its markets over the period to 2020, while revealing its medium-term growth targets.
The soft drinks bottler said a stronger backdrop combined with growth opportunities within its portfolio will help to accelerate the its performance going forward.
Assuming 1.5% average annual non-alcoholic ready-to-drink industry volume growth, Coca-Cola HBC now expects its medium-term average annual revenue to grow between 4% and 5% on a constant currency basis, versus 2.9% in its last financial year.
It also expects a reduction in comparable operating expenses as a percentage of net sales revenue to between 26% and 27%, from 29% in its last financial year, while its earnings before interest and tax margin is expected to improve to 11% from 7.5%.
Coca-Cola HBC reiterated its capital expenditure target of between 5.5% and 6.5% of net sales revenue, and its commitment to maintaining a negative working capital balance sheet position.
"Over five years and in a difficult external environment, we have created a more efficient and stronger business that is now primed for growth in improving market conditions. We have a balanced spread of territories with structurally attractive characteristics and specific plans for growth. We have reflected these factors in our new targets, announced today, which illustrate our confidence in the medium-term potential of the business," Chief Executive Dimitris Lois said in a statement.
Shares in Coca-Cola HBC were trading up 1.5% at 1,352.00 pence on Monday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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