5th Nov 2015 08:21
LONDON (Alliance News) - Coca-Cola HBC AG Thursday reported a drop in net sales revenue in the third quarter of 2015 as a weak emerging markets category offset stronger performances from established and developing markets, although volume increased in all three regions.
Shares in Coca-Cola HBC were trading down 1.9% at 1,559.07 pence Thursday morning.
The soft drinks bottling company said total net sales revenue fell 2.7% in the third quarter to EUR1.76 billion from EUR1.81 billion in the same period the year before, as growth of 6.4% in established markets and 6.8% in developing markets was offset by a 13% decline in emerging markets due to unfavourable movements in foreign exchange rates.
Volume, however, rose 5.4% to 577.1 million unit cases from 547.6 million unit cases, which it said benefited from good weather and favourable comparatives. Regionally, established markets saw volume growth of 7.4%, while developing markets volume rose 10% and emerging markets volume increased 2.4%.
"Our commercial initiatives and a hot summer in parts of Europe contributed to a strong volume performance in the quarter, with growth in all segments and increased momentum in the business. As the year has progressed we have been encouraged by gradually improving market conditions in our European countries, where economic activity has been depressed for many years. We have also benefited from buoyant trading in many of our emerging markets," Chief Executive Dimitris Lois said in a statement.
"In the remainder of the year, we will continue to manage the conditions in each of our market segments with the right mix of pricing initiatives, affordability focus and consumer offering, although the four fewer selling days will impact our volumes. Overall, we are confident that in 2015 we will grow volumes across our reporting segments as well as expand group operating margin," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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