7th May 2020 10:45
(Alliance News) - Coca Cola HBC AG said Thursday its sales in the first quarter were down slightly year on year but dropped 37% in April.
Coca-Cola Hellenic said the national lockdowns put in place across the world after the end of the quarter have significantly hurt sales.
In the three months to March 31, Coca-Cola Hellenic said total revenue was down 0.3% at EUR1.41 billion versus a year before. Established markets revenue slipped 6.2% and Developing markets saw revenue fall 4.4%. Offsetting this was 6.7% growth in Emerging markets.
The company, which bottles Coca-Cola and other soft drinks, said its currency-neutral revenue was up 3.1% over the first two months of 2020, but dropped in March.
Total volumes grew by 3.1% in the first quarter to 483.7 million cases, with Developing markets and Emerging markets growing 1.8% and 8.1%, respectively, offsetting 5.5% declines in Established markets.
"The challenges presented by the Covid-19 pandemic are unprecedented for our business and the communities where we operate," Chief Executive Zoran Bogdanovic said.
He continued: "After a strong start to 2020, March and especially April have been more difficult.
In April, with every market in lockdown, currency-neutral revenue fell by 37% and volumes dropped 27%.
Bogdanovic added: "The strong performance in January and February ensured that we entered this crisis from a position of real strength with sound business fundamentals and a solid balance sheet. When the pandemic struck we took decisive actions, fully focused on keeping our people safe, our customers served and our communities supported. We are also effectively managing the business for the conditions which will support our performance and ensure we are well-placed to move into the recovery phase when it comes."
Coca-Cola Hellenic said its balance and liquidity is a "key strength". At the end of April the company had EUR1.4 billion in cash and has lowered its capex guidance by EUR100 million - which represents 20% of previous guidance.
Shares in Coca Cola HBC were down 0.4% in London on Thursday mid-morning at 1,919.50 pence each.
By Paul McGowan; [email protected]
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