11th Nov 2020 10:24
(Alliance News) - Coca-Cola HBC AG on Wednesday said trading in the third quarter of the year was still down on the year prior, but it saw some improvement with recovery in the out-of-home channel and more growth in the at-home channel.
Coca-Cola HBC is a soft drinks bottler with operations in 28 countries, including Greece, Ireland, Poland and Nigeria. It is a strategic partner of US brand owner Coca-Cola Co.
The Steinhausen, Switzerland-based company said group volume was down 1.4% year-on-year in the third quarter ended September 30 to 613.7 million unit cases from 622.4 million unit cases.
Net sales revenue was down 6.7% to EUR1.83 billion from EUR1.96 billion a year prior. Sales revenue in the nine months to September 30 was down 12% to EUR4.66 billion from EUR5.31 billion a year before.
Coca-Cola HBC said it saw a notable improvement in out-of-home trading, which typically accounts for slightly over 40% of its revenue, as markets opened up on the easing of Covid-19 restrictions.
"We are also continuing to see improved trends in the at-home channel as consumers shift their patterns of consumption," the company added.
Net sales revenue per unit case was down 5.4% to EUR2.98 from EUR3.15 a year before.
Developing markets posted the best performance with sales down 3.2% to EUR375.7 million from EUR388.3 million a year before.
Chief Executive Zoran Bogdanovic said: "We are encouraged by the strong improvement in trading in third quarter, supported by a rapid recovery in the out-of-home channel as markets reopened. This performance demonstrates our ability to adapt to the fast-changing market environment."
Going forward, Bogdanovic said: "Looking into the fourth quarter, as we cycle a very strong volume comparator and see the renewal of lockdown restrictions in some markets, we are encouraged by the consistent growth we have seen in the at-home channel, which will be especially important for this final quarter. Combined with the increasing impact of our cost savings programmes this should allow us to continue to deliver good profitability in a severely disrupted year."
Coca-Cola HBC shares were up 0.4% at 2,146.00 pence each in London on Wednesday morning.
By Greg Roxburgh; [email protected]
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