Coca-Cola HBC Reports Solid Performance In Third Quarter
Soft drink bottler Coca-Cola HBC has reported foreign exchange-neutral revenue growth of 3.4% in the third quarter of its financial year.
The company also reported better than expected currency movements during the quarter.
"In a quarter in which unseasonably cold and wet weather significantly depressed industry volume growth in a number of our countries, we are pleased to have gained or maintained share in the majority of our markets and to have made progress with our commercial strategy which delivered a step-up in price/mix and ongoing growth in key areas of strategic focus such as Trademark Coke, Adults, Zeros and innovation," highlighted Zoran Bogdanovic, chief executive officer of Coca‑Cola HBC AG.
Its FX-neutral revenue per case increased by 2.4% excluding Bambi, corresponding to a growth of more than 1% when compared with the first half of the year.
In February of this year, Coca-Cola HBC announced its plans to buy Serbian biscuit and confectionery maker Bambi for €260 million ($294 million) from the private equity investor, Mid Europa Partners.
In established markets, FX-neutral revenue per case increased by 0.3%, as price increases and positive category and pack mix were offset by adverse channel mix, Coca-Cola HBC said.
Developing markets saw FX-neutral revenue per case increased by 4.6% driven by strong execution of its strategy related to pricing, packaging and category mix.
The figures for emerging markets revealed a 3.4% growth, with strong improvements in price/mix in all markets except Nigeria.
The company saw volume growth of 1.1% during the quarter, despite poor weather in several countries.
The cola giant reported a 1.2% growth in market volumes in established markets.
In developing markets, volumes declined by 4.0% mainly due to poor weather across all major countries in August.
Emerging markets saw overall volume growth of 3.0%, or by 0.8% excluding Bambi.
Volume growth in Romania, Ukraine, and Nigeria was partially offset by a decline in Russia due to poor weather and tough comparatives, the cola giant said.
Looking ahead, the group said that it now expects a full-year negative impact of €15 million, an improvement of €5 million compared to prior guidance.
"As we look to the full year, we are pleased to have seen an acceleration in Q4, giving us confidence that 2019 will be a year of solid top-line growth and good margin expansion." Bogdanovic added.
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