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Coca-Cola HBC net sales revenue growing by 2.4%

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Staff Writer | August 11, 2016
Coca-Cola HBC reported its results for the six-month period to July 1, with FX-neutral net sales revenue growing by 2.4%, or 3.0% taking into account the one less selling day.
Coca-Cola HBC
Coca-Cola HBC   Comparable earnings per share were €0.416
Coca-Cola HBC said currencies were continuing to impact adversely, leading to a 3.6% decline in net sales revenue to €1.193bn.

Coca-Cola HBC posted a "robust increase" in FX-neutral revenue per case of 2.4% to €4.02, mainly due to better pricing trends across all segments compared to the prior-year period and a 110 basis point improvement in package mix.

Volumes increased marginally on a strong prior-year period - taking into account the one less selling day in Q1, HBC said volume grew by 0.7%.

The established markets performed poorly, however, with volumes declining 2.8%, which HBC said was partly impacted by unseasonably cool weather.

Its developing segment continued to demonstrate "good volume growth momentum" with all key categories contributing to the 3.5% volume growth.

Nigeria, Romania and Serbia were said to be key drivers of a 0.5% volume growth in the emerging markets segment, which continued to be negatively impacted by Russia.

HBC said cost efficiencies and revenue leverage resulted in a 45 basis point reduction in comparable operating expenses as percentage of net sales revenue.

Comparable EBIT margin increased by 60 basis points to 7.5%, benefiting from the company's revenue growth management initiatives, favourable input costs and cost efficiencies, which more than offset the adverse currency impact. Its EBIT margin improved by 90 basis points to 7.2% on a reported basis.

Net profit improved 11.8% to €140m, while comparable net profit was up 6.1% to €150.4m.

Comparable earnings per share were €0.416 - a 6.9% increase on the prior-year period, while basic earnings per share were €0.387 - a 12.5% increase.