Coca-Cola HBC Q1 results boosted by Emerging markets

Switzerland-based Coca-Cola HBC reported a 4.4% increase in first quarter net revenue on Thursday, helped by strong growth in emerging markets.

Net sales grew to €1.4bn ($1.58bn), from €1.35bn on the back of a 3.5% volume lift. Total unit case volumes sold rose to 469.2 million cases, from 453.2 million cases in 2018.

The company’s emerging market segment saw sales growth of 6.4% to €612.9m, boosted by a 5.7% volume lift. The growth in emerging market was driven by activities in Nigeria and ongoing expansion in Russia, Romania and Ukraine.

In Nigeria, volumes expanded by mid-single digits, with stable volumes in Sparkling and strong volume growth in Stills, including Water and Juice volumes up double digit.

Commenting on the growth in Nigeria, the company explained that it has widened the pack/price architecture across its brands in Sparkling, which is helping the category and improving margins in its Nigerian business. The firm notes that the work it is doing to evolve and strengthen its route to market through increasing direct outlet coverage, and by segmenting regional execution, is creating growth opportunities.

Developing market segment grew volumes by 2.6%, cycling a very strong 11.8% in the prior year period, while Established market segment volumes grew by 0.2%, with ongoing growth in Ireland and Greece and a notable improvement in Italy despite the Easter impact.

Speaking on the results, Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC, said: “We have started the year well, delivering solid growth in revenues despite the impact of this year’s late Easter.

“Volume growth accelerated compared to last year and our ongoing revenue growth management initiatives continue to deliver improvements in price/mix.”

Leave a Reply

Your email address will not be published. Required fields are marked *