Coca-Cola HBC: First quarter 2018 trading update




Coca-Cola HBC AG, a leading bottler of the brands of The Coca-Cola Company, today announces its 2018 Q1 trading update.

First quarter highlights

  • Solid performance to start the year, delivering 4.5% FX-neutral revenue growth through a balance of volume growth and price/mix improvements
  • Volumes increased by 2.3% in the quarter, with very strong growth in the Developing segment and another quarter of expansion in the Established segment. Innovation in Sparkling drinks helped drive 2.8% growth in the category.

–        Established segment volumes grew 1.1%, aided by improved volumes in Ireland and Switzerland and continued good growth in Greece.

–        Developing segment volumes expanded 11.8%, driven by very strong growth in Poland which was helped, in part, by the timing of Easter.

–        Emerging segment volumes were broadly stable, as continued strong growth from our medium-sized countries offset volume declines in Nigeria and to a lesser extent, Russia.

  • FX-neutral revenue per case increased by 2.1%, with the rollover effect of 2017 price increases and mix improvements in the Emerging and Established segments, partly offset by some mix deterioration in the Developing segment.

–        In the Established segment, positive category and pack mix drove a 0.8% improvement in
FX-neutral revenue per case.

–        In the Developing segment, FX-neutral revenue per case declined by 1.3%. A very strong Easter volume performance in the segment led to negative package and channel mix effects, which were partly offset by better category mix.

–        In the Emerging segment, the 4.5% improvement in FX-neutral revenue per case was largely a result of the rollover effect of 2017 price increases, supported by better category and pack mix.

Q1 2018 vs. Q1 2017 Net sales revenue Volume Net sales revenue per unit case
growth (%) FX-neutral1 Reported   FX-neutral1 Reported
Total Group 4.5 -1.7 2.3 2.1 -4.0
Established markets 1.9 0.1 1.1 0.8 -1.0
Developing markets 10.3 12.6 11.8 -1.3 0.8
Emerging markets 4.4 -8.4 -0.1 4.5 -8.3

1                         For details on Alternative Performance Measures (‘APMs’) refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs”sections.

Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:

“We are pleased to report a good start to the year in line with our expectations.

“Product innovation and our ongoing revenue growth management initiatives continue to deliver balanced growth through volume and price/mix improvements. With strong commercial plans in place and anticipated gradual economic recovery in Russia and Nigeria, we expect our revenue growth to accelerate as the year progresses.”


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