STRONG RESULTS WITH VOLUME GROWTH AND MARGIN EXPANSION

Coca-Cola HBC AG,  a leading bottler of The Coca-Cola Company, reports its financial results for the six-month period ended 3 July 2015.

Half-year highlights

• Underlying volume growth gained momentum in the second quarter, resulting in a 3.8% increase in reported half-year volume; excluding the 2.5% contribution from the four extra selling days in Q1, volumes grew by 1.3%

-         Volume in the Established markets was broadly unchanged from the prior-year period

-         Developing segment turnaround continued, with all markets contributing to the 6.2% volume growth

-         Very good performance in Nigeria, Romania and Ukraine more than offset weakness in Russia, lifting Emerging market volume by 5.4%

• FX-neutral revenue per case was stable, with pricing actions in Emerging markets offsetting our affordability measures and deflation in certain Established and Developing markets
• Net sales revenue declined by 1.0% as a 4.6% adverse impact from currencies more than offset volume gains
• Comparable EBIT was €219.0 million – up 31.2%, leading to a 170 basis point improvement in EBIT margin as favourable input costs, increased volume, benefits from our revenue growth management initiatives and cost efficiencies were partly offset by significant adverse movements in currencies; reported EBIT was €199.1 million
• Free cash flow was €219.2 million – up €124.4 million, driven by further improvements in working capital as well as operational profitability
• Comparable earnings per share was €0.389 – a 43.5% increase on the prior-year period; reported basic earnings per share was €0.344

*Net Profit and Comparable Net Profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent. 

Dimitris Lois, Chief Executive Officer of Coca-Cola HBC AG, commented:

“We are pleased to have achieved strong results, with good volume growth and a significant improvement in margins. Our strategic initiatives are delivering, both through our commercial strategy designed to drive growth and ongoing efficiency improvements.

“Difficult conditions remain in many of our markets, particularly in Russia, although we have proven to be adaptable and resilient in such markets. Conditions are more favourable in Eastern Europe and Nigeria, where we are confident of further growth. We have become more optimistic as the year has progressed and remain confident that 2015 will be a year of volume growth and progress on margins.”