Coca-Cola European Partners (CCEP) has reported revenue totalling €2.4 billion in the first quarter of its financial year, ending 31 March 2017.
This figure marks a 73% increase year-on-year, largely due to the addition of the Germany, Iberia, and Iceland markets, which were not included in the 2016 figures. Comparable revenue was down 0.5%.
Performance
On a like-for-like basis, Northern Europe, which includes Belgium, Luxembourg, the Netherlands, Norway, Sweden, and Iceland, was the only territory to experience a significant increase in revenue, with growth of 7%. Iberia revenues remained steady, benefiting from the growth of Coke Zero and Monster in that region.
Revenue in Germany declined by 2.5%, in France by 0.5%, and in Great Britain by 6.5% - partially due to unfavourable Sterling rates.
In terms of brands, Coca-Cola Zero Sugar experienced a growth of 16%, and Monster was up by 21%. The overall revenue for sparkling brands, which includes the Coca-Cola branded drinks, sparkling beverages and energy drinks, was flat. However, revenue for still brands including juice, isotonics and water grew by 3.5%.
Continued progress
“Our first-quarter results are a solid start to the year, reflecting our focus on improving field level execution while winning with customers through increasing the value proposition of our portfolio for consumers,” said Damian Gammell, CEO of CCEP.
“While we are pleased with these results and our continued progress in the integration of our business, the first quarter is our smallest, and to reach our full-year targets we must execute our marketing and operating plans in the key summer selling season."
“Ultimately, our goal remains to drive stakeholder and importantly, shareowner value,” he concluded.
Outlook
CCEP has expectations of 'modest low single-digit revenue growth' for 2017, with an operating profit growth in high single-digits when compared to the 2016 results.
The company says that it is on track to achieve pre-tax savings of between €315 and €340 million by 2019, and has declared a quarterly dividend of €0.21 per share.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
