Soft drink bottler Coca-Cola HBC has reported foreign exchange-neutral revenue growth of 3.4% in the third quarter of its financial year.
Its FX-neutral revenue per case increased by 2.4% excluding Bambi, corresponding to a growth of more than 1% when compared with the first half of the year.
In February of this year, Coca-Cola HBC announced plans to buy Serbian biscuit and confectionery maker Bambi for €260 million ($294 million) from the private equity investor, Mid Europa Partners.
Divisional Performance
In established markets, FX-neutral revenue per case increased by 0.3%, as price increases and positive category and pack mix were offset by adverse channel mix, Coca-Cola HBC said.
Developing markets saw FX-neutral revenue per case increased by 4.6% driven by strong execution of its strategy related to pricing, packaging and category mix.
The figures for emerging markets revealed a 3.4% growth, with strong improvements in price/mix in all markets except Nigeria.
Commenting on the performance, chief executive officer of Coca‑Cola HBC AG, Zoran Bogdanovic, said, "In a quarter in which unseasonably cold and wet weather significantly depressed industry volume growth in a number of our countries, we are pleased to have gained or maintained share in the majority of our markets and to have made progress with our commercial strategy which delivered a step-up in price/mix and ongoing growth in key areas of strategic focus such as Trademark Coke, Adults, Zeros and innovation."
Volume Growth
The company saw volume growth of 1.1% during the quarter, despite poor weather in several countries.
The cola giant reported a 1.2% growth in market volumes in established markets.
In developing markets, volumes declined by 4.0% mainly due to poor weather across all major countries in August.
Emerging markets saw overall volume growth of 3.0%, or by 0.8% excluding Bambi.
Volume growth in Romania, Ukraine, and Nigeria was partially offset by a decline in Russia due to poor weather and tough comparatives, the cola giant said.
Outlook
Coca-Cola HBC has projected full-year FX-neutral revenue growth of 4.0% - 4.5%, including around 70 basis points contribution from Bambi.
The company also reported better than expected currency movements during the quarter.
It now expects a full-year negative impact of €15 million, an improvement of €5 million compared to prior guidance.
Bogdanovic added, "As we look to the full year, we are pleased to have seen an acceleration in Q4, giving us confidence that 2019 will be a year of solid top-line growth and good margin expansion."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
