FIRST QUARTER 2018 TRADING UPDATE
CONTINUING TO DELIVER BALANCED REVENUE GROWTH
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.”