Coca-Cola HBC: Statutory Report for the six months ended 28 June

Three months ended		%
	28 June 2013	29 June 2012(1)	Change
Volume (m unit cases).....................................................................	578	587	-2%
Net sales revenue (€m)....................................................................	1,949	1,986	-2%
Cost of goods sold (€m)...................................................................	1,236	1,253	-1%
Operating profit (€m)........................................................................	145	177	-18%
Profit after tax attributable to owners of the parent(€m)........	90	118	-23%
Basic earnings per share (€)..........................................................	0.25	0.32	-22%

Six months ended		%
	28 June 2013	29 June 2012(1)	Change
Volume (m unit cases)..........................................................................................	1,004	1,014	-1%
Net sales revenue (€m)........................................................................................	3,381	3,419	-1%
Cost of goods sold (€m).......................................................................................	2,187	2,191	-
Operating profit (€m).............................................................................................	134	164	-18%
Profit after tax attributable to owners of the parent(€m)............................	66	89	-26%
Basic earnings per share (€)..............................................................................	0.18	0.24	-25%

(1) Comparative amounts have been adjusted to reflect the impact of new accounting standards adopted in 2012, as detailed in note 1 to the condensed consolidated interim financial statements.

Volume: Volume declined by 2% in the second quarter of 2013. A 2% volume increase in emerging countries was more than offset by a 6% volume decline in established countries and a 3% decline in developing countries. Overall, volume declined by 1% in the first half of 2013.

Sales: Net sales revenue declined by 2% in the quarter and by 1% in the first half.

Operating profit (EBIT): Our revenue growth initiatives more than offset total input cost increases in absolute terms, still they were not sufficient to prevent a gross margin decline. Lower volume, unfavourable foreign currency movements and one off charges mainly relating to increased restructuring costs and transaction expenses for the re-domiciliation and the admission of the Group to listing on the premium segment of the London Stock Exchange, resulted in an 18% decline in operating profit in both the second quarter and the first half of 2013, despite operating expense savings.

Half Year 2013 market shares: We continued to win in the marketplace.We gained or maintained volume share in sparkling beverages in the majority of our countries includingAustria,Ireland,Italy, theCzech Republic,Romania,Russia andUkraine.

Half Year 2013 free cash flow: We generated free cash flow of €98 million in the first half of the year, delivering a year-on-year increase of 15%.

Dividend: The Board has decided on a new progressive dividend policy effective from 2014 onwards with a targeted payout ratio on comparable net profit in the range of 35-45% over time.

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

“We continued to focus on our top line, with currency neutral net sales revenue per case increasing for the eighth consecutive quarter. Our emerging markets were the drivers in terms of volume growth, albeit at a slower pace. The volume decline in our established and developing markets reflects the ongoing difficult macroeconomic environment in most of our European markets. Against this challenging backdrop, trademark Coca-Cola products grew by over 2% in the second quarter. 

For the remainder of 2013, we anticipate that the current trading conditions will remain unchanged.  We are confident in our ability to drive operational performance and deliver on our strategic commitments: winning in the marketplace, increasing currency neutral net sales revenue per case and focusing on cost leadership through tight operating expense control and disciplined working capital management.

The primary listing in London, a key milestone in the history of our Company, was successfully completed with the settlement of the statutory buy-out of the minority holdings in Coca-Cola Hellenic Bottling Company S.A. in June. The refinancing of our upcoming bond maturities at very competitive rates soon after the completion of the share exchange offer is a clear testament of our ability to capture the benefits of our relisting and redomiciliation.”