Coca-Cola HBC: 2014 half-yearly financial report

Coca-Cola HBC AG, the second largest bottler of the brands of The Coca-Cola Company, reports its financial results for the six-month period ended 27 June 2014.

Second quarter and half-year highlights

- Gained or maintained market share in volume and value in 15 markets in Sparkling beverages and in 13 markets in NARTD1

- Net sales revenue declined by 5% in the quarter and by 6% in the first half mainly as a result of the volume decline and the unfavourable foreign exchange movements

- Volume declined in the quarter at a slower pace than in Q1 as a result of the overall improvement in Established and Developing markets and Nigeria΄s return to growth; Czech Republic, Italy, Poland, Romania and Russia drove the decline compared to the prior-year period

- Gross profit margin increased on prior year both in Q2 and the half year, driven by the successful implementation of our revenue growth management initiatives, value-accretive volume strategy in Developing markets, pricing and the favourable input cost environment

* Operating expenses improved by 10% in Q2 * EBIT and EBIT margin demonstrated solid growth in Q2 compared to the first quarter and prior-year quarter
* Strong free cash flow generation in Q2, with continued reduction in the working capital  balance 

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

“We continue to take action to mitigate the impact of the difficult trading conditions caused by depressed consumer sentiment and foreign exchange headwinds, while input cost pressures have abated. Our ongoing initiatives produced another quarter of growth in currency-neutral net sales revenue per case, and we are pleased with our efforts to reduce operating expenses as a percentage of net sales revenue in a very challenging volume environment.

For the full year, we expect the positive trends in  currency-neutral net sales revenue per case, input and operating costs, combined with less foreign exchange pressure than previously anticipated, to offset the continuing challenging volume environment in our markets.”

1 Nielsen May year-to-date data based on 23 measured markets in Sparkling beverages and 21 measured markets in NARTD