Coca-Cola HBC revenue rises 2.6% with strong growth in developing markets

SWITZERLAND – Coca-Cola HBC, the world’s second-largest Coca-Cola anchor bottler in terms of volume has said revenue in the third quarter of 2018 increased by 2.6% to US$2.11 billion driven by strong volume growth.

Volume grew 4.2% in the third quarter and by 4.4% in the nine months across its geographic segments, with the strongest growth coming from developing markets, where it recorded 11.3% volume growth in the third quarter and 9.8% volume rise in nine months.

“We are pleased with how our actions are positioning the business to successfully capture growth opportunities in our markets.

Our product portfolio is evolving to meet changing consumer preferences, and by partnering with customers we are strengthening our route to market.

We had a quarter of solid growth led by continued good progress in volumes against strong comparatives,” said Zoran Bogdanovic, Chief Executive Officer of Coca‑Cola HBC AG.

In Poland, the company said it witnessed strong performance as a result of good summer weather and favourable macroeconomic environment.

Developing markets also recorded 12.4% growth in net sales with double-digit growth in all brands including water.

Volumes in these markets rose 4.1% with positive performance from every market in the segment while net sales revenue grew 1.1% in the third quarter and -1.8% in the nine months.

Established market volumes grew marginally by 0.5% in the nine months, with flat sales.

The bottler, which is also the parent company of the Nigerian Bottling Company (NBC) said Nigeria saw volume growth in the mid-single digits, with double-digit volume growth in water and juice, offset partly by modest declines in sparkling.

In the country, the consumer continues to be constrained given a weak economic environment.

To offset this negative trend, the company said it resolved to adjusting the brand, price and pack architecture to address affordability needs and adapt to strong competitive pressure.

The firm said that it saw a rapid acceleration in Coke Zero volume in Q3, which has a more affordable price point than Coke Regular, and it also saw growth from the 35cl ‘solo’ bottle.

However, the company remains confident that it will realize good growth in both revenue and margins in the year 2018.

“As expected, the slowdown in price/mix growth primarily reflected the timing of planned pricing activity, and we expect an acceleration in the final quarter.

October trading has been strong, and we look to the full year confident that 2018 will be another year of good growth in both revenue and margins,” said Zoran.

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