NIGERIA – Coca-Cola HBC, the parent company of the Nigerian Bottling Company (NBC) reported its full year results for 2017 on Wednesday, with the soft drinks giant posting a 24% increase in profit to €426 million.
Revenue grew 4.9% in the period to €6.5bn from €6.2bn in 2016.
The company which is the Coca-Cola anchor bottler in 28 mostly European countries and Nigeria said that volumes grew 2.2% across its geographic segments with the strongest growth coming from developing markets, where it saw a 2.8% volume growth, helped by strong performance in Poland, which was driven by Sparkling, Energy drinks and juice.
Net sales in developing markets rose 7.2% in the year.
Emerging market segments saw a 2.7% volume increase, driven by a strong performance in the Ukraine, Romania and Serbia, which offset declines in Russia and Nigeria.
Net sales revenue grew 7.2%, helped by positive price, category and package mix.
The company notes that the negative impact of currency was lower as the Russian Rouble strengthened, while the Nigerian Naira depreciated.
In Nigeria, volume declined 1% as challenging economic conditions and three separate price increases taken to offset against the significant Naira depreciation reduced demand.
However, the firm’s strategy of adjusting PET package sizes in sparkling drinks to maintain price points relevant to the consumer has helped to maintain volumes.
The company said it has further plans to introduce PET package in Schweppes and Juice.
Overall, CCHBC expects volume to continue to grow in all three geographic segments, with Emerging Markets segment picking up steam, as Russia and Nigeria return to volume growth.
Beverage Industry News NG