Soft-drink giant, Coca-Cola HBC’s first half of the year profit dropped 10percent to €195.1m, down from €216.9m for the period ending 30th June.
The company’s net sales revenue surged 3.8percent to €3.4bn on a 2.2percent volume lift.
Total unit case volumes sold rose to 1,090.4 billion cases, from 1,067.4 billion cases in 2018.
The soft drinks giant said that its revenue also benefitted from favourable currency movement of the Swiss Franc and the Nigerian Naira.
The company’s emerging markets segment saw sales growth of 4.8percent, supported by good momentum and strong volume growth of 3.4percent, as well as price increases, improved category, and package mix, and favourable currency impact from the Naira. Sparkling volumes grew marginally in Nigeria, while water and Energy drinks saw double-digit growth.
According to the company, its profit was adversely impacted by unseasonably wet and cold weather conditions in the second quarter as well as a challenging comparable from the previous year when Coca-Cola was one of the main sponsors of the FIFA World Cup tournament and benefitted immensely from the sales promo.
“We have widened the pack/price architecture across our Sparkling brands and this, along with the work we have done to evolve and strengthen our route to market, is delivering results amid a very competitive market environment,” the company said of its activities in Nigeria
Its sparkling beverages volume increased 2.4percent, with volume growth across all three market segments, trademark Coke continues to have strong momentum with volume growth of 4.5percent buoyed by 34.6percent growth in Coke Zero.
Soft-drinks, Fanta and Sprite volumes declined, Energy volume grew by 28.1percent with a strong performance from both Monster and Burn, which achieved organic revenue growth of 38.8% and 12.3% respectively. Water volume was up by 2.2percent with volume growth fastest in our Emerging segment led by Nigeria.
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC, looking forward to the second half said it will deliver FX-neutral revenue growth within the range of 5-6percent, with another year of margin expansion
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