Coca Cola – Double digit sales increase in Greece

Sales in Greece for Coca Cola increased by double digits in the first half of the year, according to a relevant announcement. The country, according to the company, benefited from the gradual reopening of the hotel, restaurant and coffee industry (HoReCa) in early May, but the sluggish start to the tourist season had an impact on the recovery. Satisfactory results were recorded in carbonated soft drinks and energy drinks, while Costa Coffee is also beginning to contribute to sales performance. In the category of non-carbonated soft drinks, there was a recovery in relation to the reduced sales of 2020.

“The continued recovery and effective execution of our strategy led to an acceleration of momentum and a strengthening of market shares in the second quarter, with revenue growth on a neutral exchange rate in the first half of 23.1% on a corresponding comparison basis,” the company noted. Net income on a published basis increased by 14.7%.

Net income from sales on a neutral exchange rate increased by 4% compared to 2019 levels (on a corresponding comparison basis).

The strengthening of market shares in value recorded an increase of 50 basis points in the category of ready-to-consume non-alcoholic beverages.

Sales

Also, there was an increase in sales volume by 15.9% on a corresponding comparison basis.

In-house consumption performance was maintained in conjunction with a recovery in the out-of-home consumption in the second quarter, while there was an improvement in net sales revenue per box on a neutral foreign exchange basis, thanks to price increases applied to more than 90 % of our purchases and the positive mix of product category, packaging, and distribution channels.

Sales of carbonated soft drinks increased by 16.2%, with carbonated soft drinks for adults increasing by 37.0% and products with low or zero sugar increasing by 40.3%.

Sales of energy drinks increased by 66.1%, mainly due to the good performance of the Monster, Burn and Predator brands.

Costa Coffee’s expansion continues to grow at a good pace. The coffee sector strategy is strengthened by the premium Italian brand Caffè Vergnano, the distribution of which will start by 2022.

Operating leverage and cost savings resulted in an increase in the comparable operating profit margin by 340 basis points to 10.8%.

According to the company announcement, “We saved € 120 million in costs due to COVID-19 in 2020. We continue to expect that from these cost savings we will maintain about € 20 million in 2021 and therefore the remaining € 100 million will return in the second half of 2021 “.

Basic data by market

The recovery in developed and emerging markets reinforces the continuing strong results in emerging markets.

Developed markets: Net income on a neutral foreign exchange basis increased by 17.1% after the reopening of markets, which led the margin of comparable operating profit to increase by 440 basis points.

Developing markets: Net income on a neutral exchange rate increased by 17.6%, while sales volume remained stable despite the impact of the imposition of the sugar tax in Poland. The margin of comparable operating profits rose by 180 basis points.

Emerging markets: net income on a neutral foreign exchange basis increased by 30.3% on a corresponding comparison basis. Ongoing strong performance from Russia and Nigeria and recovery in other emerging markets led to an increase in the margin of comparable operating profit by 340 basis points.

Zoran Bogdanovic, CEO of Coca-Cola HBC AG, commented:

“We are very satisfied with the first half of the year, during which we increased the strengthening of market shares in value, revenue and profitability, while at the same time we continued to make progress in relation to our strategic priorities. I believe that these results demonstrate the strength of our 24/7 product portfolio, our revenue-raising initiatives and the ability to execute our strategy, but also the talent of our people, whose flexibility and adaptability will ensure utilization of future opportunities for the Group.

The dynamics of our business activity strengthened as its out-of-home consumption channel recovered and its in-house consumption channel continued to grow. In addition, we have seen growth in our developed and emerging markets, alongside the consistently strong performance of emerging markets.

We recorded excellent performance in areas that are our strategic priorities and more specifically in low or zero sugar carbonated soft drinks, adult carbonated soft drinks and energy drinks. We have strengthened our coffee strategy with Caffè Vergnano, which will be a premium addition to our portfolio, combined with the wide-ranging Costa Coffee. We have made progress on our agenda for a World Without Waste with new packaging releases from 100% recycled PET.

Encouraged by strong performance, and aware of the risks as the COVID-19 pandemic continues to impact our markets, we continue to expect a strong recovery in net foreign exchange sales and now believe we can increase it. operating profit margin of 20-30 basis points this year. “