Coca-Cola Hellenic Bottling Company – 17.1% increase in net income in the 3rd quarter

Increase by 17.1% of net income on a neutral exchange rate, acceleration of growth on a biennial basis, + 16.8% compared to the third quarter of 2019 and + 8.9% compared to the nine months of 2019, respectively By comparison, Coca-Cola HBC AG, the strategic bottling partner of The Coca-Cola Company, announced the progress of operations in the third quarter of 2021.

According to a relevant information, “Through the targeted implementation of our strategy, we have reaped the benefits of the summer season, benefiting from the reopening of its out-of-home consumption channel. Also, good performance in emerging markets continued. We achieved an increase in market share by 70 basis points in ready-to-consume non-alcoholic beverages during the nine months “.

The increase in sales volume by 13.1% was based on the priority categories of the product portfolio of 24-hour / 7-day consumption: carbonated soft drinks + 13.1%, carbonated soft drinks with low or zero sugar + 54.6%, carbonated soft drinks for adults +27 5% and energy drinks + 29.4%.

“Price / mixture increase by 5.1% from the beginning of the year until today and by 3.5% in the third quarter, which is compared to a higher base. Our three markets have accelerated the rate of price increase / mix compared to 2019. Strict management of cost of sales and consistent control of operating expenses”, it is pointed out.

The completion of the acquisition of the Coca-Cola Bottling Company of Egypt is expected to take place by the first quarter of 2022.

In addition, the company announced its commitment to achieving zero emissions throughout the supply chain by 2040.

Key elements by sector
• Developed markets: Price / mix growth continued. The recovery of sales volume was supported by the successful implementation of our strategy during the summer period and the reopening of its out-of-home consumption channel.

• Growing markets: Sales volumes in the third quarter increased slightly compared to 2019, despite the impact of the sugar tax in Poland.

Emerging Markets: Strong momentum in Nigeria and Russia in the quarter, despite the higher benchmark.

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

“In the third quarter, we achieved a strong increase in our performance, as a result of the targeted and well-prepared implementation of our strategy during the summer period, as well as the continued dynamic growth in the emerging markets sector.

The growth rate of net income on a neutral exchange rate strengthened in all sectors compared to 2019 and led to a faster growth of market share in the quarter. This performance is due to the strength of our 24-hour / 7-day product portfolio, our ability to manage revenue growth, the adaptability of our distribution strategy and, above all, the flexibility of our people, who implement our market strategy through close cooperation with our customers.

In the current inflationary environment that affects all industries, the tools to manage our revenue growth, as well as our ability to shape prices using the results of detailed analyzes and data, will play a crucial role. Our actions in 2021, as well as our plans for the fourth quarter and beyond, will help us meet the challenges of current environmental costs. “I am pleased to repeat the 2021 targets, for a strong recovery of net income on a neutral exchange rate basis and an increase in operating profit margin of 20-30 points.”

Developed markets: Greece

Sales volumes in Greece increased at the average level of the range 20% -30%.

The performance was supported by trends in tourism, which developed better than expected, and by the easing of travel restrictions during the summer, which also benefited the consumption channels outside and inside homes.

Sales volume increased by around 30% in the non-carbonated soft drinks category and by an average of 10% -20% in the carbonated soft drinks category, mainly due to the performance of Coke Zero and adult soft drinks.