Symbol go
GD         Turnover  mln.
COMPANY NEWS

Coca Cola 3E: Net Profit Of 302 Million

  e-mail
Coca Cola 3E said that net profit was €302 million in the first nine months of 2011, compared to net profit of €419 million the prior year period. In the third quarter of 2011, comparable net profit was €156 million, compared to €217 million in the prior year period, driven mainly by the decreased operating profit.

According to a report, total volume was 1,618 million unit cases with a 3% increase in developing markets, fully offset by a 1% decline in established and emerging markets. Net sales revenue grew ahead of volume with a 3% increase in developing markets and a stable performance in established and emerging markets.

Sparkling beverages volume increased by 3% in the first nine months of 2011, while energy drinks volume showed strong double digit growth. On the other hand, water and juice volume declined by 6% and 7%, respectively.

All premium sparkling brands grew ahead of total volume, with Coca-Cola growing 6%, Coca-Cola Zero growing 9%, and Fanta and Sprite growing 2%, each.

Comparable operating profit decreased by 25%, from €623 million in the first nine months of 2010 to €468 million in the first nine months of 2011. For the third quarter, comparable operating profit decreased by 27%, from €301 million in the third quarter of 2010 to €220 million in the third quarter of 2011 mainly due to increased commodity and raw materials costs. Our comparable operating margin decreased from 11.8% in the first nine months of 2010 to 8.8% in the first nine months of 2011 and from 15.1% in the third quarter of 2010 to 11.4% in the third quarter of 2011.

Net finance costs during the third quarter and during the first nine months of 2011 were higher by €0.6 million and €9.5 million respectively compared to the same periods of the prior year. This was mainly due to the ineffectiveness charge arising from our hedge accounting relationships, the early issuance of the new €300 million bond in March 2011 leading to a negative interest rate spread, costs associated with the early refinancing of the €500 million Revolving Credit Facility that took place in May 2011 and the portfolio restructuring from floating to fixed interest rates that took place in June and July last year. 

All these negative effects more than offset the positive impact from the non-recurrence of the interest rate options valuation that had a negative impact during the first nine months last year.
Dimitris Lois, Chief Executive Officer of Coca-Cola Hellenic, commented:
“During the third quarter we continued to expand our leadership position in the marketplace by growing value share in the ready-to-drink category in twenty four out of our twenty eight markets. Consistent with our revenue growth strategy, we also achieved net sales revenue per unit case growth of 4% on a currency neutral basis.
The sharp deterioration in consumer confidence and continued pressure from input costs combined with the impact on our comparable results of last year’s heat wave in several key countries impacted both volume and profitability in the third quarter. In the fourth quarter, we will maintain focus on our strategic initiatives, revenue growth management, cost leadership and free cash flow generation while winning in the marketplace.
We are proud that our commitment to sustainable, profitable growth has been recognised for the fourth consecutive year through our inclusion in the Dow Jones Sustainability Index. Long term, our market execution capabilities, leading brands, broad geographic footprint with attractive growth prospects and our financial discipline leaves us confident in our ability to continue to create value for our shareholders.”
Follow Capital.gr to Social Media
  Did you find this article interesting?: