From:Packaging News

Coca-Cola HBC, one of the leading bottlers of The Coca-Cola Company, has reported an increase in volume for 2015.

Net sales revenue however, declined by 2.5% to €6.35bn after a -5.1% adverse foreign exchange impact.

Comparable EBIT, profit before interest and taxes, was up 11.4% (€473.2m, while net profit was €280.3m.

The company bottles and sells Coca-Cola drinks in 28 countries including Russia, Ukraine and Nigeria, also forecast 2016 volume growth and substantial improvement in revenue per case, excluding foreign currency effects exchange.

Strong volume growth in the fourth quarter resulted in a 2.6% increase in volume for the year – with established markets returning to growth for the first time in five years.

Established European markets such as Italy and Greece fared well, along with Eastern European markets Poland and Hungary, while double-digit growth in Nigeria, Romania and Ukraine helped drive volume in the emerging markets segment (up 2.5%), despite the anticipated mid single-digit decline in Russia.

The company was conscious that deflation in Europe and affordability concerns in certain markets limited pricing opportunities in established and developing market segments, largely offsetting the pricing actions taken in emerging markets.

Dimitris Lois, chief executive of Coca-Cola HBC, said volumes grew in all segments for the first time in five years and margins  improved significantly.

“Our commercial initiatives supported volume expansion and we made further efficiency gains to ensure continued profitable growth.

“Conditions in Europe are slowly improving while countries with large oil exposure face ongoing difficult trading conditions. Going into 2016 we will continue to take action to address the challenges on a country by country basis. Overall we think the business is well placed to build further on both the volume growth and margin expansion achieved in 2015.”

David Cheetham, market analyst at financial markets, shares and commodities broker XTB UK, said with low expectations for sales heading prior to the results because of the company’s exposure to emerging markets, the 2.6% increase in turnover, with a 2.5% rise for emerging markets, will go some way to alleviate these concerns.

“With less than half the revenue coming from developed markets, fears that the rapid currency depreciation’s in the Russian rouble and Nigerian Naira would weigh heavily on the results appears to have been misplaced, with Nigeria in particular excelling and posting double-digit growth.”

He warned the results were, however, far from stellar as shown by the EPS dropping to 0.771 compared to 0.809 a year earlier.