Coca-Cola HBC serves up solid first half earnings

Coca-Cola HBC, one of the Coca-Cola Company’s largest bottlers, posted solid first-half growth on Thursday with volume rising 1.4% to 1.02bn unit cases, while net sales revenue was ahead 5.6% at €3.21bn.

The FTSE 100 firm said net sales revenue per unit case was 4.2% higher year-on-year for the six months to 30 June, at €3.15, while on an FX-neutral basis net sales revenue was up 5.7% and per unit case net sales revenue was 4.3% firmer.

Its operating expenses for the period were 1.7% higher at €933.5m, with comparable operating expenses rising 4% to €920.3m.

The company made an operating profit of €266.4m, up 20.8% on the same time last year, while comparable EBIT was ahead 26.8% at €291.1m and its EBIT margin grew 100 basis points to 8.3%.

Its board said the comparable EBIT margin for the half-year was 150 basis points higher at 9.1%.

Coca-Cola HBC’s net profit was €191.6m for the period, up 36.9% on what it was 12 months ago, and its comparable net profit was 39.4% higher at €209.6m.

Basic earnings per share stood at 52.6 euro cents and comparable earnings per share were 57.6 euro cents - improvements of 35.9% and 38.5% respectively.

“We are delighted to report an excellent set of results for the first half of the year, with volume and revenue per case growth in all three market segments,” said chief executive Dimitris Lois.

“It is also very pleasing to see the revenue growth translating into significant margin expansion.”

Lois said that demonstrated that the company’s strategy to exploit its lean asset base and improve profitability through operating leverage was “powerful” and delivered well.

"We are on track for broad-based revenue and margin growth for the full year with the organisation energised by the progress we are making towards our 2020 financial targets."