Coca-Cola HBC hails 'strongly improved' trading in Q3

Total group volumes fell 1.4% on a reported basis in the third quarter to 612.9m unit cases, while net sales revenue was down 6.7% to €1.83bn. On a like-for-like basis, volumes edged up 1% and were positive in August and September.

The company said it benefited from a strong improvement in trading as its markets continued to re-open following local and national lockdowns.

The emerging market was the best segment on a like-for-like basis, underpinned by growth in Nigeria and Russia. This was followed by the developing market, where half of the markets returned to volume growth in the quarter.

The established market saw the fastest recovery of volumes between the second and third quarter. However, since more countries in this segment earn a bigger chunk of their revenues from the out-of-home channel and are exposed to international tourism, volumes fell in Q1.

The out-of-home channel, which accounts for slightly more than 40% of group revenues, saw the most notable improvement.

"Overall, while in the weeks of the lockdowns we experienced volume declines in the out-of-home channel in the range of 70% to 90%, during the months of May and June this improved to declines in the range of 25% to 50% and during the third quarter to declines in the high single digits," the company said.

Coca-Cola said 80% to 90% of the out-of-home channel was open and trading in Q3, albeit at lower capacity compared to last year.

"Stronger trading in the out-of-home channel, in addition to benefiting volumes, has also contributed to improved performance in price/mix."

Chief executive officer Zoran Bogdanovic said: "Looking into Q4, as we cycle a very strong volume comparator and see the renewal of lockdown restrictions in some markets, we are encouraged by the consistent growth we have seen in the at-home channel, which will be especially important for this final quarter. Combined with the increasing impact of our cost savings programmes this should allow us to continue to deliver good profitability in a severely disrupted year."