THIRD QUARTER 2020 TRADING UPDATE
STRONGLY IMPROVED TRADING IN Q3
Coca-Cola HBC AG, a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, today announces its 2020 Q3 trading update.
Third quarter highlights
Strong improvement in trading in Q3 with recovery in the out-of-home channel and growth in the at-home channel
FX-neutral revenue -2.6% or -0.3% like-for-like1 and showing monthly sequential improvement
- Volumes -1.4% reported and +1.0% like-for-like1; with volumes positive in August and September
- FX-neutral revenue per case declined by -1.2% on both a reported and like-for-like1 basis, a significantly improved trend compared to Q2, driven by better performance in channel and package mix as trading in the out-of-home channel improved compared to Q2
- Strong market share performance continues with 40bps of value share gained YTD and the majority of our markets gaining or maintaining share
FX-neutral revenue benefited from the strong positive performance in Nigeria, Russia and Poland; three of our five largest markets
- Established: -5.4%; volume -8.6% with strong recovery in price/mix as trading improved in the out-of-home channel. Volumes -5.1% excluding Greece which was heavily impacted by lack of international tourism this summer
- Developing: -0.1%; volume +2.5% led by strong volume performance in Poland, while an improved price/mix trend compared to Q2 was broad based across our Developing segment markets
- Emerging: -1.3%; volume +1.2%, or on a like-for-like1 basis revenue +4.2% with volume +5.8%; strong like-for-like1 performance in Nigeria and Russia which both grew volumes double-digit
- Anticipated combined net impact of FX and raw materials for FY2020 continues unchanged vs original budget, as benefits from lower commodity costs offset weaker FX
- Strong progress on cost control leads us to increase our previous €100m cost savings target by €20m for the full year, further supporting EBIT and margin recovery
- Strong balance sheet and liquidity to meet all financial commitments as well as to operate and invest in the business
Q3 2020 vs Q3 2019 |
| Net sales revenue | Volume | Net sales revenue per unit case | ||
growth (%) |
| FX – neutral2 | Reported |
| FX – neutral2 | Reported |
Total Group |
| -2.6 | -6.7 | -1.4 | -1.2 | -5.4 |
Established markets |
| -5.4 | -5.1 | -8.6 | 3.5 | 3.8 |
Developing markets |
| -0.1 | -3.2 | 2.5 | -2.6 | -5.6 |
Emerging markets |
| -1.3 | -9.6 | 1.2 | -2.5 | -10.6 |
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:
“We are encouraged by the strong improvement in trading in Q3, supported by a rapid recovery in the out-of-home channel as markets reopened. This performance demonstrates our ability to adapt to the fast-changing market environment. 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.“
1Performance, unless stated otherwise, is negatively impacted by the change in classification of our Russian Juice business, Multon, from a joint operation to a joint venture, following its re-organisation. For performance measures excluding this impact, please refer to the relevant table in the ‘Supplementary information' section.
2For details on Alternative Performance Measures (‘APMs') refer to ‘Alternative Performance Measures' and ‘Definitions and reconciliations of APMs' sections.
Please find attached the press release
COCA-COLA HBC - THIRD QUARTER 2020 TRADING UPDATE - STRONGLY IMPROVED TRADING IN Q3