Coca-Cola HBC profits up despite lower revenues

LONDON (ShareCast) - (ShareCast News) - Bottling firm Coca-Cola HBC posted a 31.7% rise in first-half net profits to €125.2m, although sales fell by 1% to €3.15bn due to an adverse impact from currencies. The company said comparable earnings before interest and tax (EBIT) were €219.0m - up 31.2%, leading to a 170 basis point improvement in EBIT margin as favourable input costs, increased volume, benefits from revenue growth management initiatives and cost efficiencies were partly offset by "significant" adverse movements in currencies.

It added that initiatives to further improve operational efficiencies remain unchanged.

"For 2015, we have identified restructuring initiatives of approximately €45m. We expect these initiatives to yield €30m in annualised benefits from 2016 onwards, while the initiatives already taken in 2014 and those that we will take in 2015 are expected to yield €44m of total benefits in 2015," Coca-Cola HBC said.

Chief executive Dimitris Lois said difficult conditions remain in many of the company's markets, particularly in Russia.

"Conditions are more favourable in Eastern Europe and Nigeria, where we are confident of further growth. We have become more optimistic as the year has progressed and remain confident that 2015 will be a year of volume growth and progress on margins," he said.