Growing demands for products in Nigeria and expansion in Russia, Romania, Ukraine, and elsewhere, have influenced Coca-Cola HBC AG‘s net sales revenue to increase to € 1.41 billion in Q1 2019, up from €1.35 billion during the comparable period last year. This indicates a 4.4 percent capital growth.

Specifically, the company’s performance in the four emerging markets mentioned above (including Nigeria), stood at €612.9 million during the period under review. The company has proposed a special dividend of 2 euros per share.

Reacting to this development, the company’s Chief Executive Officer, Zoran Bogdanovic, said:

“We have started the year well, delivering solid growth in revenues despite the impact of this year’s late Easter.” -Bogdanovic

Recall that Nairametrics recently reported that the company recorded a decline in its largest African (i.e., Nigeria) in 2018. The company had disclosed that though Group volume increased by 4.2 percent in its emerging markets excerpt Nigeria.

In its full-year 2018 financial report, the company said emerging segment price/mix growth, up by 2.4%, was a moderation from prior years due to the cycling of 2016/17 price increases in Nigeria and lower Premium Spirits sales in Russia. However, overall volume growth accelerated to 4.2%, with growth in all segments, driven by Sparkling beverages.

Reasons for the decline: Operating via its wholly-owned subsidiary, Nigerian Bottling Company (NBC), with brands such Coke, Fanta and Sprite, the company said Nigerian volumes declined for the year as a result of competitive pressures.

According to the results, it recorded a lower volume in Nigeria due to intense competition in the Sparkling segment which comprises the trademark Coca-Cola and the Coca-Cola Zero variants, Water, while juice and Energy delivered positive results.

Therefore, it is interesting to see that the Nigerian growth is picking up again.

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Coca-Cola’s footprints: Coca-Cola HBC operates in 28 countries in 3 continents; its well-established markets include -Greece, Cyprus, Ireland, Austria, Switzerland, and Italy, while its developing markets include -Poland, the Baltic States, Czech Republic, Slovenia, Slovakia, Hungary, and Croatia.

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More so, its emerging markets include -Russia, Bosnia and Herzegovina, Ukraine, Belarus, Romania, Montenegro, Armenia, Moldova, the Republic of Macedonia, Bulgaria, Serbia, Kosovo, and Nigeria.

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Company’s ownership: Coca-Cola’s stock is 23.3 percent owned by Luxembourg-based Kar-Tess Holding and 23.2 percent by the Coca-Cola Company. The remaining 53.5 percent are in free float of which about two-thirds are held by UK and US institutional investors.

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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