Alongside the release of its third-quarter trading figures, Coca-Cola European Partners (CCEP) revealed that it had made slower-than-expected start to its fourth quarter due to weakening demand in France and the UK, and cold weather in October in most markets.
In the last three month period to 27 September, the world’s largest independent Coca-Cola bottler saw its total revenue unchanged at €3.28bn. However, volumes slipped 1.5% against tough comparables with last year when the drinks market benefitted from a prolonged heatwave.
Revenue per unit case grew 2%, driven by “favourable” underlying price, as well as channel & package mix (e.g. small cans volume grew 8%)
In the UK, revenue on a constant exchange rate basis was unchanged at €626m, with volume growth driven by its Coca-Cola Zero Sugar, Fanta, and Monster brands.
Revenues slipped 1.5% in France but was unchanged Germany and grew 2% in the Iberia region (Spain, Portugal & Andorra).
For the full year, CCEP is expecting revenue growth of approximately 3% (previously low single-digit range), excluding the impact of soft drinks taxes of approximately 1%
Chief Executive Damian Gammell said: “We are pleased with our top-line performance in the third-quarter reflecting continued price and mix realisation, solid in-market execution and innovation.”
He added: “Whilst we continue to gain market share across all geographies, we have had a slower than expected start to the fourth-quarter as we are seeing early signs of softening market conditions, particularly in France and Great Britain, and unfavourable weather in October across most markets. However, we still expect to deliver revenue growth and free cash flow at the top-end of guidance as well as solid full-year earnings growth, albeit at the low-end of our previously guided range.”
CCEP announced this week that it was bringing the ‘Reign’ range of performance energy drinks to the UK, following a successful launch in the US.
