Results for the year ended 31 December 2016 - CONTINUED GOOD PROGRESS IN MARGIN RECOVERY
CONTINUED GOOD PROGRESS IN MARGIN RECOVERY
Coca-Cola HBC AG, a leading bottler of The Coca-Cola Company, reports its financial results for the full year ended 31 December 2016.
Full-year highlights
- Another year of good progress, with the business developing in line with our 2020 strategic plan
- Net sales revenue up 3.0% on an FX-neutral basis; taking account of currency movements, net sales revenue declined by 2.0%
- FX-neutral revenue per case grew in all geographic segments, up 2.9% overall; this substantial increase reflects our focus on value through price increases, mainly in Emerging markets, as well as better package and category mix
- Volume increased by 0.1%, with good growth led by Nigeria and Romania, offset by continuing decline in Russia and weaker volume performance in Italy and Austria
- Cost efficiencies resulted in a 100 basis-point reduction in comparable operating expenses as a percentage of net sales revenue
- Comparable EBIT margin increased by 90 basis points to 8.3%, benefiting from our revenue growth management initiatives, cost efficiencies and benign input costs; EBIT margin improved by 160 basis points to 8.1% on a reported basis
- Increased profits helped generate €431.2 million of free cash flow, up €19.4 million year on year
- Comparable EPS increased by 12.5% to €0.972; reported EPS increased by 23.1% to €0.949
- The Board of Directors proposes a €0.44 dividend per share, a 10% increase on the 2015 dividend
|
|
Full Year |
Change |
|
|
|
2016 |
2015 |
|
|
Volume (m unit cases) |
2,057.9 |
2,055.0 |
0.1% |
|
Net sales revenue (€ m) |
6,219.0 |
6,346.1 |
-2.0% |
|
Net sales revenue per unit case (€) |
3.02 |
3.09 |
-2.1% |
|
FX-neutral net sales revenue1 (€ m) |
6,219.0 |
6,038.0 |
3.0% |
|
FX-neutral net sales revenue per unit case1 (€) |
3.02 |
2.94 |
2.9% |
|
Operating expenses (€ m) |
(1,792.5) |
(1,909.2) |
-6.1% |
|
Comparable operating expenses1(€ m) |
(1,756.8) |
(1,855.2) |
-5.3% |
|
Operating profit (EBIT) (€ m) |
506.3 |
418.2 |
21.1% |
|
Comparable EBIT1 (€ m) |
517.5 |
473.2 |
9.4% |
|
EBIT margin (%) |
8.1 |
6.6 |
160bps |
|
Comparable EBIT margin1 (%) |
8.3 |
7.5 |
90bps |
|
Net profit2 (€ m) |
343.5 |
280.3 |
22.5% |
|
Comparable net profit1,2 (€ m) |
352.1 |
314.3 |
12.0% |
|
Basic earnings per share (EPS) (€) |
0.949 |
0.771 |
23.1% |
|
Comparable EPS1 (€) |
0.972 |
0.864 |
12.5% |
|
Free cash flow1 (€ m) |
431.2 |
411.8 |
4.7% |
1For details on APMs refer to ‘Alternative Performance Measures' and ‘Definitions and reconciliations of APMs' sections.
2Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.
Dimitris Lois, Chief Executive Officer of Coca-Cola HBC AG, commented:
“I am delighted with our 2016 performance and the momentum in the business. We have delivered solid currency-neutral revenue growth and another year of significant growth in margins and profits, representing a sustainable and well established recovery. Cost and efficiency actions continue to improve profitability and enable the business to maximise the gains from top line growth.
“In 2017, we expect slightly better economic conditions to support volume growth. We take confidence from these improving underlying trends as well as the success of both our commercial activities and cost initiatives, which will remain key focus areas in our plans. We are confident that 2017 will be a year of currency-neutral revenue growth and margin expansion as we continue to make progress towards our 2020 targets.”
FY2015 results announcement