Coca-Cola’s market demand in Nigeria shoots revenue to € 1.41 in Q1 2019

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.

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.

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.

Company’s ownershipCoca-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.

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Author: see naija

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