Coca-Cola European Partners sees softening in some markets

Coca-Cola European Partners reported third-quarter revenue in line with its expectations on Thursday, coming in at €3.28bn, with its year-to-date revenue totalling €9.08bn, which was an improvement of 4% year-on-year.

The London-listed independent Coca-Cola bottler, which serves Western European markets, said for the three months ended 27 September its volume totalled 691 million cases, which was a fall of 1.5% compared to the same time last year, while its revenue unit per case was 2% higher at €4.77.

For the year-to-date, the company reported a volume of 1.905 billion cases, which was a 1% improvement, while its revenue per unit case was up 3.5% to €4.78.

“We are pleased with our top-line performance in the third-quarter reflecting continued price and mix realisation, solid in-market execution and innovation,” said chief executive officer Damian Gammell.

“We continue to invest today to win tomorrow as we scale up our exciting innovations underpinned by a strong sustainability agenda and an aligned relationship with the Coca-Cola Company.

“We continue to take action on packaging having recently announced both the move from shrink wrap to cardboard packaging for our can multipacks, and bringing forward our 50% recycled PET target to 2023, two years earlier than planned.”

Gammell said that while the company continued to gain market share across all of its geographies, it had a slower-than-expected start to the fourth quarter as it was 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.

“This, alongside delivering a healthy 17% increase in the annual dividend and the now near completion of our €1.5 billion share buyback programme, collectively demonstrate our focus of driving sustainable value for our shareholders.”

As at 1543 BST, shares in Coca-Cola European Partners were down 5.91% in London.