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Third quarter 2020 trading update
11 Nov 2020
STRONGLY IMPROVED TRADING IN Q3

Coca-Cola HBC AG, a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, today announces its 2020 Q3 trading update.

Third quarter highlights

- Strong improvement in trading in Q3 with recovery in the out-of-home channel and growth in the at-home channel

- FX-neutral revenue -2.6% or -0.3% like-for-like1 and showing monthly sequential improvement

  • Volumes -1.4% reported and +1.0% like-for-like1; with volumes positive in August and September

  • FX-neutral revenue per case declined by -1.2% on both a reported and like-for-like1basis, a significantly improved trend compared to Q2, driven by better performance in channel and package mix as trading in the out-of-home channel improved compared to Q2

  • Strong market share performance continues with 40bps of value share gained YTD and the majority of our markets gaining or maintaining share

- FX-neutral revenue benefited from the strong positive performance in Nigeria, Russia and Poland; three of our five largest markets

  • Established: -5.4%; volume -8.6% with strong recovery in price/mix as trading improved in the out-of-home channel. Volumes -5.1% excluding Greece which was heavily impacted by lack of international tourism this summer

  • Developing: -0.1%; volume +2.5% led by strong volume performance in Poland, while an improved price/mix trend compared to Q2 was broad based across our Developing segment markets

  • Emerging: -1.3%; volume +1.2%, or on a like-for-like1basis revenue +4.2% with volume +5.8%; strong like-for-like1performance in Nigeria and Russia which both grew volumes double-digit

- Anticipated combined net impact of FX and raw materials for FY2020 continues unchanged vs original budget, as benefits from lower commodity costs offset weaker FX

- Strong progress on cost control leads us to increase our previous €100m cost savings target by €20m for the full year, further supporting EBIT and margin recovery

- Strong balance sheet and liquidity to meet all financial commitments as well as to operate and invest in the business

Q3 2020 vs Q3 2019

Net sales revenue

Volume

Net sales revenue per
unit case

growth (%)

FX - neutral2

Reported

FX - neutral2

Reported

Total Group

-2.6

-6.7

-1.4

-1.2

-5.4

Established markets

-5.4 -5.1 -8.6 3.5 3.8

Developing markets

-0.1 -3.2

2.5

-2.6 -5.6

Emerging markets

-1.3 -9.6

1.2

-2.5 -10.6

1 Performance, unless stated otherwise, is negatively impacted by the change in classification of our Russian Juice business, Multon, from a joint operation to a joint venture, following its re-organisation. For performance measures excluding this impact, please refer to the relevant table in the 'Supplementary information' section.

2 For details on Alternative Performance Measures ('APMs') refer to 'Alternative Performance Measures' and 'Definitions and reconciliations of APMs' sections.

'We are encouraged by the strong improvement in trading in Q3, supported by a rapid recovery in the out-of-home channel as markets reopened. This performance demonstrates our ability to adapt to the fast-changing market environment. Looking into Q4, as we cycle a very strong volume comparator and see the renewal of lockdown restrictions in some markets, we are encouraged by the consistent growth we have seen in the at-home channel, which will be especially important for this final quarter. Combined with the increasing impact of our cost savings programmes this should allow us to continue to deliver good profitability in a severely disrupted year.'

Zoran Bogdanovic Chief Executive Officer of Coca‑Cola HBC AG
Coca‑Cola HBC Group

Coca-Cola HBC is a growth-focused CPG business and strategic bottling partner of The Coca-Cola Company. We create value for all our stakeholders by supporting the socio-economic development of the societies in which we operate and we believe building a more positive environmental impact is integral to our future growth. Together, we and our customers serve more than 600 million consumers across a broad geographic footprint of 28 countries on 3 continents. Our portfolio is one of the strongest, broadest and most flexible in the beverage industry, offering consumer-leading partner brands in the sparkling, juice, water, sport, energy, plant-based, ready-to-drink tea, coffee, adult sparkling and premium spirits categories. These brands include Coca-Cola, Coca-Cola Zero, Schweppes, Kinley, Royal Bliss, Costa Coffee, Valser, Romerquelle, Fanta, Sprite, Powerade, FuzeTea, Dobry, Cappy, Monster and Adez. We foster an open and inclusive work environment amongst our more than 28,000 employees and we are ranked among the top sustainability performers in ESG benchmarks such as the Dow Jones Sustainability Indices, CDP, MSCI ESG and FTSE4Good.

Coca-Cola HBC has a premium listing on the London Stock Exchange (LSE:CCH) and is listed on the Athens Exchange (ATHEX:EEE). For more information, please visit http://www.coca-colahellenic.com.

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Coca-Cola HBC 2020 Q3 Trading update

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Coca-Cola HBC AG published this content on 11 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 07:22:00 UTC