TIDMCCB
RESULTS FOR THE THREE MONTHS ENDED 30 MARCH 2012
FIRST QUARTER 2012 HIGHLIGHTS
2012 2011 % Change
Volume (m unit cases) 425 434 -2%
Net Sales Revenue (EUR m) 1,437 1,416 1%
Comparable Cost of Goods Sold (EUR 942 895 5%
m)
Comparable EBIT (EUR m) (2) 28 n/a
Comparable Net Loss (EUR m) (19) (1) >100%
Comparable EPS (EUR) (0.05) 0.00 n/a
- Top line: Net sales revenue grew by 1% while volume declined by
2% in the first quarter of 2012. Volume was flat in developing markets and
declined by 2% and 3% in established and emerging markets, respectively.
- Categories: Volume in the sparkling beverages category was flat
while energy drinks volume increased by 6%. Volume in the water and juice
categories declined by 6% and 5%, respectively.
- Brands: Trademark Coca-Cola products grew ahead of total volume,
with Coca-Cola regular growing by 3% and Coca-Cola Zero growing by 10%.
- Share gains: We gained or maintained volume share in sparkling
beverages in most of our markets including Italy, Switzerland, Austria,
Poland, Hungary, Russia, Ukraine and Bulgaria.
- Comparable Operating profit: Revenue growth management
initiatives fully off-set total input cost increases in the first quarter
despite the year on year impact being much higher. Nevertheless, a combination
of lower volume, higher operating expenses and unfavourable foreign currency
fluctuations resulted in a EUR29 million year on year decrease in comparable
EBIT.
- Free Cash flow and Capex: Free cash outflow was at EUR32 million,
representing an improvement by EUR35 million compared to the prior year period
despite reduced profitability. For the period 2012-2014 we plan to invest
cumulative capital expenditure of EUR1.45 billion and expect to generate free
cash flow of EUR1.45 billion.
Dimitris Lois, Chief Executive Officer of Coca-Cola Hellenic, commented:
"We managed to deliver revenue growth ahead of volume performance
amidst a challenging external environment, with currency neutral net sales
revenue per unit case growth of 3%, excluding the hyperinflation impact of
Belarus. We also continued to win in the marketplace, growing or maintaining
our market position in most of our markets, with Trademark Coca-Cola products
growing in all three reporting segments.
We continue to witness macroeconomic uncertainty in all of our EU
markets. We are also facing persistent input cost pressures, whose year on
year growth peaked in the first quarter. Our strong focus on revenue growth
initiatives, improvement in operating efficiencies and financial discipline
leaves us confident that our strategy will allow us to continue growing
revenues and sustaining strong free cash flow generation in 2012.
Each of the twenty-eight markets we serve possesses ample growth
opportunities. We are committed to continue investing behind our brands and
revenue generating assets, optimising our cost base, improving productivity
and thus positioning ourselves favourably to capitalise on an eventual market
recovery. "
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements that involve
risks and uncertainties. These statements may generally, but not always, be
identified by the use of words such as `believe', `outlook', `guidance',
`intend', `expect', `anticipate', `plan', `target' and similar expressions to
identify forward-looking statements. All statements other than statements of
historical facts, including, among others, statements regarding our future
financial position and results, our outlook for 2012 and future years,
business strategy and the effects of our recent acquisitions, and
restructuring initiatives on our business and financial condition, our future
dealings with The CocaâEUR'Cola Company, budgets, projected levels of
consumption and production, projected raw material and other costs, estimates
of capital expenditure or free cash flow and plans and objectives of
management for future operations, are forward-looking statements. You should
not place undue reliance on such forward-looking statements. By their nature,
forward-looking statements involve risk and uncertainty because they reflect
our current expectations and assumptions as to future events and circumstances
that may not prove accurate. Our actual results could differ materially from
those anticipated in the forward-looking statements for many reasons,
including the risks described in our annual report on Form 20-F filed with the
U.S. Securities and Exchange Commission (File No 1-31466).
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot assure you that our
future results, level of activity, performance or achievements will meet these
expectations. Moreover, neither we nor any other person assumes responsibility
for the accuracy and completeness of the forward-looking statements. After the
date of the condensed consolidated financial statements included in this
document, unless we are required by law to update these forward-looking
statements, we will not necessarily update any of these forward-looking
statements to conform them either to actual results or to changes in our
expectations.
Reconciliation of Reported to Comparable Financial Indicators
Group Financial Results First quarter 2012 First quarter 2011
(numbers in EUR million
except per share data)
EBIT1 Net loss2 EPS EBIT1 Net loss2 EPS
Reported (12.8) (28.4) (0.08) 17.6 (8.9) (0.02)
Restructuring costs 13.4 11.3 0.03 10.1 7.9 0.02
Commodity Hedging (2.2) (1.5) - - - -
Comparable (1.6) (18.6) (0.05) 27.7 (1.0) 0.00
1 Operating profit or EBIT refers to profit before tax excluding finance
income / costs and share of results of equity method investments.
2 Loss after tax attributable to owners of the parent.
Financial indicators presented on a comparable basis exclude the
recognition of restructuring costs incurred in both periods under review. In
addition, the Group has entered into certain commodity derivatives in order to
mitigate its exposure to commodity price risk transactions. Though these
transactions are economic hedging activities that aim to manage our exposure
to sugar and aluminum price volatility, they do not qualify for hedge
accounting. The fair value gains and losses on the derivatives are immediately
recognised in the income statement in the line cost of goods sold. The Group's
comparable results exclude the unrealised gains or losses resulting from the
valuation of this hedging activity. These gains or losses will be reflected in
the comparable results in the period when the underlying transactions will
occur, to match the profit or loss impact of the underlying transactions.
Group Operational Review
During the first quarter of 2012, Coca-Cola Hellenic Bottling
Company S.A. (`Coca-Cola Hellenic' or `we' or the `Group') delivered on our
commitment to continue growing revenue ahead of volume for a third consecutive
quarter, whilst continuing to win in the marketplace. The first quarter is a
small quarter in our business and is generally not indicative of full year
trends.
Unit case volume declined by 2% in the first quarter due to subdued
consumer confidence levels in our EU countries, extremely cold weather in
February in Central and Eastern Europe and nation wide strikes in Nigeria.
Consumer confidence levels in most of our EU markets remain significantly
below the EU average.
In the first quarter of 2012, we gained or maintained volume share
in sparkling beverages and value share in the non-alcoholic ready-to-drink
beverages ("NARTD") category in most of our markets. Some of the markets we
achieved share gains in sparkling beverages are Italy, Switzerland, Austria,
Poland, Hungary, Russia, Ukraine and Bulgaria. In the non-alcoholic
ready-to-drink beverages ("NARTD") category, we gained or maintained value
share in Greece, Switzerland, Austria, Ireland, Poland, Hungary, Russia,
Romania, Ukraine, Bulgaria, and Belarus among others.
The sales of Trademark Coca-Cola products increased by 3%
registering volume growth across all reporting segments. Coca-Cola regular
grew by 3% and Coca-Cola Zero grew by 10% in the quarter. Our energy drinks
business grew by 6% in the first quarter as a result of positive growth in
established and emerging markets. Sales of ready to drink tea declined by 2%
despite positive trend in established markets, as the cold weather in Central
and Eastern Europe adversely affected volume. The negative Group volume
performance in the quarter is attributable to lower sales in the water and
juice categories, which declined by 6% and 5% respectively, and the sparkling
beverages category in Nigeria and Greece. Package mix deteriorated in the
first quarter due to the extremely cold winter conditions which had a
significant impact on the immediate consumption channel sales as consumers
preferred at-home occasions.
The continued successful execution of our occasion based brand,
package, price and channel strategy ("OBPPC") once again enabled us to deliver
on our commitment to grow revenue ahead of volume. On a currency neutral
basis, net sales revenue per case increased by 3% in the first quarter
excluding a 2% positive hyperinflation impact of our business in Belarus.
As expected, the impact of input costs was more pronounced in the
first quarter as commodity prices rose steeply after the first quarter of 2011
creating a larger year-on-year effect. Nevertheless, our revenue growth
initiatives fully off-set the total negative impact in absolute terms from
input costs in the quarter. Our comparable EBIT was EUR29 million lower year on
year due to lower volume, higher operating expenses and unfavourable foreign
currency impact.
Currency movements had a 1% adverse impact on operating expenses
and on a currency neutral basis, operating expenses per case increased by 2%
in the first quarter driven by negative operating leverage due to lower volume
and the adverse impact of the February cold spell on our distribution chain.
We continue to focus on improving operating efficiencies and
productivity and are also executing on our restructuring plans for 2012. In
the first quarter, we announced the consolidation of our production
infrastructure in Austria, Greece and Poland.
In February 2012, two more countries, Poland and Cyprus, joined our
shared services project whereby we centralise and standardise certain finance
and human resources processes.
Working capital improved by EUR63 million year-on-year, mainly as a
result of improved receivables management. Improved working capital management
resulted in a total free cash outflow of EUR32 million, an improvement of EUR35
million versus comparable prior year period and despite reduced profitability.
Maintaining and supporting the long-term sustainability of our
business is a key element of our strategy. As part of our commitment to our
corporate social responsibility strategy we spearheaded various initiatives
and activities in the first quarter of 2012. To mark this year's World Water
Day in March, our Nigerian operation hosted 200 crop and fish farmers as its
2012 'Water Ambassadors' in an event which was held simultaneously in six of
our plants. The Water Ambassador programme is an awareness initiative
developed by our employees in Nigeria which annually enlists selected members
of the public as advocates of water issues in their respective communities. We
collaborated with the Ministries of Water Resources and Agriculture, who
provided experts to share with the farmers insights into the relationship
between water and food security.
In line with our social awareness initiatives, during the extremely
cold weather which hit Central and Eastern Europe in February 2012, we
partnered with Red Cross in several countries, including Ukraine and Belarus,
to provide relief to thousands of people. Teams of workers and volunteers went
into action to support government relief efforts, installing thousands of
heated tents across Ukraine, distributing blankets and warm clothing,
dispensing food and beverages, and providing direct assistance to
approximately 11,000 elderly and homeless people.
Operational Review by Reporting Segments
Established markets
First First %
quarter quarter
2012 2011 Change
Volume (million unit cases) 150.2 153.0 -2%
Net sales revenue (EUR million) 614.2 621.5 -1%
Operating profit 8.5 33.5 -75%
(EBIT in EUR million)
Comparable operating profit (EBIT in EUR million) 17.5 41.5 -58%
- Unit case volume in our established markets segment declined by
2% in the first quarter of 2012 driven primarily by Greece, cycling a decline
of 2% in the comparable prior year period.
- Net sales revenue declined by 1% in the quarter due to lower
volume.
- Volume in Italy increased in the mid single-digits in the first
quarter as we were able to mitigate the negative impact of a week-long
transportation strike in southern Italy in January and adverse weather
conditions in the north during February. Volume of trademark Coca-Cola
products rose in the mid single-digits in the quarter driven by a mid
single-digit increase in Coca-Cola regular and a 23% increase in Coca-Cola
Zero. Our tea category grew in the high single-digits in the quarter. Our
water category grew in the mid single-digits driven by our premium brands as a
result of increased distribution in southern Italy.
- Volume in Switzerland declined in the low single-digits in the
first quarter due to the appreciation of the Swiss Franc resulting in
cross-border trade activity with France and Germany. The strong currency
negatively impacted the tourism industry also which led to lower traffic in
immediate consumption channels. Against this backdrop, Coca-Cola Zero,
registered low single-digits growth in the quarter. We gained share in the
sparkling beverages category and maintained share in the overall NARTD
category during the quarter.
- Volume in Greece declined in the high teens in the first quarter
as we still cycle the implementation of the last wave of austerity measures in
the second half of 2011 including the increase in VAT. Our tea category grew
in the mid single-digits driven by Nestea sugar free and our launch of tea
with stevia. As part of our Group wide strategy to improve operating
efficiencies and competitiveness, in February 2012 we announced the
consolidation of our production infrastructure from seven to five plants, two
of which are dedicated to water.
- Volume in Ireland declined in the low single-digits in the first
quarter of 2012. Economic conditions remain challenging with the level of
unemployment expected to reach 15% in 2012. Coca-Cola Zero grew in the low
teens and Fanta registered mid single-digits volume growth in the quarter. At
the same time, package mix improved with single-serve packs outperforming
multi-serve packs. During the quarter, we initiated the Euro 2012 activation
campaign in the Republic of Ireland and the Summer Olympic Games activation in
Northern Ireland.
- Comparable operating profit in the established markets segment
reached EUR18 million in the first quarter primarily as a result of reduced
profitability in Greece. Increased raw material costs, lower volume, and
higher operating expenses drove the decline in profitability, despite a
limited benefit in foreign currency movements primarily due to the
appreciation of the Swiss Franc.
Operational Review by Reporting Segments (continued)
Developing markets
First First %
quarter quarter
2012 2011 Change
Volume (million unit cases) 79.4 79.2 -
Net sales revenue (EUR million) 229.2 234.9 -2%
Operating loss (13.6) (6.1) >100%
(EBIT in EUR million)
Comparable operating loss (EBIT in EUR million) (10.0) (4.9) >100%
- Unit case volume in our developing markets segment was flat in
the first quarter of 2012, cycling a decline of 1% in the prior year period.
- Net sales revenue declined by 2% in the quarter, as the benefits
of revenue growth initiatives were more than offset by unfavourable currency
movements.
- Volume in Poland increased in the mid single-digits in the first
quarter despite the extremely cold weather in February. Sales of our sparkling
beverages were up in the low double-digits in the quarter driven by Trademark
Coca-Cola products posting growth in the high teens. We initiated various
marketing activities around UEFA Euro 2012, as Poland is one of the two host
countries. In line with our commitment to improve operating efficiencies, in
January 2012, we announced the relocation of our production from Lodz to our
other production facilities which is expected to increase efficiency and
further strengthen our competitive position, while taking advantage of
cross-border opportunities in Central Europe.
- Volume in Hungary increased in the low single-digits in the first
quarter. The core sparkling beverages, water, tea and juice categories
registered volume growth. The energy category was negatively impacted by the
public health tax which was introduced in the third quarter of 2011. Trademark
Coca-Cola products volume increased in the low single-digits driven by a high
single-digit increase in Coca-Cola Zero. During the quarter, we launched
Nestea green tea with stevia.
- Volume in the Czech Republic declined in the mid single-digits in
the first quarter. Á 4% increase in the VAT rate in January 2012 and extremely
cold weather conditions accelerated the rate of decline in the overall market.
Our sparkling beverages volumes posted a modest decline, supported by a high
single-digit increase in low calorie sparkling beverages and low single digits
increases for Fanta and Sprite.
- Comparable operating loss in the developing markets segment
increased by EUR5 million compared to the prior year period. Our developing
markets segment was impacted the most by increasing input costs. In the first
quarter, benefits of our revenue growth initiatives were more than offset by
increased commodity costs and unfavourable foreign currency movements.
Operational Review by Reporting Segments (continued)
Emerging markets
First First %
quarter quarter
2012 2011 change
Volume (million unit cases) 195.9 201.6 -3%
Net sales revenue (EUR million) 593.1 559.7 6%
Operating loss (7.7) (9.8) 21%
(EBIT in EUR million)
Comparable operating loss (EBIT in EUR million) (9.1) (8.9) -2%
- Unit case volume in our emerging markets segment declined by 3%
in the first quarter of 2012, cycling a 3% increase in the comparable prior
year period resulting primarily from reduced volume in Nigeria and Ukraine.
- Net sales revenue increased by 6% in the first quarter. The
favourable impact of our net sales revenue initiatives were partially offset
by unfavourable currency movements and negative country mix.
- Volume in Russia increased in the mid single-digits in the first
quarter. Economic conditions are gradually improving in Russia and consumer
confidence remains above the EU average. Volume growth was driven by Coca-Cola
regular growing by 20%, Fanta growing by 31% and Dobry Juice growing by 8%. We
outperformed our competitors, and gained value share in the overall NARTD
category. This was also the sixth consecutive quarter of share growth for
brand Coca-Cola. Our juice business is now reflecting the benefits of the
successful implementation of our synergy project.
- Volume in Nigeria declined in the low double-digits in the first
quarter due to the continuous political and social instability in the North,
nation-wide strikes in January, and the government's decision to gradually
abolish fuel subsidies which impacted disposable income. The overall NARTD
category declined by double-digits in the quarter. We continue to focus on
expanding our distribution and activating our portfolio at the point of sale.
- Volume in Romania declined in the low single-digits in the first
quarter due to extremely cold weather conditions in February, in addition to
challenging economic conditions. Trademark Coca-Cola products volume grew in
the low single-digits and Coca-Cola Zero doubled its volume supported by our
effective OBPPC strategy. Package mix continued to improve despite the
negative weather impact on the immediate consumption channel.
- Volume in Ukraine declined in the low double digits in the first
quarter due to extremely cold weather and declining consumer confidence. Both
the total sparkling beverages category and the NARTD category declined in the
double digits. In this environment, we outperformed and gained both volume and
value share in all categories except water and energy. Our activation around
UEFA Euro 2012 and our launch of our OBPPC strategy supported the performance
of our Trademark Coca-Cola products which were down by low single-digits.
- Comparable operating loss in the emerging markets segment
marginally increased over the prior year period. In the first quarter, the
benefits of our revenue growth initiatives were more than offset by increased
commodity costs, lower volume, unfavourable foreign currency movements and
higher operating expenses.
Business Outlook
During the first quarter of 2012, challenging trading conditions
continued across most of our markets, reflecting the ongoing macroeconomic
uncertainty in Europe, nation wide strikes in Nigeria and the extremely cold
weather in most of the Central and Eastern Europe. Although the level of the
austerity measures being implemented varies across our markets, we expect that
consumer confidence will remain weak throughout 2012.
We continue to expect input costs per case to increase in the high
single-digits for the full year, primarily driven by EU sugar prices thus
improving on the trend we have seen in the first quarter. Our revenue growth
strategy is focused on fully recovering the total input cost increase in
absolute terms, just like we did in the first quarter.
Our relentless focus on our commercial strategy and execution
excellence in the market place consistently differentiates us from our
competitors and enables us to continue gaining or maintaining market share.
Our OBPPC strategy is critical in this environment and has allowed us to
continue winning in the market place. We will also continue to improve
currency neutral net sales revenue per case year on year as we continue to
grow or maintain market position.
We have agreed a clear strategy for each beverage category in 2012
with our partner in growth, The Coca-Cola Company. Our key priority is to grow
volume and value share in the sparkling beverages, tea and energy categories,
with value growing faster than volume. In the juice category, we have a
selective approach focusing on immediate consumption and the most profitable
future consumption packages on a country-by-country basis. In the water
category, our goal is to grow value ahead of volume by focusing on immediate
consumption packs and the premium segment as well as the most profitable
future consumption packages.
While staying relevant to our consumers, we will also partner with our
customers and continue driving cost leadership. Our shared services
organisation will expand its operations as more countries begin to utilise its
services. SAP Wave 2 implementation is progressing according to plan with its
roll out in Russia in January 2013. We expect to incur costs of approximately
EUR50 million for restructuring initiatives in 2012 which are expected to yield
EUR35 million in annualised benefits from 2013 onwards. We expect initiatives
already taken in 2011 and initiatives being undertaken in 2012 to yield
approximately EUR40 million in total benefits in 2012. We continue to look for
opportunities to further improve operational efficiencies.
Although some of our key currencies appreciated against the Euro in the first
quarter, based on current spot rates we anticipate a negative impact from
currency movements in 2012.
We expect our effective tax rate for the mid-term to range between 25-27%.
We are committed to maintaining strong discipline in working capital
management. Our guidance for both free cash flow and capital expenditure for
the three year period ending 31 December 2014 remains at EUR1.45 billion.
A proposal for a capital return to our shareholders of EUR0.34 per share will be
submitted for approval to the Annual General Meeting to be held on 25 June
2012. The capital return will be financed from the cash position of the Group
and is expected to be paid out in August. We also plan to request shareholder
approval for a share buy-back program.
The economic outlook in Europe remains volatile, and varies across our
markets. It is likely that consumer sentiment in many of our markets will
remain weak during 2012. In addition, we are faced with rising input costs,
mainly related to sugar. However, the success of our revenue growth management
initiatives through our OBPPC strategy, execution excellence at the point of
sale by our sales teams, our continued cost leadership, strong cash flow and
robust capital structure, provides us with confidence in the current
challenging environment. We believe that these characteristics will place us
well for an eventual economic upturn and allow us to capitalise on the many
opportunities available in the attractive higher growth markets that we serve.
Group Financial Review
Summary Profit & Loss First quarter
2012 2011
EUR million EUR million % Change
Volume in unit cases (in millions) 425.5 433.8 -2%
Net sales revenue 1,436.5 1,416.1 1%
Cost of goods sold (940.1) (894.5) 5%
Comparable Cost of goods sold1 (942.3) (894.5) 5%
Gross profit 496.4 521.6 -5%
Comparable Gross Profit1 494.2 521.6 -5%
Total operating expenses (509.2) (504.0) 1%
Comparable operating expenses1 (495.8) (493.9) -
Operating (loss)/profit (EBIT) (12.8) 17.6 n/a
Comparable operating (loss)/profit (EBIT)1 (1.6) 27.7 n/a
Adjusted EBITDA2 82.6 113.1 -27%
Comparable Adjusted EBITDA2 93.2 122.6 -24%
Total net finance costs 21.7 19.1 14%
Net loss attributable to owners of the parent (28.4) (8.9) >100%
Comparable net loss attributable to owners of the parent1 (18.6) (1.0) >100%
Basic loss per share (in euro) (0.08) (0.02) >100%
Comparable basic loss per share (in euro)1 (0.05) 0.00 n/a
1 Refer to the `Reconciliation of Reported to Comparable Financial
Indicators' section in page 2.
2 We define Adjusted EBITDA as operating profit before deductions
for depreciation and impairment of property, plant and equipment (included
both in cost of goods sold and in operating expenses), amortisation and
impairment of and adjustments to intangible assets, stock option compensation
and other non-cash items, if any.
Net sales revenue
Net sales revenue per unit case increased by 3% during the first
quarter of 2012 compared to the respective prior year period. On a currency
neutral basis, net sales revenue per unit case increased by approximately 5%
in the first quarter of 2012 compared to the respective prior year period. Net
sales revenue per unit case decreased by approximately 1% in the established
markets and increased in the developing and emerging markets by 2% and 12%
respectively, in each case on a currency neutral basis.
Cost of goods sold
Comparable cost of goods sold increased by approximately 5% for the first
quarter of 2012. Comparable cost of goods sold per unit case increased by 7%
during the first quarter of 2012, compared to the respective prior year
period, mainly reflecting higher commodity costs.
Gross profit
Comparable gross profit margins decreased from 36.8% in the first
quarter of 2011 to 34.4% in the first quarter of 2012. On a per unit case
basis, comparable gross profit decreased by approximately 3% in the first
quarter of 2012 compared to the respective prior year period. On a currency
neutral basis, comparable gross profit per unit case also decreased by
approximately 3% in the first quarter of 2012, compared to the respective
prior year period.
Operating expenses
Total comparable operating expenses on a currency neutral basis
increased by 2% in the first quarter of 2012 versus the respective prior year
period as increased sales, warehouse and distribution expenses more than
offset the lower marketing and administration expenses.
Operating profit
Comparable operating profit decreased from EUR27.7 million in the
first quarter of 2011 to a loss of EUR1.6 million in the first quarter of 2012
mainly due to the lower sales volume, the increased raw materials costs,
higher operating expenses and unfavourable foreign currency impact.
Total finance costs, net
Net finance costs for the first quarter of 2012 were higher by EUR2.6
million compared to the same period of prior year, mainly due to EUR3.9 million
higher interest expense offset by EUR1.0 million lower net foreign exchange
translation losses and by EUR0.9 million higher interest income. The higher
interest expenses of EUR3.9 million were almost entirely due to the
ineffectiveness charges related to our interest rate and cross currency swaps
hedging instruments.
Tax
On a comparable basis, Coca-Cola Hellenic's tax was a credit of
EUR4.7 million for the first quarter of 2012 compared to a charge of EUR8.3
million for the first quarter of 2011 as a consequence of a combination of
factors including the mix of profits reported for tax purposes and one off tax
items.
Net profit
On a comparable basis, net loss was EUR19 million in the first
quarter of 2012, compared to net loss of EUR1 million in the prior year period
driven mainly by the decreased operating profit.
Cash flow
Cash inflow from operating activities was EUR39 million in the first
quarter of 2012, compared to a cash outflow of EUR5 million in the respective
prior year period. Cash outflow from operating activities net of capital
expenditure was EUR32 million for the first quarter of 2012, compared to EUR68
million in the respective prior year period.
Capital expenditure
Our capital expenditure, net of receipts from the disposal of assets and
including principal repayments of finance lease obligations, amounted to EUR71
million in the first quarter of 2012, compared to EUR63 million in the
respective prior year period.
Supplementary Information
The financial measures Operating Profit, Adjusted EBITDA, Capital Expenditure
and Free Cash Flow consist of the following reported amounts in the condensed
consolidated interim financial statements:
First quarter
2012 2011
EUR million EUR million
Loss after tax (28.3) (7.9)
Tax (credited) / charged to the income statement (6.1) 6.1
Total finance costs, net 21.7 19.1
Share of results of equity method investments (0.1) 0.3
Operating (loss) / profit (12.8) 17.6
Depreciation of property, plant and equipment 93.1 91.1
Amortisation to intangible assets 0.7 0.9
Employee share options 1.6 2.1
Other non-cash items - 1.4
Adjusted EBITDA 82.6 113.1
Losses / (gains) on disposal of non-current assets 0.4 (1.1)
Increase in working capital (22.8) (85.9)
Tax paid (21.4) (30.8)
Net cash from / (used in) operating activities 38.8 (4.7)
Payments for purchases of property, plant and equipment (63.9) (49.4)
Principal repayments of finance lease obligations (7.4) (14.5)
Proceeds from sale of property, plant and equipment 0.4 1.1
Capital expenditure (70.9) (62.8)
Net cash from / (used in) operating activities 38.8 (4.7)
Capital expenditure (70.9) (62.8)
Free cash outflow (32.1) (67.5)
Coca-Cola Hellenic
Coca-Cola Hellenic is one of the world's largest bottlers of
products of The Coca-Cola Company with annual sales of more than 2 billion
unit cases. It has broad geographic reach with operations in 28 countries
serving a population of more than 570 million people. Coca-Cola Hellenic
offers a diverse range of ready-to-drink non-alcoholic beverages in the
sparkling, juice, water, sport, energy, ready to drink tea and coffee
categories. Coca-Cola Hellenic is committed to promoting sustainable
development in order to create value for its business and for society. This
includes providing products that meet the beverage needs of consumers,
fostering an open and inclusive work environment, conducting our business in
ways that protect and preserve the environment and contribute to the
socio-economic development of our local communities.
Coca-Cola Hellenic`s shares are listed on the Athens Exchange (ATHEX: EEEK),
with a secondary listing on the London stock exchange (LSE: CCB). Coca-Cola
Hellenic's American Depositary Receipts (ADRs) are listed on the New York
Stock Exchange (NYSE: CCH). Coca-Cola Hellenic is included in the Dow Jones
Sustainability and FTSE4Good Indexes. For more information, please visit
www.coca-colahellenic.com.
Financial information in this announcement is presented on the basis
of International Financial Reporting Standards (`IFRS').
Conference call
Coca-Cola Hellenic will host a conference call with financial analysts to
discuss the first quarter of 2012 financial results on 10 May 2012 at 4:00 pm,
Athens time (2:00 pm, London time and 9:00 am, New York time). Interested
parties can access the live, audio webcast of the call through Coca-Cola
Hellenic's website (www.coca-colahellenic.com).
Contact Information
Company contact:
Coca-Cola Hellenic
Oya Gur Tel: +30 210 618 3255
Investor Relations Director email: oya.gur@cchellenic.com
Tel: +30 210 618 3124
Panagiotis Vergis email : panagiotis.vergis@cchellenic.com
Investor Relations Manager
European press contact: Pendomer
Communications London
Tel: +44 20 3603 5222
Greg Quine
email: greg.quine@pendomer.com
Condensed consolidated interim balance sheet (unaudited)
As at As at
30 March 2012 31 December 2011
Note EUR million EUR million
Assets
Intangible assets 4 1,966.8 1,947.7
Property, plant and equipment 4 3,105.6 3,051.5
Other non-current assets 190.6 185.9
Total non-current assets 5,263.0 5,185.1
Inventories 544.3 451.5
Trade and other receivables 1,088.0 1,122.4
Cash and cash equivalents 5 397.3 476.1
Total current assets 2,029.6 2,050.0
Total assets 7,292.6 7,235.1
Liabilities
Short-term borrowings 5 324.7 321.5
Other current liabilities 1,630.5 1,599.9
Total current liabilities 1,955.2 1,921.4
Long-term borrowings 5 1,921.1 1,934.5
Other non-current liabilities 489.4 466.0
Total non-current liabilities 2,410.5 2,400.5
Equity
Owners of the parent 2,910.1 2,895.3
Non-controlling interests 16.8 17.9
Total equity 2,926.9 2,913.2
Total equity and liabilities 7,292.6 7,235.1
Condensed consolidated interim income statement (unaudited)
Three months to Three months to
30 March 2012 1 April 2011
Note EUR million EUR million
Net sales revenue 3 1,436.5) 1,416.1
Cost of goods sold (940.1) (894.5)
Gross profit 496.4 521.6
Operating expenses (495.8) (493.9)
Restructuring costs 6 (13.4) (10.1)
Total operating expenses (509.2) (504.0)
Operating (loss)/ profit 3 (12.8) 17.6
Total finance costs, net 7 (21.7) (19.1)
Share of results of equity method
investments 0.1 (0.3)
Loss before tax (34.4) (1.8)
Tax 8 6.1 (6.1)
Loss after tax (28.3) (7.9)
Attributable to:
Owners of the parent (28.4) (8.9)
Non-controlling interests 0.1 1.0
(28.3) (7.9)
Basic and diluted losses per share (EUR) 9 (0.08) (0.02)
Condensed consolidated interim statement of comprehensive income (unaudited)
Three months Three months
to to
30 March 2012 1 April 2011
EUR million EUR million
Loss after tax for the period (28.3 ) (7.9)
Other comprehensive income:
Available-for-sale financial assets:
Valuation gains during the period - 0.2
Cash flow hedges:
Amounts of (losses) / gains during the period (15.4 ) 4.8
Amounts of losses/(gains) reclassified to
profit and loss for the period 1.0 (0.1 )
Foreign currency translation 64.4 (30.9 )
Share of other comprehensive income of
equity method investments (0.1 ) (1.3 )
Actuarial losses (14.7 ) -
Income tax relating to components of
other comprehensive income 6.2 -
Other comprehensive income for the period, net
of tax 41.4 (27.3 )
Total comprehensive income for the period 13.1 (35.2 )
Total comprehensive income attributable to:
Owners of the parent 13.0 (32.3 )
Non-controlling interests 0.1 (2.9 )
13.1 (35.2 )
Condensed consolidated interim statement of changes in equity (unaudited)
Attributable to owners of the parent
Share Share Treasury Exchange Other Retained Total
capital premium shares equalisation reserves earnings Total Non-controlling equity
EUR EUR EUR reserve EUR EUR EUR EUR interests EUR EUR
million million million million million million million million million
Balance as at 1
January 2011 183.1 1,119.2 (57.2) (129.2) 375.4 1,460.8 2,952.1 108.7 3,060.8
Shares issued
to employees
exercising
stock options 0.1 4.2 - - - - 4.3 - 4.3
Share-based
compensation:
Options - - - - 2.1 - 2.1 - 2.1
Purchase of
shares held by
non-controlling
interests - - - - - - - (0.1) (0.1)
Dividends - - - - - - - (1.5) (1.5)
183.2 1,123.4 (57.2) (129.2) 377.5 1,460.8 2,958.5 107.1 3,065.6
Loss for the
period net of
tax - - - - - (8.9) (8.9) 1.0 (7.9)
Other
comprehensive
income for the
period, net of
tax - - - (28.3) 4.9 - (23.4) (3.9) (27.3)
Total
comprehensive
income for the
period net of
tax1 - - - (28.3) 4.9 (8.9) (32.3) (2.9) (35.2)
Balance as at 1
April 2011 183.2 1,123.4 (57.2) (157.5) 382.4 1,451.9 2,926.2 104.2 3,030.4
Shares issued
to employees
exercising
stock options 0.1 0.3 - - - - 0.4 - 0.4
Share-based
compensation:
Options - - - - 6.0 - 6.0 - 6.0
Movement in
treasury
shares - - - - (0.4) - (0.4) - (0.4)
Capitalisation
of share
premium reserve 549.7 (549.7) - - - - - - -
Expenses
relating to
share capital
increase (net
of tax of
EUR1.2m) - (4.8) - - - - (4.8) - (4.8)
Return of
capital to
shareholders (183.2) - 1.7 - - - (181.5) - (181.5)
Share capital
increase in
subsidiary in
Serbia - - - - - (0.8) (0.8) 1.2 0.4
Purchase of
shares held by
non-controlling
interests - - - (8.7) - (54.6) (63.3) (94.3) (157.6)
Appropriation
of reserves - - - - 0.5 (0.5) - - -
Hyperinflation
impact - - - - - (7.8) (7.8) - (7.8)
Dividends - - - - - - - (5.0) (5.0)
549.8 569.2 (55.5) (166.2) 388.5 1,388.2 2,674.0 6.1 2,680.1
Profit for the
period net of
tax - - - - - 277.8 277.8 2.9 280.7
Other
comprehensive
income for the
period, net of
tax - - - (31.7) 0.5 (25.3) (56.5) 8.9 (47.6)
Total
comprehensive
income for the
period net of
tax - - - (31.7) 0.5 252.5 221.3 11.8 233.1
Balance as at
31 December
2011 549.8 569.2 (55.5) (197.9) 389.0 1,640.7 2,895.3 17.9 2,913.2
Condensed consolidated interim statement of changes in equity (unaudited)
Attributable to owners of the parent
Total
equity
Share Share Treasury Exchange Other Non-controlling
capital premium shares equalisation reserves Retained Total interests
EUR EUR EUR reserve EUR earnings EUR EUR
million million million EUR million million EUR million million EUR million million
Balance as at 1
January 2012 549.8 569.2 (55.5 ) (197.9 ) 389.0 1,640.7 2,895.3 17.9 2,913.2
Share-based
compensation:
Options - - - - 1.6 - 1.6 - 1.6
Movement in
treasury shares - - - - 0.1 - 0.1 - 0.1
Purchase of
shares held by
non-controlling
interests - - - - - (0.9 ) (0.9 ) (1.2 ) (2.1 )
Hyperinflation
impact - - - - - 1.0 1.0 - 1.0
549.8 569.2 (55.5 ) (197.9 ) 390.7 1,640.8 2,897.1 16.7 2,913.8
Loss for the
year net of tax - - - - - (28.4 ) (28.4 ) 0.1 (28.3 )
Other
comprehensive
income for
the period, net
of tax - - - 64.3 (10.8 ) (12.1 ) 41.4 - 41.4
Total
comprehensive
income for
the period net of
tax[2] - - - 64.3 (10.8 ) (40.5 ) 13.0 0.1 13.1
Balance as at 30
March 2012 549.8 569.2 (55.5 ) (133.6 ) 379.9 1,600.3 2,910.1 16.8 2,926.9
Condensed consolidated interim cash flow statement (unaudited)
Three months to Three months to
30 March 2012 1 April 2011
Note EUR million EUR million
Operating activities
Loss after tax for the period (28.3) (7.9)
Total finance costs, net 7 21.7 19.1
Share of results of equity method investments (0.1) 0.3
Tax (credited) / charged to the income statement (6.1) 6.1
Depreciation of property, plant and equipment 4 93.1 91.1
Employee share options 1.6 2.1
Amortisation of intangible assets 4 0.7 0.9
Other non-cash items - 1.4
82.6 113.1
Losses / (gains) on disposal of non-current assets 0.4 (1.1)
Increase in inventories (87.30 (89.6)
Decrease / (increase) in trade and other receivables 39.3 (25.1)
Increase in trade and other payables 25.2 28.8
Tax paid (21.4) (30.8)
Net cash from / (used in) operating activities 38.8 (4.7)
Investing activities
Payments for purchases of property, plant and equipment (63.9) (49.4)
Proceeds from sales of property, plant and equipment 0.4 1.1
Receipts from investments - 1.2
Interest received 2.3 1.5
Net receipts from disposal of subsidiary 17 - 11.1
Net cash used in investing activities (61.2) (34.5)
Financing activities
Purchase of shares held by non-controlling interests 11 (7.40 (0.1)
Proceeds from shares issued to employees exercising stock options - 4.3
Dividends paid - (1.5)
Proceeds from external borrowings 393.1 507.3
Repayments of external borrowings (384.9) (200.6)
Principal repayments of finance lease obligations (7.40 (14.5
Interest paid (48.1) (47.6)
Net cash (used in) / from financing activities (54.7 247.3
(Decrease) / increase in cash and cash equivalents (77.1) 208.1
Movement in cash and cash equivalents
Cash and cash equivalents at 1 January 476.1 326.1
(Decrease) / increase in cash and cash equivalents (77.10 208.1
Effect of changes in exchange rates (1.1) (0.4)
Hyperinflation impact on cash (0.6) -
Cash and cash equivalents at the end of the period 397.3 533.8
1. Accounting policies
The accounting policies used in the preparation of the condensed
consolidated interim financial statements of Coca-Cola Hellenic Bottling
Company S.A. (`Coca-Cola Hellenic' or the `Group') are consistent with those
used in the annual financial statements for the year ended 31 December 2011,
except for the adoption, as of 1 January 2012, of the revision to
International Financial Reporting Standard ("IFRS") 7 Financial Instrument
Disclosures - disclosures on transfers of financial assets. The adoption of
this revised accounting standard did not have a significant impact on the
current or prior periods.
Basis of preparation
Operating results for the first quarter of 2012 are not indicative
of the results that may be expected for the year ending 31 December 2012
because of business seasonality. Business seasonality results from higher unit
sales of the Group's products in the warmer months of the year. The Group's
methods of accounting for fixed costs such as depreciation and interest
expense are not significantly affected by business seasonality.
Costs that are incurred unevenly during the financial year are
anticipated or deferred in the interim report only if it would also be
appropriate to anticipate or defer such costs at the end of the financial
year.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual profit or loss.
These condensed consolidated interim financial statements have been
prepared in accordance with IFRS as issued by the International Accounting
Standards Board (`IASB') and IFRS as adopted by the European Union (`EU')
applicable to Interim Financial Reporting (`IAS 34'). IFRS as adopted by the
EU differs in certain respects from IFRS as issued by the IASB. However, the
differences have no impact on the Group's condensed consolidated interim
financial statements for the periods presented. These condensed consolidated
interim financial statements should be read in conjunction with the 2011
annual financial statements, which include a full description of the Group's
accounting policies.
Certain comparative figures have been reclassified to conform to the current
period presentation.
2. Exchange rates
The Group's reporting currency is the euro (EUR). Coca-Cola Hellenic
translates the income statements of subsidiary operations to the euro at
average exchange rates and the balance sheet at the closing exchange rate for
the period, except for subsidiaries operating in a hyperinflationary
environment as explained in Note 7.
The principal exchange rates used for transaction and translation
purposes in respect of one euro were:
Average for the period ended Closing as at
30 March 2012 1 April 2011 30 March 2012 31 December 2011
US dollar 1.32 1.38 1.34 1.31
UK sterling 0.84 0.86 0.84 0.83
Polish zloty 4.20 3.94 4.15 4.40
Nigerian naira 206.48 208.69 208.35 204.79
Hungarian forint 292.10 271.49 292.00 306.54
Swiss franc 1.21 1.29 1.21 1.22
Russian rouble 39.24 40.31 38.77 41.27
Romanian leu 4.35 4.20 4.37 4.30
Serbian dinar 108.32 103.63 111.18 102.65
Czech koruna 24.92 24.43 24.58 25.75
Ukrainian hryvnia 10.53 10.95 10.65 10.44
3. Segmental analysis
The Group has one business, being the production, distribution and sale of
non-alcoholic, ready-to-drink beverages. The Group operates in 28 countries
and its financial results are reported in the following three reportable
segments:
Established: Austria, Cyprus, Greece, Italy, Northern Ireland, Republic of
Ireland and Switzerland.
Developing: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania,
Poland, Slovakia and Slovenia.
Emerging: Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, FYROM,
Moldova, Montenegro, Nigeria, Romania, Russia, Serbia and
Ukraine.
Information on the Group's segments is as follows:
Three months ended
30 March 2012 1 April 2011
Volume in unit cases (million)
Established 150.2 153.0
Developing 79.4 79.2
Emerging 195.9 201.6
Total volume 425.5 433.8
Net sales revenue (EUR million)
Established 614.2 621.5
Developing 229.2 234.9
Emerging 593.1 559.7
Total net sales revenue 1,436.5 1,416.1
Adjusted EBITDA (EUR million)
Established 40.7 65.3
Developing 1.7 13.5
Emerging 40.2 34.3
Total Adjusted EBITDA 82.6 113.1
Operating (loss) / profit (EUR million)
Established 8.5 33.5
Developing (13.6) (6.1)
Emerging (7.7) (9.8)
Total operating (loss) / profit (12.8) 17.6
Reconciling items (EUR million)
Total finance costs, net (21.7) (19.1)
Share of results of equity method investments 0.1 (0.3)
Tax 6.1 (6.1)
Non-controlling interests (0.1) (1.0)
Loss after tax attributable to owners of the parent (28.4) (8.9)
4. Tangible and intangible assets
Property, plant Intangible
assets
and equipment EUR
million EUR million
Opening net book value as at 1 January 3,051.5 1,947.7
2012
Additions 102.5 -
Disposals (1.9 ) -
Depreciation / amortisation (93.1 ) (0.7 )
Foreign exchange differences 46.6 19.8
Closing net book value as at 30 March 2012 3,105.6 1,966.8
5. Net debt
As at
30 March 2012 31 December 2011
EUR million EUR million
Long-term borrowings 1,921.1 1,934.5
Short-term borrowings 324.7 321.5
Cash and cash equivalents (397.3 ) (476.1 )
Net debt 1,848.5 1,779.9
The net debt increased during the first quarter of 2012 by EUR68.6
million compared to 31 December 2011 largely due to a reduction in the cash
and cash equivalents. This decrease was largely due to capital expenditure and
interest payments that occurred during the quarter which more than offset the
increased cash flow from operations.
6. Restructuring costs
Restructuring costs amounted to EUR13.4 million before tax in the
first quarter of 2012. The Group recorded EUR9.0 million, EUR3.6 million and EUR0.8
million of restructuring charges in its established, developing and emerging
markets respectively. For the first quarter of 2011, restructuring costs
amounted to EUR10.1 million, of which EUR8.0 million, EUR1.2 million and EUR0.9
million related to the Group's established, developing and emerging markets,
respectively.
7. Total finance costs, net
Three months ended
30 March 2012 1 April 2011
EUR million EUR million
Finance costs 23.5 19.6
Net foreign exchange (gains)/losses (0.1 ) 0.9
Interest income (2.3 ) (1.4 )
Loss on net monetary position 0.6 -
Total finance costs, net 21.7 19.1
Total net finance costs of the first quarter of 2012 were higher by
EUR2.6 million compared to the same period of prior year, mainly due to EUR3.9
million higher interest expense offset by EUR1.0 million lower net foreign
exchange translation losses and by EUR0.9 million higher interest income. The
higher interest expenses of EUR3.9 million was almost entirely due to the
ineffectiveness charges related to our interest rate and cross currency swaps
hedging instruments.
Hyperinflation
Belarus was considered to be a hyperinflationary economy since the
fourth quarter of 2011 as three year cumulative inflation exceeded 100% and
therefore Belarus is consolidated in terms of the measuring unit at the
balance sheet date and translated at the closing exchange rate. The
restatement was based on conversion factors derived from the Belarus Consumer
Price Index (CPI) as compiled by the National Statistical Committee of the
Republic of Belarus. The conversion factor used for March 2012 was 1.05 which
resulted in a net monetary loss for the first quarter of 2012 of EUR0.6 million.
8. Tax
The Group's effective tax rate for 2012 may differ from the Greek
statutory tax rate of 20% as a consequence of a number of factors, the most
significant of which are differing and higher rates in some countries in which
we operate, the non-deductibility of certain expenses and one-off tax items.
9. Earnings per share
Basic earnings per share is calculated by dividing the net profit
attributable to the owners of the parent by the weighted average number of
shares outstanding during the period (first quarter of 2012: 363,112,466;
first quarter of 2011: 362,772,533). Diluted earnings per share is calculated
by adjusting the weighted average number of ordinary shares outstanding to
assume conversion of all dilutive ordinary shares arising from exercising
employee stock options.
10. Share capital
During 2011, the Board of Directors resolved on the increase of
Coca-Cola Hellenic's share capital by issuing 354,512, 21,994, 28,749 and 313
new ordinary shares, as announced on 16 March, 24 June, 1 September 2011 and
13 December 2011 respectively, following the exercise of stock options
pursuant to the Coca-Cola Hellenic employees' stock option plan. Total
proceeds from the issuance of the shares under the stock option plan amounted
to EUR4.7 million.
On 6 May 2011, the Annual General Meeting of shareholders resolved
on the reorganisation of its share capital. The Group's share capital
increased by an amount equal to EUR549.7 million. This increase was effected by
capitalising the share premium reserve and increasing the nominal value of
each share from EUR0.50 to EUR2.00. The share capital was subsequently decreased
by an amount equal to EUR183.2 million by decreasing the nominal value of each
share from EUR2.00 to EUR1.50, and distributing such EUR0.50 per share difference to
shareholders in cash.
During the first quarter of 2012, the Board of Directors resolved
on the increase of Coca-Cola Hellenic's share capital by issuing 5,334 new
ordinary shares on 21 March 2012, following the exercise of stock options
pursuant to the Coca-Cola Hellenic employees' stock option plan. Total
proceeds from the issuance of the shares under the stock option plan amounted
to EUR0.05 million.
Following the above changes, the share capital currently amounts to EUR549.8
million and is comprised of 366,547,342 shares with a nominal value of EUR1.50
each.
11. Non-controlling interests
On 8 June 2011, the Board of Directors of the Company's subsidiary
Nigerian Bottling Company plc ("NBC") resolved to propose a scheme of
arrangement between NBC and its minority shareholders, involving the
cancellation of part of the share capital of NBC. The transaction was approved
by the Board of Directors and General Assembly of NBC on 8 June 2011 and 22
July 2011 respectively and resulted in acquisition of the remaining 33.6% of
the voting shares of NBC bringing the Group's interest in the subsidiary to
100%. The transaction was completed in September 2011 and NBC was de-listed
from the Nigerian Stock Exchange. The consideration for the acquisition of non
controlling interests was EUR100.2 million, including transaction costs of EUR1.8
million, out of which EUR61.8 million was paid as of 30 March 2012 (as of 31
December 2011: EUR56.5 million). The difference between the consideration and
the carrying value of the interest acquired (EUR60.1 million) has been
recognised in retained earnings while the accumulated components recognised in
other comprehensive income have been reallocated within the equity of the
Group.
On 25 June 2010, the Group initiated a tender offer to purchase all
of remaining shares of the non-controlling interest in Coca-Cola HBC - Srbija
A.D., Zemun (`'CCH Serbia"). The tender offer was completed on 2 August 2010
and resulted in the Group increasing its stake in CCH Serbia to 91.2% as of 31
December 2010. In 2011, the Group acquired all the remaining interest in the
subsidiary. The consideration paid for the acquisition of non controlling
interest acquired in 2011 was EUR17.7 million and the carrying value of the
additional interest acquired was EUR11.4 million. The difference between the
consideration and the carrying value of the interest acquired has been
recognised in retained earnings.
On 16 December 2011, the Group announced that it had increased its
share to A.D. Pivara Skopje, the beer and alcohol-free beverages business in
the Former Yugoslav Republic of Macedonia, by acquiring 20.6% of non
controlling interests. The consideration paid was EUR39.8 million including
acquisition costs of EUR0.1 million. During the first quarter of 2012, the Group
acquired an additional 1.08% interest in A.D. Pivara Skopje. The consideration
paid was EUR2.1 million. The carrying value of the interest acquired by the
Group was EUR1.2 million. As of 30 March 2012 the Group controls 49.32% (as of
31 December 2011: 48.24%) of the voting rights of A.D. Pivara Skopje. The
difference between the consideration and the carrying value of the interest
acquired has been recognised in retained earnings.
12. Dividends
No dividend was declared and paid for the fiscal year 2010 and
2011.
13. Contingencies
There have been no significant changes in contingencies since 31
December 2011 (as described in the 2011 Annual Report available on the
Coca-Cola Hellenic's web site: www.coca-colahellenic.com).
14. Commitments
As of 30 March 2012 the Group has capital commitments of EUR81.4
million (31 December 2011: EUR93.9 million), which mainly relate to plant and
machinery equipment.
15. Number of employees
The average number of full-time equivalent employees in the first
quarter of 2012 was 39,927 (41,515 for the first quarter of 2011).
16. Related party transactions
a) The Coca-Cola Company
As at 30 March 2012, The Coca-Cola Company and its subsidiaries
(collectively, `TCCC") indirectly owned 23.2% (2011: 23.2%) of the issued
share capital of Coca-Cola Hellenic.
Total purchases of concentrate, finished products and other
materials from TCCC and its subsidiaries during the first quarter of 2012
amounted to EUR302.2 million (EUR283.2 million in the prior year period). Total
net contributions received from TCCC for marketing and promotional incentives
during the same period amounted to EUR11.0 million (EUR8.6 million in the
prior-year period).
During the first quarter of 2012, the Group sold EUR7.8 million of
finished goods and raw materials to TCCC (EUR8.2 million in the prior-year
period) while other income from TCCC was EUR3.1 million (EUR3.0 million in the
prior year period).
As at 30 March 2012, the Group had a total amount of EUR52.3 million
(EUR63.2 million as at 31 December 2011) due from TCCC, and had a total amount
of EUR168.9 million (EUR179.8 million as at 31 December 2011) due to TCCC.
b) Kar-Tess Holding
Frigoglass S.A. (`Frigoglass')
Frigoglass, a company listed on the Athens Exchange, is a
manufacturer of coolers, glass bottles and crowns. Frigoglass is related to
Coca-Cola Hellenic by way of a 43.7% (2011: 43.7%) ownership by the parent of
Kar-Tess Holding, which as at 30 March 2012 owned 23.3% (2011: 23.3%) of the
issued share capital of Coca-Cola Hellenic. Frigoglass has a controlling
interest in Frigoglass Industries Limited, a company in which Coca-Cola
Hellenic has a 23.9% effective interest, through its investment in NBC.
During the first quarter of 2012, the Group made purchases of EUR79.3
million (EUR48.1 million in the prior-year period) of coolers, raw materials and
containers from Frigoglass and its subsidiaries and incurred maintenance and
other expenses of EUR1.3 million (EUR0.6 million in the prior-year period). Other
income from Frigoglass during the first quarter of 2012 was EUR0.1 million (EUR0.1
million in the prior-year period). As at 30 March 2012, CocaâEUR'Cola Hellenic
owed EUR21.4 million (EUR14.4 million as at 31 December 2011) to, and was owed
EUR0.9 million (EUR1.2 million as at 31 December 2011) by Frigoglass.
c) Other related parties
During the first quarter of 2012, the Group purchased EUR21.1 million
of raw materials and finished goods (EUR25.1 million in the prior-year period).
Furthermore during the first quarter of 2012, the Group incurred other
expenses of EUR2.7 million (EUR2.3 million in the prior-year period) and recorded
no income (EUR0.4 million in the prior-year period) from the sale of finished
goods to other related. As at 30 March 2012, the Group owed EUR14.5 million
(EUR8.5 million as at 31 December 2011) to, and was owed EUR0.2 million (EUR1.0
million as at 31 December 2011) by other related parties.
There were no transactions between Coca-Cola Hellenic and the
directors and senior management except for remuneration for the period ended
30 March 2012, as well as the prior year period.
There were no other significant transactions with related parties
for the period ended 30 March 2012.
17. Disposal / acquisition of subsidiaries
In February 2011, we sold all our interests in Eurmatik S.r.l., the
vending operator in Italy. The consideration was EUR13.5 million and the cash
and cash equivalent disposed were EUR0.4 million. The disposal resulted in the
Group derecognising EUR12.0 million of intangible assets and EUR12.7 million of
net assets. The disposal of Eurmatik S.r.l resulted in a gain of EUR0.8 million
in the Group's established segment.
On 20 April 2011, the Group, along with TCCC, acquired through
Multon ZAO, the Russian juice joint venture, all outstanding shares of MS
Foods UAB, a company that owns 100% of the equity of Vlanpak FE, a fruit juice
and nectar producer in Belarus. Our share of the acquisition consideration was
EUR3.9 million including an assumption of debt of EUR1.4 million. The acquisition
has resulted in the Group recording of intangible assets of EUR2.9 million in
its emerging segment.
18. Subsequent events
On 9 May 2012, The Group announced a proposed capital return to its
shareholders of EUR0.34 per share. The proposal comprises a decrease in the par
value of the Company's shares by approximately EUR125 million or EUR0.34 per share
which will be paid to shareholders. The proposed transaction will be financed
from the cash position of the Company and is subject to shareholder and
regulatory approvals. On the same date, the Group announced a proposed further
decrease in the par value of the Company's shares by approximately EUR55 million
or EUR0.15 per share, in order to extinguish accumulated losses of the parent
company Coca-Cola Hellenic Bottling Company S.A., in an equal amount. The
Annual General Meeting where both proposals will be presented to the Company's
shareholders for approval will be held on 25 June 2012. If approved, the
capital return is expected to be paid out on 8 August 2012 with a record date
(the date at which registered shareholders will qualify for the return of
capital) on 3 August 2012.
=--------------------------------
1 The amount included in the exchange equalisation reserve of EUR28.3
million loss for the first quarter of 2011 represents the exchange losses
attributed to the owners of the parent of EUR27.0 million plus the share of
equity method investments of EUR1.3 million loss.
The amount charged to other reserves of EUR4.9 million gain for the
first quarter of 2011 consists of gains on valuation of available-for-sale
financial assets of EUR0.2 million (representing valuation gains for the
period), cash flow hedges movement of EUR4.7 million (of which EUR4.8 million
represents revaluation gains for the period and EUR0.1 million represents
revaluation gains reclassified to profit and loss for the period).
The amount of EUR2.9 million loss included in non-controlling
interests for the first quarter of 2011 represents the share of
non-controlling interests in the exchange equalisation reserve of EUR3.9 million
loss and in the retained earnings of EUR1.0 million income.
[2] The amount included in the exchange equalisation reserve of
EUR64.3 million gain for the first quarter of 2012 represents the exchange gains
attributed to the owners of the parent of EUR64.4 million plus the share of
equity method investments of EUR0.1 million loss.
The amount included in other reserves of EUR10.8 million loss for
the first quarter of 2012 consists of cash flow hedges movement of EUR14.4
million (of which EUR15.4 million represents revaluation losses for the period
and EUR1.0 million represents revaluation losses reclassified to profit and loss
for the period) and the deferred income tax credit of 3.6 million.
The amount charged to retained earnings of EUR40.5 million loss
comprises of the loss for the first quarter of 2012 of EUR28.4 million, the
actuarial losses of the first quarter of 2012 of EUR14.7 million and a deferred
income tax credit of EUR2.6 million.
Condensed consolidated interim cash flow statement (unaudited)
END
Coca-Cola Hbc (LSE:CCB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Coca-Cola Hbc (LSE:CCB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
