The negative forecast for Coca Cola HBC led to a loss on quotations of many European beverage producers active in Russia.
Photo: Oleg Kharseev
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Coca Cola Sales Go Flat in Russia
The Coca Cola Hellenic Bottling Co. reported yesterday that it is lowering its forecast for sales and profit in Russia, where the company sells 17 percent of its production. Inflation and instability on financial markets were blamed for the situation. Coca Cola HBC’s stock lost 19 percent. Shares of Carlsberg, Efes and Heineken, whose businesses are also closely tied to Russia, also lost value.
Coca Cola bottler Coca Cola HBC reported a sales increase of 4.5 percent in the third quarter, versus a planned 7 percent. The annual sales forecast has now been cut from 6 to 4 percent, and EBIT and profit per share will remain at the 2007 level of 5 percent, instead of growing to 8 percent. Next year’s plans have been adjusted to reduce costs and production volume. Coca Cola HBC bottles Coca Cola, Sprite, Fanta and BonAqua. Its main office is in Athens and it is active in 28 countries. The Moscow office of the company owns 15 plants in Russia, as well as the juice producers Multon and Aqua Vision. The Business Analytica agency estimates that the Coca Cola Co. occupies a 45.6-percent share of the Russian carbonated drinks market.
Coca Cola HBC capitalization on the Athens stock exchange yesterday was ˆ4.57 billion. That was after the price of a share fell 19 percent to ˆ12.52. Yesterday’s loss was the second major fall the company’s stock has experienced. On June 13, its shares fell 21 percent after the forecast for demand on emerging markets was reduced. Carlsberg shares fell 8.4 percent on the Copenhagen stock exchange yesterday. Russia accounts for 40 percent of its total sales and it occupies 38 percent of the Russian market. Heineken fell 5.2 percent in Amsterdam (Russia accounts for 11 percent of its sales with a 14.3-percent market share) and Efes lost 12.6 percent in London (80 percent of its sales make up an 8.9-percent market share in Russia).
www.kommersant.com
All the Article in Russian as of Oct. 03, 2008
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