- Third-quarter sales come in 3% down at EUR3.18bn (US$3.77bn)
- Improvement on half-year slide of 16%
- Sales in nine months to end of September decline 11.5% to EUR8.02bn
Coca-Cola European Partners has maintained its upbeat view of the rest of this year as sales in the third quarter slipped by just single figures.
A busy start to the week for the group saw today’s trading update detail a 3% top-line decline in the three months to the end of September. The performance represented a healthy improvement on the 16% slump in the first half of this year.
Coca-Cola European Partners 2020 – Sales versus 2019 – reported
Source: Company results
The third quarter saw CCEP’s volumes in the ‘away from home’ channel decrease by 17.5%, although this was stronger than in the second quarter (-50%). Meanwhile, ‘home’ volumes were described as “solid”, climbing 6% thanks to the popularity of its larger-sized and multipack packaging offerings
Sparkling volumes were flat in the three months, with brand Coca-Cola performing similarly – both were down by just 0.5%. Coca-Cola Zero Sugar was once again the driver for Coke, increasing volumes by 8%. Elsewhere, ‘flavours, mixers & energy’ (-3.5%) saw volumes bolstered by the Schweppes mixer brand in the UK, highlighting consumers’ switch to exercising their preferred drinking choices at home rather than in the on-premise. Energy brand Monster had a strong quarterly showing, boosting its volumes by 18.5%.
The group’s stills portfolio didn’t fare so well, with Q3 volumes slumping 27.5%.
Coca-Cola European Partners Third-Quarter 2019 – Sales by Region
Source: Company results
France and Germany both benefited from good weather in the three months, resulting in CCEP seeing its sales in the two markets rise in value terms by 6% and 3%, respectively. While the Northern Europe markets grouping was flat, Great Britain dipped 2% as consumer stockpiling was offset by reduced capacity in the country’s ‘HoReCa’ outlets.
Finally, Iberia suffered badly from the absence of a tourism industry over the summer as sales fell 16% in the combined markets of Spain, Portugal and Andorra.
CEO Damian Gammell
“Our performance over the summer months was encouraging. Volumes significantly improved compared to the second quarter of the year, mirroring outlet re-openings in the away-from-home channel, solid demand in the home channel, where we continued to take share, as well as favourable weather across most markets. While the reintroduction of restrictions and local lockdowns has resulted in continued uncertainty about the duration and impact of the pandemic, we continue to believe that the second quarter will be the most impacted.
“We continue to adapt to changes in consumer behaviour by focusing on the core brands that our consumers love, leveraging and advancing our digital capabilities, and concentrating even more on the home channel, particularly in the run-up to the key Christmas trading period.”
Over the weekend, CCEP lined up a bid for fellow bottler Coca-Cola Amatil.
To access Coca-Cola European Partners’ official third-quarter announcement, click here.