Continued Growth at CCI

Coca-Cola İçecek (CCI) CEO Michael A. O’Neill announced 9 months 2011 results, emphasizing CCI’s continued growth. Consolidated sales volume, both in Turkey and international operations, posted double digit growth, reaching to 621 million unit cases, up by 16%.  

Coca-Cola İçecek, operating in 10 countries across Turkey, Pakistan, Central Asia and the Middle East with 20 plants, reported 2011 third quarter results. As in the first and second quarters of 2011, CCI posted double digit growth both in Turkey and international operations and delivered 14% sales volume growth. Turkey’s sales volume grew by 10%, despite a very strong third quarter in 2010. International Operations posted volume growth of 26%. In 9 months 2011, consolidated net sales revenue amounted to TL 2,7 billion, up by 23%. Consolidated EBITDA was also up by 7% to TL 429 million.

CCI CEO Michael A. O’Neill stated that they are very pleased to deliver double digit growth, both in Turkey and international operations, on a consolidated basis in the third quarter.

Michael A. O’Neill said that Turkey’s sales volume grew by 10%, despite a very strong third quarter in 2010 and added that;

 “International Operations posted volume growth of 26% in the quarter supported by continuous efforts to develop better route-to-market initiatives and benefited from improved consumer sentiment particularly in Kazakhstan. While the top line growth was intact in the third quarter, high input costs continued to weigh on gross margins. In addition to that higher FX volatility impacted our bottom-line negatively.”

Indicating that they are on track to posting strong volume and revenue growth in 2011,  O’Neill also added that they expect to deliver high single digit to low double digit volume growth in Turkey. “We expect to exceed mid to high teens volume growth in international operations.” said O’Neill and commented on higher FX volatility and raw material costs:

“We continue to expect revenue growth to be ahead of volume growth. As a result of input cost inflation, our initial guidance for EBITDA growth was not higher than net revenue growth in 2011. Although we are set to deliver absolute EBITDA growth for the full year, given the level of increase in raw material costs, we expect EBITDA margin contraction, limited to 150-200 bps for the full year.”

Indicating that they have set their course towards 2020, O’Neill also said that in spite of certain challenges and volatility, they have the desire and capabilities to ensure that the strong growth momentum is maintained for the years ahead.