REG - Coca-Cola HBC AG - ROBUST PERFORMANCE IN DIFFICULT MARKET CONDITIONS <Origin Href="QuoteRef">CCH.L</Origin> - Part 2
29/10/2014 10:55
- Part 2: For the preceding part double click ID:nRSG4748Oa
3.8 2.7
Capital expenditure (140.1) (152.2)
Net cash from operating activities 234.9 249.8
Capital expenditure (140.1) (152.2)
Free cash flow 94.8 97.6
1 Adjusted EBITDA refers to 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 intangible
assets, employee share options and other non-cash items, if any.
Coca-Cola HBC Group
Coca-Cola HBC is the second-largest bottler of the brands of The Coca-Cola Company in terms of volume with sales of more
than 2 billion unit cases. It has a broad geographic footprint with operations in 28 countries serving a population of
approximately 585 million people. Coca-Cola HBC offers a diverse range of non-alcoholic ready to drink beverages in the
sparkling, juice, water, sport, energy, tea and coffee categories. Coca-Cola HBC 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 its business in ways that protect
and preserve the environment and contribute to the socio-economic development of the local communities.
Coca-Cola HBC has a premium listing on the London Stock Exchange (LSE: CCH) and its shares are listed on the Athens
Exchange (ATHEX: EEE). Coca-Cola HBC is included in the Dow Jones Sustainability and FTSE4Good Indexes. For more
information, please visit http://www.coca-colahellenic.com.
Financial information in this announcement is presented on the basis of
International Financial Reporting Standards ('IFRS').
Conference call
Coca-Cola HBC will host a conference call with financial analysts to discuss the second quarter and half year 2014
financial results on 7 August 2014 at 10:00 am, Swiss time (9:00 am London, 11:00am Athens, and 4:00 am New York time).
Interested parties can access the live, audio webcast of the call through Coca-Cola HBC's website
(www.coca-colahellenic.com/investorrelations/webcasts).
Enquiries
Coca-Cola HBC AG Basak KotlerInvestor Relations Director Tel: +41 41 726 0143email: basak.kotler@cchellenic.com
Eri TziveliInvestor Relations Manager Tel: +30 210 618 3133email: eri.tziveli@cchellenic.com
Dimitris BakasInvestor Relations Manager Tel: +30 210 618 3124email: dimitris.bakas@cchellenic.com
International media contact: StockWell CommunicationsRob MorganSuzanne BartchAnushka Mathew Tel: +44 20 7240 2486robert.morgan@stockwellgroup.comsuzanne.bartch@stockwellgroup.comanushka.mathew@stockwellgroup.com
Greek media contact: V+O CommunicationsArgyro Oikonomou Tel: +30 211 7501219email: ao@vando.gr
Condensed consolidated interim balance sheet (unaudited)
Note As at 27 June 2014E million As at 31 December 2013E million
Assets
Intangible assets 4 1,933.9 1,921.3
Property, plant and equipment 4 2,814.9 2,901.9
Other non-current assets 305.0 300.0
Total non-current assets 5,053.8 5,123.2
Inventories 564.2 429.0
Trade and other receivables 1,158.6 985.1
Cash and cash equivalents 5 557.1 737.5
Total current assets 2,279.9 2,151.6
Total assets 7,333.7 7,274.8
Liabilities
Short-term borrowings 5 228.0 446.2
Other current liabilities 1,982.1 1,619.9
Total current liabilities 2,210.1 2,066.1
Long-term borrowings 5 1,855.0 1,853.6
Other non-current liabilities 395.4 387.8
Total non-current liabilities 2,250.4 2,241.4
Total liabilities 4,460.5 4,307.5
Equity
Owners of the parent 2,868.1 2,962.2
Non-controlling interests 5.1 5.1
Total equity 2,873.2 2,967.3
Total equity and liabilities 7,333.7 7,274.8
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Condensed consolidated interim income statement (unaudited)
Note Three months to 27 June 2014E million Three months to 28 June 2013E million
Net sales revenue 3 1,852.0 1,949.2
Cost of goods sold (1,154.5) (1,235.8)
Gross profit 697.5 713.4
Operating expenses (499.1) (551.9)
Restructuring costs 7 (5.1) (16.2)
Operating profit 3 193.3 145.3
Total finance costs, net 8 (18.4) (29.7)
Share of results of equity method investments 3.8 4.4
Profit before tax 178.7 120.0
Tax 9 (44.3) (30.1)
Profit after tax 134.4 89.9
Attributable to:
Owners of the parent 134.3 90.0
Non-controlling interests 0.1 (0.1)
134.4 89.9
Basicand diluted earnings per share (E) 10 0.37 0.25
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Condensed consolidated interim statement of comprehensive income (unaudited)
Three months to 27 June 2014E million Three months to 28 June 2013E million
Profit after tax for the period 134.4 89.9
Other comprehensive income:
Items that may be subsequently reclassified to income statement:
Available-for-sale financial assets:
Valuation (losses)/ gains during the period (0.1) 0.4
Cash flow hedges:
Amounts of (losses)/ gains during the period (10.3) 3.1
Amounts of losses reclassified to 3.4 2.6
profit and loss for the period
Transfers to inventory for the period (0.4) -
Foreign currency translation 48.6 (76.6)
Share of other comprehensive income of 0.3 (0.7)
equity method investments
Income tax relating to items that may be subsequently reclassified to income statement 1.7 (1.0)
43.2 (72.2)
Items that will not be subsequently reclassified to income statement:
Actuarial (losses)/ gains (16.1) 17.6
Income tax relating to components of 3.3 (3.3)
other comprehensive income
(12.8) 14.3
Other comprehensive income for the period, net of tax 30.4 (57.9)
Total comprehensive income for the period 164.8 32.0
Total comprehensive income attributable to:
Owners of the parent 164.7 32.1
Non-controlling interests 0.1 (0.1)
164.8 32.0
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Condensed consolidated interim income statement (unaudited)
Note Six months to 27 June 2014E million Six months to 28 June 2013E million
Net sales revenue 3 3,183.1 3,381.1
Cost of goods sold (2,033.4) (2,187.3)
Gross profit 1,149.7 1,193.8
Operating expenses (973.7) (1,037.4)
Restructuring costs 7 (11.9) (22.4)
Operating profit 3 164.1 134.0
Total finance costs, net 8 (38.9) (49.4)
Share of results of equity method investments 4.0 4.4
Profit before tax 129.2 89.0
Tax 9 (34.1) (23.5)
Profit after tax 95.1 65.5
Attributable to:
Owners of the parent 95.1 65.6
Non-controlling interests - (0.1)
95.1 65.5
Basic and diluted earnings per share (E) 10 0.26 0.18
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Condensed consolidated interim statement of comprehensive income (unaudited)
Six months to 27 June 2014E million Six months to 28 June 2013E million
Profit after tax for the period 95.1 65.5
Other comprehensive income :
Items that may be subsequently reclassified to income statement:
Available-for-sale financial assets:
Valuation gains during the period 0.1 0.3
Cash flow hedges:
Amounts of (losses)/ gains during the period (6.7) 6.6
Amounts of lossesreclassified to 3.8 6.6
profit and loss for the period
Transfers to inventory for the period (2.2) -
Foreign currency translation (46.3) (68.7)
Share of other comprehensive income of 0.1 (0.2)
equity method investments
Income tax relating to items that may be subsequently reclassified to income statement 1.2 (2.0)
(50.0) (57.4)
Items that will not be subsequently reclassified to income statement:
Actuarial (losses)/ gains (22.0) 19.7
Income tax relating to items that will not be subsequently reclassified to income statement 4.3 (3.4)
(17.7) 16.3
Other comprehensive income for the period, net of tax (67.7) (41.1)
Total comprehensive income for the period 27.4 24.4
Total comprehensive income attributable to:
Owners of the parent 27.4 24.5
Non-controlling interests - (0.1)
27.4 24.4
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Condensed consolidated interim statement of changes in equity (unaudited)
Attributable to owners of the parent
Sharecapital(2)E million SharePremium(2)E million Group Treasury shares(2) Exchange equalisation reserveE million OtherreservesE million RetainedearningsE million Total Non-controlling interests E million TotalequityE million
Reorganization reserve(2)E million E million E million
Balance as at 1 January 2013 370.2 569.3 - (54.3) (168.1) 376.6 1,895.0 2,988.7 17.8 3,006.5
Shares issued to employees exercising stock options 1.6 2.8 - - - - - 4.4 4.4
Share-based compensation:
Options - - - - - 2.1 - 2.1 - 2.1
Hyperinflation impact - - - - - - 2.1 2.1 - 2.1
Appropriation of reserves - - - - - 0.3 (0.3) - - -
Purchase of shares held by non-controlling interest - - - - - - (5.1) (5.1) (8.2) (13.3)
Change of parent company to Coca-Cola HBC AG 1,620.7 4,832.6 (6,472.1) (16.4) - 1.5 - (33.7) - (33.7)
Dividends (note 13) - (124.7) - - - - 1.2 (123.5) (4.5) (128.0)
1,992.5 5,280.0 (6,472.1) (70.7) (168.1) 380.5 1,892.9 2,835.0 5.1 2,840.1
Profit for the period net of tax - - - - - - 65.6 65.6 (0.1) 65.5
Other comprehensive income for the period, net of tax - - - - (68.9) 11.5 16.3 (41.1) - (41.1)
Total comprehensive income for the period, net of tax(1) - - - - (68.9) 11.5 81.9 24.5 (0.1) 24.4
Balance as at 28 June 2013 1,992.5 5,280.0 (6,472.1) (70.7) (237.0) 392.0 1,974.8 2,859.5 5.0 2,864.5
Shares issued to employees exercising stock options 4.9 7.1 - - - - - 12.0 - 12.0
Share-based compensation:
Options - - - - - 4.2 - 4.2 - 4.2
Movement in treasury shares - - - - - (0.1) - (0.1) - (0.1)
Hyperinflation impact - - - - - - (0.3) (0.3) - (0.3)
Appropriation of reserves - - - - - (1.5) 1.5 - - -
Dividends - - - - - - (0.2) (0.2) - (0.2)
1,997.4 5,287.1 (6,472.1) (70.7) (237.0) 394.6 1,975.8 2,875.1 5.0 2,880.1
Profit for the period net of tax - - - - - - 155.6 155.6 0.1 155.7
Other comprehensive income for the period, net of tax - - - - (56.3) (5.9) (6.3) (68.5) - (68.5)
Total comprehensive income for the period, net of tax - - - - (56.3) (5.9) 149.3 87.1 0.1 87.2
Balance as at 31 December 2013 1,997.4 5,287.1 (6,472.1) (70.7) (293.3) 388.7 2,125.1 2,962.2 5.1 2,967.3
(1)The amount included in the exchange equalisation reserve of E68.9 million loss for the first half of 2013 represents the
exchange loss attributed to the owners of the parentof E68.7 million plus the share of equity method investments of E0.2
million loss.
The amount included in other reserves of E11.5 million gain for the first half of 2013 consists of gains on valuation of
available-for-sale financial assets of E0.3 million, cash flow hedges gain of E13.2 million (of which E6.6 million
represents revaluation gains for the period and E6.6 million represents revaluation losses reclassified to profit and loss
for the period) and the deferred income tax charge of E2.0 million.
The amount of E81.9 million gain comprises a gain for the period of E65.6 million, plus the actuarial gains of E19.7
million less deferred income tax charge of E3.4 million.
The amount of E0.1 million loss included in non-controlling interests for the first half of 2013 represents the share of
non-controlling interests in the retained earnings.
(2) As these condensed consolidated interim financial statements are a continuation of the consolidated financial
statements of Coca-Cola Hellenic Bottling Company S.A., for the period 1 January 2012 to 25 April 2013 these components of
equity reflect the capital structure of Coca-Cola Hellenic Bottling Company S.A. and following the reorganisation reflect
the capital structure of Coca-Cola HBC AG.
The accompanying notes form an integral part of these condensed consolidated financial statements
Condensed consolidated interim statement of changes in equity (unaudited)
SharecapitalE million SharepremiumE million Group Reorganization reserveE million Treasury shares Exchange equalisation reserveE million OtherreservesE million RetainedearningsE million Total Non-controlling interests E million Totalequity E million
E million E million
Balance as at 1 January 2014 1,997.4 5,287.1 (6,472.1) (70.7) (293.3) 388.7 2,125.1 2,962.2 5.1 2,967.3
Shares issued to employees exercising stock options 0.3 0.3 - - - - - 0.6 - 0.6
Share-based compensation:
Options - - - - - 6.7 - 6.7 - 6.7
Movement in treasury shares - - - - - (1.9) - (1.9) - (1.9)
Hyperinflation impact - - - - - - 2.1 2.1 - 2.1
Appropriation/transfer of reserves - - - - - (134.3) 134.3 - - -
Dividends (note 13) - (130.2) - - - - 1.2 (129.0) - (129.0)
1,997.7 5,157.2 (6,472.1) (70.7) (293.3) 259.2 2,262.7 2,840.7 5.1 2,845.8
Profit for the period net of - - - - - - 95.1 95.1 - 95.1
tax
Other comprehensive income for the period, net of tax(3) - - - - (46.2) (3.8) (17.7) (67.7) - (67.7)
Total comprehensive income for the period net of tax - - - - (46.2) (3.8) 77.4 27.4 - 27.4
Balance as at 27 June 2014 1,997.7 5,157.2 (6,472.1) (70.7) (339.5) 255.4 2,340.1 2,868.1 5.1 2,873.2
(3) The amount included in the exchange equalisation reserve of E46.2 million loss for the first half of 2014 represents
the exchange loss attributed to the owners of the parent of E46.3 million plus the share of equity method investments of
E0.1 million gain.
The amount included in other reserves of E3.8 million loss for the first half of 2014 consists of gains on valuation of
available-for-sale financial assets of E0.1 million, cash flow hedges losses of E5.1 million (of which E6.7 million
represents revaluation loss for the period, E3.8 million represents revaluation loss reclassified to profit and loss for
the period and E2.2 million represents revaluation gains reclassified to inventory for the period) and the deferred income
tax credit of E1.2 million.
The amount of E77.4 million gain comprises a gain for the period of E95.1 million plus actuarial loss of E22.0 million less
deferred income tax credit of
E4.3 million.
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Condensed consolidated interim cash flow statement (unaudited)
Note Six months to Six months to
27 June 2014E million 28 June 2013E million
Operating activities
Profit after tax for the period 95.1 65.5
Total finance costs, net 8 38.9 49.4
Share of results of equity method investments (4.0) (4.4)
Tax charged to the income statement 34.1 23.5
Depreciation of property, plant and equipment 4 176.7 191.2
Employee share options 6.7 2.1
Amortisation of intangible assets 4 0.2 0.6
347.7 327.9
Gains on disposal of non-current assets (2.6) (2.7)
Increase in inventories (135.8) (138.6)
Increase in trade and other receivables (194.6) (139.8)
Increase in trade and other payables 241.8 222.5
Tax paid (21.6) (19.5)
Net cash from operating activities 234.9 249.8
Investing activities
Payments for purchases of property, plant and equipment (137.3) (146.9)
Payments for purchase of intangible assets 17 (14.1) -
Proceeds from sales of property, plant and equipment 3.8 2.7
Net receipts from / (payments for) investments 1.2 (6.1)
Interest received 4.5 2.7
Net cash used in investing activities (141.9) (147.6)
Financing activities
Payments for buy-out minorities of Coca-Cola Hellenic Bottling Company SA - (1.0)
Proceeds from shares issued to employees exercising stock options 0.6 4.4
Purchase of shares held by non-controlling interests 12 - (15.3)
Dividends paid - (4.5)
Proceeds from external borrowings 647.0 1,226.8
Repayments of external borrowings (858.8) (609.3)
Principal repayments of finance lease obligations (6.6) (8.0)
Interest paid (54.8) (73.0)
Net cash (used in)/ from financing activities (272.6) 520.1
(Decrease) / increase in cash and cash equivalents (179.6) 622.3
Movement in cash and cash equivalents
Cash and cash equivalents at 1 January 737.5 439.1
(Decrease) / increase in cash and cash equivalents (179.6) 622.3
Effect of changes in exchange rates (1.3) -
Effect of consolidation of Coca-Cola HBC AG - 1.8
Hyperinflation impact on cash 0.5 0.3
Cash and cash equivalents at the end of the period 557.1 1,063.5
The accompanying notes form an integral part of these condensed consolidated interim financial statements
Selected explanatory notes to the condensed consolidated interim financial statements (unaudited)
1. Accounting policies
The accounting policies used in the preparation of the condensed consolidated interim financial statements of Coca-Cola
HBC AG ('Coca-Cola HBC', the 'Company' or the 'Group') are consistent with those used in the annual financial statements
for the year ended 31 December 2013, except for the adoption, as of 1 January 2014, the amendment to IAS 32 Financial
Statement Presentation, on asset and liability offsetting; amendment to IAS 36 Impairment of assets, on recoverable amount
disclosures; amendment to IAS 39 Financial Instruments: Recognition and Measurement, on novation of derivatives, and IFRIC
21 Levies. The adoption of the new interpretation and amended standards did not have a significant impact on the current or
prior periods.
Basis of preparation
Operating results for the second quarter of 2014 are not indicative of the results that may be expected for the year ending
31 December 2014 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 are prepared in accordance with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to Interim Financial
Reporting ("IAS 34"). These condensed consolidated interim financial statements should be read in conjunction with the 2013
annual financial statements, which include a full description of the Group's accounting policies.
2. Exchange rates
The Group's reporting currency is the euro (E). Coca-Cola HBC 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 8.
The principal exchange rates used for transaction and translation purposes in respect of one euro were:
Average for the six months periodended Closing as at
27 June 2014 28 June 2013 27 June 2014 31 December 2013
US dollar 1.37 1.31 1.36 1.38
UK sterling 0.82 0.85 0.80 0.84
Polish zloty 4.17 4.19 4.15 4.15
Nigerian naira 213.57 203.87 211.90 214.41
Hungarian forint 307.53 295.90 306.09 296.36
Swiss franc 1.22 1.23 1.22 1.23
Russian Rouble 47.74 40.68 46.19 44.98
Romanian leu 4.47 4.38 4.39 4.46
Serbian dinar 115.69 111.94 115.54 114.62
Czech koruna 27.45 25.75 27.43 27.48
Ukrainian hryvnia 14.25 10.46 16.18 10.94
3. Segmental analysis
The Group has one business, being the production, sale and distribution of ready -to- drink primarily non-alcoholic,
beverages. The Group operates in 28 countries and its financial results are reported in the following three reportable
segments:
Established markets: Austria, Cyprus, Greece, Italy, Northern Ireland, Republic of Ireland and Switzerland.
Developing markets: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.
Emerging markets: Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, FYROM, Moldova, Montenegro, Nigeria, Romania, the Russian Federation, Serbia (including the Republic of Kosovo) and Ukraine.
Emerging markets:
Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, FYROM, Moldova, Montenegro, Nigeria, Romania, the Russian Federation,
Serbia (including the Republic of Kosovo) and Ukraine.
Information on the Group's segments is as follows:
Three months ended Six months ended
27 June 2014 28 June 2013 27 June 2014 28 June 2013
Volume in unit cases(1) (million)
Established countries 174.6 177.5 305.9 319.4
Developing countries 100.3 105.5 170.3 182.3
Emerging countries 285.7 294.7 494.0 502.7
Total volume 560.6 577.7 970.2 1,004.4
Net sales revenue (E million)
Established countries 700.1 697.2 1,228.0 1,267.7
Developing countries 299.5 308.5 504.7 525.7
Emerging countries 852.4 943.5 1,450.4 1,587.7
Total net sales revenue 1,852.0 1,949.2 3,183.1 3,381.1
Operating profit (E million)
Established countries 70.0 30.5 58.9 33.9
Developing countries 32.8 15.4 22.8 0.5
Emerging countries 90.5 99.4 82.4 99.6
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