Coca-Cola Accounts Increase in Sales Revenue Down to Sponsoring of Sports Events

Soft drink company Coca-Cola has suggested its sponsorship of the European Championships and London Olympic Games has helped push the brand forward as it reveals a 1% sales revenue increase for 2011.

The brand has revealed that in 2011, abortion the company made €6, therapy 854 million ($8,976m), an increase of 1% of 2010, with a decline in net profit of 27%, falling from €453m ($593m) to €330m ($432m).

There was mixed growth experienced across its differing categories, with Sparkling beverages and energy drinks volume increasing by 2% and 29% respectively, last year, while water and juice categories declined by 7% and 8%, respectively.

Premium brands grew ahead of total volume however, with Coca-Cola growing by 5%, Coca-Cola Zero growing by 7% and Fanta and Sprite each experiencing 1% growth.

The rising cost of materials however was blamed for the 21% decline in comparable pre-tax earnings.

Dimitris Lois, Chief Executive Officer of Coca-Cola Hellenic, commented: “We grew revenue ahead of volume both in the fourth quarter and for the full year 2011. Despite extremely challenging economic conditions in most of our markets, net sales revenue per case grew by 4% on a currency neutral basis in the full year. This result was achieved whilst growing or maintaining our volume share in sparkling beverages in twenty five out of twenty eight markets in 2011.

“We expect the economic environment and consumer sentiment to remain weak in 2012. We also anticipate another year of significant input cost pressures. In this environment, we will continue to optimise our operations to reduce our ongoing costs. We remain committed to our revenue growth strategy, and we expect to further improve currency neutral net sales revenue per case while we continue building sustainable leadership in the marketplace.

“We will sustain a strong free cash flow generation trend in 2012 through our focus on working capital management and set a competitive cost base through our operating efficiency initiatives.”

Coca-Cola also highlighted both the Euro 2012 and the Olympic Sponsorships as its aimed to ‘stay relevant’ to customers and partner with customers to drive cost leadership and grow the company’s market position.

by Ismail Uddin