Coca-Cola Hellenic Bottling Company S.A. (CCB.L), Thursday, reported a profit for the fourth quarter compared to last year's loss, reflecting mainly the absence of an asset impairment charge recorded last year. On a comparable basis, net income increased driven primarily by lower finance costs, despite a 12% decline in sales.
Profit before tax for the quarter was EUR 43.5 million compared to a loss of EUR 174.8 million last year. Net profit attributable to shareholders was EUR 3.1 million versus a loss of EUR 194.8 million last year. On a per-share basis, earnings were breakeven for the quarter compared to EUR 0.53 loss in the prior-year period.
The company conducted a test for impairment in goodwill and indefinite-lived intangible assets and consequently took a non-cash impairment charge of EUR 189 million in the fourth quarter of 2008. No impairment was indicated from the impairment test of 2009.
Net profit, on a comparable basis, which excludes special items, soared to EUR 26.0 million or EUR 0.07 per share from EUR 1.6 million or a breakeven per share in the last year.
Comparable net profit reflects a reduction in finance costs by almost half to EUR 15.0 million from EUR 30.8 million last year.
Net sales revenue for the quarter decreased 12% to EUR 1.39 billion from EUR 1.59 billion last year, reflecting lower volumes, adverse product mix and a double-digit negative impact from currencies, partially offset by positive pricing.
Net sales revenue from Established countries increased to EUR 634.2 million from EUR 615.6 million, while revenue from Developing countries declined 19% to EUR 237.9 million from EUR 293.8 million and revenue from Emerging countries dropped 24% to EUR 521.0 million from EUR 682.1 million in the last-year period.
Gross profit margins for the quarter increased to 39.2% from 38.6% in the last-year quarter. On a unit case basis, gross profit decreased by approximately 3% in the fourth quarter, largely reflecting negative currency movements. On a currency neutral basis, gross profit per unit case increased by 2% in the quarter.
For the quarter, volume decreased 8% to 452.3 million unit cases from 492.1 million unit cases in the prior-year period. On a like-for-like selling day basis and excluding the results of Socib S.p.A., which was acquired last year, volumes dropped 8% to 423 million unit cases.
For the full year, net profit advanced to EUR 399.2 million or EUR 1.09 per share from EUR 227.6 million or EUR 0.62 per share last year. On a comparable basis, net profit rose 3% from EUR 436.9 million or EUR 1.20 per share from EUR 424.0 million or EUR 1.16 per share in the year ago.
Net sales revenue for the full year decreased 6% to EUR 6.54 billion from EUR 6.98 billion last year. Volume for the year decreased 2% to 2.07 billion unit cases from 2.12 billion unit cases in the prior year.
Looking ahead, the Greek based soft drinks bottler noted that though consensus estimates indicate economic growth may return in 2010, growth in the non-alcoholic ready-to-drink category is expected to lag this GDP growth.
"We expect trading conditions in the first half of 2010 to remain highly challenging, as consumer confidence continues to be depressed in several of our countries. As a consequence, and due to operational leverage, comparable operating profit performance is expected to be more weighted towards the second half of the year," the company said.
CCB.L shares last traded at EUR 16.13 on the London Stock Exchange.
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