Markets

We manage and report on our business by grouping our geographical markets into three segments: emerging, developing and established markets. These groupings are based on a wide range of criteria, including socio-economic similarities, GDP per capita, consumption of sparkling drinks per capita and the state of development of the local drinks market. 


Established Markets

-14.1%

Currency neutral revenue change vs.2019

9.6%

Comparable EBIT margin vs. 2019

 

We operate in the following established markets: Austria, Cyprus, Greece, Italy, Northern Ireland, Republic of Ireland and Switzerland.

These countries share a tradition of political and economic stability and similar economic features, not least, high levels of disposable income per capita. This prosperity and economic security supports the affordability of our products, notably our single-serve packages.

Established countries generally show high levels of consumer sophistication. There are signs of activities concentrating in the retail sector – a critical indication for future channel development. A shift in demand towards domestic consumption, reflecting a reduction in disposable income, further supports this trend. In this context, activation at final points of sale is a key focus for our marketing and sales efforts.

established-markets-volume-breakdown established-markets-volume-breakdown
92m

population in our established markets

7

countries

25%

sales volume from our established markets in 2020

  2020

2019

% change

Volume (million unit cases)

537

624

-14.0

Net sales revenue (€ million)

2,175

2,518

-13.6

Operating profit (EBIT) (€ million)

203

236

-13.9

Comparable EBIT (€ million)

209

256

-18.4

Total taxes1 (€ million)

111

135

-17.8

Population2 (million)

92

91

0.3

GDP per capita (US$)

38,394

40,285

-4.7

Bottling plants (number)

15

15

-

Employees (number)

6,407

6,624

-3.3

Water footprint (billion litres)

3.7

4.2

-10.9

Carbon emissions (tonnes)

67,450

80,919

-16.6

Safety rate (lost time accidents >1 day per 100 employees)

0.55

0.86

-36%

1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social security costs and other taxes that are reflected as operating expenses; as per IFRS accounts.

2. Population source: International Monetary Fund, World Economic Outlook Database, October 2020. Northern Ireland: NISRA (Northern Ireland Statistics and Research Agency), Office for National Statistics, UK, Northern Ireland Economic Outlook, 2020. Italian data: data from ISTAT (Italian National Institute of Statistics), excluding Sicilian population.


Developing Markets

-10.3%

Currency neutral revenue change vs. 2019

 

8.7%

Comparable EBIT margin vs. 2019

We operate in the following developing markets: Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

While developing markets have market-oriented economies, they generally have lower disposable income per capita than our established markets. In addition, these countries can be exposed to periods of economic volatility. Entry to the European Union has resulted in increased political stability, as countries increasingly conform to the EU’s principles, objectives and regulations.  

developing-markets-volume-breakdown developing-markets-volume-breakdown
76m

population in our developing markets

 

9

countries

 

19%

sales volume from developing markets in 2020

  2020 

2019

% change

Volume (million unit cases)

412

431

-4.4

Net sales revenue (€ million)

1,171

1,352

-13.4

Operating profit (EBIT) (€ million)

97

139

-30.2

Comparable EBIT (€ million)

102

146

-30.3

Total taxes(€ million)

63

65

-3.1

Population2 (million)

76

76

-

GDP per capita (US$)

17,132

17,675

-3.1

Bottling plants (number)

9

9

-

Employees (number)

4,581

4,738

-3.3

Water footprint (billion litres)

3.2

3.5

-8.7

Carbon emissions (tonnes)

44,927

70,453

-36.2

Safety rate (lost time accidents >1 day per 100 employees)

0.33

0.30

9%

1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social security costs and other taxes that are reflected as operating expenses; as per IFRS accounts. 

2. Population source: International Monetary Fund, World Economic Outlook Database, October 2020.


Emerging Markets

-2.8%

Like-for-like* Currency neutral revenue changevs. 2019

12.0%

Like-for-like*  Comparable EBIT margin vs. 2019

We operate in the following emerging markets: Armenia, Belarus, Bosnia & Herzegovina, Bulgaria, Moldova, Montenegro, Nigeria, North Macedonia, Romania, the Russian Federation, Serbia (including the Republic of Kosovo) and Ukraine.

These countries share relatively similar political and economic volatility, with lower per capita GDP than our developing or established segments. As a result, consumer demand is especially price sensitive, making the affordability of Coca‑Cola HBC’s products even more important.  

We deliver our products with a strategy of specialised revenue growth management, packaging and promotional programmes – these are the considerations at the core of our response to the nuances of local economic conditions.

emerging-markets-volume-breakdown emerging-markets-volume-breakdown
451m

population in our emerging markets

12

countries

56%

sales volumes from emerging markets in 2019

  2020 

2019

% change

Volume (million unit cases)

1,187

1,209

-1.8

Net sales revenue (€ million)

2,786

3,156

-11.7

Operating profit (EBIT) (€ million)

360

340

5.9

Comparable EBIT (€ million)

361

356

1.4

Total taxes1 (€ million)

169

149

13.4

Population2 (million)

451

446

1.1

GDP per capita (US$)

5,645

6,304

-9.5

Bottling plants (number)

32

32

-

Employees (number)

16,734

17,027

-1.7

Water footprint (billion litres)

8.7

9.1

-5.1

Carbon emissions (tonnes)

319,544

330,118

-3.2

Safety rate (lost time accidents >1 day per 100 employees)

0.11

0.18

-39%

1. Total taxes include corporate income tax, withholding tax and deferred tax, as well as social security costs and other taxes that are reflected as operating expenses; as per IFRS accounts. 

2. Population source: International Monetary Fund, World Economic Outlook Database, October 2020. Polulation includes N. Macedonia. Figures are rounded. Percentage changes are calcuated on precise numbers.

*Like-for-like: Performance, unless stated otherwise, is negatively impacted by the change in classification of our Russian juice business (Multon), from a joint operation to a joint venture, following its re-organisation, and positively impacted by the inclusion of H1 2020 performance of Bambi, the acquisition of which was cycled in H2 2020. In addition, profitability is positively impacted by the Group’s election to classify share of results of integral equity method investments within operating profit. Like-for-like performance adjusts for all three impacts.