Abdul Milazi
20 April 2007
Johannesburg — STRONG growth in Coca-Cola Africa's largest markets in Africa -- SA and Nigeria -- contributed to the beverage company's first-quarter performance, with the group posting a 12% increase in revenue to $1,276bn, from $1,140bn in December last year.
Unit case volumes (cases of 24 units) were also up 17% from 1,4-billion to 1,6-billion. Global volumes were up 4% from 21,4-billion to 22,2-billion unit cases.
Alex Cummings, president and chief operating officer of Coca-Cola Africa, said the revenue growth reflected a 16% increase in concentrate sales, positive pricing and mix, partially offset by an unfavourable double-digit currency effect.
"Operating income growth of 9% reflected the increase in net revenues and the continued investment in key marketing initiatives," said Cummings.
SA's unit case volume grew 29%, compared with a 3% decline in the first quarter last year.
The company said that the growth was driven by strong marketing, the replenishment of trade inventory -- which had been low due to the carbon dioxide shortage in the fourth quarter last year -- and favourable weather.
Nigeria's unit case volume increased 18%, compared with an 11% rise previously.
"This is a strong quarter and a strong start to 2007.
"We grew both sparkling and still beverages.
"Our focus on driving growth, building our innovation pipeline and managing our productivity is working," said Cummings.
"However, these impressive results are the product of just one quarter and we must remain focused on delivering sustainable growth into the future."
Coca-Cola Africa is the continent's soft-drinks leader, serving 925-million consumers through 900000 retail outlets throughout 56 countries.
Every day, about 93-million Coca-Cola products are sold across Africa.
Cummings said Coca-Cola Africa, together with its 40 bottling partners, was the continent's largest private-sector employer in the consumer goods industry, with 55000 employees.
"Over the past five years, we have invested more than $600m in Africa, with much of this going into new plants, updated equipment and advanced employee training," said Cummings.
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