Coca-Cola Hellenic's Q2 earnings fell 17% from a year ago to €221M as revenue grew to €1.98B from €1.92B; higher commodity and raw material costs, challenging economic conditions blamed

Cindy Allen

ATHENS, Greece , August 4, 2011 (Associated Press) – Greece's Coca-Cola Hellenic on Thursday reported a 17 percent drop in second quarter net profit as higher commodity and raw material costs took their toll despite rising revenues.

The company said net profit fell to euro221 million ($316 million) in the second quarter of 2011 from euro265 million last year. Revenue rose modestly to euro1.98 billion ($2.83 billion) from euro1.92 billion.

"Despite improved operating efficiencies, restructuring savings, and revenue growth management initiatives, high commodity prices combined with challenging economic conditions hindered our profitability," company CEO Dimitris Lois said.

Lois said commodity prices are still expected to increase by low double-digits over the rest of the year, but CCH "remain committed to recover a substantial portion of this increase."

The company statement said energy drinks sales grew "in the strong double digits" in the second quarter, while Coca-Cola and Coca-Cola Zero brand sales also increased significantly.

Juice and water sales, however, declined in the single digits.

CCH is one of the world's largest Coca-Cola Company product bottlers, and has operations in 28 countries.

© 2024 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.