- Coca-Cola Sales Drop in Nigeria
The sales volume of Coca-Cola Company in Nigeria continued to drop in a very competitive market, the Coca-Cola HBC has said.
According to the company, sales volume improved by 4.2 per cent across emerging markets and increased by 4.3 per cent in all countries except Nigeria.
Growth was recorded in Poland, Hungary and the Czech Republic. The company said sales volume rose by 8.8 per cent because of increased sales in the listed regions.
The report showed the company recorded lower sales in Nigeria due to stive competition in Sparkling segment which comprises the trademark Coca-Cola and the Coca-Cola Zero variants, Water, while juice and Energy delivered positive results.
The company attributed the weak sales to intense competition between established brands and rising new entrants and the surge in prices due to weak foreign exchange.
The total volume sold in Nigeria dropped by 1.9 per cent year-on-year in 2018.
Fx-neutral revenue, the value presently pursued in Nigeria, rose by 5 per cent. But having made adjustments to the price/pack formula, the company number improved in December.
Zoran Bogdanovic, Chief Executive Officer of Coca‑Cola HBC AG: “In 2018 we delivered another very good performance with revenue growth above our target range and another step up in margins. Strong volume growth in all our segments was helped by a record number of new product launches, whilst price/mix improved for the eighth consecutive year. This growth supported margin progress, which we delivered while increasing our investment in marketing. Our sharp focus on cost efficiencies continues while we invest in the business for growth. The shape of the business, capabilities and commitment of our people and our overall commercial proposition give us confidence in our ability to continue to grow revenues and margins.”
In an effort to better enhance sales, Coca-cola acquired 100 per cent stake in Nigeria-based dairy beverages and juice produce, Chi Limited on January 29, 2019.
