29 May 2007
• Volume grew by 9.9%, to 79.8 million unit cases
• Net sales reached YTL321.7 million; up by 17.2%
• EBITDA was YTL37.3 million, an increase of 18.0% above prior year
Comments from the CEO, Michael A. O’Neill
Michael A. O’Neill, Chief Executive Officer of Coca Cola İçecek made the following comment:
“I am very pleased to report another quarter of continued volume growth, up 9.9%. We have successfully grown revenues ahead of volume and EBITDA ahead of revenue again in the first quarter.
The market slowdown we experienced in Turkey in the last quarter of 2006 continued, although to a lesser extent in the first quarter of this year. Turkey’s volume was up by 4.1%. While trimming promotional spending compared to the last quarter of 2006, the overall level of promotions were slightly above 1Q2006. However, volume guidance of high single digit to low double digit will be achieved in 2007.
Damla, our new source water brand was very well received by the trade when launched in March. The volume impact of Damla will be seen beginning in the second quarter. Following the success of Coca-Cola light in 1.5 L package last year, we have now extended this package to brands Coca-Cola and Fanta. This is our first launch of a multi serve package since 2000. We have completed the installation of an aseptic line and have introduced new packages in the non-carbonated beverage segment in the second quarter.
All International operations have performed well growing volume by 39.6% on a pro-forma basis. Iraq, a new market for CCI, is included in our financials on a proportionate basis. We announced the acquisition of 50% of the Syrian Sales and Distribution Company in March 2007. This transaction will be finalized in the coming weeks and Syria will also be included in our financials on a proportionate basis.
We are very encouraged by the performance of all operations and in particular the strength in our international operations has helped offset some of the market slowdown in Turkey. We operate in growing economies that offer significant opportunities for expansion and our business is well positioned to capture that growth.”