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Greece's Coca-Cola Hellenic Bottling (CCHBC) expects to grow earnings per share by 12-15% this year as it launches low-calorie drink Coke Zero into more markets after soaring 2007 profit beat forecasts.
CCHBC, the world's second-largest bottler of Coca-Cola drinks, said 2007 net profit rose 42% to €472.3 million ($687.9 million) from €334 million in 2006, boosted by strong growth in emerging and developing markets.
Net profit had been forecast at an average of €463.3 million in a Reuters poll of 12 analysts. The bottler said it sees earnings per share of €1.46 to €1.49 this year, with volume growth growing by about 7%.
CCHBC, present in 28 countries, has bought into 11 water and juice firms in Europe and Russia in the last six years to cash in on consumers' shift towards healthier drinks.
"Growth was achieved across all reporting segments, with non-carbonated soft drinks (CSDs) now accounting for 37% of our total volume sold," Chief Executive Doros Constantinou said in a statement.
Earnings before interest and tax (EBIT) for 2007 in established markets, including Greece, rose by an annual 25%, versus a 56% and 48% jump in developing and emerging markets respectively.
"CCHBC managed to achieve both robust volume growth in full year 2007 and operating margin expansion despite higher raw material prices and continuous investment in sales capabilities," said brokerage HSBC Pantelakis in a note. Shares were up 3.5% at €29 in early trade on the Athens bourse.
Product plans Sales volume rose 13% to 2.01 billion unit cases, in line with its 2007 guidance for annual growth of 13%. About two thirds of total sales volume comes from developing and emerging markets, including Russia and Nigeria.
CCHBC, which launched Coke Zero in Ireland, Northern Ireland, Greece, Switzerland, Austria, Italy, Croatia and Romania last year, plans to introduce the product to more markets in 2008.
"We plan to launch Coke Zero in another eight markets in central Europe primarily, developing and emerging markets sometime before May," Constantinou told Reuters.
The successful launch of the Coke Zero product last year helped growth in total carbonated soft drinks reach an annual 7.0%. Fourth-quarter net earnings came to €37.6 million, compared with a loss in the previous year.
The shares have lost about 6% since the start of the year, outperforming a 15% drop on the Athens benchmark general index due to the bottler's strong growth prospects. * (Editing by David Cowell and Shaun Weston)*
Article from Reuters