Soft drink bottler Coca-Cola HBC forecast modest sales volume growth for the full year after a roughly flat first half, citing slowing declines in Russia and continued growth in Nigeria.

The company, which bottles Coca-Cola drinks in 28 countries, on Thursday reported improved earnings for the first half of the year, helped by cost-cutting and lower commodity costs.

Comparable earnings per share were euro 0.42, up 6.9 per cent from the year earlier period, while its comparable earnings before interest and taxes (ebit)profit margin was 7.5 per cent, up from 7 per cent a year ago.

Sales revenue for the six months to July 1st fell 3.4 per cent to €3.04 billion slightly below consensus estimates of €3.06 billion, according to analysts.

Volume growth

But excluding currency fluctuations and the impact of one less selling day, revenue rose 2.4 per cent, helped by price increases and the company selling more drinks in markets including Nigeria and Romania.

Overall volume though was up only 0.1 per cent.

Despite tough comparisons with a strong year-earlier period, the company said volumes “held up well” in July, making it confident of “volume growth for the year as a whole”.

The company said developing markets would slow in the second half of the year, due to a strong third-quarter a year ago, but that volume in emerging markets should improve as declines in Russia slow and Nigeria grows, despite the recent depreciation of the Nigerian currency.

In June, the company said its medium-term forecast called for average annual revenue growth of 4 to 5 per cent through 2020, with operating expenses dropping to 26 to 27 per cent of revenue and an ebit margin rising to 11 per cent.

Reuters