The Second largest bottler of Coca-Cola HBC declares a shocking 11.4% drop in their fourth quarter profit.
A $40 million loss within Russia, 2014 was announced last week.
The Russian Central Bank predict a forecast, the forecast being that the Russian economy will decline from 5% to 2.5% some time in 2015.
Wednesdays earnings report - expressed good performance within Greece, Nigeria, Poland, Austria. Yet the CEO is unsure about the future.
Weak demand combined with political issues in Ukraine have punctured sales in Russia. Also, the expectations for the company were completely missed due to the crumbling Ruble, which lost around 45% when compared against the dollar a few months ago.
Due to weak demand, In March 2014, Coca cola announced they will be closing down a third of juice produce in Russia, through the process of shutting down two of their four plants. One was in Siberia, the other Moscow. One of the largest brewer companies, 'Carlsberg' also shut down 2 of their 10 breweries within Russia for the same reasons as Coca Cola.
In conclusion, Coca-Cola HBC are faced with some big problems, problems they have not had for a long time; weak demand is harming the company, badly and can worsen.
Weak demand seems exist in Switzerland & Italy. Where as, sales increased by 2% last year in Greece.
- Coca-Cola cannot be complacent with the result in Greece, instead they may land in much more problems, that is if Athens fail to sort out their Debt package.
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