CocaCola Hellenic Bottling Company, the parent company of the CocaCola Nigeria (Nigerian Bottling Company) said it might further raise prices in 2017 to fully adjust to Nigeria’s inflation.
The company made the disclosure in its 2016 integrated report where it reported that its net profit was GBP344 million compared to GBP280.7 posted in 2015. Its net revenue from Nigeria fell by 6% to GBP583.3 compared to GBP621.6 million in 2015. To hedge against inflation and devaluation risk, Zoran Bogdanovic, Region Director Coca-Cola HBC said:
“The macroeconomic conditions in Nigeria remain challenging with inflation rates expected to reach 17% in 2017 and the likelihood of a further devaluation of the naira. In line with our strategy, we implemented price increases in 2016 and we will continue to adjust prices in 2017”.
He added that “Despite our focused approach with ‘magic price points’ and changes in package sizes, price increases are expected to impact sales volume growth adversely. We expect to see volume growth from 2018 onwards, supported by a return to a GDP growth in the country”
The company has not officially responded to the lawsuit from its global office and or issue any cautionary statement on the London Stock Exchange where it is quoted on the likely impact of the events in Nigeria will have on its business and revenue profile.
Nigerian Bottling company, its local subsidiary said last week that it has appealed the court judgement which ordered it to print safety warnings on Fanta and Sprite due to their levels of benzoic acid that was said to be poisonous when taken with Vitamin C.