Coca-Cola HBC S.A. (ADR) (NYSE:OCCH)

CAPS Rating: 4 out of 5

Produces, sells and distributes non-alcoholic beverages consisting primarily of products of The Coca-Cola Company.


Player Avatar FiscalFriend (< 20) Submitted: 2/1/2012 3:43:20 PM : Outperform Start Price: $17.91 OCCH Score: -7.25

Like a good, risk-minimizing investor, CCH spreads its sales across established (well-off), developing (increasingly competitive) and emerging (now up-and-coming) markets. In 2010, CCH was able to offset losses in established and developing markets with a whopping 32 percent EBIT increase in emerging markets like Russia and Nigeria, which compose 44 percent of CCH’s total income. Russia in particular enjoyed an explosive 26 percent increase in Coca-Cola volume sold for 2010 alone. These gains indicate that CCH does not rely on the success of euro zone economies. That means - in a worst case scenario - if Greece continues to perform poorly, CCH will still profit. The EBIT numbers also show that emerging markets are amplifying their purchasing power and preference for Coca-Cola products; demand is just beginning to blossom. You will see a return on your investment simply because people in different areas of the world are drinking more Coca-Cola.

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