EM CEEMEA CREDIT: Coca-Cola Icecek: Q325: Strong margins, credit pos
Nov-05 09:39
(CCOLAT; -/BB+/BBB)
- Improved pricing and cost controls domestically driving margins, profitability and cash flow generation. An improved quarter, which should give investors’ confidence.
- CCI’s volumes in Q325 +8.9% y/y at 477mn unit cases (UC). Volumes domestically continue to be weak -1.7% y/y, while Pakistan showed some a modest increase +0.7% y/y. Uzbekistan and Kazakhstan continue to show strong momentum +36.5% and 24.2% y/y respectively.
- Product wise, sparkling accelerated to +8.9% y/y (Fanta and Sprite), while Stills was very strong +26% y/y (Fuesta+ and energy drinks) and water continues to be weak -6.3% y/y.
- Management said during the last conference call that 1H was mainly focused on volume and 2H will be on value. Total net sales revenue +6.7% y/y at TRY52.2bn, domestic operations -0.9% while international operations were +13.8% y/y. Gross margins were reported at 38.9% +2.4ppt q/q, driven by domestic ops +6.2ppt q/q while international was gross margins were weaker at -0.6ppt q/q. EBITDA margin domestically was 19.5% (vs 11.2% in Q225) while international was flat q/q.
- FCF for the 9m25 improved to TRY5.8bn from TRY5.5bn consumption in H125. Reported leverage reduced to 0.83x at the end of Q3 vs 1.36x at the end of Q225.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GERMAN T-BILL AUCTION RESULTS: 6/11-Month Bubills
Oct-06 09:34
| Type | 6-month Bubill | 11-month Bubill |
| Maturity | Apr 15, 2026 | Sep 16, 2026 |
| Allotted | E2.445bln | E1.859bln |
| Previous | E2.463bln | E1.375bln |
| Total sold | E3bln | E1.5bln |
| Target | E3bln | E1.5bln |
| Avg yield | 1.937% | 1.944% |
| Previous | 1.935% | 1.908% |
| Bid-to-cover | 1.45x | 2.91x |
| Previous | 1.66x | 3.81x |
| Bid-to-offer | 1.18x | 3.61x |
| Previous | 1.36x | 3.49x |
| Previous date | Sep 01, 2025 | Sep 08, 2025 |
GILTS: Bear Steepening On Global Cues
Oct-06 09:34
Gilts trade lower as steepening impetus from Japan (in the wake of the LDP Party naming a new leader & PM) and heightened political risk in France (as PM Lecornu steps down) weigh.
- Futures break Thursday’s low, basing at 90.48 before a recovery to 90.60.
- Bears remain in technical control at this stage, particularly with UK fiscal risks lingering.
- Initial support and resistance in futures still located at 90.26 & 91.28, respectively.
- Yields 1.5-5.0bp higher, curve steeper.
- 10s still comfortably within their recent 4.60-4.80% range, last 4.73%. Broader benchmark yields fail to test recent highs.
- 2s10s and 5s30s stick within their respective multi-week ranges, trading ~7bp and ~11bp below their cycle closing highs. Steepening trends intact.
- BoE-dated OIS still shows ~5bp of easing through year-end and is not discounting the next 25bp cut until the end of the April MPC.
- We continue to believe that markets underprice the odds of a Q4 rate cut.
- Comments from BoE Governor Bailey are due today.
- They will be closely scrutinised (even though he spoke as recently as Friday), particularly after Deputy Governors Ramsden & Breeden failed to push back against the idea of rate cuts last week.
- We have previously suggested that Bailey and those two Deputies would probably have to join dovish dissenters Dhingra & Taylor if we were to see a cut in Q4.
- Also note that the BoE will sell GBP775mln of short bucket gilts from its APF (3- to 7-Year) this afternoon.
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference vs. Current Effective SONIA (bp) |
Nov-25 | 3.963 | -0.5 |
Dec-25 | 3.923 | -4.5 |
Feb-26 | 3.818 | -14.9 |
Mar-26 | 3.788 | -17.9 |
Apr-26 | 3.707 | -26.0 |
Jun-26 | 3.683 | -28.4 |
Jul-26 | 3.634 | -33.3 |
Sep-26 | 3.623 | -34.4 |
OPTIONS: Larger FX Option Pipeline
Oct-06 09:34
- EUR/USD: Oct07 $1.1650(E1.8bln), $1.1750(E1.2bln), $1.1820(E2.3bln); Oct08 $1.1700(E1.0bln), $1.1770-80(E1.2bln), $1.1800(E1.2bln)
- USD/JPY: Oct08 Y146.50($1.2bln), Y147.00($1.5bln)
