Greek Coke bottler says may make acquisition

Greek Coke bottler CCH <HLBr.AT>, the world's second-largest maker of Coca-Cola drinks, said it may make an acquisition by the end of the year, as it seeks to expand its water and juice portfolio to boost sales.

CCH, 23 percent owned by Coca-Cola <CO.N>, buys syrup concentrate from Coca-Cola Co and bottles and distributes drinks including Coca-Cola, Sprite and Fanta in 27 countries in Europe and also in Nigeria.

"We are always open to such opportunities but…there should be a country which must be available, the bottler must be willing to sell its rights and Coca-Cola should agree on that," CCH's managing director Doros Constantinou told a shareholder meeting. "We never know (what happens) by the end of the year."

CCH's net profit more than tripled in the first quarter, mainly thanks to cost cutting, but pressure on sales volumes continued.

Constantinou said economic conditions in some of the bottler's markets, such as Romania, Bulgaria and Greece, remained challenging.

In Greece, which accounts for about 15 percent of the group's operating profit, the firm lost market share in the first quarter but Constantinou said the bottler was making an effort to regain it.

CCH reiterated its target for capital expenditure of about 1.4 billion euros ($1.73 billion) in the 2010-2012 period.

The stock trades at 14 times its estimated 2010 profit versus a multiple of 15.8 for Coca-Cola Enterprises <CCE.N>, according to Thomson Reuters I/B/E/S.

Its shares have gained 11 percent since the start of the year, outperforming the Athens bourse's general index <.ATG>, which has lost 30 percent.

Analysts say the company has greater upside potential than its peers as its bigger exposure in Easter European economies puts it in position to benefit when these markets recover.