Coca-Cola HBC enjoys double-digit growth
A bottling giant behind Coca Cola and other major soft drinks has upgraded its guidance due to double-digit growth driven by continued demand in emerging markets.
Coca-Cola HBC said that organic revenue grew by 13.9 per cent during the third quarter, with year-to-date revenue growth of 13.7 per cent.
It upgraded its guidance for revenue to 11 per cent to 13 per cent growth, from eight per cent to 12 per cent, and its guidance for earnings before interest and tax (EBIT) to ten per cent to 12 per cent, from seven per cent to 12 per cent.
This is the second time the company has raised its guidance this year, with full-year guidance upped in August after strong first-half results.
In emerging markets, Coca-Cola HBC reported that organic revenue rose by 24.1 per cent, despite a “challenging environment in several markets”.
Foreign exchange headwinds meant that reported revenue growth was only 8.9 per cent in emerging markets.
Growth was three per cent in Coca-Cola’s established markets, which include North America, Italy and Ireland, and 12.6 per cent in its developing markets, which primarily cover central and eastern Europe.
Zoran Bogdanovic, chief executive of Coca-Cola HBC AG, said: “Focused execution of our strategic priorities has helped deliver another quarter of strong revenue growth, up 13.9 per cent, with good volume momentum across all three segments, as well as revenue per case expansion.
“We are mindful of macroeconomic and geopolitical challenges as well as a mixed consumer environment.
“However, reflecting our strong performance in the first nine months and our confidence that we can continue to win in the marketplace, we are updating our guidance for the year.”
Last year the company’s exit from Russia saw Coca-Cola HBC’s overall sales volumes fall 2.7 per cent, while impairments related to its exit from Russia, saw the firm take a £160m hit to its balance sheet, also saw the company’s earnings-per-share drop 24.3 per cent.
The company had previously been criticised for departing Russia quite late following a swathe of international sanctions levelled against the Kremlin.