Coca-Cola HBC: Growth continues despite headwinds
The bottling partner of Coca-Cola has reported double-digit revenue growth despite significant exchange rate headwinds in emerging markets.
Coca-Cola HBC AG, the bottling partner of The Coca-Cola Company, said volumes grew 2.8 per cent in the twelve months ended 31 December 2024, driven by higher sales for coffee and energy drinks.
The reported revenue of the Switzerland-headquartered firm grew by 5.6 percent despite significant headwinds from emerging markets Nigeria and Egypt.
Exchange rate headwinds in these emerging markets and higher operating expenses caused earnings before interest and tax (EBIT) in the emerging segment to fall 1.1 per cent on an organic basis.
However, the company said an overall 10 per cent rise in EBIT meant earnings per share grew by 9.5 per cent to €2.28.
CEO Zoran Bogdanovic said: “I am proud that we have delivered yet another year of double-digit growth… 2024 demonstrated that we can achieve a consistently strong financial performance even in a range of market conditions.”
Revenue in established markets like Greece and Ireland grew 3.3 per cent, while developing markets in Central Europe saw growth of 12.7 per cent, and more volatile emerging markets grew 23.3 per cent.
The firm expects the market to “remain challenging” but expects to make “continued progress against medium-term growth targets”. It has forecasted revenue growth of six per cent to eight per cent and earning before interest and tax (EBIT) growth of seven per cent to 11 per cent.
“While we expect the macroeconomic and geopolitical environment to remain challenging, in the year ahead, we are confident that our portfolio, capabilities and people will enable us to make progress against our medium-term growth targets,” Bogdanovic said.
The company expects a foreign exchange headwind of €15m to €35m in 2025.