3rd Nov 2021 09:02
(Alliance News) - Coca-Cola HBC AG on Wednesday said it is on track to achieve its full-year revenue guidance despite a "challenging cost environment".
The Zug, Switzerland-based soft drinks bottler said the summer season drove currency-neutral revenue up by 17% to EUR2.12 billion in the three months to September 30 from EUR1.81 billion a year before. In the nine months to the end of September, currency-neutral revenue was up 19% year-on-year to EUR5.37 billion.
The company said it sold 694.2 million unit cases in the third quarter, up 13% from 613.7 million sold a year prior. During the nine month period, volume was up 14% to 1.82 billion unit cases.
The out-of-home channel grew volumes by 20%, benefiting from reopening and the partial recovery of tourism in several markets, Coca Cola HBC said. The at-home channel, meanwhile, continued to show good momentum, growing 10% in the third quarter of 2021.
Sparkling drink volumes grew by 13%, driven by strategic focus areas, with Adult sparkling brands up 28% and low or no sugar variants up 55%. Coca Cola HBC said it is seeing broad-based growth across brands with Trademark Coke up 12%, Fanta up 14% and Sprite up 18%.
Energy drinks continue to show momentum, the company noted, with volumes up 29% in the quarter.
Coca Cola HBC said it is also making good progress with its Coffee business. The company expects to start distributing Caffe Vergnano in selected markets during the final quarter of 2021 and is broadening distribution in all channels with Costa.
Still drinks volumes showed good results in third quarter of 2021, the company said. Water volumes grew by 12%, benefiting from the reopening of the out-of-home channel. Juice volume was up 14%, while ready-to-drink tea volume grew by 6.5%.
"In the current inflationary environment impacting all industries our revenue growth management tools, as well as our ability to take price in the context of robust insights and analytics, will be critical. Our actions in 2021, as well as the plans we have for the fourth quarter and beyond will help us to mitigate the current challenging cost environment," said Chief Executive Zoran Bogdanovic.
"I am pleased to reiterate our guidance for 2021 of a strong recovery in Forex-neutral revenue and a 20-30 basis points earnings before interest and tax margin expansion."
Coca-Cola HBC shares were trading 0.4% lower in London on Wednesday at 2,595.00 pence each.
By Evelina Grecenko; [email protected]
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