13th Nov 2019 08:34
(Alliance News) - Bottling firm Coca-Cola HBC AG reported on Wednesday a "solid" quarterly performance despite adverse weather.
Reported revenue growth for the three months to September year-on-year was 5.0%, and excluding foreign exchange movements was 3.4%. Volumes rose 1.1%, though excluding the EUR260 million acquisition of Serbian biscuit and snacks maker Bambi, volumes were down 0.1%.
Coca-Cola HBC posted a 3.8% increase in revenue per unit case on a reported basis, and the figure was 2.3% excluding forex.
Established Markets delivered 2.1% reported revenue growth, Developing Markets 0.1%, and Emerging Markets 9.8%.
"In a quarter in which unseasonably cold and wet weather significantly depressed industry volume growth in a number of our countries, we are pleased to have gained or maintained share in the majority of our markets and to have made progress with our commercial strategy which delivered a step-up in price/mix and ongoing growth in key areas of strategic focus such as Trademark Coke, Adults, Zeros and innovation," said Chief Executive Zoran Bogdanovic.
Revenue growth came from price increases, a positive category mix, and changes to packaging formats, Coca-Cola HBC said, though this was partially offset by pricing in Nigeria which did lead to volume growth.
Coca-Cola HBC's Established Markets unit's volume growth was 1.2%, boosted by growth in sparkling water, ready-to-drink tea, and energy drinks. Developing Markets volumes fell 4.0%, against a tough comparable but this was also hindered by bad weather.
Emerging Markets volumes climbed 3.0%, or 0.8% excluding Bambi. Growth was led by improvements from sparkling water and energy drinks.
"As we look to the full year, we are pleased to have seen an acceleration in the fourth quarter, giving us confidence that 2019 will be a year of solid top-line growth and good margin expansion," added CEO Bogdanovic.
Shares were 2.9% higher on Wednesday morning in London at 2,432.00 pence each, making Coca-Cola HBC the best performer in the FTSE 100 index.
By George Collard; [email protected]
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