31st Oct 2024 09:59
(Alliance News) - Coca-Cola HBC AG on Thursday reported strong third-quarter revenue growth on increased volumes, as it upgraded guidance for the full year.
Shares were up 1.7% at 2,714.00 pence on Thursday morning in London.
The Zug, Switzerland-based soft drinks bottling company said net sales revenue increased by 8.9% to EUR3.05 billion from EUR2.80 billion the prior year. On an organic basis, revenue increased by 14%.
Developing markets realised the strongest percentage growth by segment, increasing by 14% to EUR676.6 million from EUR593.4 million in the previous year. This was closely followed by Emerging markets which saw 10% growth to EUR1.37 billion versus EUR1.24 billion.
Established markets also saw growth, however, increasing 4.1% to EUR998.9 million from EUR959.5 million the previous year.
Volumes for the quarter increased by 4.1% on a reported basis and 4.0% organically, with all segments contributing.
Coca-Cola HBC operates in a broad range of nations including Switzerland, Greece, Egypt, Poland, Russia and Nigeria.
Year-to-date revenue for the FTSE 100-listed company increased by 5.2% to EUR8.22 billion from EUR7.82 billion in the prior period, with this up 14% on an organic basis.
Coca Cola HBC said its Established and Developing markets benefited from currency movements in the Swiss franc and Polish zloty respectively, but in Emerging markets, strong organic growth was partially offset by the depreciation of the Nigerian naira and Egyptian pound.
On the back of the third-quarter results, the company raised its 2024 guidance to organic revenue growth of 11% to 13%, up from 8% to 12% previously.
It expects cost of goods sold per unit case to now increase in the low single digits, as opposed to low-mid single digits.
Organic earnings before interest and tax growth is now anticipated to be in the range of 10% to 12% instead of 7% to 12%.
Coca-Cola HBC AG Chief Executive Zoran Bogdanovic said: ""Focused execution of our strategic priorities has helped deliver another quarter of strong revenue growth, up 13.9%, with good volume momentum across all three segments, as well as revenue per case expansion.
"I am pleased that our Q3 results build on the strength of our first half, and clearly demonstrate how our 24/7 portfolio, combined with our bespoke capabilities, can deliver quality growth in a range of market conditions.
"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."
By Christopher Ward, Alliance News reporter
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