Coca-Cola HBC reports significant organic revenue growth, outperforming previous forecasts.
- Third-quarter results show a 13.9% increase in revenue, driven by emerging markets.
- Year-to-date growth is at 13.7%, leading to a raised revenue forecast.
- The company adjusts its EBIT expectations amidst a challenging market environment.
- CEO Zoran Bogdanovic highlights strategic focus and market success despite global challenges.
Coca-Cola HBC has experienced a notable increase in organic revenue, with third-quarter figures showing a 13.9% rise. This growth has been propelled largely by strong demand in emerging markets, prompting the company to adjust its revenue growth forecast to between 11% and 13%, up from an earlier estimate of 8% to 12%. Similarly, the EBIT guidance has been revised to 10% to 12%, reflecting confidence in continued market success.
The company’s success in emerging markets has been marked by a 24.1% increase in organic revenue. However, foreign exchange challenges have meant that the reported growth in these regions stands at 8.9%. Despite these currency-related hurdles, Coca-Cola HBC has maintained momentum across its established and developing markets.
CEO Zoran Bogdanovic attributes the success to strategic execution, stating, “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.” His commentary also reflects awareness of the broader economic and geopolitical challenges that continue to impact market conditions.
In developed markets like North America, Italy, and Ireland, revenue growth was recorded at 3%, while the developing regions, notably in Central and Eastern Europe, saw a 12.6% rise. This varied growth pattern underscores the company’s capacity to navigate diverse market environments effectively.
Last year, the exit from the Russian market had adversely impacted Coca-Cola HBC, resulting in a 2.7% drop in overall sales volumes and a £160 million impairment charge on its balance sheet. Despite these setbacks, the company has managed to reposition itself favourably in other markets, with earnings-per-share having decreased by 24.3% due to the Russian exit.
Despite past challenges, Coca-Cola HBC demonstrates resilience and adaptability with its revised positive outlook.
