Coca-Cola HBC reports strong third-quarter revenue growth
By Josh White
Date: Thursday 31 Oct 2024
(Sharecast News) - Coca-Cola HBC reported strong organic revenue growth of 13.9% in its third quarter on Thursday, fuelled by focused execution throughout the summer period.
The FTSE 100 Europe-focussed soft drink bottler said year-to-date organic revenue had risen 13.7%, underpinned by a 4% increase in volumes across all segments, with particularly robust growth in the company's strategic categories.
Sparkling drinks saw a 3.9% rise, while energy and coffee categories grew significantly by 28% and 35.6%, respectively.
Organic revenue per case increased 9.5%, driven by targeted revenue management initiatives.
However, reported revenue growth was slightly lower at 8.9%, as strong organic gains were partially offset by foreign exchange headwinds in its emerging markets.
Coca-Cola HBC also reported ongoing value share gains in both non-alcoholic ready-to-drink (NARTD) and sparkling categories for the year to date.
The firm said it achieved broad-based organic revenue growth across its three geographic segments, with both volume and revenue per case increases, despite a varied market landscape.
In the established segment, organic revenue increased 3%, demonstrating resilience amid mixed conditions.
In the developing segment, organic revenue rose 12.6%, driven by revenue per case expansion and a positive volume performance.
The emerging segment posted the highest organic revenue growth at 24.1%, bolstered by revenue per case increases and solid volume gains, even as several markets faced challenging conditions.
Coca-Cola HBC said it was continuing to invest in its 24/7 portfolio and bespoke capabilities, leveraging its partnership with the Coca-Cola Company to capitalise on the summer season through music and sports marketing, especially within the out-of-home channel.
Consumer engagement was further strengthened by activations including Marvel promotions and new product launches such as Fanta Beetlejuice and unique flavours under the Coke Creations line.
"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," said chief executive officer Zoran Bogdanovic.
"I am pleased that our third-quarter 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."
At 0936 GMT, shares in Coca-Cola HBC were up 1.72% at 2,714.96p.
Reporting by Josh White for Sharecast.com.
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