Coca-Cola HBC’s revenue surges due to strong demand in emerging markets, leading to an optimistic forecast for the year.
- The company experienced a 13.9% organic revenue growth in Q3, with a 13.7% rise year-to-date, surpassing initial predictions.
- Emerging markets contributed significantly, showing a 24.1% increase in organic revenue, though foreign exchange dampened reported figures to 8.9%.
- CEO Zoran Bogdanovic emphasized the strategic execution behind their sustained growth and acknowledged current economic challenges.
- Coca-Cola HBC adjusted its revenue and EBIT guidance upwards, reflecting confidence despite global uncertainties.
Coca-Cola HBC, a prominent player in the beverage industry, has upgraded its financial outlook following impressive performance metrics. The company reported a substantial 13.9% growth in organic revenue during the third quarter, which has driven its year-to-date revenue up by 13.7%. This upward trend has encouraged Coca-Cola HBC to revise its revenue growth forecast to a range of 11% to 13%, up from a previous estimate of 8% to 12%. Additionally, the EBIT guidance has been adjusted to project a growth between 10% and 12%, also an increase from the former 7% to 12% estimate.
The robust financial results were largely driven by exceptional growth in emerging markets, which recorded a remarkable 24.1% increase in organic revenue. However, these figures faced some setbacks due to foreign exchange challenges, resulting in a reported revenue growth of 8.9% in these regions. In contrast, developed markets like North America, Italy, and Ireland showed modest growth of 3%, while central and eastern European markets reflected a stronger performance with a 12.6% increase.
Zoran Bogdanovic, the CEO of Coca-Cola HBC AG, attributed this success to the company’s focused execution of its strategic priorities. He stated, “Focused execution of our strategic priorities has helped deliver another quarter of strong revenue growth, up 13.9 per cent, with good volume momentum across all three segments, as well as revenue per case expansion.”
Despite a challenging global economic landscape, Coca-Cola HBC remains optimistic about its market position. The company has faced various challenges, including a significant impact from its exit from the Russian market last year, which led to a 2.7% decrease in overall sales volumes, along with a £160m impairment. This move came amidst international sanctions against Russia and impacted earnings-per-share by a considerable 24.3%.
Looking ahead, Coca-Cola HBC’s revised guidance reflects not only the current strong performance but also its confidence in navigating through geopolitical and economic uncertainties. This marks the second guidance adjustment within the year, following robust results in the first half.
Coca-Cola HBC’s optimistic guidance signals its resilience and adaptation in a challenging economic climate.
