Coca-Cola HBC experiences substantial revenue growth primarily driven by emerging markets.
- The firm reported a 13.9% rise in organic revenue during the third quarter of this year.
- Year-to-date revenue growth stands at 13.7%, prompting Coca-Cola HBC to revise revenue forecasts upward.
- Emerging markets witnessed a significant 24.1% increase in organic revenue, despite foreign exchange challenges.
- CEO Zoran Bogdanovic highlights strategic priorities contributing to growth amid macroeconomic challenges.
The Coca-Cola HBC company has reported notable growth in its revenue, largely propelled by the increasing demand in emerging markets. During the third quarter, the company recorded a 13.9% rise in organic revenue, with the cumulative revenue growth for the year reaching 13.7%. This strong performance has led the firm to adjust its forecasts, anticipating revenue growth between 11% and 13%, an upward revision from the previous estimate of 8% to 12%. Similarly, earnings before interest and taxes (EBIT) guidance has been adjusted to a range of 10% to 12%, up from 7% to 12%, as noted in their recent financial updates.
In emerging markets, Coca-Cola HBC achieved a remarkable 24.1% increase in organic revenue. However, foreign exchange rates posed challenges, resulting in a reported revenue growth of only 8.9%. Established markets, including North America, Italy, and Ireland, showed modest organic growth of 3%. Meanwhile, developing markets, particularly in central and eastern Europe, reported a 12.6% increase, demonstrating diverse growth dynamics across regions.
Chief Executive Officer Zoran Bogdanovic attributed this success to the strategic priorities set by the company, which have facilitated robust volume momentum and revenue per case expansions across different segments of their business. He acknowledged the complex macroeconomic and geopolitical landscape that the company operates within. Despite such challenges, Coca-Cola HBC’s decision to update its guidance reflects confidence in its ability to maintain competitive momentum in the marketplace.
The company’s recent history includes its exit from the Russian market, which contributed to a 2.7% fall in overall sales volumes last year. The withdrawal, in line with international sanctions, also led to a financial impairment of £160m, impacting earnings per share by decreasing it by 24.3%. These shifts underscore the firm’s adaptability and strategic decision-making in response to global events.
Coca-Cola HBC’s robust response to emerging market demand exemplifies its strategic agility and confidence amidst global challenges.
