Shares in Coca-Cola Hellenic Bottling Company reached a 27-month high on Tuesday following the announcement of sales growth across all territories. The share price rose to £26.04, a 1.1% increase on the day, with a spike to £26.32 earlier in the session. Organic revenues saw a 12.6% increase in the March quarter, with sales driven by price hikes resulting in a 10.6% rise in organic revenue per case.
The company saw a 1.8% increase in organic volumes in the March quarter, with strong performances in emerging and developing markets spanning 29 countries across Europe and Africa. Energy and coffee were the strongest product categories for Coca-Cola HBC, with energy volumes rising by 37.3% and coffee volumes by 34.3% due to strong growth in Caffè Vergnano. Sales of sparkling drinks were flat, while Coke volumes saw low-single-digit growth and Fanta and Sprite sales decreased.
Organic revenues in emerging and developing markets rose by 19% and 12.5% respectively in the first quarter, with organic revenues per case increasing by 15.3% and 8% in these markets. Established markets saw a more modest 5.1% increase in organic sales, with revenues per case rising by 9.3% and volumes dropping by 3.8%.
CEO Zoran Bogdanovic expressed satisfaction with the company’s strong start to the year, highlighting progress in their strategic priority categories of Sparkling, Energy, and Coffee. He expressed confidence in achieving financial guidance for the year ahead and making further progress against their medium-term growth targets. Coca-Cola HBC expects to grow organic revenues by 6-7% in 2024 and organic EBIT to increase by 3-9% from 2023 levels.
Investor Royston Wild, who owns shares in Coca-Cola HBC, noted the positive performance of the company as it continues to drive sales growth across all territories and product categories. The strong sales figures in emerging and developing markets, coupled with the company’s focused strategy on key product categories, have resulted in a positive outlook for future growth and financial performance.
Overall, Coca-Cola Hellenic Bottling Company’s strong start to the year, with sales growth across all territories and product categories, has led to an increase in share prices and positive investor sentiment. The company’s focus on strategic priorities and medium-term growth targets, coupled with confidence in achieving financial guidance for the year ahead, bodes well for its future performance and market positioning. CEO Zoran Bogdanovic’s optimistic outlook and commitment to delivering on the company’s targets further reinforce the positive momentum for Coca-Cola HBC.
