Shares in drinks Coca-Cola Hellenic Bottling Company rose to 27-month highs on Tuesday as the company announced sales growth across all territories.
At £26.04, Coca-Cola HBC’s share price was last 1.1% higher on the day. It had spiked to £26.32 earlier in the session.
Organic revenues soared 12.6% in the March quarter, or 1% on a reported basis. Sales took off as price hikes drove organic revenue per case 10.6% higher year on year.
Organic volumes rose 1.8% in the March quarter thanks to “good performances in emerging and developing markets,” the drinks bottler said. The company sells its product into 29 countries spanning Europe and Africa.
Energy And Coffee Fly
Energy was the company’s strongest product category, with volumes rising 37.3% during quarter one. Sales were helped by the launch of its Monster Energy Green Zero Sugar in a further 16 markets in the period.
Coffee volumes rose 34.3% year on year thanks to “strong growth in Caffè Vergnano,” the FTSE 100 firm said. Stills volumes edged 2.5% higher.
Sales of its sparking drinks were flat in the period, however. Coke volumes rose by low-single-digit percentages “with good growth in Zero and low/no sugar variants,” the company noted.
Sales of Fanta and Sprite reversed by mid-single-digit percentages due in part to difficult comparatives.
Sales Rise Across Territories
Organic revenues in emerging and developing markets soared 19% and 12.5% respectively in the first quarter. In emerging nations, organic revenues per case increased 15.3% while volumes edged 3.2% higher.
Organic revenues per case and volumes rose 8% and 4.2% respectively in developing markets.
Organic sales in established markets rose a more modest 5.1% due in part to “tough comparitives,” Coca-Cola HBC noted. Organic revenues per case rose 9.3%, but organic volumes drooped 3.8%.
“A Strong Start”
Chief executive Zoran Bogdanovic commented that “we have made a strong start to the year, with continued progress of our 24/7 strategy. Organic revenues grew by 12.6% led by our strategic priority categories of Sparkling, Energy and Coffee. We are also pleased to report another quarter of volume growth and market share gains.“
He added that “although we are mindful of the broader macroeconomic backdrop, we are confident in delivering our financial guidance in the year ahead and on making further progress against our medium-term growth targets.”
Coca-Cola HBC said it expects to grow organic revenues between 6% and 7% in 2024, in line with its medium-term goals. Organic earnings before interest and tax (EBIT) meanwhile is tipped to grow between 3% and 9% from 2023 levels.
Royston Wild owns shares in Coca-Cola HBC.
