Coca-Cola HBC FY reported revenue up 7.9pc
Consumer packaged goods business Coca‑Cola HBC reported solid full‑year growth on Tuesday, with revenue and organic volumes both advancing as it continued to execute on its strategic priorities.
Coca-Cola HBC AG said reported revenues had increased 7.9% to €11.60bn, with the group delivering an 80‑basis‑point gain in non‑alcoholic ready‑to‑drink value share, while organic revenue rose 8.1%, supported by 2.8% organic volume growth as a result of a 2.5% increase in sparkling drinks and a strong 28.3% rise in energy drinks.
Organic EBIT grew 11.5%, with comparable EBIT rising 13.8% to €1.36bn on a reported basis. Comparable EBIT margins improved 60 basis points to 11.7%, and gross profit margins expanded 70 basis points to 36.8%. Operating expenses edged up as a percentage of revenue, reflecting increased marketing investment, while ROIC rose 100 basis points to 19.4%.
The FTSE 100-listed firm said all segments had delivered organic revenue growth, with established markets seeing a 2.3% increase, driven by revenue per case, though EBIT slipped 2.8%. Developing markets posted 6.1% organic revenue growth and a 5.6% rise in EBIT. Emerging markets grew strongly, with organic revenue up 13.2% and EBIT up 23.2%, led by Africa.
Comparable earnings per share climbed 19.7% to €2.72, supported by strong profit delivery and lower‑than‑expected finance costs. Free cash flow came in at €700m, while net debt to comparable adjusted EBITDA stood at 0.7x. Coca-Cola HBC also proposed a €1.20 dividend, up 17% year-on-year.
As of 0825 GMT, Coca-Cola HBC shares were up 1.92% at 4,360p.
Reporting by Iain Gilbert at Sharecast.com
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