Coca-Cola HBC serves up effervescent first quarter results

Switzerland-based Coca-Cola HBC, the world’s second largest anchor bottler of Coca-Cola products, issued its first quarter trading update on Thursday morning, reporting “good progress” on FX-neutral revenue growth, which was up 5.2%.

The FTSE 100 company said volumes increased by 0.7% in the quarter, and excluding the impact of the timing of Easter - which shifted into Q2 this year - volumes grew in the majority of the firm’s countries.

Established markets volume was down 2.2%, reflecting an improving trend and excluding the impact of Easter.

Volume growth in Greece and Ireland partly offset lower volume in Switzerland, and Italy following the delisting of low-value water brands.

The company’s developing markets segment volume was down 3.6%, largely driven by lower volume in Poland, where the firm’s focus continued to be on driving value.

Its emerging markets segment volume was up 4.0%, with broad-based growth across its markets.

Russia returned to growth, outperforming a weak market, and Nigeria volume continued to grow, despite macroeconomic challenges and significant price increases.

FX-neutral revenue per case increased by 4.5%, reflecting Coca Cola HBC’s continued focus on revenue growth management through improved package and category mix as well as price increases, the board claimed.

In established markets, positive category and package mix was more than offset by adverse channel mix and an increase in promotional activity, leading to a decrease in FX-neutral revenue per case of 0.2%.

The board added that in developing markets, FX-neutral revenue per case improved by 4.1% driven by better category and package mix.

Price increases taken in the emerging markets segment - mainly in Nigeria - drove the 10.3% FX-neutral revenue per case growth.

“The business has delivered good revenue growth in the first quarter, strong momentum in price and mix and improvement in volume despite the late Easter impact,” said chief executive officer Dimitris Lois.

“We are pleased with the underlying trends in the business. Our commercial initiatives continue to deliver good results, and add to our confidence going into the remainder of the year.”