Coca-Cola optimistic on medium-term growth

The company said an improving external environment was likely to support growth in its markets over the period to 2020, including average annual non-alcoholic ready-to-drink industry volume growth of around 1.5% across its territory.

Coca-Cola expects to see a reduction in comparable operating expenses as a percentage of net sales revenue to 26%-27% from 29.2% last year.

The group reiterated its capital expenditure target as 5.5% to 6.5% of net sales revenue and its commitment to maintaining a negative working capital balance sheet position.

Chief executive officer Dimitris Lois said: “Over five years and in a difficult external environment, we have created a more efficient and stronger business that is now primed for growth in improving market conditions.

“We have a balanced spread of territories with structurally attractive characteristics and specific plans for growth. We have reflected these factors in our new targets, announced today, which illustrate our confidence in the medium-term potential of the business."

The statement came as the company held an investor day to present its medium-term strategy to investors and analysts.

At 1410 BST, shares were up 0.7% to 45.03p.