Bottling firm Coca-Cola HBC has reported year-on-year organic revenue growth of 12.6% in the first quarter of its financial year, driven by the performance of its sparkling, energy and coffee categories.
Organic revenue per case increased 10.6%, reflecting effective revenue growth management initiatives through the last twelve months, the company noted.
Organic volume increased by 1.8% during the quarter, driven by good performances in emerging and developing markets.
In the sparkling segment, volumes remained stable, while energy and coffee delivered double-digit growth of 37.3% and 34.3%, respectively.
Reported revenue increased 1.0% during the quarter, with organic growth offset by FX translation headwinds in Nigeria and Egypt.
Zoran Bogdanovic, chief executive officer of Coca-Cola HBC AG commented, “During the period, informed by data, insights and analytics, we have accelerated investment in our unique 24/7portfolio and in our bespoke capabilities, with several new brand launches and targeted initiatives across our markets.
“This ensures our continued strong in-market execution, in close collaboration with our customers.”
Quarterly Highlights
Coca-Cola HBC saw organic revenue up 5.1% in established markets, while it grew by 12.5% in developing markets and 19.0% in emerging markets.
The company launched Monster Energy Green Zero Sugar in 16 markets, supporting the brand's continued growth during the quarter.
Growth in the coffee segment was driven by premium out-of-home recruitment, the company added.
It expanded Finlandia Vodka distribution to a further 17 markets and announced an agreement to acquire BDS Vending in Ireland, advancing the company's in-house capabilities in vending and enhancing route-to-market capabilities.
Outlook
The company described its first quarter performance as 'a strong start to 2024' and hopes to achieve its mid-term target of organic revenue growth of 6%-7%.
Organic EBIT growth is expected to range between 3% to 9%.
Bogdanovic added, “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.”
