Coca-Cola bottler core profits fizz
A soft drinks bottler led the FTSE 100 market fallers this morning after analysts noted that finance costs had offset strong organic growth, which has been boosted by a rise in appetite for sparkling beverages and a return to growth in its key Russian market.
The figures
Coca-Cola HBC AG said this morning that profits before interest and tax hit €680.7m (£597m) in the 12 months to 31 December, rising 9.6 per cent from €621m the previous year.
Reported net sales revenue increased by 2.1 per cent, while volume growth accelerated to 4.2 per cent.
The board of directors’ proposed dividend per share rose 5.6 per cent to €0.57.
Why it’s interesting
"Economic growth in 2019 is forecast to slow down in a number of our markets, which is likely to negatively impact consumer spending in the established and developing segments," the blue-chip firm said in a statement today.
However, management struck a confident tone after saying it had made "excellent progress towards 2020 goals" amid robust performances in markets such as Romania, Greece and Russia.
Like a number of retailers within the drinks industry in recent years, Coca-Cola HBC AG has been eyeing future growth from its new health-conscious brands, such as plant-based drinks and zero-sugar products.
Sparkling volumes have also boosted the fortunes of the bottler, with sparkling soda drinks enjoying its fastest growth in a decade.
What the company said
Zoran Bogdanovic, chief executive of Coca-Cola HBC AG, said that it had been "another strong set of results with revenue growth…exceeding our target for the second consecutive year".
He added: "Strong volume growth in all our segments was helped by a record number of new product launches, whilst price/mix improved for the eighth consecutive year. This growth supported margin progress, which we delivered while increasing our investment in marketing.
"Our sharp focus on cost efficiencies continues while we invest in the business for growth. The shape of the business, capabilities and commitment of our people and our overall commercial proposition give us confidence in our ability to continue to grow revenues and margins."