Coca-Cola HBC AG (LON:CCH), which bottles drinks made by The Coca-Cola Company, saw its shares fizz higher it reported “a quarter of solid growth”.
The shares, up 2.7% at 2,321p, sat atop the Footsie leader-board after the company revealed a 4.2% increase in volumes shipped in the third quarter of 2018 compared to the year before and a 4.5% increase in revenue on a constant currency basis.
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Volume growth was led by the developing and emerging market segments, particularly in the fizzy drinks category.
Revenue per case on a constant currency basis was 0.3% year-on-year, which was a slower growth rate than was seen in previous quarters. The group put this down in part to the discontinuation of the distribution of Brown-Forman premium spirits products in Russia, while in the established markets there was more intense promotional activity from rivals.
"We had a quarter of solid growth led by continued good progress in volumes against strong comparatives. As expected, the slowdown in price/mix growth primarily reflected the timing of planned pricing activity, and we expect an acceleration in the final quarter. October trading has been strong, and we look to the full year confident that 2018 will be another year of good growth in both revenue and margins," said Zoran Bogdanovic, the chief executive officer of the group.
Coca-Cola HBC Q3 like-for-like net sales +4.5% YoY (established markets -0.5%, developing +14.1%, emerging +4.8%). Quarterly volumes +4.2%. Remains confident in delivering FY growth.
— Mike van Dulken (@Accendo_Mike) November 8, 2018