Coca-Cola HBC AG has forecast full-year profit growth to be at the top end of its guidance, aided by robust demand for its soft drinks and executed price increases.
The company said it expected organic earnings before interest and taxes (EBIT) growth to be at the high end of its forecast range of -3% to +3%.
“Consistent execution of our strategy has led to a good start to 2023 and we expect to deliver another year of strong performance," commented Zoran Bogdanovic, chief executive. "As a result, we now have greater confidence in achieving positive organic EBIT growth in 2023."
The group reported first-quarter organic growth of 22.2%, excluding Russia and Ukraine, with price/mix leading revenue growth as the firm ' took decisive actions to mitigate cost inflation', it said.
It saw volume growth in Sparkling, Energy and Coffee, however this was offset by declines in Stills and Water.
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'Market Shares Improved'
"Revenue growth was strong, thanks to our in-market agility and our tailored consumer and customer plans," Bogdanovic added. "Market shares improved for both non-alcoholic ready-to-drink and Sparkling, while we effectively implemented thoughtful price and mix changes in the face of continued cost inflation.
"Although some markets have been impacted by a tougher consumer environment, our track record of successful revenue growth management and our sustained focus on investing in data enhanced growth capabilities puts us in a strong position to adapt."
The group recently expanded its offering in the 'adult' category, with the launch of Jack Daniel’s & Coca-Cola in Poland, Ireland and Hungary in April. It is also preparing for the relaunch of the Kinley sparkling brand in Q2.
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News by Reuters, additional reporting by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.