Coca-Cola HBC expects profit to grow in 2024 as the bottler reported a record annual profit, helped by strong demand for its sparkling drinks, coffee, and energy drinks, as well as easing cost pressures.
The Switzerland-based company, in which US beverage giant Coca-Cola owns about 23%, expects comparable operating profit to grow between 3% to 9% in 2024.
Coca-Cola HBC reported a 17.7% rise in comparable operating profit for the year ended on 31 December, to €1.08 billion ($1.16 billion).
“2023 was another year of consistent execution of our growth strategy. We delivered volume growth, share gains, improved margins and record levels of free cash flow. As a result, we were able to increase shareholder returns, including the launch of a share buyback programme,” CEO Zoran Bogdanovic said in a statement.
'Resilient Demand'
Beverage companies have witnessed resilient demand even as they hiked prices to pass on elevated costs to customers.
However, cost pressures have begun to ease in the past few months, bringing relief to bottlers such as HBC who have seen margins improve.
Comparable gross profit margin was 80 basis points higher in the full year, reflecting easing cost pressures in the second half of the year, the company added.
Organic revenue per case for 2023 was up 15%.
“While we expect the macroeconomic and geopolitical environment to remain challenging, we remain confident that we will continue to make progress against our medium-term growth targets,” Bogdanovic added.
Elsewhere, Coca-Cola beat Wall Street estimates for fourth-quarter revenue as the beverage maker benefited from higher product prices and buoyant demand, especially for its namesake drink.
News by Reuters, additional reporting by ESM.
