Soft drinks bottler Coca Cola HBC AG reported higher third-quarter sales on Wednesday, helped by strong demand from fast-food chains and pubs as pandemic-related restrictions ease.
Coca Cola HBC said its out-of-home channel, which accounts for 40% of its total revenue, jumped a fifth with the reopening of public spaces and recovery of tourism in some markets.
While companies the world over grapple with labour shortage and rising input costs due to global supply chain disruptions, the bottler has continued to benefit from altered consumption patterns and high demand.
'Challenging Cost Environment'
"Our actions in 2021, as well as the plans we have for Q4 and beyond will help us to mitigate the current challenging cost environment," Coca Cola HBC chief executive officer Zoran Bogdanovic said.
Coca Cola HBC added that it would remain focused on increasing its share of the most valuable at-home occasions as it is witnessing solid demand for premium offerings, including Adult sparkling brands and single-serve package formats.
'Affordability needs are met with the right pack and price portfolio offerings as well as targeted promotions. At-home volumes were 17% above 2019 levels,' the company said.
Switzerland-based Coca Cola HBC's revenue for the three months ended September was €2.12 billion ($2.45 billion), compared with company-provided estimates of €2.04 billion, and higher than the €1.83 billion it reported last year.
The company, which is one of Coca-Cola Co's many bottlers worldwide, holds local franchises to bottle and sell drinks produced by the US beverage giant. Coca-Cola holds a roughly 23% stake in Coca Cola HBC.
In October, the soft drinks bottler pledged to achieve net-zero emissions across its entire value chain by 2040 and reduce its value chain emissions in scopes 1,2 and 3 by 25% by 2030.