Coca-Cola HBC, the bottling giant behind Coca Cola and other major soft drinks, has revised its guidance upwards following double-digit growth spurred by sustained demand in emerging markets. The company reported a 13.9 per cent increase in organic revenue during Q3, with year-to-date revenue growth standing at 13.7 per cent.
It has now raised its revenue growth forecast to between 11 per cent and 13 per cent, up from the previous estimate of eight per cent to 12 per cent. Similarly, its EBIT guidance has been adjusted to ten per cent to 12 per cent, up from seven per cent to 12 per cent, as reported by .
This marks the second time this year that the company has increased its guidance, having previously done so in August following robust H1 results. Despite facing a "challenging environment in several markets", Coca-Cola HBC saw a 24.1 per cent rise in organic revenue in emerging markets.
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However, due to foreign exchange headwinds, reported revenue growth in these markets was only 8.9 per cent. Growth in Coca-Cola's established markets, including North America, Italy and Ireland, was three per cent, while its developing markets, primarily in central and eastern Europe, experienced a 12.6 per cent increase.
Zoran Bogdanovic, CEO of Coca-Cola HBC AG, commented: "Focused execution of our strategic priorities has helped deliver another quarter of strong revenue growth, up 13.9 per cent, with good volume momentum across all three segments, as well as revenue per case expansion."
"We are mindful of macroeconomic and geopolitical challenges as well as a mixed consumer environment."
"However, reflecting our strong performance in the first nine months and our confidence that we can continue to win in the marketplace, we are updating our guidance for the year."
Last year, Coca-Cola HBC's departure from Russia resulted in a 2.7 per cent drop in overall sales volumes. The company also suffered a £160m blow to its balance sheet due to impairments related to its Russian exit, which led to a 24.3 per cent decrease in earnings-per-share.
The firm had previously faced criticism for its late withdrawal from Russia amidst a wave of international sanctions against the Kremlin.