Coca-Cola HBC results top guidance amid strong volume growth

Writer, Stock Market Wire
Thursday, February 14, 2019 - 10:06

Coca-Cola HBC said Thursday annual performance topped guidance range on strong volume growth helped by a record number of new product launches.

For the year ended 31 December, net sales revenue were up 6.0% on an FX-neutral basis; reported net sales revenue increased by 2.1%

'In 2018 we delivered another very good performance with revenue growth above our target range and another step up in margins,' the company said.

Earnings (EBIT) was up 9.6% to €680.m from a year earlier, with EBIT margin up 70 basis points to 10.2%; and reported margin up 60 basis points to 9.6%.

Operating leverage was supported by revenue growth management and strong volume growth, and slightly favourable input costs offset by the impact of adverse foreign exchange movements.

Volume growth accelerated to 4.2%, with growth in all segments, driven by sparkling beverages.

The final dividend proposed was of €0.57 a share was 5.6% on last year.

For 2019, the company was targeting restructuring initiatives of €33m, which would help deliver €17, in annual from 2010 onwards.

The company was also targeting volume growth in all three of its segments, with the established and emerging market segments accelerating marginally, as Nigeria returned to volume growth, and developing markets moderating to more normalised levels.

Foreign currency movements, however, were expected to weigh on earnings.

'Taking into account our hedged positions and the current favourable spot rates, we expect the adverse impact on EBIT from foreign currency to amount to approximately €50m for the full year,' the company said.

At 10:06am: (LON:CCH) CocaCola HBC share price was -148p at 2546p

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