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(Alliance News) - Coca-Cola HBC AG on Tuesday said it now has "greater confidence" in achieving targets for annual revenue and earnings, after seeing net sales revenue growth, though a mixed volume performance, in the first quarter.
The Steinhausen, Switzerland-based bottling partner of The Coca-Cola Co said net sales revenue in the first quarter of 2023 was EUR2.20 billion, up 24% from EUR1.77 billion a year before. Net sales revenue was up 16% on an organic basis.
Net sales revenue per case increased by 21% on both a reported and organic basis to EUR3.55 per unit case from EUR2.92 a year before.
The higher sales revenue per case made up for some weakness in volume.
Group volume rose by 2.6% to 621.1 million unit cases from 605.5 million unit cases a year before, but was down 4.0% on an organic basis. Volume was up 6.0% on an organic basis in Established markets, but flat in Developing markets and down 8.4% in Emerging markets.
For Coca-Cola HBC, Established markets include Italy, Greece, Ireland and Switzerland. Developing markets include Poland, Hungary and Czech Republic. Emerging markets include Egypt, Nigeria and Ukraine.
The company had operated in Russia as well, but suspended sales of Coca-Cola brands in March last year. Excluding Russia and Ukraine, organic volume in Emerging markets fell by a low-single-digit percentage, it said.
Coca-Cola HBC said its "decisive actions" taken to mitigate cost inflation had helped revenue growth in Emerging markets, as it kept selling prices down. Excluding Russia and Ukraine, revenue grew by 22% on an organic basis in Emerging markets.
Going forward, Coca-Cola HBC said it had greater confidence in achieving organic growth in earnings before interest and tax for the whole of 2023, despite "ongoing macroeconomic and geopolitical risks". It expects to hit the top end of its Ebit growth range between negative 3% and positive 3%. It also expects full-year organic revenue growth above its average target range of between 5% and 6%.
Chief Executive Officer Zoran Bogdanovic said: "Revenue growth was strong, thanks to our in-market agility and our tailored consumer and customer plans...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.
"We have continued to invest in our portfolio to strengthen our position as the leading 24/7 beverage partner. In Q2 we will relaunch Kinley, launch Jack Daniel's & Coca-Cola in selected markets and further roll out Caffe Vergnano. With the talent of our people and the strength of our partnerships, we are well positioned for long-term, sustainable growth throughout 2023 and beyond."
Shares in Coca-Cola HBC were up 1.2% in London on Wednesday at 2,461.00 pence.
By Emma Curzon, Alliance News reporter
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