Coca-Cola HBC AG has forecast full-year profit growth to be at the top end of its guidance, aided by robust demand for its soft drinks and executed price increases.
Raised Prices In Line With A Rise In Energy And Commodity Prices
Beverage makers have raised prices in line with a rise in energy and commodity prices after Russia's invasion of Ukraine last year, but companies such as Coca-Cola HBC have witnessed sustained demand as customers continued to spend on soft drinks.
Statement By CEO
"Market shares improved for both non-alcoholic ready-to-drink (NARTD) and sparkling, while we effectively implemented thoughtful price and mix changes in the face of continued cost inflation," CEO Zoran Bogdanovic said in a statement.
Get a FREE Digital Subscription!Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
In the first quarter ended 31 March, HBC saw its value share increase by 70 basis points (bps) in the NARTD market, while sparkling value share increased by 10 bps.
Net Revenue Per Case
The company's net sales revenue per case for the quarter grew 21% on an organic basis, while analysts on average expected a 16.7% growth, according to a company-compiled consensus.
EBIT Growth Expectation
The company said it expected organic earnings before interest and taxes (EBIT) growth to be at the high end of its forecast range of -3% to +3%.
Organic Revenue Growth Expectation
It continues to expect organic revenue growth above its 5-6% average target range at a group level.
Read More: Coca-Cola Gets A Lift From Higher Prices, Steady Demand
News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.