- Coke bottling behemoth posts forecast-beating profits
- Organic sales up 22.7% ex-Russia and Ukraine
- Free cash flow reaches record €645.1 million
Shares in Coca-Cola HBC (CCH) fizzed up 3.6% to £20.11 after the soft drinks giant delivered a better-than-expected operating profit for the year to December 2022, driven by price hikes and cost-saving initiatives.
Despite headwinds including rising inflation and falling consumer confidence, the Coke, Fanta, Sprite and Schweppes seller now expects to generate organic revenue growth above its 5%-to-6% target range in 2023, though the FTSE 100 company also cautioned it remains ‘attentive’ to macroeconomic and geopolitical risk.
EARNINGS BETTER THAN FEARED
A strategic bottling partner of The Coca-Cola Company (KO:NYSE), Coca-Cola HBC’s operating profit declined by 11.9% to €703.8 million last year, but this was actually higher than the €658.2 million called for by consensus.
And the resilient, geographically-diversified consumer goods goliath also generated sparkling organic sales growth of 22.7% excluding Russia, where it now solely sells local brands, and Ukraine.
‘Pricing remained a critical lever of growth in 2022’ explained the progressive dividend payer, which also reported a 7.3% or €43.8 million increase in free cash flow to a record €645.1 million last year driven by higher profitability.
WHAT DID THE CEO SAY?
Chief executive Zoran Bogdanovic said his charge delivered ‘a strong performance in 2022 against a challenging backdrop, achieving record levels of revenue, comparable earnings before interest and tax (EBIT) and free cash flow.
‘The benefits of portfolio prioritisation were clear, with growth led by sparkling, energy and coffee. Consumer demand for our products and in our categories remained good. The power of our portfolio and consistent investment in our capabilities allowed us to balance pricing and mix enhancements, while also achieving another year of strong share gains.’
Looking to 2023, Bogdanovic insisted ‘our track record, portfolio, capabilities, the diversity of our markets and, above all, our talented people make us confident of achieving another year of strategic and financial progress, accelerating our journey to becoming The Leading 24/7 Beverage Partner.’
