Bottler Coca-Cola HBC raises annual forecast after Q3 revenue growth beat
3:24 am Thursday, October 31st, 2024
By Shanima A
(Reuters) – Bottler Coca-Cola HBC raised its annual forecast and exceeded market estimates for third-quarter organic revenue growth on Thursday, supported by strong demand for energy, coffee and sparkling drinks.
The quarterly revenue jump was fuelled by growth across all segments in volume, pricing, and mix, the company said.
Beverage companies are experiencing higher demand despite price hikes, supported by a gradually improving economic environment that enhances customer sentiment.
However, U.S. beverage giants Coca-Cola and rival PepsiCo are facing challenges from local sodas in Muslim-majority countries due to consumer boycotts that target the globe-straddling brands as symbols of America, and by extension Israel, at a time of war in Gaza.
The bottler has said that the Middle East conflict hurt its business in countries such as Egypt and Bosnia.
“Like many other international brands, we have seen an impact from the boycott in Q3 in Egypt. Volumes of Coca-Cola are most affected, however, many of our other brands are less affected or not at all,” the company said in an emailed statement to Reuters.
The company now expects an organic revenue growth between 11% and 13%, compared with a previous forecast range of 8% to 12%, and organic EBIT growth within the range of 10% to 12%, above previous guided range of 7% to 12% for the full-year 2024.
The Switzerland-based company said its organic revenue grew 13.9% for the quarter, while analysts in a company-compiled poll had expected a 10.8% growth for the three-month period ended Sept. 27.
The bottler’s organic volumes rose 4%, beating market expectations of 2.6% for the quarter.
Coca-Cola, which holds more than 20% in the bottler, announced last week that it aims to reach the higher-end of its 2024 organic sales forecast, driven by increasing demand.
(Reporting by Shanima A and Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips)
