Coca-Cola HBC Reports Strong Volume Growth and Upbeat Outlook for 2024
Coca-Cola HBC AG’s latest results signal robust momentum heading into 2024, as the bottling giant continued to outperform expectations with double-digit volume growth across key regions. The company, a strategic bottling partner of The Coca-Cola Company, attributes this growth to expanding market reach, disciplined pricing strategies, and strong demand recovery, particularly in emerging markets.
Volume Growth and Market Expansion
The company reported 10% organic volume growth in the latest quarter, outpacing many industry peers. This rise was driven by strong performances in developing and emerging markets, including Nigeria, Egypt, and India. Notably, the Sparkling and Energy categories saw particularly high demand, with Coca-Cola Zero Sugar continuing its steady double-digit rise in consumption.
Coca-Cola HBC also benefitted from its ongoing portfolio diversification and marketing investments, enabling it to gain or maintain share in 80% of its markets. The company’s multi-category, segmented portfolio strategy is resonating with consumers and helping it stay competitive in a price-sensitive environment.
Resilient Pricing and Margin Discipline
Despite macroeconomic pressures and inflationary costs, Coca-Cola HBC maintained strong pricing discipline. Net sales revenue per unit case grew by 15.2% organically, reflective of both favorable mix and strategic price adjustments. As a result, organic EBIT was up 23%, with EBIT margins expanding by 40 basis points year-on-year.
The company’s ability to offset cost inflation through pricing and operational efficiencies highlights its resilience in the face of supply chain and input cost challenges—a key point of interest for FMCG leaders navigating similar headwinds.
Outlook for 2024
Looking ahead, Coca-Cola HBC reiterated its confidence in achieving organic EBIT growth at the higher end of its previous guidance. The company’s strong balance sheet, continued investment in capabilities, and successful execution of premium and low/no sugar offerings are expected to sustain momentum into 2024.
For FMCG stakeholders, Coca-Cola HBC’s performance reinforces key industry trends: the importance of innovation in product mix, disciplined pricing models, and agility in route-to-market execution. As competition in beverage and broader FMCG categories remains high, Coca-Cola HBC’s approach