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Bottler Coca-Cola HBC reports record profit
Global Banking & Finance Review®
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(Reuters) – Coca-Cola HBC expects profit to grow in 2024 as the bottler reported a record annual profit on Wednesday, helped by strong demand for its sparkling drinks, coffee, and energy drinks, as well as easing cost pressures.
(Reuters) – Coca-Cola HBC expects profit to grow in 2024 as the bottler reported a record annual profit on Wednesday, helped by strong demand for its sparkling drinks, coffee, and energy drinks, as well as easing cost pressures.
The Switzerland-based company, in which U.S. beverage giant Coca-Cola owns about 23%, expects comparable operating profit to grow between 3% to 9% in 2024.
It reported a 17.7% rise in comparable operating profit for the year ended on Dec. 31 to 1.08 billion euros ($1.16 billion).
Beverage companies have witnessed resilient demand even as they hiked prices to pass on elevated costs to customers.
However, cost pressures have begun to ease in the past few months, bringing relief to bottlers such as HBC who have seen margins improve.
Comparable gross profit margin was 80 basis points higher in the full year, reflecting easing cost pressures in the second half of the year, the company added.
Organic revenue per case for 2023 was up 15%.
“While we expect the macroeconomic and geopolitical environment to remain challenging, we remain confident that we will continue to make progress against our medium-term growth targets,” CEO Zoran Bogdanovic said in a statement.
($1 = 0.9334 euros)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Janane Venkatraman)
Gross profit margin is a financial metric that shows the percentage of revenue that exceeds the cost of goods sold (COGS). It indicates how well a company generates profit from its sales.
Energy drinks are beverages that contain caffeine and other ingredients designed to boost energy and alertness. They are popular among consumers looking for a quick energy boost.
Comparable operating profit refers to the operating profit adjusted for non-recurring items, allowing for a more accurate comparison of a company's performance over time.
Organic revenue refers to the income generated from a company's existing operations, excluding revenue from acquisitions or mergers. It reflects the growth of the company's core business.
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