Coca-Cola Hellenic Shows Strong Q1 Sales and Volume Growth

Solid First-Quarter Growth Reported by Coca-Cola Hellenic

Coca-Cola Hellenic (CCH) announced a strong start to the year, with first-quarter sales growing by 11.6% and volumes increasing by 9.6%. This performance marks the company's 15th consecutive quarter of volume growth, highlighting sustained consumer demand.

Performance Across Markets

The growth was broad-based, with emerging markets leading the way with a 15.0% revenue increase. Established and developing markets also posted solid gains of 7.3% and 10.3% in revenue, respectively. The company noted that after adjusting for four additional selling days in the quarter, the like-for-like sales growth was approximately 5.5%.

Updated Financial Guidance

While CCH maintained its full-year organic sales growth forecast of 6% to 7%, it revised its guidance for finance costs. The expected range was increased from €25-40 million to €45-65 million. This adjustment reflects costs associated with bonds issued to fund the acquisition of Coca-Cola Beverages Africa (CCBA).

Summary

Coca-Cola Hellenic's Q1 results demonstrate robust operational performance, particularly in emerging markets. The company remains on track to meet its annual sales targets, though it faces higher finance costs related to its strategic acquisition activities.

FAQ

Q: What were the main drivers of Coca-Cola Hellenic's Q1 revenue growth?
A: The primary drivers were significant volume and sales increases across all market segments, especially a 15.0% revenue surge in emerging markets.

Q: Did Coca-Cola Hellenic change its full-year forecast?
A: The company reaffirmed its guidance for organic sales and EBIT growth but raised its forecast for finance costs to fund the CCBA acquisition.

Source: Investing.com