By Raechel Thankam Job
(Reuters) -Coca-Cola HBC’s operating profit rose more than analysts had expected last year due to steady demand for coffee, energy and other ready-to-drink products, sending the bottler’s shares nearly 8% to a record high on Thursday.
Demand for sodas and energy drinks has held up in an otherwise declining packaged food industry as companies have diversified and tailored their product offerings to different regions and seasons.
Coca-Cola HBC’s organic earnings before interest and taxes (EBIT) jumped 12.2% in 2024, exceeding analysts’ average estimate of an 11.9% increase, according to a company-compiled poll. Its organic revenue growth of 13.8% also beat expectations.
The company’s shares were up 7.6% at 3,198 pence as of 1028 GMT.
Earlier this week, Coca-Cola, which owns more than 20% of the bottler, gave a downbeat organic revenue growth forecast due to uncertainty fuelled by President Donald Trump’s tariffs.
While these tariffs have led to companies across sectors bracing for potential increases in costs, Coca-Cola HBC CEO Zoran Bogdanovic said any impact on commodity prices would be “immaterial” to the bottler.
The company has also faced challenges in the Middle East due to consumer boycotts amid the Gaza conflict. However, Bogdanovic said that while the issue is not resolved, it has eased over the last few months.
The Switzerland-based company expects core earnings to increase 7%-11% this year, compared with analysts’ expectations of a 10.7% rise, according to company-compiled estimates.
It also forecast organic revenue growth of 6%-8% for the year, compared to market expectations of 7.3%.
Coca-Cola HBC said it expects moves such as adjusting package sizes to help counter the challenges of elevated inflation and currency fluctuations in markets such as Nigeria and Egypt.
(Reporting by Raechel Thankam Job; Editing by Subhranshu Sahu and Savio D’Souza)
