Coca-Cola HBC AG (LON: CCH) have given shareholders a solid third quarter update, highlighted in a trading statement released on Wednesday morning.
Additionally, Coca Cola have announced that the Christmas truck will return for the ninth consecutive year.
Kris Robbens, marketing director at Coca-Cola Great Britain and Ireland, said: “Whilst Christmas is a moment of celebration, it’s also incredibly important to remember those that need support throughout the season. So we’re really pleased to partner with Crisis and whilst guests at the tour enjoy a refreshing Coca-Cola zero sugar, when they recycle their can they’ll be helping to support an amazing charity.”
After the announcement was made, shares of Coca Cola rallied 5.93% to 2,499p 13/11/19 10:36BST.
The soft drinks giant, who have established themselves as a FTSE100 (INDEXFTSE: UKX) made a bold move when they purchased Costa Coffee from Whitbread (LON: WTB) in a reported £3.9 billion deal in 2018.
The company reported “a solid performance in a quarter where poor weather impacted industry volumes in our geographies”, which led to shares rising during Wednesday trading
Coca Cola reported that FX-neutral revenue growth of 3.4%, or 2.3% excluding the impact of the Bambi acquisition.
Additionally, volumes increased by 1.1% in the quarter, -0.1% excluding Bambi whilst established markets volumes increased by 1.2%, an acceleration on the first half and prior-year period.
Emerging markets volumes increased by 3.0%, or by 0.8% excluding Bambi, whilst ongoing volume growth in Romania, Ukraine and Nigeria was reported.
Group net sales revenue grew 5% from 2018 to €1,961.4 million, and bullish performance in emerging markets led to net sales climbing 9.8% to €869.4 million.
Additionally, developing markets volumes declined by 4.0%, with very strong volume growth of 11.3% in the prior-year period, which may act as compensation for stagnating growth in some EMEA Markets.
In EMEA markets, there was solid performance however trading did stagnate in Greece and Switzerland, as the soft drink giant alluded to poor weather conditions hampering trading.
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented: “In a quarter in which unseasonably cold and wet weather significantly depressed industry volume growth in a number of our countries, we are pleased to have gained or maintained share in the majority of our markets and to have made progress with our commercial strategy which delivered a step-up in price/mix and ongoing growth in key areas of strategic focus such as Trademark Coke, Adults, Zeros and innovation. We are also proud to have been named by the Dow Jones Sustainability Index (INDEXDJX: W1SGI) as Europe’s most sustainable beverage company for the 6th time in 7 years.
Bogandovic added “As we look to the full year, we are pleased to have seen an acceleration in Q4, giving us confidence that 2019 will be a year of solid top-line growth and good margin expansion.”
Coca Cola also updated other investors on activity including the recent acquisition of acquisition of Acque Minerali S.r.l, a privately-held natural mineral water and adult sparkling beverages business in Italy.
This will come as a relief to shareholders of Coca Cola, who have seen a relatively successful financial 2019 with positive results being posted throughout the year.
Coca Cola expect to deliver full year FX-neutral revenue growth of 4.0-4.5%.