Coca-Cola HBC shares topped the FTSE 100 on Wednesday after the bottling group released a bumper full-year earnings report with highlights including organic EBIT growth of 10.7% and a 19% hike in the dividend.
Shares were over 7% higher at the time of writing.
Coca-Cola HBC delivered strong growth in 2023, with organic revenue up 16.9% to €10.2 billion. Volumes grew 1.7%, led by strategic categories like Sparkling, Energy and Coffee.
Revenue per case was up 15%, reflecting revenue growth initiatives. Reported revenue rose 10.7% but was impacted by FX headwinds in Emerging markets.
Comparable EBIT grew 17.7% to €1.08 billion, with margins up 50 bps to 10.6%. Gross margins improved 80 bps as cost pressures eased. Organic revenue and EBIT were up double-digits in all segments – Established, Developing and Emerging.
EPS grew 21.8% to €2.08, supported by profit delivery and lower finance costs. Free cash flow hit a record €711.8 million. Net debt was €1.6 billion and leverage was 1.1x EBITDA, reflecting a strong balance sheet.
The strong performance during the year culminated in higher shareholder payouts with a 19% increase in the dividend to €0.93 per share alongside the €400 million share buyback launched in November.
“2023 was another year of consistent execution of our growth strategy. We delivered volume growth, share gains, improved margins and record levels of free cash flow. As a result, we were able to increase shareholder returns, including the launch of a share buyback programme,” said Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG.
“The power of our 24/7 portfolio, our diversified country footprint and our sustained investment in building bespoke capabilities, driven by data, insights and analytics, are foundations of compounding growth.
