Coca-Cola HBC AG caps year with strong growth and shareholder value enhancement

Coca-Cola HBC AG, the distinguished growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, has unveiled its financial accomplishments for the year ending December 31, 2023. With a stellar performance that showcases a 16.9% organic revenue growth, the company’s achievements are a testament to its robust 24/7 strategy and a focused execution that has led to significant organic volume growth across its strategic priority categories.

The execution of Coca-Cola HBC’s strategic plans has resulted in an organic volume increase of 1.7%, highlighted by remarkable growth in Sparkling (+2.5%), Energy (+27.3%), and Coffee (+31.5%). The year concluded with a robust 6.8% organic volume growth in Q4, showing improving trends across all reporting segments. This growth is further accentuated by a 15.0% increase in organic revenue per case, a reflection of successful revenue growth management initiatives implemented throughout the year.

Despite facing FX translation headwinds in emerging markets, Coca-Cola HBC reported a revenue increase of 10.7%, underpinned by strong organic growth. The company also celebrated continued value share gains in 2023 in both Non-Alcoholic Ready-To-Drink (NARTD) and Sparkling categories.

Coca-Cola HBC reported a significant organic EBIT growth of 17.7%, driving an impressive improvement in Return on Invested Capital (ROIC), which surged by 230 basis points to 16.4%. The company’s double-digit organic revenue and EBIT growth across all segments underscore its financial resilience and strategic foresight. This remarkable growth trajectory was further supported by a record free cash flow increase of 10.3% to €711.8 million and a robust EPS progress, with comparable EPS growing by 21.8% to €2.08.

The company’s commitment to sustainable growth is evident in its capital expenditure of €674.9 million, focused on strategic priorities including the acquisition of Finlandia Vodka business and accelerated investment in digital initiatives. CEO Zoran Bogdanovic’s statement highlights the company’s dedication to consistent growth strategy execution, shareholder returns enhancement, and progress towards Mission 2025 and NetZeroby40 goals.