Coca-Cola HBC AG is set to announce its financial results for 2023 on Wednesday. Here are the key details:
Volume Growth
The London and Athens-listed bottler for Coca-Cola is expected to report a 1.2% organic volume growth, as per a market consensus compiled by Vuma Financial Ltd. This estimate is based on the input from 15 analysts. The volume in unit cases is projected to rise from 2.71 billion to 2.82 billion unit cases.
Revenue
According to the market consensus provided by the company, organic revenue growth is forecasted at 16.1%. Net sales revenue is expected to reach 10.25 billion euros ($11.04 billion). This represents an increase from the previous year’s reported revenue of EUR9.20 billion. Citigroup analysts note that net sales revenue is predicted to be EUR10.27 billion.
Net Profit
The company’s net profit for 2023 is anticipated to experience a significant surge, rising from EUR415.4 million to EUR712.6 million, based on the market consensus provided by the company. This estimate considers input from 14 analysts.
EBIT
The group’s comparable earnings before interest and taxes (EBIT) are forecasted to increase to EUR1.035 billion from the previous year’s reported amount of EUR929.7 million in 2022.
FREE CASH FLOW
Coca-Cola HBC’s free cash flow is forecasted to fall to EUR553.17 million from EUR645.1 million, as shown by the company-provided market consensus.
Share Performance
Shares at 1041 GMT were down 1.0% to 2,191 pence, reflecting a 13% increase over the last 12 months.
Factors to Consider
Currency Devaluations
According to Citi analysts, the company lacks near-term positive catalysts due to further currency devaluations, particularly the Egyptian Pound and Nigerian Naira.
Volume Projections
In the fourth quarter, it is anticipated that volumes in developing markets will have declined by 3.4%. This is against a market consensus of a 2% decrease, primarily driven by persistent inflationary pressures. Poland volumes are expected to decrease by 4% due to continued consumer pressure. However, Hungary’s volume declines are projected to improve from minus 8% in the third quarter to minus 5%. Moreover, Czech Republic volumes are expected to fall by 5% due to softer comparables and a challenging consumer environment.
Dividend Outlook
The group declared a dividend payout of EUR0.78 last year, with Citi analysts estimating a dividend yield of 4.1%.