Coca-Cola HBC revenues up 4.4% in Q1, emerging segment shines

Coca-Cola HBC posted a rise in first-quarter revenue on Thursday, with a solid performance across all segments and a particularly pleasing contribution from emerging markets.

Total group revenue in the quarter rose 4.4% on a reported basis to €1.41bn, with emerging markets revenue up 6.4%, while developing markets and established markets saw revenue rise 4.7% and 2.1%, respectively. Analysts had pencilled in total reported revenue growth of 4.1%.

Within the emerging segment, where volumes grew by 5.7%, the company noted encouraging volume growth in Nigeria and continued strong results from Russia, Romania and Ukraine.

Total group volume expanded by 3.5% during the quarter, ahead of consensus expectations of 3.4% growth, driven by ongoing growth in the sparkling business, which saw volumes rise 2.8%, and an improvement in the growth rate in Stills, which grew 4.3%.

Coca-Cola also announced that it was proposing a special dividend of €2.00 per share, which it said reflected successive years of strong performance, confidence in the future and its commitment to creating value for shareholders.

Chief executive officer Zoran Bogdanovic said: "We have started the year well, delivering solid growth in revenues despite the impact of this year's late Easter. Volume growth accelerated compared to last year and our ongoing revenue growth management initiatives continue to deliver improvements in price/mix.

"This good start sets us up well to deliver on our plans and make 2019 another year in which we achieve FX-neutral revenue growth above our targeted range with another step up in margins."