Coca-Cola HBC (CCH) Q3 2024 TU earnings summary

Executive summary

• Organic revenue grew 13.9% in Q3 2024, with volumes up 4%, driven by strong execution, price/mix expansion of 9.5%, and growth across all segments.

• Value share gains achieved in Non-Alcoholic Ready-To-Drink and Sparkling categories year-to-date.

• Innovations and partnerships, such as Marvel activations and new product launches, contributed to consumer recruitment.

• Revenue and volume growth delivered across all business segments and strategic categories, despite mixed consumer backdrops in some markets.

• Updated 2024 guidance reflects confidence in continued performance.

Financial highlights

• Group net sales revenue for Q3 2024 was €3,047.9m, up 8.9% reported and 13.9% organic year-over-year.

• Q3 group volume reached 817.3m unit cases, up 4.1% reported and 4.0% organic year-over-year.

• Revenue per unit case increased, driven by both price and mix improvements, reaching €3.73, up 4.7% reported and 9.5% organic.

• Energy category volumes up 28%, coffee up over 35%, and sports drinks up high teens year-over-year.

• FX headwinds, especially in Emerging markets, partially offset strong organic growth.

Outlook and guidance

• 2024 organic revenue growth guidance raised to 11–13%, and organic EBIT growth to 10–12%.

• COGS per unit case to increase low-single digits; FX headwind on EBIT expected at €30–50m.

• Effective tax rate expected at the top end of 25–27% range; net finance costs between €60–75m.

• Finlandia acquisition to contribute €14–16m to comparable EBIT.

• Cautious on consumer sensitivity and macro/geopolitical uncertainty for the remainder of the year.