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Coca-Cola HBC lowers sales target following bad weather

Published: 19:46 13 Nov 2019 AEDT

Coca Cola HBC AG - Coca-Cola HBC lowers full-year revenue estimate following bad weather
The FTSE-listed firm is one of Coke's main bottlers and distributors for Europe

Coca-Cola HBC AG (LON:CCH) has lowered its full-year revenue growth expectations after poor weather conditions hit quarterly performance.

The soft drinks bottler said was growing or maintaining its share in the majority of its markets but said it now expects 2019 revenue growth at constant currency rates to be between 4% and 4.5%, against previous estimates for a range of 5-6%.

READ: Coca-Cola HBC on track to meet its revenue growth target despite poor weather in second quarter

Taking account of currency movements during the quarter, however, a better swing in the company's favour than expected means it now expects a negative impact on full-year results of €15mln, as opposed to the €20mln previously indicated.

The Switzerland-based firm saw “an acceleration” in the current period, though it did not say exactly of what apart from giving management confidence over “solid top-line growth and good margin expansion” for the full-year results.

In the three months to 27 September, revenue was €1.9bn, up 3.4% on a currency-neutral basis compared to the same period last year, slightly missing expectations of 3.7%. Volume was up 1% to 622mln unit cases.

According to broker Liberum noted that emerging markets led the volume growth with, driven by strong growth in Romania, Ukraine and Nigeria, but Russian volumes declined due to weather.

Shares were up 3% to 2,436p on Wednesday morning.

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