Coca-Cola HBC reported a 13.8% increase in sales revenue and a 12.2% improvement in operating profit, on an organic basis, for fiscal 2024. Comparable earnings per share rose 9.5% to EUR 2.28. For 2025, the company forecasts 6-8% growth in net sales revenue and 7-11% growth in operating profit on an organic basis. The Board of Directors will propose a dividend per share of EUR 1.03.

In detail, Coca-Cola HBC's announcement reads as follows:

• - Our focus on delivering on our strategic priorities is driving significant growth in net sales revenue of 13.8% on an organic basis

o Sales volumes grew by 2.8% on an organic basis, with all strategic priority categories contributing to growth. Carbonated soft drinks grew 1.5%, energy drinks 30.2%, and coffee 23.9%.

o Net revenue per case increased 10.7% on an organic basis, driven by our targeted revenue growth initiatives.

o Net sales revenue increased 5.6% on a reported basis, with most of the strong organic growth offset by unfavorable currency movements in emerging markets.

o There was further growth in our market share by value, in ready-to-drink non-alcoholic soft drinks by 150 basis points and in carbonated soft drinks by 20 basis points.

• Strong operating profit growth of 12.2% on an organic basis

o Comparable operating profit of EUR 1,192.1 million. Comparable operating profit margin improved by 40 basis points to 11.1% on a reported basis, down 20 basis points on an organic basis.

o Comparable gross profit margin increased by 110 basis points to 36.1%, as a result of our revenue growth initiatives and lower inflation growth relative to raw material costs, while comparable cost of goods sold per box increased by 1.0%.

o Higher operating expenses in the first half of the year due to negative currency movements, as well as continued market investments throughout the year, resulted in higher operating expenses as a percentage of net sales revenue of 70 basis points.

o Return on invested capital (ROIC) increased by 190 basis points to 18.3%.

• Increased net revenues and sales volume on an organic basis in all three of our business segments, facing a range of macroeconomic conditions across markets

o Developed markets: Increased net sales revenue by 3.3% on an organic basis, primarily driven by expanded net revenue per box and increased sales volume. Operating profit on an organic basis remained essentially flat. 

o Developing markets: Net sales revenue increased 12.7% on an organic basis, driven by the expansion of net revenue per box and significant sales volume growth. Operating profit increased 39.6% on an organic basis. 

o Emerging markets: Net sales revenue increased 23.3% on an organic basis as we addressed the negative impact of foreign exchange rate movements through our revenue growth initiatives and continued to deliver strong sales volume growth. Operating profit increased by 13.0% on an organic basis.

• Strong earnings per share and net cash flow growth, as well as improved returns to shareholders

o Comparable earnings per share increased 9.5% to €2.28, driven by strong operating profit. 

o Net cash flow increased slightly year-on-year to €712.6 million.

o The ratio of net debt to comparable adjusted earnings before interest, taxes, depreciation and amortization (comparable adjusted EBITDA) was 1.0x, reflecting our strong capital position.

o We returned €226 million to shareholders since the start of our ongoing share buyback program. 

o The Board of Directors will recommend a dividend per share of €1.03, up 11% on an annualized basis, representing a dividend payout ratio of 45%.

• Further investment in our strategic priorities

o Continuing to work closely with The Coca-Cola Company to support the growth of carbonated soft drinks, capitalizing on key events such as the Olympics, Euro 2024, music festivals and other events tailored to local markets.

o Launch of Monster Energy Green Zero Sugar in 16 markets in 2024 and continued strong performance of the category, particularly the affordable brands in Africa. 

o Growth in the coffee category, driven by increasing our revenue share in the out-of-home channel in line with our plans.

o We continue to focus on mix and premium options with our 24/7 consumption product portfolio, particularly through our adult carbonated soft drinks and premium spirits brands, including the expansion of Finlandia Vodka into 19 new markets.

o We continue to be a sustainability leader and were recognized for the eighth time as the world's most sustainable beverage company by the Dow Jones 20242 Best-in-Class Indices.

Zoran Bogdanovic, CEO of Coca-Cola HBC AG, commented, "I am proud as we achieved another year of double-digit growth with a 13.8% increase in net sales revenue on an organic basis and sales volume growth in all three of our business segments. 2024 proved that we can consistently deliver strong financial performance even under varying market conditions. I would like to thank our team for their commitment to our vision and for the consistent, focused execution of our strategy. I would also like to thank our customers, The Coca-Cola Company and our valued partners for their continued support.

We have continued to invest in our specialist capabilities, primarily data, insights and data analytics, to achieve differentiated sector-wide and focused execution of our strategy. We also made options to further strengthen our 24/7 consumer product portfolio in order to achieve greater growth, always keeping our customers at the center of our decision-making. We achieved market share growth and sales volume growth in all three of our priority strategic categories, namely carbonated soft drinks, energy drinks and coffee.

In 2024, we made significant progress against the targets we have set under Mission 2025 and NetZeroby40. The new packaging guarantee refund schemes launched in 2024 in some of the countries where we operate delivered encouraging results. At the same time, in partnership with governments and non-profit organizations, we assisted communities in Europe and Nigeria affected by floods during the year.

While we expect the macroeconomic and geopolitical environment to continue to present challenges in the year ahead, we remain confident that with our product portfolio, capabilities and people, we will make progress against the medium-term growth targets we have set."

OUTLOOK

We achieved a strong performance in 2024, despite the varying conditions in our markets. We expect macroeconomic and geopolitical challenges to continue, but we have great confidence in our 24/7 consumer product portfolio, our specialist capabilities, our people and the growth opportunities in our diverse markets. We expect 2025 to see continued progress against our medium-term targets.

Our financial guidance for 2025 is as follows:

•  grow net sales revenue on an organic basis in the range of 6% to 8%, and
• increase operating profit on an organic basis in the range of 7% to 11%.

TECHNICAL ANALYSIS

Exchange rates: We expect the negative impact on comparable operating profit from foreign exchange translation differences on the translation of results in the Group's reporting currency to be in the range of €15-35 million.

Restructuring costs: We do not expect significant restructuring costs. 

Taxes: We expect the comparable effective tax rate to be in the range of 26% to 28%.

Financial expenses: We expect net financial expenses to be in the range of €40-60 million.

Developed markets: Greece

In Greece, sales volumes increased by 6.1%, despite a high comparative base, thanks to the strong execution of our market strategy during the critical trading periods, capitalizing on the upward tourism trend. There was mid-single-digit growth in carbonated soft drinks, driven mainly by Coke Zero, Sprite and adult carbonated soft drinks. The coffee category recorded double-digit growth in the mid-10-20% range, while non-carbonated soft drinks posted high single-digit growth, mainly driven by bottled water.