Coca-Cola HBC shares soar as growth accelerates

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CCH has been bottling Coca-Cola since 1969 (Source: Getty)

Shares in FTSE 100 firm Coca-Cola HBC (CCH) were up nearly eight per cent today after the company revealed an acceleration in revenue growth during the second quarter.

CCH is a leading bottler of drinks giant Coca-Cola, having first been awarded the contract nearly 50 years ago.

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The figures

For the six months to 30 June, sales revenue grew 5.6 per cent on the year to €3.2bn (£2.9bn).

Operating profit was up 26.8 per cent to €291.1m (£262.9m).

Volume was up across all markets, with average growth of 1.4 per cent. Revenue per case was up 4.6 per cent.

Shares in the company were trading up 7.96 per cent at 2,562p. This put it at the top of today's fastest-rising FTSE 100 firms.

Why it's interesting

The firm splits its markets into three categories: established, developing, and emerging.

Volumes in established and developing markets were up 0.8 per cent apiece, while emerging markets picked up the pace with 1.9 per cent growth. This was thanks to strong growth in Ukraine, Romania and Serbia.

Volume growth in developing and emerging markets is now expected to accelerate, adding further value to CCH.

Analysts at JP Morgan said the the company's margin expansion was strong and added that "the resilience of the soft drinks category provides a relative safe haven amidst the current uncertainty in Europe."

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What the company said

Chief executive Dimitris Lois said: "We are delighted to report an excellent set of results for the first half of the year, with volume and revenue per case growth in all three market segments. It is also very pleasing to see the revenue growth translating into significant margin expansion.

"This demonstrates that our strategy to exploit our lean asset base and improve profitability through operating leverage is powerful and delivers well."

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