FTSE 100 beverage bottler Coca-Cola HBC (CCH) delivered 15% organic sales growth in the third quarter, despite foreign exchange headwinds, and reiterated its guidance for ‘strong’ full-year growth in the face of continued macro uncertainties.

Although it raised selling prices, the company posted a second consecutive quarter of organic volume growth (2.2%) driven by strong demand in priority categories with Sparkling up 1.5%, Energy up 25% and Coffee up 33.5%.

Overall, organic growth in revenue per case increased 12.9%, which the firm said reflected cumulative benefits from management growth initiatives over the last year, although the growth rate slipped from the 19% seen in the first half amid lower levels of cost inflation.

WHAT DID THE CEO SAY?

Chief executive Zoran Bogdanovich commented: ‘Our sophisticated revenue-growth management, powered by data, insights and analytics, is helping us to adapt our initiatives and execution to different consumer environments and successfully balance affordability and premiumisation.

‘As a result, we have both enhanced revenue per case and driven higher levels of market share.’

The company said it expected to deliver mid-teens full-year organic sales growth, and underlying growth in earnings before interest and taxes of between 9% and 12%.

The shares were unchanged in mid-morning trading at £21.39, having gained around 10% year to date.

SURPRISE BUYBACK AT ANHEUSER-BUSCH INBEV

Shares in the world’s largest brewer Anheuser-Busch Inbev (BUD:NYSE) jumped 3.4% after the firm reported better-than-expected third-quarter sales growth as price increases offset lower volumes.

Investors were also excited by the company’s announcement of its first ever share buyback, where it intends to purchase €1 billion of shares over the next 12-months in addition to €3 billion of bonds as it looks to reduce its debt.

Analysts at JP Morgan said the buyback was unexpected and should be welcomed by investors. Third-quarter revenue grew 5% to €15.6 billion, slightly ahead of market expectations.

Although revenue was higher across 80% of the markets in which the company operates, US sales dropped 13.5% dragged down by falling volumes of Bud Light.

Overall volumes slipped 3.4% but strong pricing saw sales per hectolitre rise.

EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 4% to €5.4 billion, ahead of the company-complied consensus growth forecast of 0.3%.

The firm said it expected full-year growth in line with its medium-term outlook of between 4% and 8%, with revenue to grow ahead of EBITDA thanks to a ‘healthy’ combination of volume and price.

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