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Shares in Coca-Cola HBC are top of the pile this morning, back testing 2016 highs as investors welcome a better than expected set of FY 2015 results as sustained underlying volume growth in Q4 helped deliver a positive result for the full year and put management in a position to hike its dividend by 11.1%. And while a 5% currency headwind depressed Coca-Cola HBC’s FY net sales growth per case to just above breakeven, the
news was better further down the P&L on a comparable basis, with attention to costs, positive price action, lower input costs from commodity price declines and volume leverage helping deliver consensus-beating margin expansion.
And before we get too worried by a 2.5% net sales decline, note the return to growth for Established markets after a tough 5 years, continued growth in Developing markets and double-digit progress in several Emerging market components despite weakness in key oil-reliant economies. And while the outlook is for continued volatility, growth prospects have been revised up for Europe thanks to the benefits from a lower for longer oil price and expectations of global central banks keeping market sweet for a good while longer.
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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