Picture supply: Getty Photos
Shares in Coca-Cola HBC (LSE:CCH) have fizzed greater on Thursday (13 February) on an in any other case flat day for the FTSE 100 share index.
At £31.98 per share, the drinks bottler has leapt 7.7% to guide the UK blue-chip index greater. A forecast-topping set of financials for the final calendar 12 months helped it rise.
Are Coca-Cola HBC shares ‘The Actual Factor’ for progress buyers? Let me provide the lowdown.
Sturdy numbers
The enterprise bottles, sells, and distributes merchandise for heavyweight drinks manufacturers like Coke, Fanta, and Sprite. Their enduring recognition, mixed with their robust data of innovation, assist wholesome gross sales progress even throughout financial downturns.
In 2024, the agency, which provides its drinks throughout a lot of Europe and elements of Africa, reported natural web gross sales progress of 13.8%, to €10.8bn.
Coca-Cola HBC isn’t nearly tender drinks, although. Certainly, the agency’s vitality and low merchandise stole the present once more in 2024. Volumes throughout these classes soared 30.2% and 23.9% 12 months on 12 months.
Tasty worth
Coca-Cola HBC shares have been one of many FTSE 100‘s greatest success tales to date in 2025. They’re up 14.8% since 1 January versus the broader index’s 5.7% enhance.
But regardless of this, the corporate nonetheless provides good worth in comparison with the Footsie’s different main client items makers.
It’s ahead price-to-earnings (P/E) ratio is 15.3 instances, which is decrease than Unilever and Diageo‘s corresponding readings of 17 instances and 16.3 instances, respectively. Its P/E a number of can also be roughly according to Reckitt Benckiser‘s for 2025.
Coca-Cola HBC’s valuation is all of the extra enticing given its superior buying and selling momentum versus these different FTSE shares (Unilever’s share value really slumped Thursday after it predicted tender first-half gross sales).
A high progress share?
I’m not saying that Coca-Cola HBC is completely threat free, in fact.
The difficult financial panorama continues to forged a shadow, and the corporate has stated it expects natural income progress to gradual sharply, to six%-8% in 2025.
Natural earnings (earlier than curiosity and tax), in the meantime, is tipped to extend by 7%-11% this 12 months, down from 12.2% final 12 months.
A large geographic footprint additionally leaves the corporate susceptible to overseas trade pressures. This proved the case final 12 months as, on a reported foundation, gross sales rose by a extra modest (but nonetheless respectable) 5.6%.
However context is the whole lot, and people numbers are nonetheless fairly good within the present surroundings. It displays largely Coca-Cola HBC’s enormous publicity to fast-growing areas: gross sales in its rising and creating markets jumped by double-digit percentages in 2024.
Sturdy progress can also be anticipated because the bottler executes its progress priorities. It plans to seize a bigger share within the out-of-home espresso market, whereas additional product launches within the vitality class are doubtless (Monster Vitality Inexperienced Zero was launched in one other 16 territories final 12 months).
Metropolis analysts anticipate group earnings to develop 11% in 2025 and one other 10% subsequent 12 months. Given its market-leading labels, vast regional footprint, and robust report of innovation, I believe it’s one of many hottest FTSE 100 progress shares to think about right now.
