| Coca Cola HBC AG (CH0198251305) | |||
39,64 GBXStand (close): 03.07.25 |
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| 21.04.25 13:40:09 | Is Coca-Cola HBC (CCHGY) Outperforming Other Consumer Staples Stocks This Year? |  |
| The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Coca-Cola HBC (CCHGY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Coca-Cola HBC is a member of our Consumer Staples group, which includes 177 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Coca-Cola HBC is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for CCHGY's full-year earnings has moved 3.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, CCHGY has gained about 48% so far this year. At the same time, Consumer Staples stocks have gained an average of 6.6%. This means that Coca-Cola HBC is performing better than its sector in terms of year-to-date returns. Another Consumer Staples stock, which has outperformed the sector so far this year, is Reeds (REED). The stock has returned 170.3% year-to-date. For Reeds, the consensus EPS estimate for the current year has increased 33.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, Coca-Cola HBC belongs to the Beverages - Soft drinks industry, which includes 16 individual stocks and currently sits at #60 in the Zacks Industry Rank. Stocks in this group have gained about 11.3% so far this year, so CCHGY is performing better this group in terms of year-to-date returns. Reeds is also part of the same industry. Investors with an interest in Consumer Staples stocks should continue to track Coca-Cola HBC and Reeds. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coca-Cola HBC (CCHGY) : Free Stock Analysis Report Reeds, Inc. (REED) : Free Stock Analysis Report Story Continues This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 13.04.25 09:43:31 | Should You Be Excited About Coca-Cola HBC AG's (LON:CCH) 25% Return On Equity? | |
| Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Coca-Cola HBC AG (LON:CCH). Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Coca-Cola HBC is: 25% = €820m ÷ €3.3b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.25 in profit. Check out our latest analysis for Coca-Cola HBC Does Coca-Cola HBC Have A Good Return On Equity? By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Coca-Cola HBC has a higher ROE than the average (17%) in the Beverage industry.LSE:CCH Return on Equity April 13th 2025 That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. How Does Debt Impact ROE? Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Combining Coca-Cola HBC's Debt And Its 25% Return On Equity Coca-Cola HBC does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.13. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Story Continues Summary Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this freereport on analyst forecasts for the company . If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 04.04.25 13:40:10 | Are Consumer Staples Stocks Lagging Coca-Cola HBC (CCHGY) This Year? | |
| For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Coca-Cola HBC (CCHGY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. Coca-Cola HBC is a member of the Consumer Staples sector. This group includes 177 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Coca-Cola HBC is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for CCHGY's full-year earnings has moved 2.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the most recent data, CCHGY has returned 39.8% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 12.9% on average. This shows that Coca-Cola HBC is outperforming its peers so far this year. Heineken NV (HEINY) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 15%. For Heineken NV, the consensus EPS estimate for the current year has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, Coca-Cola HBC belongs to the Beverages - Soft drinks industry, which includes 16 individual stocks and currently sits at #63 in the Zacks Industry Rank. Stocks in this group have gained about 13% so far this year, so CCHGY is performing better this group in terms of year-to-date returns. Heineken NV, however, belongs to the Beverages - Alcohol industry. Currently, this 17-stock industry is ranked #207. The industry has moved +3.6% so far this year. Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Coca-Cola HBC and Heineken NV as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Story Continues Coca-Cola HBC (CCHGY) : Free Stock Analysis Report Heineken NV (HEINY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 30.03.25 08:38:25 | Coca-Cola HBC AG's (LON:CCH) Intrinsic Value Is Potentially 43% Above Its Share Price |  |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, Coca-Cola HBC fair value estimate is UK£50.39 Coca-Cola HBC is estimated to be 30% undervalued based on current share price of UK£35.16 Analyst price target for CCH is €33.78 which is 33% below our fair value estimate How far off is Coca-Cola HBC AG (LON:CCH) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Is Coca-Cola HBC Fairly Valued? We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €635.0m €731.9m €755.7m €733.0m €824.0m €848.9m €872.7m €895.8m €918.7m €941.4m Growth Rate Estimate Source Analyst x2 Analyst x5 Analyst x3 Analyst x1 Analyst x1 Est @ 3.02% Est @ 2.80% Est @ 2.65% Est @ 2.55% Est @ 2.47% Present Value (€, Millions) Discounted @ 5.8% €600 €654 €639 €586 €623 €606 €590 €572 €555 €538 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €6.0b Story Continues After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 5.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €941m× (1 + 2.3%) ÷ (5.8%– 2.3%) = €28b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €28b÷ ( 1 + 5.8%)10= €16b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €22b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of UK£35.2, the company appears quite undervalued at a 30% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.LSE:CCH Discounted Cash Flow March 30th 2025 Important Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Coca-Cola HBC as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.8%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Coca-Cola HBC SWOT Analysis for Coca-Cola HBC Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Beverage market. Opportunity Annual revenue is forecast to grow faster than the British market. Trading below our estimate of fair value by more than 20%. Threat Annual earnings are forecast to grow slower than the British market. Looking Ahead: Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Coca-Cola HBC, there are three additional factors you should further examine: Risks: For instance, we've identified 1 warning sign for Coca-Cola HBC that you should be aware of. Future Earnings: How does CCH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 16.03.25 08:01:01 | Coca-Cola HBC AG (LON:CCH) stock most popular amongst retail investors who own 36%, while private companies hold 24% | |
| Key Insights The considerable ownership by retail investors in Coca-Cola HBC indicates that they collectively have a greater say in management and business strategy The top 6 shareholders own 50% of the company Insiders have sold recently If you want to know who really controls Coca-Cola HBC AG (LON:CCH), then you'll have to look at the makeup of its share registry. With 36% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Meanwhile, private companies make up 24% of the company’s shareholders. Let's delve deeper into each type of owner of Coca-Cola HBC, beginning with the chart below. Check out our latest analysis for Coca-Cola HBC LSE:CCH Ownership Breakdown March 16th 2025 What Does The Institutional Ownership Tell Us About Coca-Cola HBC? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Coca-Cola HBC does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Coca-Cola HBC, (below). Of course, keep in mind that there are other factors to consider, too.LSE:CCH Earnings and Revenue Growth March 16th 2025 Hedge funds don't have many shares in Coca-Cola HBC. Torval Investment Corp. is currently the largest shareholder, with 24% of shares outstanding. The Coca-Cola Company is the second largest shareholder owning 21% of common stock, and The Vanguard Group, Inc. holds about 2.7% of the company stock. We did some more digging and found that 6 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Coca-Cola HBC The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Story Continues I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of Coca-Cola HBC AG. But they may have an indirect interest through a corporate structure that we haven't picked up on. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own UK£90m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. General Public Ownership With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Coca-Cola HBC. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Private Company Ownership We can see that Private Companies own 24%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Public Company Ownership We can see that public companies hold 21% of the Coca-Cola HBC shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Coca-Cola HBC better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Coca-Cola HBC you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 16.03.25 07:27:09 | Coca-Cola HBC Full Year 2024 Earnings: EPS Beats Expectations | |
| Coca-Cola HBC (LON:CCH) Full Year 2024 Results Key Financial Results Revenue: €10.8b (up 5.6% from FY 2023). Net income: €820.6m (up 29% from FY 2023). Profit margin: 7.6% (up from 6.3% in FY 2023). The increase in margin was driven by higher revenue. EPS: €2.25 (up from €1.73 in FY 2023).LSE:CCH Revenue and Expenses Breakdown March 16th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Coca-Cola HBC EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.3%. The primary driver behind last 12 months revenue was the Emerging segment contributing a total revenue of €4.87b (45% of total revenue). Notably, cost of sales worth €6.88b amounted to 64% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to €2.01b (66% of total expenses). Explore how CCH's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Beverage industry in the United Kingdom. Performance of the British Beverage industry. The company's shares are down 1.7% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 1 warning sign for Coca-Cola HBC you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 01.03.25 09:43:17 | Coca-Cola HBC (LON:CCH) shareholders have earned a 33% CAGR over the last three years | |
| The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Coca-Cola HBC AG (LON:CCH) share price is 113% higher than it was three years ago. That sort of return is as solid as granite. In more good news, the share price has risen 20% in thirty days. We note that Coca-Cola HBC reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report. So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns. See our latest analysis for Coca-Cola HBC To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Coca-Cola HBC was able to grow its EPS at 15% per year over three years, sending the share price higher. In comparison, the 29% per year gain in the share price outpaces the EPS growth. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. That's not necessarily surprising considering the three-year track record of earnings growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).LSE:CCH Earnings Per Share Growth March 1st 2025 We know that Coca-Cola HBC has improved its bottom line lately, but is it going to grow revenue? You could check out this freereport showing analyst revenue forecasts. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Coca-Cola HBC, it has a TSR of 134% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective It's good to see that Coca-Cola HBC has rewarded shareholders with a total shareholder return of 40% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 9%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Coca-Cola HBC better, we need to consider many other factors. For example, we've discovered 1 warning sign for Coca-Cola HBC that you should be aware of before investing here. Story Continues For those who like to find winning investments this freelist of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 15.02.25 08:57:51 | Should You Be Adding Coca-Cola HBC (LON:CCH) To Your Watchlist Today? | |
| The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Coca-Cola HBC (LON:CCH). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. See our latest analysis for Coca-Cola HBC Coca-Cola HBC's Earnings Per Share Are Growing If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. Coca-Cola HBC managed to grow EPS by 15% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Coca-Cola HBC achieved similar EBIT margins to last year, revenue grew by a solid 5.6% to €11b. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.LSE:CCH Earnings and Revenue History February 15th 2025 In investing, as in life, the future matters more than the past. So why not check out this freeinteractive visualization of Coca-Cola HBC's forecast profits? Are Coca-Cola HBC Insiders Aligned With All Shareholders? Since Coca-Cola HBC has a market capitalisation of UK£12b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at €87m. While that is a lot of skin in the game, we note this holding only totals to 0.8% of the business, which is a result of the company being so large. This should still be a great incentive for management to maximise shareholder value. Does Coca-Cola HBC Deserve A Spot On Your Watchlist? As previously touched on, Coca-Cola HBC is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Coca-Cola HBC that you should be aware of. Story Continues There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of British companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 14.02.25 07:06:21 | Coca-Cola HBC AG (CCHBF) (FY 2024) Earnings Call Highlights: Record Growth and Strategic ... | |
| Organic Revenue Growth: 13.8% increase in 2024. Volume Growth: 2.8% increase in 2024. Comparable EBIT: EUR 1.2 billion, up 12.2% year-on-year. Comparable EBIT Margin: Improved to 11.1% from 10.6% in 2023. Comparable EPS Growth: 9.5% year-on-year increase. Return on Invested Capital: Improved by 190 basis points to 18.3% in 2024. Revenue per Case: Grew 10.7% in 2024. CapEx: EUR 679 million, representing 6.3% of revenue. Free Cash Flow: EUR 730 million. Net Debt to Comparable EBITDA: 1 times at year-end. Dividend Recommendation: EUR 1.03, up 11% from 2023. Share Buyback: EUR 226 million returned, approximately 2% of sales outstanding. Established Segment Revenue Growth: 3.3% increase. Developing Segment Revenue Growth: 12.7% increase. Emerging Segment Revenue Growth: 23.3% increase. Energy Category Growth: Double-digit volume expansion for the ninth consecutive year. Outlets Added: 4,300 new outlets in the Coffee segment. Warning! GuruFocus has detected 7 Warning Signs with CCHBF. Release Date: February 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Coca-Cola HBC AG (CCHBF) achieved a strong organic revenue growth of 13.8% in 2024, with volume expansion of 2.8%. The company reported its highest ever comparable EBIT of EUR 1.2 billion, marking a 12.2% year-on-year increase. Coca-Cola HBC AG (CCHBF) gained 150 basis points in value share within the NARTD category in Europe, continuing to lead in retail customers' absolute revenue growth. The company has been recognized as the world's most sustainable beverage company by the 2024 Dow Jones Best-in-Class Indices. Coca-Cola HBC AG (CCHBF) continues to invest in its 24/7 portfolio, focusing on high-potential categories like Sparkling, Energy, and Coffee, and expanding its premium spirits offerings. Negative Points The company faces ongoing macroeconomic challenges, particularly in the Emerging segment, with significant currency headwinds in large markets like Nigeria and Egypt. There is continued consumer price sensitivity across several markets, necessitating adjustments in pricing and promotions. Operating expenses as a percentage of revenue increased by 70 basis points, partly due to noncash foreign currency remeasurement in emerging markets. The Established segment saw flat comparable EBIT due to operational leverage being offset by ongoing investments. Coca-Cola HBC AG (CCHBF) anticipates continued inflationary pressures on costs, particularly in aluminum, freight, and secondary packaging materials. Q & A Highlights Q: Can you explain the rationale behind the 2025 guidance of 7% to 11% organic EBIT growth, given the uncertain environment? A: Anastasis Stamoulis, Group CFO, explained that despite the dynamic market trends and volatile political landscape, Coca-Cola HBC is confident in its ability to execute and drive performance. While there is some inflationary pressure expected, particularly in aluminum and freight costs, the company has a strong hedging position, with about 60% coverage on key commodities, which supports their guidance. Story Continues Q: How do you view the consumer environment in Europe for 2025, especially regarding affordability? A: Zoran Bogdanovic, CEO, noted that the consumer environment remains dynamic, with price sensitivity stable across countries. Affordability is a key focus, and the company is addressing this through revenue growth management plans, alongside premiumization initiatives. The company is adapting its strategies to manage consumer price sensitivity effectively. Q: What were the key surprises in Q4, and what are your expectations for Q1 2025? A: Zoran Bogdanovic highlighted that Q4 performance was strong, with disciplined execution across markets. There were no major surprises, but continued price sensitivity in several markets was noted. The company remains agile in adapting plans and expects continued growth momentum into 2025. Q: How is Coca-Cola HBC managing to drive strong growth in the Energy category despite broader market moderation? A: Zoran Bogdanovic attributed the growth to a consistent strategy, leveraging a diverse portfolio including Monster, Burn, and affordable brands in Africa. The company is increasing the number of dedicated coolers, introducing zero-sugar variants, and executing consumer-relevant promotions, which are expanding consumer segments and driving growth. Q: With the strong balance sheet, how is Coca-Cola HBC planning to use excess cash, and what are the priorities for capital allocation? A: Anastasis Stamoulis stated that the company prioritizes investing in organic growth, maintaining a progressive dividend policy, and executing share buybacks. M&A remains an option, but the focus is on embedding recent acquisitions and ensuring they contribute to growth and shareholder value. Q: What changes are being made in Italy to address volume declines and drive growth in 2025? A: Zoran Bogdanovic mentioned that the company is adapting its plans with lower pricing and more promotions, supported by strong marketing campaigns. The focus is on leveraging assets and partnerships to unlock market potential, aiming for positive volume growth and strong revenue generation in 2025. Q: How is Coca-Cola HBC addressing profitability challenges in Nigeria and Egypt due to FX devaluations? A: Zoran Bogdanovic emphasized that structural reforms in both countries are positive, and the company is strengthening operations with investments and capabilities. Despite lower profitability, the company sees long-term opportunities and is confident in the positive direction of business development. Q: What is the growth potential for the Spirits category on Coca-Cola HBC's platform? A: Zoran Bogdanovic explained that premium spirits have a high revenue per case and fit well with the company's 24/7 strategy. The category drives incremental transactions and value, with a focus on leveraging existing brand partnerships and the recent Finlandia acquisition to enhance growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 13.02.25 07:30:08 | Coca-Cola HBC forecasts slower profit growth in challenging economic environment | |
| (Reuters) - Bottler Coca-Cola HBC forecast a 7% to 11% rise in 2025 organic operating profit on Thursday, slower than last year, as a challenging macroeconomic environment clouded growth prospects. Analysts, on average, had expected a 10.7% growth in 2025 organic earnings before interest and taxes (EBIT), according to a company-compiled poll. The company expects its organic revenue to grow 6% to 8% in the year, compared with average market expectations of 7.3%. The Switzerland-based company reported an organic EBIT growth of 12.2% for the year ended December 31, 2024, above expectations of 11.9%. U.S. beverage giant Coca-Cola, which owns more than 20% in the bottler, on Tuesday forecast a downbeat organic revenue growth for the year amid uncertainty fuelled by President Donald Trump's tariffs. (Reporting by Raechel Thankam Job; Editing by Subhranshu Sahu) View Comments |
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