Coca-Cola HBC Stock Soars Over 9%—What’s Behind the Shocking Surge?

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SHOCKING SURGE! Coca-Cola HBC Stock SOARS 9.3%, SETTING RECORD HIGH!

Mark your calendars, folks! On February 13th, the Coca-Cola HBC share price exploded by a jaw-dropping 9.3%, hitting a staggering all-time high of 3,246p! This meteoric rise makes it the UNDISPUTED champion of the FTSE 100 today!

I couldn’t believe my luck when I finally snatched up this stock late last year. For months, it was on my radar, and let me tell you, missing out would have been a disaster!

What’s Fueling This FRENZY?

For those living under a rock, Coca-Cola HBC is one of the BIG GUNS when it comes to bottling for the global powerhouse known as The Coca-Cola Company!

Based out of Switzerland, this titan crafts, sells, and distributes a treasure trove of drinks – think Coca-Cola, Fanta, Schweppes, Sprite, and the electrifying Monster across 28 markets stretching over Europe, Africa, and Eurasia! Oh, and they still pack a punch with over 20% ownership from the Coca-Cola overlords themselves!

So, what ignited this fiery stock spike today? Drumroll, please… A BOLD annual earnings report for 2024! Organic net sales skyrocketed by a staggering 13.8% year-over-year, hitting a whopping €10.7bn, slightly smashing analysts’ expectations of 13% growth!

Yes, you heard that right—5.6% reported revenue growth faced some turbulence from currency challenges in emerging markets, but the VOLUME swelled by 2.8%, driven by a caffeine-fueled explosion in energy and coffee drinks! Energy drink volumes surged a staggering 30.2%—that’s NINE consecutive years of DOUBLE-DIGIT growth, with Monster leading the charge and Predator storming the African scene! And let’s not forget Costa Coffee—it’s brewing up big results too!

As if that wasn’t enough, organic operating profit shot up by 12.2% to €1.2bn, and adjusted earnings per share rocketed by 9.5% to €2.28! Oh, and they cranked up the dividend by a juicy 11% to €1.03 per share, gifting investors a forward yield of about 2.9%!

A BLEND for Success!

But hold your horses! While Coca-Cola HBC is riding high, beware of foreign currency fluctuations that could rattle the earnings cage. The depreciation of currencies in Nigeria, Russia, and Egypt posed a challenge in 2024 as global markets took a hit. Meanwhile, brand backlash in Egypt could raise eyebrows in this youthful powerhouse market!

On the flip side, this company’s geographical reach spreads like wildfire! Weakness in one area (hello, developed Europe) gets balanced out by the booming growth in others (Eastern Europe is going STRONG!).

Despite challenges, the brand portfolio is thriving! Coke Zero popped with mid-single-digit growth, but Monster is on a WILD ride, outpacing everything else!

Valuation: Is There Room to Soar?

Currently, the stock is trading at 15.5 times the anticipated earnings for 2025. That’s peanuts for a top-tier company like Coca-Cola HBC!

One last thing—an end to the Russia/Ukraine conflict could be a GAME-CHANGER for Coca-Cola HBC, as they maintain operations in both countries. If peace prevails, consumer enthusiasm could boom across neighboring nations like Poland and Romania!

Even with today’s remarkable surge, this stock is STILL a worthy contender for any diversified portfolio. Don’t miss out on this cash-cow opportunity!

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Source: USD @ Thu, 17 Jul.