Coca-Cola HBC Stock Falls 4% Following Major African Stake Purchase and Q3 Results

Stock Movement and Acquisition Announcement

Coca-Cola HBC shares experienced a 4% decline in trading on Tuesday, reportedly dropping to £33.98 per share, according to market reports. The movement followed the company’s announcement of significant acquisition activity in Africa alongside the release of third-quarter trading figures.

Stock Movement and Acquisition Announcement
Deal Financing and Strategic Impact
Third Quarter Trading Performance
Regional and Category Performance
Management Commentary and Outlook

Sources indicate the FTSE 100 beverage bottler has agreed to purchase a 75% stake in Coca-Cola Beverages Africa for $2.6 billion, with an option arrangement to acquire the remaining 25% at a future date. The deal, according to company statements, will establish Coca-Cola HBC as “the second largest Coca-Cola bottling partner by volume globally, with leading market positions across Africa and Europe.”

Deal Financing and Strategic Impact

The acquisition will be funded through a €2.5 billion bridge financing facility and the issuance of Coca-Cola HBC shares equivalent to 5.47% of the enlarged entity to the Gutsche Family Investment Company, according to the company’s announcement.

Analysts suggest the transaction significantly expands Coca-Cola HBC’s African footprint, as Coca-Cola Beverages Africa supplies products across 14 African markets, representing approximately 40% of all Coca-Cola products sold on the continent by volume. The report states the enlarged group “will represent two-thirds of Africa’s total Coca-Cola system volume and cover over 50% of the continent’s population.”

On a pro forma basis, the combined entity reportedly recorded 2024 volumes of 4 billion cases, generating revenues of €14.1 billion and EBIT of €1.4 billion. The deal is expected to close by the end of 2026 and is projected to boost earnings per share by low-single-digit percentages in the first full year after completion., according to technological advances

Third Quarter Trading Performance

Coca-Cola HBC reported organic revenue growth of 5% during the third quarter, bringing year-to-date growth to 8.1%, according to the trading update. The company attributed this performance to successful marketing initiatives and portfolio strength despite challenging market conditions.

Organic volume growth reportedly reached 1.1%, while organic revenue per case increased 3.8% year-on-year. Sources indicate the “successful rollout of the ‘Share a Coke’ campaign over the summer, supported by tailored consumer and customer experiences across markets” contributed to the revenue improvement.

Regional and Category Performance

The company reportedly achieved organic revenue growth across all territories “despite a mixed market environment and less favorable weather.” Established markets saw organic revenues rise 1.2% despite volume declines, while developing markets improved 4.8% and emerging markets surged 7.9% compared to the same 2024 period.

Category performance showed significant variation, according to the analysis:

Sparkling beverages volume increased 0.7%, with trademark Coke, Coke Zero and Sprite all recording low-single-digit percentage growth
Energy drinks volume surged 34.3%, boosted by new product launches
Fanta volumes declined by high-single digits due to challenging comparisons
Coffee volumes dropped 34% as the company scaled back lower-margin retail channels
Still beverages volume decreased 4.8%

Management Commentary and Outlook

Chief Executive Zoran Bogdanovic stated the third-quarter performance “highlights the strength of our portfolio and our ability to drive growth in volume, revenue-per-case and market share, even in mixed markets.” He commented that “thanks to our resilient 24/7 portfolio, bespoke capabilities, passionate teams, and broad geographic reach, we are well placed to navigate ongoing macroeconomic and geopolitical uncertainty.”

The company maintained its full-year guidance, with organic revenues expected at the top end of the 6% to 8% range and organic EBIT growth projected at the upper end of 7% to 11%, according to the report.

Coca-Cola HBC operates as one of the largest bottlers for The Coca-Cola Company, with the latest acquisition significantly expanding its presence across Africa through Coca-Cola Beverages Africa.