Coca-Cola bottler cheers another profits bonanza

SHARES in Coca-Cola HBC popped after the drinks bottler reported record profits for the third year in a row.

On a positive day for investors, the FTSE 100 firm said it cashed in on soaring demand for soft drinks, coffee and energy cans.

The group, which bottles and sells brands such as Fanta, Costa Coffee and Monster Energy in 28 countries, reported a 16.6 pc rise in profits to £924 m from 2023. Revenues increased 16.9 pc to £8.7 bn.

The shares gained 8 pc, or 176 p, to 2382 p, even though chief executive Zoran Bogdanovic warned the ‘ macroeconomic and geopolitical environment’ is likely to remain tough.

Coca-Cola expects to report a smaller increase in revenues and profits this year. On the wider market, the FTSE 100 rose 0.75 pc, or 56.12 points, to 7568.40 and the FTSE 250 was up by 0.42 pc, or 80.06 points, to 19,003.89.

Sentiment was boosted as figures showed inflation in the UK held firm at 4 pc in January – bucking warnings it could rise and fuelling hopes that interest rates could be cut this spring or early in the summer.

A day earlier, stocks plunged after US inflation came in ‘hot’ at a higher-than-expected 3.1 pc.

The prospect of interest rate cuts, and cheaper mortgages, boosted UK housebuilders with Persimmon up 3.1 pc, or 42 p, to 1403.5 p while Taylor Wimpey added 1.7 pc, or 2.4 p, to 143.85 p and Barratt Developments rose 1.6 pc, or 7.5 p, to 473.6 p.

There was also good news for Vistry after it signed a deal with Sigma Capital to build 5,000 homes over the next five years. Shares in the housebuilder climbed 1.5 pc, or 14.5 p, to 964 p. Water providers were also in focus, with Severn Trent on track to report no serious pollution incidents for the fifth year in a row even though the last six months of 2023 were the third wettest on record in England. Shares slid 0.1 pc, or 2 p, to 2497 p.

While United Utilities maintained its annual forecasts, tough weather conditions in north-west England last year and numerous storms mean performance bonuses are likely to be £25 m lower than expected. It sank 0.3 pc, or 3.5 p, to 1023 p.

Mining giant Anglo American came under pressure following a broker downgrade.

Shares slipped 0.5 pc, or 8.8 p, to 1747.2 p after Citigroup said it expects full- year results this month to show a fall in profits and a weak performance for its diamond arm.

The City backed Babcock, with analysts at Jefferies upgrading their rating on the defence group – it rose 2.3 pc, or 10.4 p, to 465.6 p.

Babcock’s peer BAE Systems is closing in on its £4.4 bn takeover of a Colorado spacecraft firm.

Britain’s biggest defence company – up 1.4 pc, or 17.5 p, to 1230 p – has received the regulatory approvals to buy Ball Aerospace and expects to complete the deal in the coming days.

The newly-acquired business will be called Space & Mission Systems, BAE added.

BP has agreed to form a joint business in Egypt with the UAE’s state-owned oil firm this year.

The British energy giant will transfer its interests in three gas fields and exploration rights in the country to the group while Abu Dhabi National Oil Company will provide funds. BP dipped 0.7 pc, or 3.25 p, to 476.5 p.

Elsewhere, Atome increased 8.6 pc, or 4.5 p, to 57 p after the clean energy firm closed on a major deal in Costa Rica.

The AIM-listed group’s Central America company NAC has entered an agreement with the Costa Rican state-owned electricity firm ICE regarding a green fertiliser project in the country.