Core Viewpoint - Coca-Cola HBC has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects an improvement in Coca-Cola HBC's earnings outlook, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [5][7]. - Coca-Cola HBC has seen a steady increase in earnings estimates, with the Zacks Consensus Estimate rising by 11.6% over the past three months [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Coca-Cola HBC's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].

Group 1 - BJ's Wholesale Club is one of 178 companies in the Consumer Staples group, which is currently ranked 12 within the Zacks Sector Rank [2] - BJ's Wholesale Club has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook as the consensus estimate for its full-year earnings has increased by 1.6% over the past 90 days [3] - BJ's Wholesale Club has returned approximately 18.5% year-to-date, significantly outperforming the Consumer Staples sector average return of 1.9% [4] Group 2 - BJ's Wholesale Club belongs to the Consumer Products - Staples industry, which includes 35 stocks and is currently ranked 98 in the Zacks Industry Rank, with an average loss of 6.6% this year [5] - Coca-Cola HBC, another outperforming stock in the Consumer Staples sector, has returned 53% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Beverages - Soft drinks industry, to which Coca-Cola HBC belongs, is ranked 36 and has seen a positive movement of +2.6% this year [6]

Company Performance - BJ's Wholesale Club has returned 18% year-to-date, outperforming the Consumer Staples sector, which has returned an average of 3.7% [4] - The Zacks Consensus Estimate for BJ's full-year earnings has increased by 1.6% over the past quarter, indicating improving analyst sentiment [4] - BJ's Wholesale Club holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Industry Context - BJ's Wholesale Club is part of the Consumer Products - Staples industry, which consists of 35 companies and currently ranks 72 in the Zacks Industry Rank [6] - The average performance of the Consumer Products - Staples industry has been a loss of 5.4% year-to-date, highlighting BJ's superior performance [6] - Another notable stock in the Consumer Staples sector is Coca-Cola HBC, which has returned 55.5% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Coca-Cola HBC (CCHGY) as a strong value stock based on its financial metrics and Zacks Rank [1][2][6]. Company Analysis - Coca-Cola HBC (CCHGY) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value investment [4]. - The stock's Forward P/E ratio is 14.14, significantly lower than the industry average of 20.18, suggesting it may be undervalued [4]. - Over the past year, CCHGY's Forward P/E has fluctuated between a high of 15.02 and a low of 11.95, with a median of 13.77 [4]. - The P/B ratio for CCHGY is 3.93, which is favorable compared to the industry's average P/B of 9.27, indicating solid market value relative to book value [5]. - In the past 52 weeks, CCHGY's P/B has ranged from a high of 4.07 to a low of 2.83, with a median of 3.64 [5]. - Overall, CCHGY's strong earnings outlook and key financial metrics suggest it is likely undervalued at present [6].

Financial Data and Key Metrics Changes - Organic revenue grew by 13.9%, with volumes up 4% and price mix up 9.5% [8] - Reported revenue increased by 8.9%, despite facing currency headwinds [8] - Revenue per unit case showed continued momentum with both price and mix expansion [9] Performance by Business Line - Sparkling beverages saw volumes up 3.9%, with Trademark Coke growing low-single digits and Coke Zero up mid-single digits [11] - Energy category volumes surged by 28%, continuing strong growth [12] - Coffee volumes increased over 35%, driven by out-of-home segment performance [12] - Water and Sports Drinks also experienced growth, with Sports Drinks up high teens [12] Performance by Market - Established markets reported net sales revenue growth of 3%, with volume growth despite consumer sensitivity [14] - Developing markets saw net sales revenue grow by 12.6%, led by strong price/mix [15] - Emerging markets delivered organic revenue growth of 24.1%, with price/mix being the main driver [15] Company Strategy and Industry Competition - The company is focused on agile execution and investment in bespoke capabilities to drive growth [7] - Ongoing revenue growth management initiatives are tailored to address affordability and premiumization needs [9] - The company is adapting its plans to consumer sensitivity in various markets, particularly in Italy and Switzerland [32][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic and geopolitical backdrop but expressed confidence in continued performance [17] - Updated guidance for 2024 includes organic revenue growth expectations of 11% to 13% and organic EBIT growth of 10% to 12% [17] - Management remains optimistic about maintaining positive volume growth despite market challenges [26] Other Important Information - The company is making progress on ESG initiatives, particularly in packaging circularity [13] - The fire at the Bambi plant in Serbia posed challenges, but the team managed to maintain operations [16] Q&A Session Summary Question: Why hasn't the operating profit guidance been raised despite lower COGS? - Management indicated that the dynamic market environment and ongoing challenges led to a cautious approach in raising profit guidance [20][21] Question: What is the impact of the fire at the Bambi plant and the product recall in Austria? - Management confirmed that the impact of the fire and recall is accounted for in the guidance, with no material impact expected from the recall [22][23] Question: How does the company anticipate consumer sensitivity affecting volume growth? - Management emphasized the importance of data insights and revenue growth management to tailor promotions and maintain volume growth [25][26] Question: What is the outlook for the Energy and spirits categories? - Management highlighted strong growth in the Energy category and positive integration of the Finlandia brand into the spirits portfolio [27][29] Question: How are consumer pressures in Italy and Switzerland being addressed? - Management is adjusting promotional strategies and pack sizes to respond to consumer sensitivity in these markets [32][50] Question: What is the regulatory outlook regarding sugar taxes and inflation in Nigeria and Egypt? - Management is preparing for upcoming regulatory changes and monitoring inflationary pressures in these markets [46][47]

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Coca-Cola HBC (CCHGY) one of those stocks right now? 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 our Consumer Staples group, which includes 183 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Ra ...

Financial Performance - Organic revenue grew by 13.6%[1], driven by a 3.1% increase in volume[1] - Comparable EBIT increased organically by 7.5%, reaching €564.1 million[1,9] - Comparable EPS was €1.04, a decrease of 1.7% due to higher finance costs[14] Category Performance - Sparkling category volume increased by 0.9%[2] - Energy drink volume saw significant growth of 32.8%[3] - Coffee volume increased by 21.6%[4] - Stills category volume grew by 5.2%[4] - Premium Spirits volume increased by 17.3%[5] Market Performance - Established markets saw revenue increase by 4.4%[10] and comparable EBIT increase by 11.1%[10] - Developing markets experienced revenue growth of 11.5%[12] and a comparable EBIT increase of 62.3%[12] - Emerging markets revenue increased by 22.7%[13], but comparable EBIT decreased by 8.6%[13] Investments and Returns - Capex was €202.8 million, with expectations to be within the guided range of 6.5%-7.5% at FY 2024[16] - A dividend of €0.93 was paid in June, representing a 19.2% year-on-year increase[16] - The company repurchased approximately 40% of shares, up to a maximum of €400 million[16] Outlook - The company upgraded its guidance for 2024, expecting organic revenue growth of 8% to 12% and organic EBIT growth of 7% to 12%[18]

Financial Data and Key Metrics Changes - Organic revenue increased by 13.6% in the first half of 2024, with organic volumes up 3.1% [5][12] - Organic EBIT grew by 7.5%, despite tough comparatives from 2023 [5][13] - Comparable gross profit expanded by 6%, with a 100 basis point expansion in gross profit margin [14] - Comparable earnings per share declined slightly to EUR 1.04 [20] - Free cash flow was EUR 220 million, a decline year-on-year due to net working capital phasing [20] Business Line Data and Key Metrics Changes - Sparkling volumes grew almost 1%, with value share up 80 basis points [6][17] - Energy segment saw strong performance, with high single-digit growth [7][18] - Coffee volumes grew by 21.6%, with 1,500 new outlets added [8] - Stills volumes increased by 5.2%, with a strong recovery in water [8] - Premium Spirits volumes grew by 17.3%, with successful distribution of Finlandia Vodka in 19 markets [9] Market Data and Key Metrics Changes - Established Markets revenue grew by 4.4%, driven by price mix [16] - Developing segment revenue increased by 11.5%, with volumes up 3.1% [17] - Emerging segment revenue grew by 22.7%, with price/mix positive at 17.6% [18] - Nigeria experienced double-digit volume growth despite macroeconomic challenges [19] Company Strategy and Development Direction - The company continues to invest in its 24/7 portfolio and bespoke capabilities to drive growth [4][24] - Focus on premiumization opportunities and targeted marketing campaigns [6][24] - Commitment to sustainability and packaging circularity through initiatives like Deposit Return Schemes [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic market environment despite uncertainties [23][24] - Upgraded guidance for 2024, expecting organic revenue growth of 8% to 12% and organic EBIT growth of 7% to 12% [21][22] - Acknowledgment of challenges in consumer sensitivity to pricing in certain markets [43][46] Other Important Information - The company received a $130 million loan from EBRD to finance CapEx and working capital in Egypt [11] - Strong balance sheet with net debt to EBITDA below the guided range of 1.5 to 2 times [21] Q&A Session Summary Question: Context on volume improvement and price/mix normalization in Established markets - Management noted positive volume growth in Q2, driven by strong performance in Greece and Italy, with a focus on promotions to support volume [29][30] Question: Mark-to-market FX impact on EBIT in Emerging segment - The mark-to-market adjustment was a noncash item related to currency devaluation, affecting OpEx as a percentage of revenue [33][34] Question: Specifics on margin development in Developing segment - Strong operational leverage and lower inflation in input costs contributed to margin expansion in the Developing segment [38][39] Question: Performance and strategy for Premium Spirits - The integration of Finlandia Vodka has been successful, enhancing the company's mixability initiatives and contributing positively to margins [40] Question: EBIT guidance and uncertainty in consumer environment - Management highlighted a wide range for EBIT guidance due to macroeconomic challenges and consumer sensitivity in certain markets [42][43] Question: Consumer behavior and pricing strategy in Nigeria - Management confirmed ongoing price increases in Nigeria, supported by data-driven revenue growth management strategies [53][54]

Coca-Cola HBC AG (OTCPK:CCHBF) Q1 2024 Trading Update Conference Call April 30, 2024 4:30 AM ET Company Participants Joanna Kennedy - Head of Investor Relations Zoran Bogdanovic - Chief Executive Officer Anastasis Stamoulis - Incoming Chief Financial Officer Conference Call Participants Matthew Ford - Exane BNP Paribas Simon Hales - Citigroup Inc. Sanjeet Aujla - UBS Group AG Olivier Nicolai - Goldman Sachs Edward Mundy - Jefferies Group LLC Mandeep Sangha - Barclays Fintan Ryan - Goodbody Charlie Higgs - R ...

Coca-Cola HBC AG (OTCPK:CCHBF) Q1 2024 Trading Update Conference Call April 30, 2024 4:30 AM ET Company Participants Joanna Kennedy - Head of Investor Relations Zoran Bogdanovic - Chief Executive Officer Anastasis Stamoulis - Incoming Chief Financial Officer Conference Call Participants Matthew Ford - Exane BNP Paribas Simon Hales - Citigroup Inc. Sanjeet Aujla - UBS Group AG Olivier Nicolai - Goldman Sachs Edward Mundy - Jefferies Group LLC Mandeep Sangha - Barclays Fintan Ryan - Goodbody Charlie Higgs - R ...