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 per cent rise in profits to £924million from 2023. Revenues increased 16.9 per cent to £8.7 billion.
The shares gained 8 per cent, 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 per cent, or 56.12 points, to 7568.40 and the FTSE 250 was up by 0.42 per cent, or 80.06 points, to 19,003.89.
Fizzing: Coca-Cola HBC, which bottles and sells brands such as Fanta, Costa Coffee and Monster Energy in 28 countries, reported a 16.6% rise in profits to £924m from 2023
Sentiment was boosted as figures showed inflation in the UK held firm at 4 per cent 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 per cent.
The prospect of interest rate cuts, and cheaper mortgages, boosted UK housebuilders with Persimmon up 3.1 per cent, or 42 p, to 1403.5 p while Taylor Wimpey added 1.7 per cent, or 2.4 p, to 143.85 p and Barratt Developments rose 1.6 per cent, 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 per cent, 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 per cent, or 2 p, to 2497 p.
Stock Watch – Futura Medical
Futura Medical’s gel to treat erectile dysfunction will be available on prescription in England and Wales from next month.
The flagship product Eroxon, which works within ten minutes, can already be bought without a doctor’s note following its launch in the UK last year. The condition affects one in five men around the world, with a quarter of diagnoses in those under 40.
Shares gained 11.3 per cent, or 4.35 p, to 42.85 p, and are up by two-thirds this year.
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 £25million lower than expected. It sank 0.3 per cent, or 3.5 p, to 1023 p.
Mining giant Anglo American came under pressure following a broker downgrade.
Shares slipped 0.5 per cent, 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 per cent, or 10.4 p, to 465.6 p.
Babcock’s peer BAE Systems is closing in on its £4.4 billion takeover of a Colorado spacecraft firm.
Britain’s biggest defence company – up 1.4 per cent, 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 per cent, or 3.25 p, to 476.5 p.
Elsewhere, Atome increased 8.6 per cent, 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.
