Things Go Better With Coca-Cola Hellenic

There are a very small number of companies which can be thought of as a growth company while also being considered relatively safe in today's economic climate. It is usually one or the either. Either a staid, boring company or a company with great growth prospects but also the inherent risks.

One of the companies which exhibits both growth and safety characteristics is Coca-Cola Hellenic. CCH is one of Europe's largest bottling companies and is 24% owned by Coca-Cola of the US.Coca-Cola Hellenic's product line includes water, juices, sports and energy drinks,along with the traditional carbonated and non-carbonated soft drinks. This type of stock is among those usually considered to be recession proof. After all,people still do drink during recessions. That is the staid part of CCH.

Coca-Cola Hellenic also has a growth story to tell. It is strategically located in Eastern European markets which are benefitting from the expansion of the EU. Some of these markets include Poland, Hungary, Czech, Slovakia, Bulgaria, Romania, and the three Baltic nations. Coca-Cola Hellenic also has operations in other emerging markets such as Russia, Ukraine, Belarus, and Nigeria. They are also expanding into higher-growth product lines such as ready-to-drink coffees and teas.

Coca-Cola Hellenic's growth is showing up in the figures. For the year ended December 31,2007 their operating profit rose 44% and their net income rose 58%. This growth has been reflected in its stock price. Over the past 2 years,the stock has doubled in price. Even in the stock market turbulence since August, the stock is up by about a third in value. So far in 2008, CCH has also held its own with a roughly even performance for the year. Maybe things do go better with Coke - Coca-Cola Hellenic that is.

Disclosure: none