Beverage bottler Coca-Cola HBC (LON:CCH) upgraded FY26 guidance after delivering volume-led growth for H1. Shares in the FTSE 100 company fizzed up 4% in early dealings on the palate-pleasing news.
A strategic bottling partner of Coca-Cola (NYSE:KO), Coca-Cola HBC now sees FY26 organic operating profit growth in the 8% to 10% range. That is up from previous guidance of 7% to 10%. Organic revenue growth is now forecast to be ‘around the top end’ of the firm’s 6% to 7% guidance range.
Plenty of bottle
Switzerland-based Coca-Cola HBC bottles and sells the beverages of The Coca-Cola Company exclusively in 28 markets. For H1, comparable operating profit bubbled up 15.2% to a forecast-beating €760.1 million. That performance was driven by broad‑based volume growth and improved margins.
Organic revenue grew 9.6% to €6.23 billion as volume momentum strengthened through Q2. And all three geographic segments contributed to the sparkling H1 performance.
Established markets generated 6.2% organic revenue growth, while developing markets grew 9% organically, with Hungary and Czech Republic performing especially well. But emerging markets proved the star turn, serving up organic sales growth of 12%.
What did the CEO say?
CEO Zoran Bogdanovic said: ‘Strong partnerships are at the heart of our business, and successful FIFA World Cup activations with our customers, including unique fan experiences and special-edition Coca-Cola and Powerade packs were among the highlights of the period.
‘Given our strong first half, we are upgrading our 2026 guidance today. The macroeconomic and geopolitical environment remains challenging and unpredictable, but we are confident that our portfolio, capabilities and people position us to continue to win in the market and create value.’
We expected a positive update from Coca-Cola HBC following recent strong results from Coca-Cola and Coca-Cola Europacific Partners (LON:CCEP).
Sharesify thinks the stock should appeal to patient portfolio builders given its defensive qualities. The company distributes strong brands, generates robust free cash flow and has good growth potential in developing markets.
We also like the fact Coca-Cola HBC is geographically diversified. Its footprint spans the West Coast of Ireland, across Central and Eastern Europe, to its most southerly market, Nigeria. Interestingly, the company is a new holding for the Aberdeen Equity Income Trust (LON:AEI) managed by Thomas Moore and Iain Pyle.
As the managers outlined in the trust’s latest factsheet, Coca-Cola HBC ‘provides the portfolio with defensive growth thanks to its strong positions across fast-growing emerging markets. Its acquisition of a 75% stake in Coca-Cola Beverages Africa increases the company’s exposure to a continent benefiting from favourable demographics and urbanisation.’
For more on the Coca-Cola HBC bull case, watch our recent podcast interview with Iain Pyle below.
Read the press release here: https://www.coca-colahellenic.com/en/investor-relations
