Coca-Cola HBC Boosts Profit Forecast Amid Strong Demand
Bottler Coca-Cola HBC has lifted its profit forecast for fiscal 2026, citing resilient demand despite macroeconomic headwinds. The Switzerland-based company, which is a bottling partner for Coca-Cola in Central and Eastern Europe and Africa, expects an organic operating profit growth of 8% to 10%. This increase is above the previously forecasted range of 7% to 10%, with analysts expecting a growth rate of 9.1%. The company's shares rose as much as 4.3% to £50.35 after this announcement.
The bottler has benefited from its partnership for the World Cup, which helped boost sales and spending morale. According to CEO Zoran Bogdanovic, this tie-up had a lasting impact on brand equity. The company is also seeing resilience in consumer sentiment overall, even as some markets show signs of sensitivity.
Coca-Cola HBC is 85% hedged against key commodities such as sugar, aluminium, and gas oil. However, CFO Anastasis Stamoulis noted a 'certain level of pressure' with fuel utilities, but did not provide further details. The company also reported that its comparable operating profit for the six months ended July 3 surpassed expectations at €760.1 million ($876.70 million).
The bottler is on track to complete the acquisition of its African counterpart in the second half of this year.