Coca-Cola HBC Raises 2026 Profit Forecast Amid Strong First Half
Coca-Cola HBC has announced an upward revision in its full-year profit guidance for 2026, reflecting better-than-expected financial performance in the first half of the year. The company's organic EBIT is now anticipated to grow between 8% and 10%, compared to the previous estimate of 7% to 10%.
During the first half, Coca-Cola HBC reported a 15.2% organic increase in comparable operating profit, reaching €760.1 million. This growth was supported by a 7.5% rise in volumes and stronger gross margins. The reported EBIT grew by 17.0%, benefiting from a slight foreign exchange advantage.
Organic revenue increased by 9.6% to €6.23 billion, with reported revenue climbing 10.8%. The company observed a strengthening in volume momentum in the second quarter, with a 5.8% growth despite fewer selling days compared to the first quarter. Sparkling beverage volumes increased by 6.4%, energy drinks surged by 26.1%, and coffee sales grew by 24.5% in the out-of-home channel.
The gross profit margin expanded by 110 basis points to 37.8%, attributed to easing input-cost inflation and an improved product mix. The cost of goods sold rose 9.2%, aligning with volume growth, while operating expenses saw a 12.8% increase due to heightened marketing investments around major events like the FIFA World Cup and the Olympic Winter Games.
Coca-Cola HBC's 24/7 portfolio showed strong consumer engagement, with Coke Zero Sugar Zero Caffeine experiencing triple-digit growth following its new visual identity launch across 18 markets. Monster energy drinks also benefited from new flavor introductions and motorsport-related promotions, while Powerade saw increased demand linked to global sports events.
All geographic segments contributed to the company's first-half performance. Established markets achieved 6.2% organic revenue growth, driven by mid-single-digit gains in sparkling beverages and strong demand for energy drinks. Developing markets grew by 9.0% organically, with notable performances in Hungary and the Czech Republic. Emerging markets led with 12.0% organic revenue growth and 23.9% organic EBIT growth.
Despite a decrease in free cash flow by 11.8% year-on-year to €215.7 million due to higher capital expenditures, Coca-Cola HBC remains on track to finalize its acquisition of Coca-Cola Beverages Africa in the second half, having already secured antitrust clearance in four of six jurisdictions.
Chief Executive Zoran Bogdanovic stated that the improved guidance reflects strong execution and resilient demand across the portfolio, despite facing challenging macroeconomic conditions.
