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(Sharecast News) - CocaCola HBC lifted its fullyear guidance on Wednesday after delivering a strong first half, with operating profit rising sharply on the back of broadbased volume growth and improved margins.
The group said organic EBIT is now expected to grow 8%-10% in 2026, up from its previous 7%-10% range, reflecting betterthanexpected profitability across all segments.
Comparable operating profit for the period increased 15.2% organically to 760.1m, supported by a 7.5% rise in volumes and firmer gross margins. Reported EBIT rose 17.0%, helped by a modest foreignexchange tailwind.
Organic revenue grew 9.6% to 6.23bn, with reported revenue up 10.8%. The company said volume momentum strengthened through the second quarter, with underlying Q2 growth of 5.8% despite fewer selling days than in Q1. Sparkling volumes rose 6.4%, energy surged 26.1%, and coffee grew 24.5% in the outofhome channel.
Gross profit margin expanded 110 basis points to 37.8%, reflecting easing inputcost inflation and improved mix. Cost of goods sold increased 9.2%, broadly in line with volume growth, while operating expenses rose 12.8% due to higher marketing investment around major events including the FIFA World Cup and Olympic Winter Games.
The group said its 24/7 portfolio continued to deliver strong engagement, with Coke Zero Sugar Zero Caffeine posting tripledigit growth following its new visual identity launch across 18 markets. Monster also benefited from new flavour launches and motorsportlinked activations, while Powerade saw strong demand tied to global sports events.
All three geographic segments contributed to the firsthalf performance. Established markets delivered 6.2% organic revenue growth, supported by midsingledigit Sparkling gains and strong Energy demand. Developing markets grew 9.0% organically, with Hungary and Czech Republic performing particularly well. Emerging markets led the group with 12.0% organic revenue growth and 23.9% organic EBIT growth.
Free cash flow came in at 215.7m, down 11.8% yearonyear due to higher capital expenditure, which rose to 378.9m as the group continued to invest in production capacity, automation and digital capabilities.
CocaCola HBC said it remained on track to complete the acquisition of CocaCola Beverages Africa in the second half, with antitrust clearance secured in four of six jurisdictions.
Chief executive Zoran Bogdanovic said the upgraded guidance reflected strong execution and resilient demand across the portfolio, adding that the company remained confident despite a challenging macroeconomic backdrop.
Reporting by Frank Prenesti for Sharecast.com