Coca-Cola HBC AG

First-half 2026 organic revenue grew 9.6% and organic volume grew 7.5%; Q2 organic volume growth was 5.8% and revenue per case rose 2.1% in the quarter, while first-half revenue per case increased 1.9%. Comparable EBIT increased 15.2% organically and 17% reported to EUR 760 million; comparable EPS increased 15.2% to EUR 1.51. Comparable gross profit margin improved 110 bps to 37.8%, and comparable EBIT margin improved 60 bps to 12.2%. Free cash flow was EUR 216 million for the first half per Zoran and EUR 260 million per Anastasis, described as lower year over year due to higher planned CapEx. Full-year 2026 guidance was raised to organic revenue growth around the top end of 6% to 7% and organic EBIT growth of 8% to 10%; finance cost guidance was updated to EUR 40 million to EUR 50 million, and COGS per case for the full year was said to be low to mid-single digits, with H2 expected to be from low towards mid-single digits.

Zoran Bogdanovic emphasized that the quarter reflected broad-based, volume-led growth, share gains, and strong execution across priority categories. He pointed to Sparkling, Energy, and Powerade/FIFA World Cup activations as key growth drivers, and said the company is intentionally prioritizing volume this year while still improving revenue per case and mix. His tone was confident but measured, repeatedly noting the challenging backdrop, the importance of the 24/7 portfolio, and the need to keep investing in marketing, digital, and bespoke capabilities.

Anastasis Stamoulis said the main financial story was strong gross profit delivery: gross margin improved 110 bps to 37.8% on good top-line leverage, easing COGS inflation, hedging, and productivity initiatives. He also noted operating expenses rose 50 bps of revenue because the company stepped up direct marketing behind FIFA World Cup, Winter Olympics, and Coke Zero Zero, but still delivered a 60 bps improvement in comparable EBIT margin to 12.2%. He highlighted free cash flow of EUR 216 million per Zoran and EUR 260 million per Anastasis on a different measure, with CapEx up by over EUR 100 million and equal to 6.1% of revenue, and he said finance cost guidance was raised to EUR 40 million to EUR 50 million due to higher bond interest, with some offset from stronger cash flow and finance income. He also said key commodity hedging coverage for 2026 is above 85%.

Analysts focused on why management felt confident enough to raise guidance, how much the strong Q2 was helped by FIFA World Cup and weather, and whether H2 EBIT growth would slow because of fewer selling days and higher energy-related costs. Management said Q2 was in line with expectations rather than a surprise, with strong execution on FIFA, innovation, and pre-season programs, while acknowledging H2 will be lower than H1 and pressured by four fewer selling days in Q4 and energy costs in the Middle East. Questions also centered on mix, COGS, and segment strength: management said single-serve mix still has runway, especially in Central and Eastern Europe, that H2 COGS per case should be low to mid-single digits, and that emerging markets and established markets both showed good momentum, with Russia cash and higher finance costs explained by bond issuance and lower expected finance income. Analysts asked about Powerade, energy drinks, and protein; management said advanced hydration is an opportunity, energy growth remains strong with innovation and in-house capacity around 85%, and protein is being considered with the Coca-Cola Company.