Coca-Cola HBC raises 2026 profit outlook after strong first half

MUMBAI: When life gives you fizz, make forecasts sparkle. Coca-Cola HBC has poured itself a bigger glass of optimism after a strong first-half performance prompted the bottling giant to raise its profit outlook for 2026.

Coca-Cola HBC, one of The Coca-Cola Company’s largest bottling partners, has upgraded its 2026 profit guidance after delivering stronger-than-expected first-half results, buoyed by resilient consumer demand, FIFA World Cup promotions and continued momentum across its expanding beverage portfolio.

The Switzerland-based bottler, which operates across Central and Eastern Europe as well as several African markets, now expects organic operating profit growth of 8 per cent to 10 per cent in 2026, up from its earlier guidance of 7 per cent to 10 per cent. It also said organic revenue growth is likely to reach the upper end of its previously guided 6 per cent to 7 per cent range.

The improved outlook follows a robust first half in which comparable operating profit reached €760.1 million, comfortably ahead of analysts’ expectations of €731.1 million.

Revenue for the six-month period climbed to €6.23 billion, compared with €5.62 billion a year earlier, while net income increased to €524.4 million from €470.6 million.

The company said steady demand across brands including Coca-Cola, Sprite, Fanta, Powerade, coffee products and energy drinks underpinned the performance despite an uncertain macroeconomic environment.

Chief executive Zoran Bogdanovic said Coca-Cola HBC’s partnership with FIFA played a key role in driving consumer engagement during the period. Limited-edition Coca-Cola and Powerade packaging, fan activations and World Cup-themed marketing campaigns helped stimulate demand across key markets.

The company also continued to benefit from long-term strategic initiatives, including premiumisation, expansion into faster-growing beverage categories and increased use of AI-powered sales and marketing tools to improve pricing, consumer targeting and outlet-level execution.

Beyond carbonated drinks, Coca-Cola HBC has been strengthening its presence in energy drinks, coffee and hydration products, reducing dependence on traditional soft drinks while broadening its revenue base.

The company acknowledged that rising input costs remain a challenge. Geopolitical disruptions, including higher costs linked to the Iran conflict, have increased volatility across raw materials and logistics. Coca-Cola HBC said it continues to actively manage exposure to key commodities including sugar, aluminium, fuel, corn and plastics.

Separately, the bottler said it remains on track to complete the acquisition of its African counterpart during the second half of 2026, a move expected to further strengthen its presence across the continent.

With consumer demand holding firm, World Cup marketing delivering an extra lift and AI increasingly shaping commercial execution, Coca-Cola HBC appears to be entering the second half of the year with stronger momentum and an even fizzier outlook.