Coca-Cola HBC AG has raised its guidance after the company reported another strong six months of growth, despite currency headwinds eating into the group’s profits in emerging markets.
The bottling giant behind Coca Cola and other major soft drinks reported revenue growth of 3.1 per cent in the six months to 24 June.
Sales of energy drinks and coffee-based products in particular pushed growth, as volumes sold grew by 32.8 per cent and 21.6 per cent respectively, with overall organic volumes up 3.1 per cent.
Chief Executive Officer of Coca-Cola HBC AG Zoran Bogdanovic described the first-half results as “strong” despite “challenging environments in several markets”.
Earnings per share fell by 1.7 per cent year-on-year to €1.04 (£0.86) due to higher finance costs, the company said.
Organic revenue grew by 13.9 per cent, with particularly strong growth of 22.7 per cent in emerging markets.
Reported revenue grew 3.1 per cent in the period, despite currency headwinds in emerging markets like Nigeria and Egypt.
“Our teams continue to execute with excellence, creating joint value with customers by leveraging our bespoke capabilities and the strength of our 24/7 portfolio.
“While mindful of macroeconomic and geopolitical challenges as well as a more uncertain consumer environment, we are upgrading our guidance for the year, reflecting our strong first half performance and confidence that we can continue to win in the marketplace,” Bogdanovic said.
Coca-Cola HBC upgraded its expected organic revenue growth for the year from between six per cent and seven per cent to between eight and 12 per cent.
The company also upgraded its organic earnings before interest and tax (EBIT) growth to between seven and 12 per cent, up from between three per cent to nine per cent.