Coca-Cola HBC boosts profit forecast as first half ends strong

Coca-Cola HBC (LSE: CCH) has announced an upgrade to its profit guidance for the full year after a stronger-than-anticipated performance in the first half. As a result, the company’s shares opened 3.9% higher in London this morning.

The revised forecast now predicts organic earnings before interest and tax (EBIT) growth between 9% and 12% for the year 2023. This is a significant improvement from the previous projection, which indicated EBIT growth of up to 3% or a decline of up to 3%.

However, the mid-term outlook from 2024 onwards remains unchanged. Coca-Cola HBC expects an average annual organic revenue growth of 6% to 7%, along with an average annual organic EBIT margin expansion of 20 to 40 basis points.

Coca-Cola HBC’s upcoming half-year results are set to be released on August 9.

Coca-Cola HBC attributes its positive forecast to robust organic growth achieved in the first six months of 2023. The company’s strong performance is primarily driven by notable improvements in price/mix and an overall impressive performance in June, which is considered one of the company’s most significant months.