Half Year 2026 Coca-Cola HBC AG Earnings Call Transcript
Key Points
- Coca-Cola HBC AG (CCHBF) delivered strong broad-based volume-led growth, with organic revenue up 9.6% and organic volume up 7.5% in H1 2026.
- The company achieved its 13th consecutive quarter of volume growth, with Q2 underlying volume growth accelerating to 5.8%.
- Comparable EBIT grew 15.2% organically, with margins expanding 60 basis points, driven by strong gross margin improvement of 110 basis points.
- Energy drinks continued exceptional growth, with volumes up over 25%, and the category now contributes over 10% of total volume.
- The FIFA World Cup program, including Panini sticker promotions and AI-enabled activations, drove strong results for Trademark Coke and Powerade, contributing to share gains.
- Coca-Cola HBC AG (CCHBF) upgraded its 2026 guidance, now expecting organic revenue growth around the top end of 6%-7% and organic EBIT growth of 8%-10%.
- The company continued to gain market share, increasing value share by 80 basis points in NARTD and 40 basis points in Sparkling.
- Progress on the CCBA acquisition remains on track, with antitrust clearances in four of six jurisdictions and the South African Competition Commission recommending approval.
- The company is investing in growth capabilities, including the rollout of Promo 360 and a new digital hub in Cairo, to drive future efficiencies.
- Sustainability recognition continued, with Coca-Cola HBC AG (CCHBF) named the world's most sustainable beverage company for the ninth time in the Dow Jones Best-in-Class indices.
- Organic revenue per case growth was modest at 1.9% in H1, reflecting lower pricing dynamics and adverse country mix from faster growth in lower-revenue African markets.
- The company faces higher energy-related cost pressures in H2 2026 due to the ongoing Middle East conflict, which could impact COGS per case.
- Premium Spirits volumes declined 1.5% in H1, impacted by retail challenges in Finlandia and Poland, though these have been resolved.
- Total coffee volumes declined in H1 due to a deliberate shift in focus to the out-of-home channel, though revenue grew.
- Free cash flow decreased year-on-year to EUR216 million, reflecting a planned step-up in capital expenditure.
- The developing segment saw a margin decline of 70 basis points due to higher marketing expenses.
- Net finance costs increased year-on-year due to higher interest expenses from bonds issued for the CCBA acquisition, partially offset by higher finance income.
- The company expects a lower growth rate in H2 due to four fewer selling days in Q4, which will impact volume and EBIT growth.
- The macroeconomic and geopolitical environment remains challenging and unpredictable, with potential risks to consumer demand.
- The integration of CCBA, while progressing, still requires regulatory approvals and preparations for a secondary listing, which could pose execution risks.
Thank you for standing by, ladies and gentlemen, and welcome to the Coca-Cola HBC conference call for the 2026 half year results.
At this time, all participants are in listen-only mode.
Will be a presentation followed by the questions and answer session.
If you wish to ask a question, please press *11 on your telephone keypad at any time and wait until your name is announced.
I must also advise that this conference is being recorded today, Wednesday, 5th of August 2026.
I now pass the floor to one of your speakers, Gemanma Bernstad, Head of Investor Relations. Please go ahead.
Thank you.
Morning, and thank you all for joining the call. I'm here with our CEO, Zoran Bogdanovic and our CFO, Anastasis Dumoulis.
Zoran will begin with the strategic highlights from the first half. Anastasis will then take you through our financial performance and outlook in more detail. We will then open up the floor to the questions. Please keep to one
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