Coca-Cola HBC AG, the bottling partner of Coca-Cola Co., has reported a significant surge in its first-half net profit, indicating strong growth for the company. The company’s net profit rose to 385.7 million euros, a significant increase from last year’s 152.9 million euros. This growth is reflected in the basic earnings per share, which increased from 0.418 euro to 1.050 euros.
In addition to the impressive increase in net profit and earnings per share, Coca-Cola HBC AG also saw growth in comparable net profit, which rose to 388.9 million euros compared to 316.9 million euros the previous year. Comparable earnings per share also rose to 1.058 euros from 0.865 euro in the prior year.
The company’s comparable EBIT (earnings before interest and taxes) has grown by 21.2 percent to reach 560.7 million euros. Meanwhile, organic EBIT increased by 17.7 percent, maintaining an unchanged margin on an organic basis at 11.2 percent.
Coca-Cola HBC AG’s net sales revenue also experienced significant growth, climbing 19.3 percent to 5.02 billion euros compared to 4.21 billion euros the previous year. Organic revenue growth was recorded at 17.8 percent, driven by a 19 percent increase in organic revenue per case. Despite this growth, the volume growth was only 4 percent, with organic volume actually experiencing a decline of 1.0 percent. The decline in organic volume was offset by growth in strategic priority categories such as Sparkling, Energy, and Coffee, although there were declines in Stills.
Looking ahead to fiscal 2023, Coca-Cola HBC AG expects mid-teens organic revenue growth following its strong start to the year. This is a significant increase from the previous outlook of above 5 percent to 6 percent. The company also anticipates organic EBIT growth in the range of 9 percent to 12 percent for 2023.
Overall, Coca-Cola HBC AG’s impressive financial performance in the first half of the year and its positive outlook for 2023 indicate a strong and promising future for the company. With a focus on organic revenue and EBIT growth, Coca-Cola HBC AG is well-positioned to continue its success in the consumer packaged goods industry as the bottling partner of Coca-Cola Co.
