Coca Cola HBC AG (LSE:CCH), the FTSE 100-listed bottling segment of the soft drink empire, was one of the biggest market fallers on Wednesday despite increasing its full-year revenue guidance.
Coca-Cola HBC reported organic revenue growth of 13.6% to €5.17 billion (£4.44 billion) in the first six months of 2024, leading to a full-year revenue forecast between 8% and 12%.
The group had previously guided to a range of 6% and 7%. Earnings before interest and tax (EBIT) forecasts were also upgraded.
Volumes across all segments increased by 3.1% on a year-on-year basis. This compares to a 1% volume decline reported in the first half of 2023.
Coffee and energy drink volumes were the standouts, though the core sparkling segment, which encompasses Coca-Cola products, grew by less than 1%.
Investors may have been rattled by Coca-Cola HBC’s surging finance costs.
Comparable earnings per share of €1.04 were down 1.7% year-on-year due to these higher finance costs.
Full-year financing costs are now expected in the range of €60 million and €75 million compared to the previous forecast range of €50 million and €70 million.
Coca-Cola HBC’s tax charges are also coming in at the top end of the guidance range.
There were no pleasant surprises in the buyback departments, possibly due to a 14.2% reduction in free cash flow.
Shares took a 1.1% hit following the results, though they remain 17% higher year to date at 2,710p.