Coca-Cola HBC AG reported “strong volumes” in the first six months of the year and said it is confident in the outlook for the rest of the year despite macro-economic and geo-political risks.
The bottle company and partner to The Coca-Cola Company (NYSE:KO) reported revenues up 29.6% in the period to 1 July, with growth driven by the execution of its strategy.
The bottling company told investors it remains confident for the year, with belief in its portfolio, market strength, and commercial strategy.
And said it continues to prioritise investment across the world to drive growth despite the macro-economic and geo-political risks.
“We have high confidence that our close customer partnerships, strong portfolio and the capabilities of our people will allow us to continue to create value even as we face a period of macro-economic and geo-political uncertainty,” said chief executive Zoran Bogdanovic.
Organic earnings before interest and tax (EBIT) grew 23%, with the group continuing to invest in its strategic priorities to further drive growth.
That includes investment in its adult sparkling proposition, the acquisition of Three Cents, a craft adult sparkling business, and the “rapid” digitisation of its business.
Despite this, operating profit for the period was down 21.3% to £275.7mln.
Coca-Cola HBC said it expects its markets outside of Russia and Ukraine to continue to show strong momentum, adding its presence in the Kremlin will be “significantly smaller” than prior years.
Inflation continues to hit the company, and it now forecasts cost of goods sold to hit the midteens by 2020.
Consequentially, group EBIT for the year is expected to be in the range of €740 to €820mln for the year.