Coca-Cola HBC sees strong first-half growth as emerging markets rise

Coca-Cola HBC AG reported a 9.9% increase in organic revenue for the first half of 2025, with volume growth of 2.6% across its portfolio and stronger gains in its Emerging market segment. Organic revenue per case rose by 7.2%, supported by what the company describes as “targeted revenue growth management initiatives.”

Chief executive officer Zoran Bogdanovic says the performance reflects “consistent execution of our strategy,” supported by new product launches, digital investment, and brand activation campaigns. “Given our strong start to the year, we now expect to deliver growth in organic revenue and EBIT at the top end of our guided ranges for 2025,” he notes.

Comparable EBIT for the period was €649.8 million (US$707.6 million), up 11.8% on an organic basis. Gross profit margin increased by 60 basis points to 36.7%, with the company attributing the improvement largely to performance in emerging markets. Reported EBIT margins grew to 11.6%, up 70 basis points from the previous year.

Revenue from Non-Alcoholic Ready-To-Drink beverages continued to grow, with the company citing a 100-basis-point increase in value share year-to-date, following strong gains in 2024. Product innovation and seasonal campaigns contributed to performance, including the “Share a Coke” rollout, new launches in the Monster and Powerade ranges, and activations with Costa Coffee in the out-of-home segment.

Volume growth was broad-based, according to the company. Sparkling beverages rose 2.3%, while energy drinks increased 30.0% year-on-year. In its segment breakdown, Coca-Cola HBC reports that emerging markets posted 17.4% organic revenue growth and a 31.3% rise in organic EBIT. Developing markets grew revenue by 6.4%, while established markets saw a 2.5% increase. EBIT declined in the established and developing segments, with the company attributing the declines to increased marketing investments and challenging comparisons with H1 2024.

The company also reported 25.8% growth in comparable earnings per share, to €1.31 (US$1.43), supported by lower finance costs and reduced foreign exchange losses, especially in Nigeria. Free cash flow increased by 10.1% to €242.5 million (US$264 million), despite higher capital expenditure.

Bogdanovic says Coca-Cola HBC will maintain its focus on execution in the second half of the year. “We are mindful of what is a challenging and unpredictable macroeconomic and geopolitical environment,” he states, but adds that “our teams continue to raise the bar to execute with excellence.”

The company reiterated its full-year guidance, noting it expects to achieve revenue and EBIT growth at the upper end of its forecast range.