Coca-Cola HBC AG (LON:CCH), a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, has reported its financial results for the six months ended 27 June 2025.
Half-year highlights
· Focused execution of strategic priorities drives organic revenue growth of 9.9%1
o Organic volume grew 2.6%, driven by Sparkling +2.3% and Energy +30.0%, with notable strength in Emerging markets; Q2 volumes improved to +3.2%, with all segments contributing
o Organic revenue per case growth of 7.2%, driven by targeted revenue growth management initiatives
o Reported revenue growth of 8.6%, with good organic growth slightly offset by FX headwinds in the Emerging segment
o Value share growth of 100 basis points in Non-Alcoholic Ready-To-Drink (NARTD) year-to-date, on top of strong gains in 2024
· Strong organic comparable EBIT growth of 11.8%
o Comparable EBIT of €649.8 million, growing 15.2% on a reported basis and 11.8% on an organic basis
o Comparable EBIT margins improved 70 basis points on a reported basis to 11.6%, and grew 20 basis points on an organic basis
o Comparable gross profit margin grew 60 basis points to 36.7%, reflecting improvement in the Emerging segment
o Opex as a percentage of revenue slightly improved year-on-year, despite increased investment in marketing, as we lapped the currency remeasurement of balance sheet items in the prior-year period
· Segmental highlights: Broad-based organic revenue growth
o Established: Organic revenue increased by 2.5%, led by revenue-per-case expansion and resilient volumes; organic EBIT declined 7.2% driven by higher marketing investment
o Developing: Organic revenue up 6.4%, driven by revenue-per-case expansion; organic EBIT down 0.6% on tough comparatives
o Emerging: Organic revenue up 17.4% driven by revenue-per-case expansion and solid volume growth; organic EBIT up 31.3%
· Strong EPS, benefitting from EBIT growth and lower finance costs
o Comparable EPS of €1.31, up 25.8%
o Finance costs improved significantly year-on-year, driven by lower foreign exchange losses in Nigeria and higher finance income
o Free cash flow increased 10.1% to €242.5m, despite higher capex year-on-year
o Maintained a strong balance sheet and liquidity position
· Continued focus on innovation, and investment in our 24/7 portfolio and strategic priorities
o Successful launch of the “Share a Coke” campaign across our markets from April, with ongoing activation through the summer
o Launched new innovations of Monster and introduced targeted local marketing activations
o Strong performance of Coffee in the out-of-home channel, as we executed on our joint strategic decision with Costa Coffee to focus on this channel
o Leveraged global football ambassadors and local sports activations together with new innovations to drive strong growth in Powerade
o Launched new Finlandia marketing campaign across all markets
o We were again the number one contributor to retail customers’ absolute revenue growth within FMCG in Europe, according to Nielsen
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:
“This has been a strong first half with consistent execution of our strategy driving organic revenue growth of 9.9%, including good growth in volumes. Building on strong gains in 2024, we further increased our value share in NARTD as a result of continued investment behind our 24/7 portfolio and strategic priorities. Highlights in the period included the successful launch of the “Share a Coke” campaign from April, the continued rollout and marketing of innovations in Monster, Fanta, Sprite and Schweppes, and further investment in our bespoke capabilities, notably digital and technology.
“I would like to thank our teams for their dedication, passion and drive, which is at the heart of everything we achieve. Strong partnerships and collaboration are the cornerstone of our success. I would like to extend my appreciation to our customers, suppliers and partners for their ongoing support, particularly The Coca-Cola Company, as we continue to push boundaries across our markets.
“As we progress into the second half of the year, our teams continue to raise the bar to execute with excellence, leveraging our targeted in-market plans and the strength of our portfolio. We are mindful of what is a challenging and unpredictable macroeconomic and geopolitical environment but 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.”
| Half-Year | ||||
| 2025 | 2024 | % ChangeReported | % ChangeOrganic1 | |
| Volume (m unit cases) | 1,463.4 | 1,426.7 | 2.6% | 2.6% |
| Net sales revenue (€ m) | 5,620.3 | 5,175.6 | 8.6% | 9.9% |
| Net sales revenue per unit case (€) | 3.84 | 3.63 | 5.9% | 7.2% |
| Operating profit (EBIT)2 (€ m) | 644.6 | 566.1 | 13.9% | |
| Comparable EBIT1 (€ m) | 649.8 | 564.1 | 15.2% | 11.8% |
| EBIT margin (%) | 11.5 | 10.9 | 50bps | |
| Comparable EBIT margin1 (%) | 11.6 | 10.9 | 70bps | 20bps |
| Net profit3 (€ m) | 470.6 | 381.6 | 23.3% | |
| Comparable net profit1,3 (€ m) | 474.7 | 380.3 | 24.8% | |
| Basic earnings per share (EPS) (€) | 1.297 | 1.043 | 24.4% | |
| Comparable EPS1 (€) | 1.308 | 1.040 | 25.8% | |
| Free cash flow1 (€ m) | 242.5 | 220.2 | 10.1% | |
1For details on APMs refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.
2Refer to the condensed consolidated interim income statement.
3Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.
Business Outlook
We have delivered a strong start to the year, in a range of market conditions. We expect the broader macroeconomic and geopolitical backdrop to remain challenging and unpredictable, but we have high confidence in our 24/7 portfolio, bespoke capabilities, our people, and the opportunities for growth in our diverse markets. In 2025 we expect to make continued progress against our medium-term growth targets.
We are reiterating our guidance for 2025, and we now expect to deliver at the top end of both our guided ranges:
· Organic revenue growth of 6% to 8%
· Organic EBIT growth of 7% to 11%
Technical guidance
We have updated parts of our technical guidance for FY 2025:
FX: We expect the impact of translational FX on our Group comparable EBIT to be between €0 to 10 million headwind (previously €15 to 35 million headwind).
Restructuring: We do not expect significant restructuring costs to occur (unchanged).
Tax: We expect our comparable effective tax rate to be within a range of 26% to 28% (unchanged).
Finance costs: We expect net finance costs to be between €15 to 25 million (previously €40 to 60 million).
Scope: We expect a minor benefit from the consolidation of BDS Vending in Ireland from 28 February 2025 (unchanged).
Group Operational Review
Leveraging our unique 24/7 portfolio
Organic revenue grew by 9.9% in the first half, with volume growth of 2.6%. Reported net sales revenue increased by 8.6%, with strong organic growth slightly offset by a negative foreign currency impact due to the depreciation of the Nigerian Naira and Egyptian Pound.
· Sparkling volumes grew by 2.3%, with an acceleration in growth in Q2. Trademark Coke grew by low-single digits, with Coke Zero up high-single digits. In April we started activating the “Share a Coke” campaign across most of our markets, with locally relevant customer and consumer experiences across the at-home and out-of-home channels. We delivered mid-single digit growth in Adult Sparkling, supported by innovation in Schweppes and Kinley, such as new flavours and package formats. Sprite grew mid-single digits, on a soft comparative, and Fanta grew low-single digits.
· Energy volumes grew by 30.0%, with strong momentum in all three segments. We launched new innovations of Monster and continued to leverage local marketing activations. In the Emerging segment, growth continued to be driven by affordable brands in Africa. In Established and Developing markets, growth was driven by Monster.
· Coffee volumes declined 7.6%. The decline was in line with our expectations, due to our joint strategic decision with Costa Coffee to focus primarily on the out-of-home channel rather than the at-home channel. In the out-of-home channel, where we see greater long-term potential, we grew 17%, driven by both Costa Coffee and Caffè Vergnano. We grew in existing outlets and recruited 1,500 new outlets.
· Still volumes grew by 0.2%. Sports Drinks continued to be a stand-out category, with growth of mid-teens, as we leveraged relevant global football activations, as well as local partnerships and new flavour innovations to drive growth. We launched Powerade in Romania in Q2. Water grew low-single digits while Juices declined mid-single digits.
· Premium Spirits volumes grew by 24.0%, with strong growth across all three segments. Growth was driven by our own-brand Finlandia Vodka, which we launched a new campaign for in April, as well as by our brand distribution partners. We also launched Bacardi & Coca-Cola in 11 markets in the period.
Winning in the marketplace
Organic net sales revenue per case expanded by 7.2% in the first half. Our revenue growth management (RGM) toolkit continued to allow us to tailor our approach to pricing in each market, navigating varying levels of inflation, regulation and currency pressures. In our European markets, we generally experienced lower levels of inflation and therefore the impact from pricing was lower than in 2024. In Africa, pricing remained a tool to navigate high levels of inflation and the effects of currency devaluation, also at lower levels than in 2024.
Affordability and premiumisation initiatives both remained important as we faced dynamic trends across all our markets. In terms of affordability, we continued to focus on entry packs and smaller packs to manage critical price points, and in the period executed targeted expansion of smaller packs such as 330ml PET in Italy and 200ml cans in Austria. Volume growth was supported by a step-up in promotional activities. We also saw further growth from our affordably priced returnable glass bottles (RGB) in Africa and upsized to a 600ml PET in some regions of Nigeria to support consumer demand. When it comes to premiumisation, we drove mini-can activation and expansion in our Established markets and continued to grow our premium RGB portfolio in Austria, up 11% in the period.
We continued to see an improvement in package mix, with single-serve mix up 120 basis points, driven by all segments. Category mix also improved, benefiting from the increased contribution of Energy, Adult Sparkling, Sports Drinks and Premium Spirits.
Our focused execution in the marketplace and joint value creation with customers enabled us to continue to gain value share in NARTD, increasing 100 basis points year-to-date, building on strong gains in 2024. In Sparkling, we gained or maintained share year-to-date in the majority of markets we track. We were again, the number one contributor to retail customers’ absolute revenue growth within fast moving consumer goods (FMCG) in Europe, according to Nielsen, for the Q1 2025 period.
Operating profit, margins and cost control
Comparable gross profit grew by 10.5%, leading to a comparable gross profit margin of 36.7%, an improvement of 60 basis points, led by a recovery in the Emerging segment. Comparable COGS per unit case increased by 4.8%, reflecting input cost inflation.
Comparable operating expenses as a percent of revenue improved by 10 basis points to 25.2%. While we stepped up marketing investments, such as in the Share a Coke campaign and the new Finlandia marketing campaign, we benefited from cycling the impact of foreign currency remeasurement of balance sheet items in the prior-year period.
Comparable EBIT increased by 11.8%, and comparable EBIT margin was up 20 basis points, both on an organic basis. Comparable EBIT increased by 15.2% on a reported basis to €649.8 million, benefitting from organic growth across our markets and a benefit from translational foreign currency in the period. On a reported basis, Comparable EBIT margin was 11.6%, up 70 basis points.
Net profit and free cash flow
Comparable net profit of €474.7 million and comparable basic earnings per share of €1.308 were 24.8% and 25.8% higher than in the prior-year period, respectively, supported by lower net finance costs. Reported net profit and reported basic earnings per share of €470.6 million and €1.297 respectively were 23.3% and 24.4% higher compared to last year.
Comparable taxes were €175.2 million, representing a comparable tax rate of 27.0%, consistent with our 2025 guidance range of 26% to 28%.
Net finance costs decreased by €45.1 million in the period, to €1.3 million, as we saw a lower level of foreign currency exchange losses, due to more stability in the Nigerian Naira this period, as well as higher finance income.
Capital expenditure increased by €76.0 million to €278.8 million, as we continued to invest in growth initiatives such as production capacity, ongoing automation in supply chain, digital and data solutions, and energy-efficient coolers. Capex as a percentage of revenue was 5.0%, up 100 basis points year-on-year, lower than our target range of 6.5% to 7.5%, due to phasing of our investment activities within the year.
Free cash flow was €242.5 million, 10.1% higher than the prior-year period, reflecting higher operating profit, partially offset by higher capital expenditure year-on-year.
ESG leadership
In sustainability, collaboration is key to achieve our goals. In May, we joined a pioneering Sustainable Linked Business Plan announced by The Coca-Cola Company and Carrefour. This plan aims to reduce carbon emissions and educate shoppers about circular packaging. Romania will be one of the first markets to implement this initiative.
With the launch of the Deposit Return Scheme (DRS) in Austria in January of this year, we now have nine schemes operating across our markets, and are seeing encouraging results that will help us achieve our packaging collection goals. Romania reached an average return rate of over 80% from November 2024 to April 2025, and Hungary reached an average of around 80% from January to June this year. Four more DRS are scheduled to go live by 2028.
Achieving our decarbonisation targets requires innovation. We’ve started using biomethane, a clean and renewable source of energy, at our Knockmore Hill plant in Northern Ireland. This will contribute up to 25% of the energy at the plant by the end of 2025.
We continue to hold leading rankings in top ESG benchmarks. We retained our A-list position in CDP’s 2024 Supplier Engagement Assessment and the highest score in the FTSE Russell ESG report on the soft drinks category.
Operational Review by Reporting Segment
| Established markets | ||||
| Half-Year | ||||
| 2025 | 2024 | % ChangeReported | % ChangeOrganic | |
| Volume (m unit cases) | 306.6 | 306.3 | 0.1% | 0.1% |
| Net sales revenue (€ m) | 1,769.7 | 1,715.1 | 3.2% | 2.5% |
| Net sales revenue per unit case (€) | 5.77 | 5.60 | 3.1% | 2.4% |
| Operating profit (EBIT) (€ m) | 180.9 | 194.0 | -6.8% | |
| Comparable EBIT (€ m) | 181.5 | 194.1 | -6.5% | -7.2% |
| EBIT margin (%) | 10.2 | 11.3 | -110bps | |
| Comparable EBIT margin (%) | 10.3 | 11.3 | -110bps | -110bps |
Net sales revenue grew by 2.5% and 3.2% on an organic and reported basis respectively.
Organic growth in net sales revenue per case was 2.4%. The segment saw a benefit from pricing actions taken to navigate inflation. We also saw positive package mix, with single-serve mix improving 120 basis points, and positive category mix.
Volume in the first half was broadly in line with last year, with a return to growth in Q2, despite ongoing headwinds from consumer sensitivity in some markets. Sparkling volumes decreased low-single digits, despite mid-single digit growth in Coke Zero and high-single digit growth in Sprite. Energy saw good momentum, with volumes growing mid-teens in the period. Coffee declined low-single digits, as double-digit growth in the out-of-home channel for both brands was offset by a decline in Costa Coffee in the at-home channel. Stills grew low-single digits, with Sports Drinks growing high-single digits.
· Volumes in Greece grew by low-single digits, building on a good prior-year performance, albeit with a slightly later start to the summer season. Sparkling declined low-single digits, but we saw high-single digit growth in Coke Zero. Energy grew mid-teens, with momentum accelerating in Q2. Coffee declined mid-single digits, driven by the at-home channel, offsetting growth across brands in the out-of-home channel. Stills volumes were up by low-single digits, with strong double-digit growth in Sports Drinks.
· In Ireland, volumes increased by low-single digits on a soft comparative due to the launch of the DRS last year. A later Catholic Easter than 2024 also supported improved volumes in Q2 relative to Q1. Sparkling increased low-single digits, driven by Trademark Coke and Sprite. Energy grew low-double digits and Coffee increased low-single digits. Stills increased by high-single digits, driven by Water and Juices.
· Volumes in Italy grew by low-single digits in the first half. Volumes returned to growth in Q2, benefitting from a later Catholic Easter and an improved start to the summer season compared to the prior year. Sparkling volumes were up by low-single digits, driven by high-single digit growth in Coke Zero and low-double digit growth in Sprite. Energy continued its strong double-digit growth momentum. Stills declined low-single digits, although Sports Drinks grew mid-single digits.
· In Switzerland, volumes declined by low-single digits in a sensitive consumer environment, with some retail challenges. Sparkling declined mid-single digits, although we recorded a strong performance in Coke Zero Sugar Zero Caffeine and Sprite. Energy grew strong double-digits. Coffee and Stills both grew low-single digits.
Comparable EBIT in the Established segment declined by 7.2% on an organic basis and 6.5% on a reported basis, to €181.5 million. Comparable EBIT margin was 10.3%, down 110 basis points, due to higher marketing and operating expenses in the period.
| Developing markets | ||||
| Half-Year | ||||
| 2025 | 2024 | % ChangeReported | % ChangeOrganic | |
| Volume (m unit cases) | 234.3 | 234.3 | – | – |
| Net sales revenue (€ m) | 1,198.7 | 1,123.3 | 6.7% | 6.4% |
| Net sales revenue per unit case (€) | 5.12 | 4.79 | 6.7% | 6.4% |
| Operating profit (EBIT) (€ m) | 118.4 | 117.4 | 0.9% | |
| Comparable EBIT (€ m) | 118.0 | 118.3 | -0.3% | -0.6% |
| EBIT margin (%) | 9.9 | 10.5 | -60bps | |
| Comparable EBIT margin (%) | 9.8 | 10.5 | -70bps | -70bps |
Net sales revenue grew by 6.4% and 6.7% on an organic and reported basis respectively.
Organic net sales revenue per case increased by 6.4%. The segment benefitted from pricing actions taken to manage inflation, along with positive category and package mix, with single-serve mix improving 340 basis points. Continued growth in Premium Spirits, supported by the rollout of Finlandia distribution, also benefitted our revenue per case, but with less impact than in 2024.
Developing markets volume was in line with the previous year, returning to growth in Q2, supported by a later Catholic Easter than in 2024. Sparkling volumes declined by low-single digits, despite growth in Coke Zero, Fanta and Sprite. Energy grew strongly on a soft comparative. In Stills, while Water declined high-single digits, we delivered strong double-digit growth in Sports Drinks and low-single digit growth in Ready-to-Drink Tea.
· Poland volumes decreased by low-single digits, although we saw an improvement in Q2. Sparkling volumes were down mid-single digits, despite growth in Coke Zero, Coke Zero Sugar Zero Caffeine, Fanta and Sprite. Energy grew strong double-digits, on a soft comparative due to the regulatory measures introduced at the start of 2024. Coffee volumes fell by double-digits, due to a decline in Costa Coffee in the at-home channel, offsetting strong growth in out-of-home. Stills declined low-double digits, driven by Water and Juice, offsetting mid-single digit growth in Ready-to-Drink Tea.
· In Hungary, volumes increased low-single digits. Sparkling volumes grew by low-single digits, with low-single digit growth in Trademark Coke and high-single digit growth in both Fanta and Sprite. Energy volumes continued to grow strong double-digits, despite tough comparatives. Coffee declined double-digits, driven by Costa Coffee, offsetting growth in Caffè Vergnano. Stills declined mid-single digits, with declines in Water and Juices offsetting growth in Ready-to-Drink Tea and Sports Drinks.
· Volume in Czech increased by high-single digits despite tough comparatives, driven by low-double digit growth in Sparkling. Energy volumes grew by strong double-digits, on soft comparatives. Coffee grew mid-teens, while Stills volumes declined low-double digits, despite strong double-digit growth in Sports Drinks.
Comparable EBIT in the Developing segment decreased slightly by 0.3% and 0.6% on a reported and organic basis respectively, to €118.0 million. Comparable EBIT margin was 9.8%, down 70 basis points on a tough comparative, driven by higher marketing and operating expenses in the period.
| Emerging markets | ||||
| Half-Year | ||||
| 2025 | 2024 | % ChangeReported | % ChangeOrganic | |
| Volume (m unit cases) | 922.5 | 886.1 | 4.1% | 4.1% |
| Net sales revenue (€ m) | 2,651.9 | 2,337.2 | 13.5% | 17.4% |
| Net sales revenue per unit case (€) | 2.87 | 2.64 | 9.0% | 12.7% |
| Operating profit (EBIT) (€ m) | 345.3 | 254.7 | 35.6% | |
| Comparable EBIT (€ m) | 350.3 | 251.7 | 39.2% | 31.3% |
| EBIT margin (%) | 13.0 | 10.9 | 210bps | |
| Comparable EBIT margin (%) | 13.2 | 10.8 | 240bps | 140bps |
Net sales revenue grew by 17.4% and 13.5% on an organic and reported basis respectively, with strong organic growth partially offset by currency headwinds from the Nigerian Naira and Egyptian Pound.
Net sales revenue per case grew 12.7% organically, with a step down in Q2 relative to Q1 as we started to see inflation come down in Nigeria and Egypt. In the first half overall, we benefited from pricing actions taken throughout the last 12 months to manage the impact of currency devaluation and cost inflation, as well as from positive category mix.
Emerging markets volume grew by 4.1%. Sparkling volumes increased by mid-single digits, with low-double digit growth in Coke Zero and mid-single digit growth in Sprite and Adult Sparkling. Energy grew strongly, despite tough comparatives, driven by affordable brands. Stills volumes grew low-single digits, with very strong growth on a small base in Sports Drinks.
· Volume in Nigeria increased by mid-single digits, despite a tough comparative, reflecting our good execution in the market to navigate a challenging macroeconomic environment. Sparkling volumes grew mid-single digits. Adult Sparkling grew high-teens, as our premiumisation initiatives to drive Schweppes continued to see good results. Energy also delivered strong double-digit growth, led by growth in Predator. Stills declined mid-single digits.
· Volume in Romania declined by low-single digits. Sparkling fell low-single digits, while Stills and Coffee declined mid-single digits. We saw high-teens growth in Energy, supported by a rebound in Q2 on soft comparatives due to the introduction of regulatory measures in March 2024.
· Volumes in Egypt grew by high-single digits, as we cycled the impact of pushback against some Western brands. Sparkling grew mid-single digits, with strong double-digit growth in Coke Zero and low-double digit growth in Adult Sparkling. Energy continued to perform very strongly across both Monster and Fury, the affordable proposition. Water grew mid-single digits.
· Ukraine volume increased high-single digits, despite a still-challenging backdrop. Sparkling grew high-single digits, driven by Trademark Coke and Sprite. We saw strong double-digit growth in Energy, while Stills declined double-digits.
· Volumes in Serbia, excluding Bambi, grew low-single digits. Sparkling volume declined by low-single digits, despite strong double-digit growth in Coke Zero. Stills grew by mid-single digits, driven mainly by Water. Coffee also delivered strong growth, while Energy delivered high-single digit growth. Volumes of our snacks business, Bambi, declined approximately 30%, impacted by a fire in the production plant last year, resulting in a total decline for Serbia of low-single digits. We are on track with our recovery plans for Bambi, with production now back online.
· Russia volume grew by mid-single digits, as we continued to operate a self-sufficient business focused on local brands.
Comparable EBIT in the Emerging segment increased by 31.3% on an organic basis and 39.2% on a reported basis, to €350.3 million. Comparable EBIT margin was 13.2%, up 140 basis points on an organic basis, as we cycled the impact of foreign currency remeasurement of balance sheet items in 2024.
Conference call
Coca-Cola HBC’s management will host a conference call for investors and analysts on Wednesday, 6 August 2025 at 9:00 am BST. To join the call in listen-only mode, please join via the webcast. If you anticipate asking a question, please click here to register and to find dial-in details.
