Bottler Coca-Cola HBC forecasts profit growth driven by soft drinks demand
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FILE PHOTO: Bottles of Coca-Cola are displayed on a shelf in a supermarket in Paris, France, January 29, 2025. REUTERS/Abdul Saboor/File Photo
By Simone Lobo
Feb 10 (Reuters) - Bottler Coca-Cola HBC AG forecast fiscal 2026 profit growth on Tuesday, driven by strong demand for soft drinks and expansion into markets with growth potential.
The Swiss-based company, which sells the brand in Central and Eastern Europe and African markets, has been expanding its presence in the African market.
The company expects to report 7%-10% growth in 2026 organic operating profit, compared to the 9.4% growth expected by analysts on average in a company-compiled poll.
J.P.Morgan analysts said the outlook was reassuring given concerns that the company would guide "more conservatively".
Shares rose as much as 5.6% on Tuesday.
The bottling partner for Coca-Cola has been adjusting prices and packaging as it navigates a challenging economic and geopolitical backdrop.
"We are constantly monitoring consumer sentiment, which can differ from various countries and that is always inputting how we possibly need to adapt our strategies in an agile way," CEO Zoran Bogdanovic told Reuters.
To drive revenue growth in regions experiencing slowing demand, the company has been using artificial intelligence tools as well as marketing through consumer campaigns, gifts and price promotions to attract customers.
Coca-Cola HBC AG used AI to generate personalised marketing messages for more than 200,000 customers and to provide real-time visibility into store coverage and potential revenue per outlet, said Bogdanovic.
While the company could not provide a specific figure for AI spending, CFO Anastasis Stamoulis said its AI expenditure was embedded across both capital and operating budgets, and that it was a continuous investment that is critical for revenue growth management.
Coca-Cola's "Holidays Are Coming" ad using AI has continued to draw interest and criticism as people debate the use of generative AI in the creative process.
The firm reported an 11.5% increase in 2025 organic operating profit, roughly in line with analyst expectations of 11%.
($1 = 0.8398 euros)
(Reporting by Simone Lobo in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
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