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Coca-Cola HBC Reports Profit Growth Driven by High Soft Drink Demand

Coca-Cola HBC’s Profit Forecast and Market Strategies

By Simone Lobo

Coca-Cola HBC AG is adjusting its strategies and focusing on innovation as it anticipates profit growth through 2026. With strong demand for its beverages and a commitment to expanding into promising markets, the company is poised to navigate the current economic landscape effectively.

Impact of AI on Marketing

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.

Consumer Sentiment and Price Adjustments

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)

Key Takeaways

  • Coca-Cola HBC AG expects 7%-10% growth in organic operating profit for 2026.
  • Strong consumer demand for soft drinks and strategic market expansion drive this growth.
  • AI tools are being utilized for marketing and customer engagement, impacting over 200,000 customers.
  • The company has adjusted pricing strategies in response to economic challenges.
  • Investment in AI is considered crucial for growth management.
  • In 2025, the company achieved an 11.5% increase in organic operating profit, aligning with analyst expectations.

FAQ

What markets is Coca-Cola HBC focusing on for growth?

Coca-Cola HBC is expanding its presence primarily in African markets along with Central and Eastern Europe.

How is Coca-Cola HBC using artificial intelligence?

The company uses AI for personalized marketing and to enhance visibility into store performance and potential revenue.

What was the recent profit growth forecast for Coca-Cola HBC?

The company forecasts a 7%-10% growth in organic operating profit for 2026.

In summary, Coca-Cola HBC is strategically positioning itself for growth through innovative marketing and market expansion. Its use of AI tools is enhancing customer engagement and adapting to changing consumer sentiments.

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