Bottler Coca-Cola HBC boosted its annual operating profit and revenues forecast on Wednesday as the Swiss group posted higher-than-expected first-half revenue.
Measures to mitigate the impact of high inflation and currency fluctuations helped this increase.
However, investors were not cheered.
They were instead focused on the earnings before interest and taxes (EBIT) and earnings per share (EPS), which both fell below expectations.
These results drove the stock down nearly 2% in early trade.
Half-year organic EBIT grew 7.5% and comparable EPS came in at £1.04, lower than the 7.9% EBIT and comparable EPS forecast of £1.08, according to a company compiled analyst consensus.
In a note, Jeffries said it expects shares to be slightly weak due to the slight EPS miss, especially with the strong run the shares have had so far this year.
Shares were up nearly 19% as of Tuesday’s close.
Growth
The bottler said for the full 2024 year, it expects organic revenue growth to be between 8% and 12%.
This is higher than the previous mid-term target range of 6%-7%.
Organic EBIT growth is expected to lie within range of 7%-12%.
This is up from previous estimates of 3%-9%.
Organic revenue grew 13.6% in the first half
Demand for packaged beverages and food has stayed resilient despite price hikes, and a gradually improving economic environment has bode well for beverage makers.
The company, however, said it was mindful of an uncertain consumer environment.
It added that it expects the macroeconomic and geopolitical backdrop to remain challenging in the second half.
US beverage giant Coca-Cola, which owns more than 20% in the bottler, last month raised its annual sales and profit forecasts on the expected benefit from price hikes and an advertising blitz.
The results mainly came from international markets where demand for Coca-Cola's soft drinks and juices has been relatively strong.
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