Coca-Cola HBC Smashes Profit Targets, Lifts Revenue Forecast
Swiss-based Coca-Cola HBC, 20% owned by US giant Coca-Cola, has blown past half-year profit expectations. The bottler credited soaring sales and higher drink prices for its strong performance amid the cost-of-living crunch.
Despite tough times, packaged food and beverage demand stayed strong as companies hiked prices to cover rising energy and input costs.
Revenue Growth Rockets to Mid-Teens
Founded in Nigeria in 1951, Coca-Cola HBC now expects organic revenue growth of 15% or more for the full year, a big leap from its previous 5-6% forecast. CEO Zoran Bogdanovic said:
“Our revenue per case climbed 19%, beating analysts’ 17.4% prediction, thanks to savvy price and mix management powered by data analytics.”
While Nigerian volumes dipped slightly due to currency availability issues, the company expects foreign exchange hits on operating profit of €50-60 million (£43-52 million) this year.
TUI Soars to First Post-Pandemic Profit
Tour operator TUI has posted its first profit since the pandemic started, riding a travel booking boom across Europe. Q3 underlying earnings hit €169 million (£148 million) on revenues of €5.3 billion.
CEO Sebastian Ebel said the Mediterranean remains a prime hotspot despite extreme weather, and cutting net debt by €1.1 billion to €2.2 billion shows positive momentum.
“We’re focused on smart investments to drive profitable growth going forward,” added Ebel.
China Slides into Deflation, Raising Red Flags
China’s economy took a hit as consumer prices fell 0.3% in July – its first drop in over two years. The deflation alarm comes amid weak trade data and mounting woes, including ballooning local debt, housing struggles, and soaring youth unemployment.
Falling prices add pressure on Beijing to spark demand in the world’s second-largest economy. Experts urge a mix of higher government spending, tax cuts, and looser monetary policies to turn things around.
Daniel Murray from EFG Asset Management warned:
“A multi-pronged approach is essential to lift inflation amidst China’s current economic challenges.”
