Coca-Cola HBC Smashes Profit Targets, Lifts Yearly Revenue Forecast
Swiss-based bottler Coca-Cola HBC has smashed half-year profit expectations and upped its annual revenue forecast. The secret behind the surge? Strong sales and higher drink prices. Despite the cost-of-living squeeze, the firm—20% owned by US beverage titan Coca-Cola—kept demand steady by hiking prices to cover rising energy and material costs.
Founded in Nigeria back in 1951, Coca-Cola HBC now expects organic revenue growth in the mid-teens percentage range for 2024—way up from its earlier 5-6% estimate. CEO Zoran Bogdanovic proudly revealed that improved pricing strategies and clever data analytics boosted revenue per case by 19%, beating analyst predictions of 17.4%.
Though Nigeria saw a slight dip in volume due to currency hiccups, the company warns foreign exchange issues could slice €50-60 million (€55-66 million) from its operating profits this year.
TUI Reports First Post-Pandemic Profit as Tourists Flock Back
Tour operator TUI has finally bounced back, posting its first profit since the pandemic. Momentum soared thanks to booming bookings and insatiable travel demand across Europe. The group’s Q3 underlying earnings before interest and tax hit a healthy €169 million ($185.5 million), backed by €5.3 billion in revenue.
CEO Sebastian Ebel praised the resilience of Mediterranean hotspots despite ongoing challenges. TUI’s net debt also plunged by €1.1 billion to €2.2 billion—a clear sign the company is back on track.
“We’re doubling down on investments that promise profitable growth,” Ebel said, highlighting the group’s confident outlook.
China’s Economy Hits Deflation, Consumer Prices Fall for First Time in Two Years
China’s economy took a worrying turn as consumer prices fell 0.3% in July—the first dip in over two years—signalling deflation. This fuels growing fears over the world’s second-largest economy, especially as import and export figures remain sluggish.
The country is wrestling with mounting local government debt, a shaky housing market, and soaring youth unemployment. Falling prices add to the challenge, pressuring Beijing to stimulate demand and avoid a slowdown.
Experts like EFG Asset Management’s Daniel Murray warn that tackling deflation will need a cocktail of increased government spending, tax cuts, and looser monetary policies if China wants to kickstart inflation and steady growth.
