Coca-Cola HBC LON: CCH reported “a strong quarter of high-quality organic revenue growth” in its first-quarter 2026 trading update, with management reiterating full-year guidance despite what CEO Zoran Bogdanovic described as a “challenging and unpredictable external environment.”
Q1 growth driven by volumes, share gains and mix actions
Bogdanovic said organic revenue grew 11.6% in Q1, supported by volume growth of 9.6% and revenue per unit case growth of 1.8%. Reported revenue increased 12%, aided by “a small benefit from FX translation.” He noted Q1 benefited from four extra selling days; excluding that effect, volumes grew about 3.5% with growth across all three segments.
The CEO emphasized that Q1 marked Coca-Cola HBC’s 12th consecutive quarter of volume growth and said transactions grew ahead of volumes, attributing progress to targeted initiatives executed with customers. He also highlighted share gains: year-to-date, the company added 110 basis points of value share in non-alcoholic ready-to-drink and 50 basis points in sparkling.
Management pointed to its Revenue Growth Management (RGM) toolkit as central to balancing affordability and premiumization. Bogdanovic said the company leaned into entry packs and smaller formats to manage price points, citing the expansion of 200 ml cans in Poland and Austria. Promotions were also stepped up around Easter in relevant markets, particularly for multi-serve packs tied to at-home consumption. At the same time, the company pursued premium opportunities, including growth in premium small glass bottles in the HoReCa channel, and mid-teens growth in Schweppes supported by a locally tailored “Flavor of the Quarter” campaign.
Overall, Bogdanovic said single-serve mix improved by 140 basis points at the group level, with examples including the launch of a new 500 ml single-serve pack for Trademark Coke in Egypt.
Category trends: energy, sparkling and sports drinks stand out
Across categories, management said volume growth benefited by about six percentage points from the additional selling days.
- Sparkling: Volumes rose 9.4%. Bogdanovic said Trademark Coke grew high single digits, while Coke Zero grew high teens. Coke Zero Sugar Zero Caffeine (“Zero Zero”) delivered strong double-digit growth, supported by a new black-and-gold visual identity rolled out across packs in 16 markets.
- Sprite and flavors: Sprite volumes increased mid-teens, supported by the brand’s momentum and early steps to leverage the new “It’s That Fresh” global platform, including NBA and EuroLeague partnerships. The company also launched Sprite Chill in eight markets and expects further rollout in 2026. Bogdanovic also referenced a new Cherry Pepper flavor launched across Schweppes and Kinley.
- Energy: Volumes climbed 27%, with strong double-digit growth across all three segments. The company launched Monster Viking Berry and a Valentino Rossi-linked Zero Sugar flavor, which Bogdanovic said started “ahead of our expectations.” It also continued football activations in Nigeria and Egypt for Predator and Fury, respectively.
- Coffee: Out-of-home coffee volumes grew 39% as the company expanded Costa Coffee and Caffè Vergnano distribution. Total coffee volumes declined due to a deliberate shift in focus toward out-of-home, though Bogdanovic said the company expects coffee to return to growth in the second half.
- Stills: Volumes increased 4.1%. Sports drinks posted strong double-digit growth across all segments, aided by Powerade innovations (including Powerade Active Water, FIFA limited editions, and a new can pack) and sports partnerships such as the Olympic Winter Games. Water grew high single digits, while juice declined amid a difficult industry backdrop.
Segment performance: emerging markets led growth
By operating segment, Coca-Cola HBC reported net sales revenue and volume growth across the group.
In Established markets, net sales revenue grew 7.3% and volumes rose 6.7%. Revenue per case increased 0.6%, which management said reflected positive category mix partly offset by negative package mix tied to Easter promotions. Bogdanovic highlighted momentum in Ireland and improvement in Switzerland.
In Developing Markets, net sales revenue increased 10.3% and volume grew 7.4%. Organic net sales revenue per case rose 2.7% driven by pricing actions, positive category mix, and package mix improvements, including a 190-basis-point increase in single-serve mix.
In Emerging markets, net sales revenue grew 15% and volumes rose 11.2%. Bogdanovic said Nigeria and Egypt were “particularly strong” and revenue per case increased 3.5% organically, supported by pricing over the past 12 months and partially offset by negative country mix. Single-serve mix improved by 160 basis points in the quarter.
Management commentary: Nigeria, Egypt, Russia and consumer backdrop
Asked about Nigeria’s continued strength, Bogdanovic said Q1 volumes in the country rose 14% and attributed the performance to marketing plans with The Coca-Cola Company, data-led segmentation and micro-segmentation under an initiative called “Ignite Naija,” investments in supply chain capacity, and RGM efforts spanning affordability and premiumization. He also cited strong growth trajectories in Monster, Predator, and Schweppes, and praised the local team’s execution.
On Egypt, Bogdanovic said the company did not feel an impact from curfews implemented in the country linked to energy constraints, noting “Egypt had absolutely great Q1 with strong volume and revenue performance” and continued share gains in both ARTD and sparkling. He highlighted the importance of Sprite in Egypt, described Schweppes as the brand’s “largest global business” there, and said Monster and Fury were performing well.
On Russia, Bogdanovic said the consumer backdrop remains “fairly challenging,” with “no major changes in the first quarter,” adding that the business continues as “self-funded, self-managed.”
Regarding broader demand, Bogdanovic said the company is “not seeing any material change in consumer behavior across our markets.” In response to questions about volatility and scenario planning, he said the company’s portfolio breadth and strengthened capabilities—including digital and AI—help it react quickly and appropriately to changing conditions.
Guidance reiterated; CCBA progress and bond issue discussed
Bogdanovic reiterated 2026 guidance for organic revenue growth of 6% to 7% and organic EBIT growth of 7% to 10%, saying the company is well hedged on key commodities for 2026.
CFO Anastasis Stamoulis said the company is “strongly hedged, covering about 75% on average,” and expects no material direct impact from key commodities for the rest of the year. He added that hedging extends to electricity and utilities in certain markets where possible, and said Coca-Cola HBC expects cost of goods sold per case to increase at low single-digit levels in 2026. On pricing, Bogdanovic said the company can respond “in an agile way and dynamically” if needed, but said it was “too early to tell” regarding incremental pricing beyond existing RGM plans.
On the planned CCBA acquisition, Bogdanovic said the company has received antitrust clearances in Mozambique, Namibia, Botswana and COMESA, while processes continue in South Africa and Tanzania. He said Coca-Cola HBC remains on track to complete the deal in the second half of 2026, with teams working on integration planning while respecting applicable rules. Stamoulis said the company could not comment on CCBA’s 2025 or 2026 performance details given the transaction has not completed, but reiterated excitement about expansion into “high growth markets.”
Stamoulis also addressed the company’s March bond issuance of EUR 2.1 billion, saying it secured funding for the EUR 1.4 billion cash consideration for CCBA and included an additional EUR 700 million related to refinancing a maturing bond next year. He said the company updated its finance cost guidance to EUR 45 million to EUR 65 million from the earlier EUR 25 million to EUR 45 million, noting the range depends partly on the timing of CCBA completion because interest income will offset financing costs until the transaction closes.
About Coca-Cola HBC LON: CCH
Coca-Cola HBC is a growth-focused consumer packaged goods business and strategic bottling partner of The Coca-Cola Company. We open up moments that refresh us all, by creating value for our stakeholders and supporting the socio-economic development of the communities in which we operate. With a vision to be the leading 24/7 beverage partner, we offer drinks for all occasions around the clock and work together with our customers to serve 750 million consumers across a broad geographic footprint of 29 countries.
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