BOTTLER Coca-Cola HBC raised its annual organic revenue growth forecast on Wednesday, as changes to prices and packaging sizes catering to value-conscious customers in key markets propelled demand amid rising cost pressures.
The bottling partner for Coca-Cola in Central and Eastern Europe and Africa, like other consumer goods companies, is grappling with rising commodity and energy prices linked to the Iran war and has been taking measures to protect demand and guard itself against rising costs.
Finance chief Anastasis Stamoulis told Reuters the company is fully hedged against commodities like sugar and aluminum for 2026 and currently over 40 percent hedged in 2027, though he expects the hedge coverage to increase closer to next year.
The company, however, has seen a hit from rising fuel, logistics and utilities costs, which cannot be hedged in some countries, Stamoulis said.
Like Coca-Cola, the bottler has also introduced smaller packages and promotions to cater to consumers increasingly seeking affordability amid the rising cost of living.
"We approach affordability in a strategic sense that we are introducing the right size of packages at the right prices," CEO Zoran Bogdanovic told Reuters.
The Switzerland-based company also sees opportunity to boost revenue through premiumization for products at a higher price point like energy, adult sparkling and coffee, Bogdanovic said.
The company forecast fiscal 2026 organic revenue growth slightly above a 6 percent to 7 percent range, compared to previous expectations of logging the top end of that range, and reiterated its fiscal 2026 organic operating profit growth forecast.
Coca-Cola HBC reported third-quarter organic revenue growth of 9 percent, compared to company-compiled analyst consensus of 8 percent, boosted by Coca-Cola's partnership with the FIFA World Cup.
The company said it was on track to complete its acquisition of African counterpart Coca-Cola Beverages Africa by the end of 2026, with antitrust regulatory approvals pending in Tanzania.
Shares in Coca-Cola HBC, which have gained more than 25 percent so far this year, were marginally up.