Coca-Cola HBC AG (LSE:CCH) saw its shares rise more than 3% after reporting robust fourth-quarter and full-year 2025 results, underpinned by volume growth, premiumisation and effective pricing. The Europe- and Africa-focused bottler delivered organic revenue growth of 8.1% in the fourth quarter, with volumes up 2.8%, led by sparkling soft drinks and energy beverages.
For the full year, net sales revenue increased 7.9% to €11.60bn, while organic revenue per case rose 5.1%, reflecting disciplined revenue growth management and comparatively moderate inflation. Comparable operating profit (EBIT) grew 11.5% organically to €1.36bn, with comparable EBIT margins expanding by 40 basis points to 11.7% on an organic basis. Comparable net profit climbed 19.4% to €989.3m, and comparable earnings per share increased 19.7% to €2.72.
Free cash flow amounted to €700m, slightly below 2024 levels, largely due to higher capital expenditure of €827.6m, equivalent to 7.1% of revenue. Investment focused on expanding production capacity, automation, digital and AI capabilities, and rolling out more energy-efficient coolers.
Performance varied across regions. In established markets, organic revenue rose 2.3% with broadly flat volumes, as growth in Coke Zero and Sprite offset pressures elsewhere, while energy drinks recorded high double-digit growth. Comparable EBIT in these markets declined 2.8% organically to €378.6m, reflecting increased marketing and operating costs. Developing markets posted organic revenue growth of 6.1%, with volumes up 0.8% and comparable EBIT rising 5.6% to €242.2m. Emerging markets delivered the strongest performance, with organic revenue up 13.2%, volumes increasing 4.4% and comparable EBIT jumping 23.2% to €735.4m, driven by strong execution across Africa and other high-growth regions.
Management highlighted continued progress in premiumisation and customer segmentation, supported by AI-driven revenue management tools. Chief executive Zoran Bogdanovic said the group’s focus on strengthening its “24/7” portfolio had driven market share gains and volume growth in priority categories such as sparkling drinks and energy. He also confirmed that the agreed acquisition of a 75% stake in Coca-Cola Beverages Africa for US$2.6bn, announced in October 2025, remains on track to complete by the end of 2026.
The group also pointed to advances in sustainability, including expanded circular packaging initiatives in Nigeria, Austria and Poland, and community support through The Coca-Cola HBC Foundation, which committed €2.3m to disaster relief during 2025, with a further €5m earmarked for 2026.
Analysts at Jefferies noted that full-year EPS of €2.72 exceeded consensus expectations of €2.65 and said the group appears well positioned for 2026. Guidance calls for organic revenue growth of 6–7% and organic EBIT growth of 7–10%, although foreign exchange movements and financial items could partially offset underlying progress. The analysts also highlighted the strategic value of the Coca-Cola Beverages Africa transaction, citing favourable currency movements since the deal was announced.
Reflecting strong cash generation, the board proposed an ordinary dividend of €1.20 per share, up 17% from 2024. Net debt to comparable EBITDA remained conservative at 0.7x, providing capacity to fund both shareholder returns and ongoing growth investment.
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