Negative Points

• Organic revenue per case growth was modest at 1.9% in H1, reflecting lower pricing dynamics and adverse country mix from faster growth in lower-revenue African markets.

• The company faces higher energy-related cost pressures in H2 2026 due to the ongoing Middle East conflict, which could impact COGS per case.

• Premium Spirits volumes declined 1.5% in H1, impacted by retail challenges in Finlandia and Poland, though these have been resolved.

• Total coffee volumes declined in H1 due to a deliberate shift in focus to the out-of-home channel, though revenue grew.

• Free cash flow decreased year-on-year to EUR216 million, reflecting a planned step-up in capital expenditure.

• The developing segment saw a margin decline of 70 basis points due to higher marketing expenses.

• Net finance costs increased year-on-year due to higher interest expenses from bonds issued for the CCBA acquisition, partially offset by higher finance income.

• The company expects a lower growth rate in H2 due to four fewer selling days in Q4, which will impact volume and EBIT growth.

• The macroeconomic and geopolitical environment remains challenging and unpredictable, with potential risks to consumer demand.

• The integration of CCBA, while progressing, still requires regulatory approvals and preparations for a secondary listing, which could pose execution risks.

Q & A Highlights

Q: The midpoint of your EBIT guidance appears to imply low single-digit organic EBIT growth in the second-half and possibly some margin contraction. Could you please help us bridge the key moving parts behind that, including the impact of fewer selling days? A: Anastasis Stamoulis (CFO) explained that the lower second-half growth is in line with their phasing expectations, primarily reflecting four fewer selling days in the last quarter of the year. He also noted they are factoring in higher energy-related cost pressure for the second-half due to the ongoing conflict in the Middle East. Despite this, the company is confident in narrowing the guidance range to 8% to 10%, which reflects the strong first half while remaining prudent given the unpredictable environment.

Q: What specifically surprised you in Q2 and gave you the confidence to change your full-year guidance? Also, is the ~2% organic revenue per case growth in Q2 a run rate we should expect for the second-half? A: Zoran Bogdanovic (CEO) stated there were no surprises in Q2, attributing the strong performance to extensive preparation for the FIFA World Cup and a robust innovation pipeline. Regarding revenue per case, he noted that this year the company is intentionally prioritizing volume growth over price mix, but anticipates slight improvements in revenue per case in the second-half. He emphasized that while all three drivers (volume, price, mix) need to deliver, volume will carry more weight in the revenue generation algorithm this year.

Q: Can you provide color on the profitability and margin expansion you are seeing in Egypt and Nigeria, and what the expectation is for H2 and beyond? A: Anastasis Stamoulis (CFO) confirmed the emerging segment's strong performance, with organic revenue up 12% and EBIT growth of almost 34%, including 140 basis points of margin expansion. The key drivers were strong gross profit improvement from top-line leverage, lower cost inflation, productivity initiatives, and a positive FX transactional tailwind. For H2, he expects these markets to continue growing profitably, though they will be impacted by the four fewer selling days in Q4 and potential fuel-related cost pressures.

Q: Given the strong volume growth in sports drinks (up ~25%), what is your view on the advanced hydration opportunity, and how do you plan to make the strong growth from Powerade stick beyond the FIFA World Cup and Winter Olympics activations? A: Zoran Bogdanovic (CEO) said the strong performance is a continuation of momentum over the last couple of years, proving the brand's relevance with consumers and customers. He confirmed that the company, together with the Coca-Cola Company, sees a significant opportunity in the advanced hydration category and will be going after it with more focus and activations going forward.

Q: Can you give more color on the various buckets of energy drinks (Monster vs. Predator/Fury vs. strategic brands like Burn), and how much of the energy drinks do you produce in-house now versus co-packers? A: Zoran Bogdanovic (CEO) highlighted that energy is the first category to exceed 10% of total volume, driven by innovation (e.g., Viking Berry), zero-sugar reformulations, and strong activations around MotoGP, F1, and football. He noted the category is growing and the company is gaining share. Anastasis Stamoulis (CFO) added that in-house production capacity currently covers between 50% and 60% of total energy volume, though Zoran later clarified that for Monster specifically, they are already around 85% in-house.

Q: How big a contributor can Coke Zero Sugar Zero Caffeine be, and can you comment on the rollout strategy under the new branding? A: Zoran Bogdanovic (CEO) described the Zero Sugar Zero Caffeine product as an "absolute hit" with consumers, tapping into the late afternoon and evening occasion where consumers are trying to avoid caffeine. He noted it is continuously growing its contribution to the Coca-Cola trademark and expects this trend to continue with strong focus behind it, supported by the new visual identity rolled out across 18 markets.

Q: Given the higher energy costs in the Middle East, what is the updated guidance for COGS per case for 2026, particularly for H2? A: Anastasis Stamoulis (CFO) stated that while the overall Middle East situation is manageable given the strong hedging position (85% covered on key commodities), there is pressure from non-hedgeable energy-related costs. He expects COGS per case to be low-to-mid single digits for the second-half, which would also indicate the full year will be in the same low-to-mid single-digit range.

Q: Can you help us understand how much of the volume improvement in the established segment is due to weather or underlying consumer fundamentals, and are there any key markets you are incrementally concerned about? A: Zoran Bogdanovic (CEO) highlighted a well-rounded performance across all established markets, including strong showings in Ireland, Switzerland, Austria, Greece, and Italy. He noted that while the warm weather in June was a tailwind, it is difficult to pinpoint an exact number. He expressed positivity that the established segment will continue with good performance and be positive on a full-year level.

Q: You have exceptionalized 15 million of costs in H1 associated with the Russia-Ukraine conflict. Can you provide context on what those costs are and whether they are one-off or recurring? A: Anastasis Stamoulis (CFO) clarified that the exceptional costs relate to disruption in Ukraine operations, requiring sourcing products from other facilities (mainly Poland and Romania), resulting in incremental transportation and repair costs. He confirmed this is a non-recurring, non-comparable item and should not be considered as part of ongoing operational costs.

Q: As you go into a more challenging COGS environment in 2027, to what extent does your richer portfolio and stronger RGM toolkit, especially with AI, give you more confidence to navigate it? A: Zoran Bogdanovic (CEO) expressed confidence that the quality and breadth of the 24/7 portfolio, combined with strong capabilities, positions the company well to navigate any environment. He emphasized that AI is a key focus, with an in-house AI and Digital Innovation Council ensuring disciplined investment in areas that matter most, such as digital engagement with customers, productivity, and decision quality.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .