Coca-Cola HBC AG (GB:CCH) announced an upward revision of its profit forecast for 2023, attributing it to strong sales and price hikes observed during the first half of the year. Post-announcement, the share went up by 5% on Friday. YTD, the stock has been trading up by 26%.
The company will publish its first-half earnings for 2023 on August 9.
Coca-Cola HBC is the leading global bottling partner for The Coca-Cola Company.
Increased Profit Guidance
The company revised its expectations for pre-tax earnings growth for 2023. It now anticipates a range of 9-12%, a significant increase from the previous range of -3 to 3%. The new forecast was a result of a stronger-than-expected performance in the last six months, particularly in June, which is traditionally a pivotal month for the bottler.
The company also stated that its mid-term forecasts for 2024 remain unaltered, projecting annual revenue growth of 6-7 percent.
The higher numbers came as a relief for shareholders after the company faced challenges from its business withdrawal from Russia last year. This resulted in a 2.7% decline in overall sales volumes, causing a £160 million impact on its balance sheet.
Zoran Bogdanovic, CEO of the company said, “We have a strong portfolio of brands, a resilient business model, and a talented team. We are well-positioned to continue to grow our business and deliver value to our shareholders”.
Analysts hold a positive outlook on the revised figures and have confidence in the company’s ability to operate amid the difficult business landscape.
What is the Stock Price Prediction for Coca-Cola HBC?
On TipRanks, CCH stock has a Moderate Buy rating based on five Buy and three Hold recommendations.
The average target price of 2,725.0p implies an upside potential of 14.5% on the current trading price.
