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1. Company Snapshot

1.a. Company Description

Coca-Cola HBC AG engages in the production, distribution, and sale of non-alcoholic ready-to-drink beverages worldwide.The company offers sparkling soft drinks, hydration drinks, juices, ready-to-drink tea, energy drinks, coffee, water, plant-based drinks, premium spirits and flavored alcoholic beverages, and snacks.It markets and sells its products under several brands, including Coca-Cola, Fanta, Sprite, Adez, Aquarius, Averna, Amita, Avra, Deep RiverRock, Fruice, Kinley, Schweppes, and various other brands; and distributes third-party products, such as Monster energy drinks, and beer.


The company serves retail outlets, including supermarkets, hypermarkets, discounters, convenience stores, wholesalers, hotels, restaurants, cafés, and e-commerce retailers.Coca-Cola HBC AG was founded in 1969 and is headquartered in Steinhausen, Switzerland.

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1.b. Last Insights on CCH

Coca-Cola HBC AG's recent performance was driven by strategic investments and acquisitions. The company invested in a new bottling line in Northern Ireland, marking its largest single investment since 2008. Additionally, Coca-Cola HBC agreed to acquire Coca-Cola Beverages Africa, expanding its presence in the region. The company's parent, The Coca-Cola Company, reported a 6% price increase in Q3 2025, contributing to revenue growth. These moves position Coca-Cola HBC for long-term growth, driven by increased capacity and a strengthened portfolio.

1.c. Company Highlights

2. Coca-Cola HBC's Strong H1 Performance Driven by Revenue Growth and Margin Expansion

Coca-Cola HBC reported a strong performance in the first half of 2025, with organic revenue growth of 9.9% and a volume growth of 2.6%. The company saw growth in Sparkling and Energy categories, with Energy growing 30% despite tough comparatives. The company's digital commerce platforms are also seeing good growth, with a 25% increase in route to consumer sales. Comparable EBIT grew 11.8% on an organic basis, with a margin expansion of 70 basis points. As CFO Anastasis Stamoulis noted, "Operating costs, excluding direct marketing expenses, improved by 50 basis points as a percent of revenue."

Publication Date: Aug -09

📋 Highlights
  • Organic Revenue Growth:: Coca-Cola HBC achieved 9.9% organic revenue growth in H1 2025, driven by volume growth of 2.6%.
  • Energy Segment Performance:: Energy category grew 30% year-over-year, despite challenging comparatives, highlighting strong brand momentum.
  • EBIT Margin Expansion:: Comparable EBIT increased 11.8% organically, with a 70 basis point margin improvement due to cost optimization.
  • Free Cash Flow Growth:: Free cash flow reached EUR 243 million, up 10%, supported by EBIT growth and working capital improvements.
  • Guidance Upgrade:: Full-year comparable EPS guidance raised to EUR 1.31 (+26%), reflecting confidence in operational and financial performance.

Guidance and Outlook

The company has updated its guidance for 2025, with comparable earnings per share growing 26% to EUR 1.31. The company's finance cost guidance has also been upgraded, and FX translation guidance has improved. CapEx is expected to be within the guided range of 6.5% to 7.5% of revenue for the full year. Despite expecting a slowdown in the second half, the company remains confident in achieving low-single-digit volume growth.

Sustainability Efforts and Digital Transformation

The company's sustainability efforts are also progressing, with the launch of a co-developed sustainable-linked business plan with Carrefour, and the implementation of deposit return schemes in several markets. The company has also made progress in its digital data and AI transformation, with a focus on consumer and customer centricity, operational productivities, and transforming the employee experience.

Valuation

With a P/E Ratio of 19.35, the stock appears to be trading at a premium to its historical average. However, given the company's strong performance and guidance, this valuation may be justified. The company's ROIC of 11.24% and ROE of 26.84% also suggest that it is generating strong returns on its capital. With a dividend yield of 1.99%, the stock may appeal to income investors looking for a relatively stable source of income.

3. NewsRoom

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Coca-Cola HBC invests in Northern Ireland bottling line

Nov -10

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Coca-Cola HBC agrees to acquire Coca-Cola Beverages Africa

Oct -22

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Coca-Cola, Gutsche Family to Sell Stake in CCBA, Refranchising on Track

Oct -21

Source: zacks.com

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FTSE 100 holds firm amid hefty gold miner losses

Oct -21

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Coca-Cola HBC expands in Africa with bottling M&A

Oct -21

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Coca-Cola Continues Bottling-Network Overhaul With $2.6 Billion Africa Stake Sale

Oct -21

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Coca-Cola sees third-quarter revenue rise on higher prices

Oct -21

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Coca-Cola Reports Third Quarter 2025 Results

Oct -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.53%)

6. Segments

Non-alcoholic, Ready-to-drink Beverages

Expected Growth: 4.5%

Coca-Cola HBC AG's 4.5% growth in non-alcoholic, ready-to-drink beverages is driven by increasing health consciousness, rising demand for convenience, and expanding distribution channels. Additionally, the company's focus on innovation, premiumization, and sustainability initiatives, such as low-calorie and eco-friendly packaging, contribute to its growth momentum.

Premium Spirits

Expected Growth: 5.5%

Premium spirits from Coca-Cola HBC AG grew 5.5% driven by increasing demand for premiumization, expanding distribution channels, and effective marketing strategies. Additionally, the company's focus on innovation, such as new product launches and packaging redesigns, contributed to the growth. Furthermore, the rising popularity of at-home consumption and e-commerce sales also boosted the segment's performance.

7. Detailed Products

Coca-Cola

A classic carbonated soft drink that is sweetened with sugar and flavored with vanilla and lime

Fanta

A line of fruit-flavored soft drinks that come in a variety of colors and flavors

Sprite

A lemon-lime flavored soft drink that is crisp and refreshing

Fuze Tea

A line of tea-based drinks that combine the benefits of tea with the fun of a soft drink

Smartwater

A line of electrolyte-enhanced water beverages that help regulate fluid balance in the body

Costa Coffee

A line of coffee drinks that offer a premium coffee experience

8. Coca-Cola HBC AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Coca-Cola HBC AG faces moderate threat from substitutes, as consumers have various alternatives to choose from, such as Pepsi, Dr Pepper, and other local brands. However, the company's strong brand recognition and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

Coca-Cola HBC AG has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are widely available, making it difficult for customers to negotiate prices or terms.

Bargaining Power Of Suppliers

Coca-Cola HBC AG relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's scale and global presence help to mitigate this threat.

Threat Of New Entrants

The soft drink industry has high barriers to entry, including significant capital requirements and established distribution networks. This makes it difficult for new entrants to compete with Coca-Cola HBC AG.

Intensity Of Rivalry

The soft drink industry is highly competitive, with several established players competing for market share. Coca-Cola HBC AG faces intense rivalry from PepsiCo, Dr Pepper, and other local brands, which can lead to pricing pressures and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.54%
Debt Cost 3.95%
Equity Weight 47.46%
Equity Cost 8.48%
WACC 6.10%
Leverage 110.72%

11. Quality Control: Coca-Cola HBC AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Coca-Cola HBC

A-Score: 6.2/10

Value: 4.5

Growth: 6.2

Quality: 5.2

Yield: 4.4

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
BIC

A-Score: 6.0/10

Value: 7.6

Growth: 4.1

Quality: 6.7

Yield: 8.1

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

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Cranswick

A-Score: 5.5/10

Value: 4.4

Growth: 6.7

Quality: 5.2

Yield: 3.1

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Colruyt

A-Score: 5.2/10

Value: 7.7

Growth: 4.6

Quality: 4.3

Yield: 6.9

Momentum: 1.0

Volatility: 7.0

1-Year Total Return ->

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SalMar

A-Score: 4.8/10

Value: 3.0

Growth: 6.6

Quality: 3.3

Yield: 6.2

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Britvic

A-Score: 4.8/10

Value: 2.4

Growth: 4.7

Quality: 5.0

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.86$

Current Price

36.86$

Potential

-0.00%

Expected Cash-Flows