(Reuters) -Bottler Coca-Cola (NYSE:KO) HBC boosted its annual operating profit and revenue forecast on Wednesday, as the Swiss group posted higher first-half revenue, helped by measures to mitigate the impact of high inflation and currency fluctuations.
The forecast boost did little for investors who focused instead on the lower-than-expected EBIT and earnings per share, driving the stock down nearly 2% in early trade.
Half-year organic earnings before interest and taxes (EBIT) grew 7.5% and comparable earnings per share came (EPS) in at 1.04 pounds, lower than the 7.9% EBIT and the comparable EPS forecast of 1.08 pounds, according to a company compiled analyst consensus.
Jefferies in a note said it expects shares to be slightly weak due to the slight EPS miss, especially with the strong run the shares have had so far this year. Shares are up nearly 19% as of Tuesday's close.
The bottler said for the full year 2024, organic revenue growth is expected to be between 8% and 12%, higher than the previous mid-term target range of 6%-7% while organic EBIT growth is expected to lie within the range of 7% to 12%, up from the previous estimates of 3% to 9%.
Organic revenue grew 13.6% in the first half.
Demand for packaged beverages and food has stayed resilient despite price hikes, and a gradually improving economic environment has bode well for beverage makers.
The company, however, said it was mindful of an uncertain consumer environment, adding that it expects the macroeconomic and geopolitical backdrop to remain challenging in the second half.
U.S. beverage giant Coca-Cola, which owns more than 20% in the bottler, last month raised its annual sales and profit forecasts on the expected benefit from price hikes and an advertising blitz, mainly in international markets where demand for its sodas and juices has been relatively strong.