Coca-Cola bottling firm raises outlook on revenue spike as Russia volumes tank
Coca-Cola HBC AG, the bottling company of the soft drink giant, reported a 19.3 per cent rise in revenues in its half year results as the group raised its outlook for the year.
Operating profit for the bottler rose 15.9 per cent to €170m (£146m) as the group said it benefited from price increases in all markets.
However organic volumes fell by one per cent as demand for its still drinks fell off in markets such as Hungry and the Czech Republic.
In Ukraine, volume rose over 50 per cent, as the country shows small signs of rebounding despite the ongoing war since February 2022.
Impact of Russia’s war in Ukraine
Coca-Cola and its bottling business pulled operations in Russia last year following the war, which has led to a fall off in volumes in the region.
Despite pulling out, it has been widely reported that its products can still be purchased in the country.
The group said today that Russian volumes declined by “high-single digits,” reflecting its decision to pull out of the country.
“The conflict between Russia and Ukraine continues to affect our business in those countries with some continuing impact on our supply chain,” Coca-Cola HBC AG said today.
“There does not appear to be any real prospect for resolution in the short term and our focus remains the health and safety of our people and the long-term viability of our business. The geopolitical environment in which we operate will remain challenging in the medium term.”
Looking ahead
Due to demand in other markets, the business now expects organic revenue growth to rise from between five and six per cent to mid teen growth.
“It has been a very good first half of the year with progress across our strategic pillars,” Zoran Bogdanovic, chief executive officer of Coca-Cola HBC AG, said.
“Our priority categories of sparkling, energy and coffee, together with a strong performance across all segments, have driven organic revenues and EBIT growth ahead of expectations.”