Coca-Cola HBC fizzes up profit forecast as firm puts Russia exit hit behind it
Coca-Cola HBC AG, the bottling company for the soft drink giant, upped its profit forecasts for 2023 on the back of a “very strong” June performance this morning, prompting shares to jump nearly 5 per cent.
The Switzerland-based firm said that it now expects pre-tax earnings growth of between 9-12 per cent for 2023, up from a previous range of -3 – 3 per cent.
The upgraded forecast came after a “stronger than anticipated finish,” to the first six months of the year, with June historically one of the most significant months of the year for the bottler.
Its mid-term guidance from 2024 remains unchanged, it said, with an expected annual revenue growth of 6-7 per cent.
It comes after a soaring first six months to the year, which saw the group shake-off the woes of withdrawing its business from Russia last year following the invasion in Ukraine and rising energy prices.
The company’s exit from Russia had previously seen overall sales volumes fall 2.7 per cent, with a £160m hit to its balance sheet.
However in May, Coca-cola HBC reported net sales revenue up 24.4 per cent, with a surge in demand for soft drinks helping it offset pressures from energy costs and leave the lows of Russia’s exit in the past.
Analysts at the time upped earnings forecasts for the business, stating that it was now “better able to navigate a more challenging environment,” and outpace its major rival Fever-Tree.
Despite losing Russia, it also has a slew of other regions to tap into, with territory spanning nearly 30 countries across Europe, Asia, and Africa.
Coca cola HBC’s half year results will be published on August 7.