Coca-Cola HBC’s revenue fizzes almost 25 per cent – but Russia exit still hurts a year on
Coca-Cola HBC AG, the bottling company of the soft drink giant, reported strong revenue growth at 22.2 per cent, but it continues to take a hit from withdrawal of its business in Russia last year.
Net sales revenue were up 24.4 per cent, but the firm stated that foreign exchange movements, particularly currency devaluation in Nigeria and Egypt, had also negatively impacted growth.
Coca Cola and its bottling business withdrew from Russia in March last year due to the invasion of Ukraine, leading to a drop in volume in the region.
The company’s exit from Russia saw Coca-Cola HBC’s overall sales volumes fall 2.7 per cent, due to a four per cent drop in sales of Coca-Cola. It has, however, come under fire since due to its product still being a ‘top seller’ in the region.
According to its statement today, Russia volumes declined over 30 per cent, reflecting the decision in March 2022 to suspend sales of its brand there.
Continuing inflation and soaring energy prices continued to affect performance, with the firm stating that its focus on “data analytics “data enhanced growth capabilities” has helped to mitigate this.
The firm also highlighted the strength of its “24/7” portfolio, which is preparing to launch a number of new products, including Jack Daniel’s & Coca-Cola in Poland, Ireland and Hungary in April and Caffè Vergnano launches for Q2 in Czech and Slovakia.
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented: “Consistent execution of our strategy has led to a good start to 2023 and we expect to deliver another year of strong performance. As a result, we now have greater confidence in achieving positive organic EBIT growth in 2023.”
“Revenue growth was strong, thanks to our in-market agility and our tailored consumer and customer plans. Market shares improved for both non-alcoholic ready-to-drink and Sparkling, while we effectively implemented thoughtful price and mix changes in the face of continued cost inflation.”
“Although some markets have been impacted by a tougher consumer environment, our track record of successful revenue growth management and our sustained focus on investing in data enhanced growth capabilities puts us in a strong position to adapt.”