Coca-Cola bottling firm posts ‘record’ revenue despite exit from Russia and energy crisis eating into profits
Coca-Cola’s bottling business today posted “record” results after bolstering its revenues through price increases, after its exit from Russia ate into profits.
Coca-Cola Hellenic Bottling Company (HBC), which owns the bottling rights for Coca-Cola, saw its reported revenues surge 28.3 per cent to €9.2bn (£8.1bn).
The uptick in revenues came as Coca-Cola HBC’s profits were hit by soaring energy prices and its exit from Russia, following the country’s invasion of Ukraine.
Coca-Cola HBC chief executive Zoran Bogdanovic said the company delivered a “strong performance” in the face of a “challenging backdrop” in achieving record revenues and earnings.
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.
Impairments related to Coca-Cola HBC’s exit from Russia, that saw the firm take a £160m hit to its balance sheet, also saw the company’s earnings-per-share drop 24.3 per cent.
Yet outside of Russia and Ukraine, the London listed firm said it sold 7.7 per cent more drinks, following a 9.1 per cent uptick in demand for Coca-Cola.
Higher sales of Fanta (3.8 per cent) and Sprite (4.7 per cent), which Coca-Cola has produced since the second world war, further bolstered the company’s sales.
Coca-Cola HBC however benefited from price hikes in all of its markets, as the firm took a “proactive and agile” approach to navigating inflation.
The company said it used “data, insights, and analytics” to increase prices while ensuring they remained affordable for its typical customer.
Higher energy prices and soaring production overheads, however, pushed down Coca-Cola HBC’s profit margins, despite its push to hike prices.