Subscribe Login
A-Brands

Bottler Coca-Cola HBC Keeps Its Fizz On Robust Demand

Coca-Cola HBC raised its full-year profit forecast on Tuesday, as the soft drinks bottler benefited from resilient demand and said price rises and promotions would protect profits.

Inflation at multi-year highs has pinched household budgets and forced consumers to cut their spending, but Coca-Cola is among the packaged food makers enjoying steady demand.

'Might Get Harder'

Zoran Bogdanovic, chief executive said that trading in the fourth quarter and 2023 "might get harder because of consumer demand suppression," but added the company planned to overcome it with pricing and promotional plans.

Shares in the company rose 4% to 2,007 pence in early trading.

It expects double-digit organic revenue growth at a group level in 2022, after reporting a 19.6% rise for the third quarter, excluding Russia and Ukraine.

HBC stopped production and sales of Coca-Cola products in Russia, which was one of its biggest markets, after the exodus of Western companies following Russia's invasion of Ukraine begun in February.

Reduced Operations 

Bogdanovic told Reuters its factories in Russia had reduced operations and it had cut jobs in double digits.

HBC, one of Coca-Cola's many bottlers worldwide, holds local Coca-Cola franchises to bottle and sell drinks produced by the US beverage giant, which holds a more than 20% stake in it.

Swiss-headquartered HBC's portfolio ranges from alcoholic beverages such as Jack Daniel's to carbonated drinks Sprite and Monster Energy to Bambi biscuits and wafers.

HBC raised its expectations for comparable operating profit to between €860 million euros and €900 million ($860.43 million and $900.45 million) for 2022, compared with an earlier forecast of between €740 million and €820 million.

News by Reuters, edited by Donna Ahern, Checkout. For more a-brand news, click here. Click subscribe to sign up for the Checkout print edition.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

LIMITED TIME OFFER: 20% Off Our Premium Subscription
Enjoy full access to all website and app content, our weekly email news digest, and to Checkout Magazine 12 times a year (including our Top 100 Brands 2022 edition).
LIMITED TIME OFFER: 20% Off Our Premium Subscription
LIMITED TIME OFFER: 20% Off Our Premium Subscription
Enjoy full access to all website and app content, our weekly email news digest, and to Checkout Magazine 12 times a year (including our Top 100 Brands 2022 edition).
LIMITED TIME OFFER: 20% Off Our Premium Subscription