SWITZERLAND – World’s third-largest Coca-Cola anchor bottler, Coca-Cola HBC AG, has reported double-digit growth in the full year 2022 net sales to €9.2 billion (US$9.87bn), representing a 28.3% rise compared to 7.2 billion in 2021, and plans to increase prices this year to tackle an increase in costs.

The company had an overall organic revenue jump of 14.2%, with organic revenues per case increasing by 15.9% on the back of price hikes and steady improvements to the product mix. Volumes rose 12.4% to 2.71 billion cases, though, on an organic basis, these were down 1.5%.

Excluding sales from Russia and Ukraine, organic revenues soared 22.7% in the financial year whilst organic volumes rose 8.1%.

Operating profit dropped 11.9% to €703.8 billion (US$754.8bn) mainly because of impairment charges related to its Russian business.

Coca-Cola HBC suspended its Russian operations last March following the outbreak of war in Eastern Europe.

Its operating profit margin dropped 350 basis points on-year to 7.7% while on a comparable basis, it was down 150 basis points to 10.1% reflecting the impact of high-cost inflation and the sale of property in Cyprus in 2021.

Commenting on the latest financial results, Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, said: “We delivered a strong performance in 2022 against a challenging backdrop, achieving record levels of revenue, comparable EBIT, and free cash flow. The benefits of portfolio prioritization were clear, with growth led by Sparkling, Energy, and Coffee.”

“Consumer demand for our products and in our categories remained good. The power of our portfolio and consistent investment in our capabilities allowed us to balance pricing and mix enhancements, while also achieving another year of strong share gain.”

Volumes of its sparkling drinks (excluding Russia and Ukraine) increased by 7.7% in FY2022, with sales of its flagship Coca-Cola product rising by 9.1%.

Energy volumes also had an increase of 16.3% as “strong momentum in most markets… more than offset declines in Russia and Ukraine.”

Coffee volumes jumped 28.2% thanks to “encouraging share gains driven by both rate of sales and distribution increases.”

The company highlighted that Established segments had an organic revenue increase of 18.6% with well-balanced volume and revenue-per-case expansion. In Developing, organic revenue leaped 29.0%, led by double-digit volume growth across the main markets while in the Emerging segment, Organic revenue was up 5.5%, with 23.5% growth excluding Russia and Ukraine.

With a focus on sustainability, Bogdanovic noted that the company is making tangible progress towards its Mission 2025 and NetZeroby40 goals, with key milestones including the opening of a new rPET facility in Italy and the issuance of our first green bond.

For 2023, Coca-Cola HBC expects to grow organic revenues above its 5% to 6% target range. Organic operating profit growth is anticipated to fall in the range of +3% to -3% as glass manufacturing prices and input costs continue to rise.

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