CCHBC expects prices to keep growing
The management of Athens-listed Coca-Cola HBC AG sees continued price growth in 2023, as the cost of goods sold is estimated to increase per case, due to high prices in energy, primary and secondary materials, by 10-13%.
Higher prices, however, combined with the full restart of the economy and especially the 30% increase in out-of-home consumption significantly reduced the group’s losses from the blow to the Russian and Ukrainian markets. It should be recalled that the group continues to be active in the above two markets, even if it now produces local brands in Russia, following the decision of the Coca-Cola Company to leave that country, following the example of many companies.
On the other hand, the increase in production costs caused a decrease in the comparable operating profit margin by 150 basis points and came to 10.1% in 2022 from 11.6% in 2021. It is worth noting that according to what the group announced, the cost production per unit case increased in 2022 by 17.7% compared to 2021.
According to the results by Coca-Cola HBC AG announced on Tuesday, net sales revenue in 2022 amounted to 9.19 billion euros, recording an increase of 28.3% compared to 2021. Excluding Russia and Ukraine, the increase in net sales revenue amounted to 22.7% on an organic basis.
The increase in sales volume was of the order of 12.4% (excluding Russia and Ukraine), mainly due to carbonated soft drinks, energy drinks, but also coffee, on which the group now places special emphasis. Net profits fell by 24.2%, but comparable net profits stood at €624.9 million, up by 8.1%.
Especially in Greece, the sales volume increased by 9.1%. Volume in the non-carbonated beverages category grew at a low double-digit rate, mainly due to the water category, which performed well as consumption in the out-of-home channel rebounded.
The carbonated beverage category grew in the high single digits, driven primarily by Coke Zero, Fanta and adult carbonated beverages, while energy drinks were up in the mid-20% to 30% range.
For 2023 the group expects an increase in sales by 5-6%, a change in operating profits on an organic basis from -3% to 3%.
