Cyprus Mail

Coca-Cola HBC flags one-time $195 mln hit from Russian operations

coca cola soft drink soda

Coca-Cola HBC AG (CCH.L) said on Thursday it incurred a one-time hit of 190 million euros ($195.36 million) in the first half due to costs related to its Russian business after it stopped sale of Coca-Cola drinks in the country following the Ukraine war.

HBC also reinstated its forecast, expecting comparable operating profit for 2022 to be between 740 million euros and 820 million euros, dented by a smaller presence in Russia and inflation woes. That is lower than 831 million euros it reported in 2021.

The soft drinks bottler, which once counted Russia as one of its biggest markets, said it expects to sustain financial charges of about 82 million euros in the second-half as it depleted all its stocks and would no longer make or sell Coca-Cola (KO.N) or other brands of the Coca-Cola Company in Russia.

HBC is one of Coca-Cola’s many bottlers worldwide and holds local Coca-Cola franchises to bottle and sell drinks produced by the US beverage giant. Coca-Cola holds more than 20 per cent stake in HBC.

The London-listed firm also reported a 34 per cent fall in net profit at about 153 million euros for the six months ending July 1, hit by the charges, and said it continues to face ongoing inflation and now assumes cost of goods sold (COGS) per case to increase by mid-teens in 2022.

Switzerland-headquartered HBC’s diverse portfolio ranges from alcoholic beverages such as The Macallan and Jack Daniel’s to carbonated drinks Sprite and Monster Energy to eateries such as Bambi biscuits and wafers.

Related Posts

Pummelled pound faces long road back as investor confidence shredded

Reuters News Service

First results show over 96% in occupied Ukraine areas favour joining Russia

Reuters News Service

Gas leaks in Russian pipelines to Europe stoke sabotage fears

Reuters News Service

US state legislative races carry high stakes for abortion access

Reuters News Service

Philippines to shut 175 offshore gambling firms

Reuters News Service

Russia issues new nuclear warning as it wraps up contested Ukraine referendums

Reuters News Service