PRINT EDITION. Growth in tourism in many of the developed markets where Coca-Cola HBC operates and high temperatures until October appear to have offset much of the group’s losses from downsizing its operations in Russia and Ukraine. turbulence caused by the inflationary crisis. Both the third quarter and nine months ended in double-digit gains, while the group revised upward its full-year earnings forecast for 2022 yesterday. However, for the fourth quarter of the current fiscal year, Coca-Cola HBC management “sees” continued pressure from repricing, with it expecting 2023 to also be a year of high inflation.

For example, according to Coca-Cola HBC AG’s financial results announced yesterday, the group’s third-quarter 2022 net sales were €2.69 billion, up 26.9% on a published basis (or 7.4% on an organic basis) . ). At nine-month levels, sales reached €6.9 billion, up 28.5% on a published basis and 15.4% on an organic basis. The group’s nine-month sales reached 2.08 billion cases, up 14.7% on a published basis and 0.4% organically, while growing 9.1% in the third quarter.

The group’s stronger-than-expected performance in the third quarter led to an upward revision in growth and earnings for the current year. As such, Coca-Cola HBC’s management now expects 2022 to end with double-digit organic growth, with comparable pre-tax profits of between €860 million and €900 million. Recall that in August, when announcing the results of the first semester, the management simply estimated positive growth rates and comparable profit before tax between 740 and 820 million euros.

The Group expects comparable profit before tax in 2022 to be between EUR 860 million and EUR 900 million.

Particularly in Greece, the group’s sales recorded strong single-digit growth in the third quarter of 2022, driven by increased tourist traffic and intense activity in the so-called “cold market” (restaurants, bars, etc.). .

Changes in consumer behavior due to inflation are limited, with some examples found mainly in the Nigerian, Egyptian and Romanian markets, said Group CEO Zoran Bogdanovic. “We are monitoring this and remain vigilant. We have a holistic plan for further intervention with dynamic and flexible pricing of our products in all markets in which we operate,” Mr. Bogdanovich emphasized during a commentary on the results with financial analysts. Regarding the steps taken by the company to reduce production costs, he noted that at this stage it is looking for the best opportunities to create reserves, primarily in sugar, aluminum and resin.

Despite the difficult situation, the group will continue targeted investments, and in terms of bringing new Coca-Cola products to the market, HBC will also place Jack & Coke (the famous Jack Daniels cocktail with Coca-Cola) in selected markets in a box), then of course , the official launch of the product by Coca-Cola in Mexico in the next period.

In Russia

Although there were no announcements from the group’s management yesterday, Coca-Cola HBC has closed its Russian plants and cut double-digit staff, according to Reuters, which asked Mr. Bogdanovich about it.