The management of Coca-Cola HBC AG “sees” prices to continue to rise in 2023 as the cost of goods sold is estimated to increase per case due to high prices for energy, virgin and recycled materials by 10-13%. . However, higher prices, combined with a full restart of the economy and especially a 30% increase in out-of-home consumption, have significantly reduced the group’s losses from hitting the Russian and Ukrainian markets. It is recalled, however, that the group continues to be active in the two markets mentioned above, even if it now produces local brands in Russia, following the decision of The Coca-Cola Company to leave this country, following the example of many companies. On the other hand, higher production costs led to a 150 basis point decline in LFL operating margin to 10.1% in 2022 from 11.6% in 2021. The cost of production per box increased by 17.7% in 2022 compared to 2021.

According to the results announced yesterday by Coca-Cola HBC AG, net sales in 2022 amounted to 9.19 billion euros, recording an increase of 28.3% compared to 2021. Excluding Russia and Ukraine, net sales growth was 22.7% compared to 2021. organic base. The increase in sales was about 12.4% (excluding Russia and Ukraine), mainly due to carbonated soft drinks, energy drinks, and coffee, which the group now pays special attention to. Net income fell 24.2%, but comparable net income was €624.9 million, up 8.1%.

Especially in Greece, sales increased by 9.1%. Sales in the non-carbonated beverage category grew at a low double digits, mainly driven by the water category, which performed well as consumption in the beverage channel recovered. The carbonated drinks category grew by high single digits, driven mainly by Coke Zero, Fanta and adult sodas, while energy drinks rose in the 20% to 30% range.

In the Greek market, sales increased by 9.1% during 2022.

In 2023, the group expects organic sales growth of 5%-6%, a change in operating profit in organic terms from -3% to 3%, while indicating that the group’s LFL operating income will be negatively affected by 25-35 million euros as a result of the conversion of results to the base currency of the group due to changes in exchange rates.

Priorities include the development of the Egyptian market, which was added to the group in 2021, a market with many opportunities but also many challenges, the further development of the coffee category, and the further development of the group’s digital platforms for both consumer and wholesale sales. and the use of data for decision making.

Asked about the acquisition opportunity in an analyst call, Coca-Cola HBC AG CEO Zoran Bogdanovic said: “We are looking at opportunities that are financially and strategically correct. We are evaluating several possibilities.” Finally, with regard to his assessment of work in Russia, he emphasized that it is extremely difficult to predict what share it will take in 12 months in a fragmented market.