Coca-Cola HBC AG said it incurred a one-time hit of €190 million ($195.36 million) in the first half due to costs related to its Russian business after it stopped selling 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 and €820 million, dented by a smaller presence in Russia and inflation woes. That is lower than €831 million 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 in the second-half as it depleted all its stocks and would no longer make or sell Coca-Cola or other brands of the Coca-Cola Company in Russia.
Zoran Bogdanovic, CEO of Coca‑Cola HBC, commented, “We delivered strong performance in the first half as we continued to execute our growth strategy with focus and discipline, including making progress on our sustainability commitments."
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% stake in HBC.
The London-listed firm also reported a 34% fall in net profit at about €153 million for the six months ending 1 July, 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.