NEWS
Coca-Cola HBC’s annual profit beats, warns of price increases
Published On :
By Radhika Anilkumar
(Reuters) -Coca-Cola HBC AG on Tuesday reported better-than-expected full-year operating profit and said it will increase prices this year to tackle an increase in costs.
Energy and commodity prices have increased since Russia invaded Ukraine, sending companies across the globe scrambling for ways to rein in costs, while households struggle to manage their bills.
Most companies have hiked prices in a bid to pass on some of these costs to their consumers. Although a cost of living crisis has seen a shift in consumer spending, packaged beverage and food makers have continued to see resilient demand.
The environment in terms of input costs is very challenging and pricing is very important to manage inflation,” Ben Almanzar, chief financial officer at the soft drinks bottler, told Reuters.
The Switzerland-headquartered company, in which U.S beverage giant Coca-Cola owns 20% stake, said it expects 2023 organic operating profit growth in the range of +3% to -3% as glass manufacturing prices and input costs continue to rise.
London-listed bottled drinks maker Fevertree warned last month that its 2023 profit would fall short due to rising costs of glass bottles, ingredients and packaging.
Coca-Cola HBC said costs it incurred per case in 2022 rose 17% and it expected this to increase by low teens percent this year.
Full year earnings fell about 12% to 703.8 million euros ($755.5 million), beating company-compiled analysts’ consensus of 658.2 million euros.
Still, full-year net sales revenue rose 28.3% to 9.20 billion euros.
Shares of the company were up about 4% at 2,024 pence as of 1020 GMT.
CCH is better able to navigate a tough external environment vs history given investments made over the past years around commercial capabilities with the cost base having also been reset during the pandemic,” analysts at Jefferies said.
($1 = 0.9316 euros)
(Reporting by Amna Karimi and Radhika Anilkumar in Bengaluru; Editing by Uttaresh.V and Mike Harrison)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.
-
-
Uncategorized3 days ago
Swedish government commission recommends easing mortgage repayment rules
-
-
-
NEWS3 days ago
Ryanair H1 profit falls 18% on lower fares, but price weakness moderating
-
-
-
NEWS3 days ago
German companies’ hiring plans drop to four-year low, Ifo finds
-
-
-
BUSINESS3 days ago
Burberry shares jump on Moncler bid report
-