Coca Cola HBC AG (LSE:CCH), a strategic bottling partner of The Coca-Cola Company, has reported a fall in full-year net profits despite an uptick in organic revenue.
Net profits in the 12 months to 31 December 2022 fell by 24.1% to €415.4mln, although organic revenue increased by 14.2% to €9.1bn. Operating profits slipped by 11.9% to €703.8mln.
Excluding business in Russia and Ukraine, organic revenue grew 22.7%, while comparable net profit was up 8.1% to €624.9mln, the company said in its results statement.
Coca-Cola HBC said volume growth was led by its priority categories, sparkling, energy and coffee.
Free cash flow increased by €43.8mln to €645.1mln, due to improved profit generation and effective working capital management, it added.
The company's board of directors has proposed an ordinary dividend of €0.78 per share, up 9.9% year on year.
“Consumer demand for our products and in our categories remained good,” said Coca Cola HBC chief executive Zoran Bogdanovic in the statement.
“The power of our portfolio and consistent investment in our capabilities allowed us to balance pricing and mix enhancements, while also achieving another year of strong share gains," he added.
Looking ahead, the FTSE 100-listed company said it expects to generate organic revenue growth above the 5% to 6% range in 2023, reflecting confidence in its portfolio and opportunities despite the macroeconomic and geopolitical risks.
Coca-Cola said it is actively prioritising investments across its categories and geographies to drive sustainable growth.
However, it forecast the foreign exchange impact to be a €25mln and €35mln headwind on comparable underlying earnings (EBIT), with organic EBIT growth in the range of 3% to 3% loss.
“Looking to 2023, our track record, portfolio, capabilities, the diversity of our markets and, above all, our talented people make us confident of achieving another year of strategic and financial progress, accelerating our journey to becoming The Leading 24/7 Beverage Partner,” said Bogdanovic.