Coca-Cola HBC AG has raised its full-year profit guidance after the soft drinks bottling company saw strong revenue growth in the third quarter.
The company, which holds a franchise to bottle Coca-Cola products and in which The Coca-Cola Company (NYSE:KO) owns more than 20%, said it now expects to report underlying profit (EBIT) of €860mln-€900mln for 2022.
According to Reuters, the company had earlier forecast full-year profits in the range €740mln-€820mln.
Coca-Cola HBC said it expects double-digit organic revenue growth at a group level for the year.
In the third quarter, organic revenue excluding Russia and Ukraine grew by 19.6%, continuing the strong momentum of the first six months, it said.
The company stopped production and sales in Russia, one of its biggest markets, after Moscow’s invasion of Ukraine last February.
Organic volumes excluding Russia and Ukraine grew by 5.7%, while group volumes fell 6.6% due to the cessation of sales of Coca-Cola brands in Russia.
Zoran Bogdanovic, chief executive officer of Coca-Cola HBC, said the company is “mindful” that the current economic climate environment is challenging for consumers.
"So far we have seen limited evidence of changing consumer behaviour, but are alert to this possibility and can adapt quickly if needed,” he said.