3rd Mar 2022 10:58
(Alliance News) - Coca-Cola HBC AG on Thursday withdrew 2022 financial guidance due to the invasion of Ukraine, having halted production at its Kyiv plant.
The Switzerland-based soft drinks bottler said the situation in Russia and Ukraine has injected more geopolitical risk than assumed in its outlook, which was issued with its annual results last Tuesday.
Coca-Cola HBC generated around 20% of its volumes and earnings before interest and tax from the two countries in 2021, it noted.
Accordingly, the company has withdrawn the guidance for 2022, which included currency-neutral revenue growth excluding Egypt above its target range of 5% to 6%. Comparable earnings before tax was set to rise by mid to high-single digits for the year. It also had guided an increase to its targeted dividend payout ratio to 40% to 50% of net profit from 35% to 45% previously.
Production in its Kyiv plant was temporarily stopped last Thursday, Coca-Cola said, and its staff were evacuated.
"We continue to execute well in every area where we have control and will focus on factors that can mitigate the negative headwinds. We are prepared to utilise revenue growth management actions, including pricing, to offset currency depreciation and higher input costs. We are also ready to redeploy marketing spend and capex investment to other markets," the company said.
Shares in Coca-Cola HBC were down 0.6% to 1,660.50 pence each in London on Thursday morning. The stock is down 37% so far in 2022.
By Elizabeth Winter; [email protected]
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