Coca-Cola HBC suffered a loss of €190 million in the first half of the year due to expenses related to the cessation of the sale of beverages in Russia. This was reported in the company’s financial report (.pdf) for the first half of 2022.
According to the document, in the second half of the year, the manufacturer expects new financial losses in the amount of €82 million. This is due to the fact that the remaining stocks of goods in Russia are “almost exhausted”, and the production and sale of Coca-Cola drinks in the country is not planned.
The company’s net profit, the report says, decreased by 34% and amounted to €153 million in the first half of the year. The reason was the withdrawal from Russia and the ongoing inflation.
In early March, Coca-Cola suspended operations in Russia, and in May, CEO James Quincy admitted the possibility of a complete exit from the Russian market. On June 16, Reuters, citing a statement from the company, reported on a reduction in production capacity and plans to stop production in the Russian Federation.
Coca-Cola HBC is one of the largest producers of beverages under The Coca-Cola Company brand. Coca-Cola HBC owns all factories producing this drink in Russia. In total, there are ten Coca-Cola plants in nine regions in the country. In Russia, the company also produces Fanta, Sprite, Powerade, Schweppes, Burn drinks, BonAqua water, Dobry, Pulpy, Rich, Moya Semya, Innocent and other products.