Coca-Cola HBC pulls guidance after Ukraine invasion

3rd Mar 2022 10:08

(Sharecast News) - Drinks bottler Coca-Cola HBC pulled its guidance for the year in response to the Ukraine situation on Thursday, adding that it was in "constant contact" with its staff in both Ukraine and Russia.

The FTSE 100 company said it temporarily stopped production at its plant in Kyiv on 24 February, and evacuated its employees.

In its full-year results released on 22 February, the firm set guidance for the year in a "wide range" that considered geopolitical risks, as well as headwinds from commodities and currencies.

"However, in the last week the situation involving Ukraine and Russia has clearly developed further and faster than anticipated," the board said on Thursday.

"It is still too early to quantify the impact that the evolving geopolitical crisis and many governments' developing reactions to it will have on our business or on our full year 2022 results.

"Given that we generated 20% of 2021 volumes and EBIT from both regions, combined with the uncertainty of the duration and economic impact, we no longer believe that it is prudent to provide guidance for our group's current financial year."

Coca-Cola HBC said it was executing well in every area where it had control, and would focus on factors that could 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.

"Operating expense management is embedded in our business and will continue to be a key element of our plans for the year."

At 0951 GMT, shares in Coca-Cola HBC were down 1.74% at 1,641.5p.