Coca-Cola HBC's Profit Rises Due to Price Increases And Expense Reductions

Coca-Cola (NYSE:KO) HBC AG announced a higher-than-anticipated operating profit for 2022 on Tuesday, aided by pricing increases and cost-cutting efforts.

However, the bottler anticipates organic operating profit growth between +3% and -3% in 2023.

For the year ending December 31, Coca-Cola HBC reported earnings of 703.8 million euros ($755.5 million), which was above the company-compiled analysts' estimate of 658.2 million euros.

Although there has been a shift in consumer spending due to customers' preference for cheaper options in the face of rising inflation, demand for packaged beverages and foods has remained robust despite price increases.

The wide portfolio of the Switzerland-based firm includes alcoholic beverages such as The Macallan and Jack Daniel's, fizzy drinks Sprite and Monster Energy, and Bambi cookies and wafers.

According to the company-compiled consensus, analysts anticipate an organic operating profit of around 865,6 million euros in 2023, representing a year-over-year increase of 23%.