Coca-Cola estimated losses from leaving Russia at $195 million
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Coca-Cola HBC suffered a one-time loss of $195 million in the first half of the year due to expenses related to the cessation of sales of Coca-Cola beverages in Russia, transmits Reuters agency.
The company forecasts operating profit for 2022 to be between 740 and 820 million euros due to a smaller presence in Russia and inflationary concerns. In addition, Coca-Cola said it had depleted its stocks and stopped making and selling products in Russia, which was once its largest market.
Chief Executive Officer Zoran Bogdanovich said that local brands such as Dobry, Rich and Moya Semya remain profitable and self-sufficient and do not cooperate with Coca-Cola Co in the Russian market.
On March 8, the company announced the suspension of operations in Russia. Later, the distributor of products – the company “Coca-Cola HBC Russia” reported that it plans to increase prices for its range by a third. On the same day as Coca-Cola, PepsiCo announced the suspension of sales of Pepsi-Cola, 7up and Mirinda drinks, as well as investments and advertising activities in Russian jurisdiction.
In June, Business Ombudsman Boris Titov said that Coca-Cola products could be imported into Russia through parallel imports. However, the Ministry of Agriculture said that it does not plan to include soda in the list of goods allowed for parallel imports.
Sales of Coca-Cola and Pepsi soft drinks from May 1 to July 20 are up 320% year-over-year, according to Wildberries data. wrote Forbes. Among the possible reasons is an increase in the number of sellers of these drinks on the marketplace: their number has tripled compared to March figures and six times compared to the same period last year.
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