Market's view on Coca-Cola HBC
Published on April 2024
- Stock watchers are anticipating the company’s full year results on 14th February, curious about the potential outcomes.
- Concerns are raised regarding a significant drop in the company’s stock price on 25th August 2022, with watchers seeking explanations.
- Discussions include a positive trading update from the company, despite the ongoing impact of the Ukraine invasion not fully reflected in the numbers, highlighting strong customer loyalty akin to that of tobacco and confectionary sectors.
- The company has substantial investments in Russia, including around 14 bottling plants and 70 distribution centres, which are considered fully priced into the current share value, having dropped 35% since the invasion.
- Following public pressure, the company temporarily suspended operations in Russia, affecting around 20% of their revenue and EBIT, leading to potential profit declines due to high fixed costs and operating leverage.
- Stock watchers are calculating potential impacts on financials considering the company’s exposure in Russia, Ukraine, and Belarus, estimating a possible 20% reduction in overall operating profit.
- Discussions include hypothetical scenarios where operations in conflict areas continue unhindered, potentially supporting the company’s growth narrative in the long term.
- Some stock watchers are considering re-entering investment at a stock price of 2220, indicating a perceived opportunity.