Coca-Cola HBC withdraws guidance amid Covid-19 outbreak

Coca-Cola HBC has announced its plans to withdraw the guidance for the current financial year considering the dire situation the coronavirus (Covid-19) pandemic has created across the globe.

The company said it is currently on the lookout for cost-saving measures and reassessing marketing investments and capex to support profitability.

Its demand in the ‘out of home’ channel in markets, such as Italy and central Europe, has been severely affected due to the heavy mobility restrictions imposed in March due to the pandemic.

The ‘out of home’ represents 35-40% of its sales in these markets.

Coca-Cola HBC stated that it is too early to quantify Covid-19 pandemic impact on the full year 2020 results while the trading in January and February has met expectations.

Meanwhile, Coca-Cola production plants and supply chains are fully operational according to company’s contingency and business continuity plans.

To ensure the safety of employees, the company has implemented precautionary and hygiene measures at all locations, including sanitation protocols, social distancing and travel restrictions.

It has also urged its employees to work from home, wherever possible.

Coca-Cola HBC stated in a press release: “The safety of our employees, customers, partners, consumers and products remains our highest priority. Wherever and whenever we can, we are actively supporting those who continue to have their lives changed or impacted by the virus and those who are tirelessly and selflessly supporting the affected.

“We remain incredibly grateful for the extraordinary efforts that all our people are making in ensuring business continuity and continued product supply to our customers.”

Meanwhile, the company stated that some disruption in the business is expected as the governments worldwide ramp up the measures to contain the pandemic.