Coca-Cola HBC AG on Tuesday reported a strong year of organic growth, saying this was against a challenging backdrop, as it lifted its annual dividend by 9.9%.

The Zug, Switzerland-based soft-drink bottling company reported net sales revenue of €9.20 billion, up 28% from €7.17 billion a year ago.

Developing markets led the growth with 29.0%, followed by by a 19% climb in established markets and a 6.0% increase in emerging markets. Excluding Russia and Ukraine, organic revenue was up 23%.

Coca-Cola HBC noted broad-based volume growth outside of Russia and Ukraine, led by its priority categories: Sparkling, Energy and Coffee.

Pretax profit, however, was €623.6 million, down from £734.9 million a year earlier. The company said this was mainly due to impairment charges relating to its operations in Russia.

In March, Coca-Cola had announced the suspension of its business in Russia, following the Russia-Ukraine conflict. Subsequently, it implemented a restructuring plan in connection with its Russian operation and transitioned to a self-sufficient business model focusing on local brands.

This resulted in pre-tax impairment losses related to buildings, production and cold drink equipment of €102.1 million during the first half of 2022.

Total net profit was down 24% to €415.4 million from €547.2 million, as operating expenses rose to €2.35 billion from €1.83 billion the year before.

Chief Executive Officer Zoran Bogdanovic said: ‘We delivered a strong performance in 2022 against a challenging backdrop, achieving record levels of revenue, comparable earnings before interest and taxation and free cash flow. The benefits of portfolio prioritisation were clear, with growth led by Sparkling, Energy and Coffee. Consumer demand for our products and in our categories remained good. The power of our portfolio and consistent investment in our capabilities allowed us to balance pricing and mix enhancements, while also achieving another year of strong share gains.’

Comparable earnings before interest and tax was €929.7 million up 12% from €831.0 million.

Coca-cola declared a dividend of €0.78 per share, up 9.9% from €0.71 a year prior.

Looking forward to 2023, Coca-Cola HBC said it expects to generate organic revenue growth above its 5% to 6% target range but cautioned that it remains ‘attentive’ to macroeconomic and geopolitical risk.

It said it expects to see organic earnings before interest and taxation movement of between negative 3% and positive 3%.

Shares were up 2.8% at 1,996.63 pence each on Tuesday morning in London.

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