Coca-Cola HBC’s earnings have decreased by roughly a third as a result of its decision to severely reduce its activities in Russia.

The London-listed company’s first-half net income decreased by 34.4% to €152.9 million despite total sales exceeding projections due to price increases and greater demand in emerging regions.

The major bottler incurred €190m (£161m) in impairment costs during the first half of the year, primarily related to its Russian business, and it anticipates a further €82m hit in the second half.

All production and sales of Coca-Cola corporate products in Russia have ceased due to Russia’s full-scale invasion of Ukraine, which has led to a huge decline in trade between the two nations.

Last week, HBC announced that moving forward it will have a considerably leaner presence in Russia, selling local soft drink brands such as Dobry, Rich, and Moya Semya.

Despite the financial effects of the Ukraine War, the FTSE 100 company increased its net sales revenue in emerging countries by more than a third, or 14.2% on an organic basis.

It ascribed the growth to higher prices, the strengthening of the Russian rouble and Nigerian naira, and the acquisition of a majority stake in the Cola Bottling Company of Egypt.

The group’s expanding and existing markets also did well due to volume and price improvements, with revenues in Poland, Hungary, and the Czech Republic increasing by at least a fifth.

Demand for HBC’s sparkling and still goods increased moderately, however booming business at Costa Coffee stores, many of which were forced to temporarily close last year, contributed to a 50-percent volume increase in its coffee segment.

The company’s energy drink volumes, which include Monster Energy and Predator, increased by 18.6%, following double-digit percentage increases in several countries, including Nigeria, Italy, and Greece.

HBC’s chief executive officer, Zoran Bogdanovic, stated about the company’s performance, “I am delighted with our excellent organic growth, which was balanced between volume and revenue per case.

Pricing, product mix, and cost efficiency supported the successful conversion of revenue growth into profits and cash flow by mitigating input cost increases.

The company has reaffirmed its annual outlook, predicting comparable operational earnings of €740 million to €820 million for this year, above market expectations.

During early afternoon trading on Thursday, Coca-Cola HBC shares were up 2.9% to 20.38, although their value has decreased by roughly a quarter over the past 12 months.