Coca-Cola HBC AG announced an increase in revenue for 2021. In particular, according to a relevant announcement, the effective implementation of the group’s strategy in a changing environment led to a strong recovery. There was an increase in net income on a neutral foreign exchange basis by 20.6% on a corresponding comparison basis. Net income on a published basis increased by 16.9%.
The agency accelerated its dynamics in the fourth quarter with revenues on a neutral foreign exchange basis increasing by + 10%, compared to the levels of 20192 for the year, on a corresponding comparison basis.
The increase in market shares in value continued, with an additional 80 basis points in ready-to-consume non-alcoholic beverages.
There was an increase in sales volume by 14.0% on a corresponding comparison basis or 13% on a published basis, mainly due to the emerging and developed markets, as well as the strategic priorities of the group’s portfolio.
Sales volume of carbonated soft drinks increased by 13.8%, carbonated soft drinks with low or zero sugar by 47.3% and carbonated soft drinks for adults by 31.8%.
Sales of energy drinks increased by 45.3% due to the performance of Monster, Burn and Predator products.
At the same time, the same announcement underlines that the strong position of the group’s products in the market was confirmed, as with the adjustment of prices and through other management actions of the increase of net income, the net sales revenue on a neutral exchange rate per box increased by 5, 8%, or 3.9% not including Poland.
As it is emphasized, the continuous investment in the strategic priorities of the group creates development dynamics.
Costa Coffee is now available in 17 markets. Caffè Vergnano was released in the fourth quarter and now has a presence in 5 markets.
– Geographical expansion in Egypt adds significant development opportunities and the integration process is evolving according to our expectations.
– Commitment for zero carbon emissions, supported by investments of € 250 million by 2025.
– The operating profit margin increased, while at the same time the expenses for marketing actions increased.
– Comparable operating profit increased by 23.6%, with margins increased by 60 basis points to 11.6%, including about 30 basis points as a benefit from the sale of a fixed asset in Cyprus. Published operating profit (EBIT) increased by 21.0%.
– Operating expenses as a percentage of revenue improved by 2.2 percentage points, thanks to operating leverage, with greater cost savings than our forecasts. From this improvement, 30 basis points were achieved from the sale of fixed assets in Cyprus.
– Expenditure on marketing activities increased by 63%, with expenditure throughout the year almost returning to pre-pandemic levels.
Strong profit growth, higher than ever level of net cash flow and increased dividend target range.
– There was an increase in comparable earnings per share by 33.7%, in the amount of € 1.58, assisted by a lower tax rate. Net cash flow increased by € 104.3 million to € 601.3 million.
– Increased dividend percentage target range to 40-50% (compared to 35-45% previously).
The Board of Directors proposes a common share dividend of € 0.71, increased by 10.9% on an annual basis.
Source: Capital
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