Thursday 12 August 2021 7:45 am

Coca Cola HBC posts strong first-half results that sees profit jump 88 per cent

Coca Cola has posted strong first-half results as the company sees growth in its out-of-home and at-home channels.

The business was able to recover in the latter stages of the first half as lockdowns came to an end and its 24/7 operation began to pick up pace.

This is reflected in its net sales revenue, which saw a rise of 14.7 per cent. From €2.8bn for the period in 2020 to €3.2bn in 2021.

Coca Cola saw its out-of-home performance boosted in Q2, however the at-home revenues maintained a steady pace despite the relaxation of Covid-19 restrictions.

The combination of strong showings across both sectors has led to impressive profits for the company. For the first half of 2021, its operating profit sits at €350m, up 72.5 per cent on the €202m it made for the same period last year.

Meanwhile, its net profit saw a rise of 88 per cent.

Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented: “The business gained momentum as the out-of-home channel recovered and growth in at-home continued.”

Shareholders will be impressed by the company’s strong showing, as basic earnings per share saw an increase of 87.4 per cent.

Coca Cola’s strength appears to lie in what Bogdanovic calls its “24/7 portfolio”, where it is able to perform across the board effectively. Its acquisition of Costa Coffee in 2018 has only added to this.

“I believe these results demonstrate the power of our 24/7 portfolio, our revenue growth management actions, the strength of our execution capabilities and the talent of our people whose resilience and adaptability will underpin our future opportunities,” Bogdanovic said.

Coca Cola said it expects further momentum to be gained in the second half of the year as the global market looks to gain a footing again out of Covid.

“We are encouraged by the strength of the performance, and while conscious of the risks as the COVID-19 pandemic continues to impact our markets, we continue to expect a strong recovery in FX-neutral revenues and now believe that we can achieve a 20-30bps EBIT margin expansion this year,” the CEO added.

Coca Cola HBC has seen an increase of 1.07 per cent on its share price.