Coca-Cola bottler reports surge in profits with plans to hike dividend this year
Coca-Cola bottling firm Coca-Cola HBC has reported a surge in profits to £425.9m today as it capped off a strong recovery following a pandemic slowdown in 2020.
The firm said revenues had grown 16.9 per cent to €7.17bn(£5.28bn) across the group while comparable net profit surged 34 per cent to €578m(£425.9m).
Bosses said the firm picked up momentum in the fourth quarter of the year to hit revenues 10 per cent above 2019 levels.
Zoran Bogdanovic, chief cxecutive at Coca-Cola HBC AG, said the firm had seen a strong recovery in 2021 with all key metrics above pre-pandemic levels.
“We finished the year with strong revenue growth, our highest ever EBIT margin and free cash flow while continuing to gain share. This performance demonstrates the strength of our 24/7 brand portfolio, revenue growth management capabilities and execution excellence in our markets,” he said.
“It is driven by the strong drive and passion of our people, who continue to show great creativity and adaptability in navigating the volatile operating environment while nurturing our culture which embraces change, challenge and care.”
Bosses said 2022 was expected to be another strong year for the firm as Bodanovic hiked the target dividend range to 40-50 per cent for the year.
Volume of sales across the business jumped 14 per cent last year, driven by growth across both its emerging and established divisions,and the group’s strategic priorities.
Low and no sugar drinks jumped 47.3 per cent while adult sparkling drinks saw a 31.8 per cent surge in demand.
He added: “While mindful of inflationary headwinds and other risks, our track record and continuous focus on efficiencies give me confidence in delivering another year of EBIT growth.”