Bottler Coca-Cola HBC trounces profit estimate as demand soars (updated)

Coca-Cola Consolidated

22/02/2022 07:44

(Adds details and background)
    Feb 22 (Reuters) - Coca-Cola HBC AG'S  CCH.L  annual profit
trounced market expectations, led by higher demand for low-sugar
and energy drinks as more people dined out after COVID
restrictions eased, the drinks bottler said on Tuesday.
    HBC is one of Coca-Cola's many bottlers worldwide and holds
local Coca-Cola franchises to bottle and sell drinks produced by
the U.S. beverage giant, which holds a roughly 23% stake in the
Switzerland-headquartered company.
    "The business has delivered a very strong recovery in 2021,
with all key metrics above pre-pandemic levels," Chief Executive
Officer Zoran Bogdanovic said in a statement, adding that the
company was mindful of inflationary pressures ahead.
    The company raised its dividend payout range to 40% to 50%
from 35%-45%.
    FTSE 100-listed  .FTSE  Coca Cola HBC, which operates in 29
countries across Europe and Africa, said comparable operating
profit for the year ended Dec. 31 jumped nearly 24% to 831
million euros ($939 million), topping a company-provided market
estimate of 797.6 million euros.
    Soft drink makers such as Coca-Cola  KO.N  and PepsiCo
 PEP.O  have flagged profit pressures for this year from a
relentless rise in costs related to labour, shipping and
aluminium cans, pushing them to hike prices.  urn:newsml:reuters.com:*:nL4N2UL2XE
    The London-listed company said emerging markets
like-for-like revenue jumped 27% on a constant currency basis,
with Nigeria, Russia, and Ukraine showing strong momentum. 
     
     ($1 = 0.8850 euros)

 (Reporting by Amna Karimi in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Amna.Karimi@thomsonreuters.com; +91 8083261226;))