CC HBC (H1:21 review):
The company reported a better than expected set of Q2/H1:21 set of financial results characterized by ongoing recovery in volumes across all segments, market share gains and effective cost control. In more details:
· FX-neutral revenue growth +23.1% like-for-like. Reported revenues +14.7%.
· FX-neutral net sales revenue closed 4% above 2019 levels (like-for-like)
· Value share gains increased, + 50bps in NARTD
· Volume growth of 15.9% like-for-like; sustained performance in the at-home channel complemented by recovery in out-of-home during Q2
· Improvements in FX-neutral revenue per case, benefited from pricing taken in over 90% of our markets and positive category, package and channel mix
· Sparkling volume +16.2%, with Adult sparkling +37.0% and Low/no sugar +40.3%. Energy volume + 66.1%.
· Costa Coffee roll-out continues to progress well; Coffee strategy strengthened with premium Italian brand, Caffè Vergnano, to start distribution by 2022
· Operating leverage and cost savings resulted in comparable EBIT margin up 340 bps to 10.8%. €120 million of COVID-related opex savings were achieved in 2020. CC HBC expects to retain c. €20 million of this in 2021 and therefore €100 million of these costs to return in H2 2021.
· CAPEX reached €218.4 million, 6.7% of net sales revenue, at the lower end of targeted 6.5-7.5% range.
· Free cash flow was €277.5 million, an increase of €316.0 million compared to the prior-year period, driven by higher profitability and a significant improvement in working capital.
· Established: FX-neutral revenue increased by 17.1% as markets reopened, driving comparable EBIT margins up 440bps
· Developing: FX-neutral revenue up 17.6%, with stable volume performance despite impact from Polish sugar tax; comparable EBIT margins up 180bps
· Emerging: FX-neutral revenue up 30.3% like-for-like; continued strong performance from Russia and Nigeria and recovery through the rest of the segment led to comparable EBIT margins increasing by 340bps.
- Overall a sound set of H1:21 financial performance across the board which will please the market.
- The following table summarizes consensus forecast on CCHBC Q2/H1:21 financial performance vs consensus estimates:
COCA COLA |
2020 |
2021 |
Y-o-Y |
2021 |
Act. vs |
EUR m. |
Η1 |
Η1 |
(%) |
FY Est. |
Est. |
Sales |
2,831.2 |
3,247.9 |
14.7% |
3,184.8 |
2.0% |
EBITDA |
399.8 |
514.7 |
28.7% |
483.4 |
6.5% |
EBITDA Mrg |
-22.5% |
15.8% |
+3,835 bps |
15.2% |
4.4% |
Net Income |
124.0 |
233.1 |
88.0% |
193.70 |
20.3% |
Net Mrg |
4.4% |
7.2% |
+280 bps |
6.1% |
18.0% |
- Conference Call details: Thursday August 12 / 10:00 CEST
Dial in numbers
· Greece: 00800 1273 78
· UK: 0808 109 0700
· USA: 1 866 966 5335
John Kalogeropoulos
Equity Analyst
29 Alexandras Avenue
11473 Athens,Greece
Tel: +30 210 6478751
Email: [email protected]