CC HBC (H1:21 review): The company reported a better than expected set of Q2/H1:21 set of financial results

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

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·        USA: 1 866 966 5335

John Kalogeropoulos

Equity Analyst 

29 Alexandras Avenue

11473 Athens,Greece

Tel: +30 210 6478751

Email: ikalogeropoulos@beta.gr