![Coca Cola HBC: Profits of 578.1 million in 2021](https://www.ot.gr/wp-content/uploads/2022/02/coca-cola-768x461-1.jpeg)
In the shadow of the threat of an all-out invasion of Ukraine by Russia, two countries that have a significant place in the financial figures of Coca Cola HBC, the multinational group announced the results for the entire financial year that ended on December 31, 2021.
With double-digit revenue growth and a strong 34% recovery in net profit, Zoran Bogdanovic, CEO of Coca-Cola HBC AG, says that strong sales are expected in 2022, while he is convinced that there will be an increase in operating profits for another year. despite significant inflationary pressures.
Full-year highlights
- Effective execution in a volatile environment drove strong recovery
- FX-neutral revenue growth +20.6% like-for-like. Reported revenues +16.9%
- Business gained momentum in Q4, with FX-neutral revenue closing 10% above 20192 levels for the year like-for-like
- Value share gains continued to increase, +80bps in NARTD
- Volume growth of 14.0% like-for-like, or 13% on a reported basis, led by the Emerging and Established segments as well as the strategic priorities in our portfolio
- Sparkling volume +13.8%, Low/no sugar +47.3%; Adult sparkling +31.8%
- Energy volume + 45.3%, driven by the performance of Monster, Burn and Predator
- Strength of brand portfolio demonstrated as pricing and other revenue growth management actions drove FX-neutral revenue per case +5.8%, or +3.9% excluding Poland
- Consistent investment behind strategic priorities building growth momentum
- Costa Coffee now available in 17 markets; Caffè Vergnano launched in Q4, now live in 5 markets
- Geographical expansion into Egypt adds exciting growth opportunity, integration on track
- Net Zero commitment backed by €250 million investment by 2025
- Expanded EBIT margin while increasing marketing investment
- Comparable EBIT grew by 23.6% with margins +60bps to 11.6%, including c. 30bps benefit from Cyprus property sale. Reported EBIT grew by 21.0%
- Opex as a percent of revenue improved by 2.2pp, driven by operating leverage, cost savings higher than plan; 30 bps benefit from Cyprus property sale
- Marketing expenditure +63%, full year spend almost back to pre-pandemic levels
- Strong earnings growth, record high free cash flow and increased dividend pay-out target range
- Comparable EPS up 33.7% to €1.58 on lower tax rate; free cash flow increased by €104.3 million to €601.3 million
- Increased dividend pay-out ratio target to 40-50%, previously 35-45%
- Board of Directors to propose ordinary dividend of €0.71 per share, up +10.9% year-on-year
Segment highlights
Emerging segment strong momentum and ongoing Established and Developing segments recovery
- Established: FX-neutral revenue increased by 13.9% with volumes up 9.9% as in-market execution capitalised on reopening. Comparable EBIT expanded 43.9%, or 33% excluding the Cyprus property sale.
| - Developing: FX-neutral revenue up 18.0%, with volumes up 0.8% and comparable EBIT up 4.3%, despite impact from Polish sugar tax.
- Emerging: FX-neutral revenue up 27.1% like-for-like driven by strong momentum in Nigeria, Russia, and Ukraine and recovery through the rest of the segment. Comparable EBIT grew by 17.3%.
Increase in sales volume in Greece
The sales volume in Greece increased by 15.6% in the whole year. The country has benefited from the reopening of the hotel, restaurant and coffee industry (HoReCa) in early May, combined with extensive market launches in the summer.
Sales volume increased in all categories, with good performance on low- and zero-sugar Coca-Cola brand products, carbonated soft drinks for adults and energy drinks, while the Costa Coffee brand contributed to sales performance.
Non-carbonated soft drinks continued to show strong recovery, with a high double-digit increase.
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:
“The business has delivered a very strong recovery in 2021, with all key metrics above pre-pandemic levels, the result of consistent and disciplined focus on our strategic priorities over the last few years. 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. 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. Our results and strong future plans are also a reflection of our stronger than ever partnership with The Coca-Cola Company.
2021 also marked 70 years since our early beginnings in Nigeria and I am more excited than ever by the growth potential of our business, further strengthened with the addition of Egypt to our country portfolio.
Revenue growth management actions focused behind both premium and affordable offers, as well as pricing and ongoing productivity improvements have enabled us to continue investing behind our strategic priorities, including in capabilities development, whilst achieving EBIT margin expansion.
We are encouraged by the momentum we see in the business. We expect 2022 to be a year of strong sales supported by ongoing volume momentum, pricing actions and beneficial category mix. 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. Given the positive long-term outlook for the business we are increasing our targeted dividend pay-out range to 40-50%.”
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![Cosco: Container Traffic Decline at Piraeus Port Continues](https://www.ot.gr/wp-content/uploads/2024/07/olp1-scaled-1-2048x1312-1-600x384.jpg)
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
![ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock](https://www.ot.gr/wp-content/uploads/2024/07/ot_georg_PROIONTA_money-1-600x352.png)
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
![Balkans Blackout Highlights Climate Threats to Power Grids](https://www.ot.gr/wp-content/uploads/2024/07/blackout-1-600x457.png)
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
![Greece in Top 4 Destinations Favored by European Tourists](https://www.ot.gr/wp-content/uploads/2021/06/ploio-600x400.jpg)
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
![Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive](https://www.ot.gr/wp-content/uploads/2024/06/euros-2048x1365-1-600x400.jpg)
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
![First Seaplane Test Flights to Skopelos, Alonissos, Skyros](https://www.ot.gr/wp-content/uploads/2024/06/hellenic-seaplanes-pilotikes-ptiseis-ydatino-pedio-lavriou-600x450.jpeg)
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight
![ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y](https://www.ot.gr/wp-content/uploads/2023/08/unnamed-41.jpg)
ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y
The same price index had decreased 20.8% from May 2022 to May 2023
![Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated](https://www.ot.gr/wp-content/uploads/2024/06/ergasia-ergazomenos-600x300.jpg)
Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated
Specifically, the option "Subjective opinions are prioritized over objective data" ranked highest in importance for young employees, with a score of 3.89 out of 4
![OECD: Job Vacancies on the Rise in Greece](https://www.ot.gr/wp-content/uploads/2024/07/ergasiabusinness-768x556-1-1-600x434.jpeg)
OECD: Job Vacancies on the Rise in Greece
By the fourth quarter of 2023, job vacancies per unemployed person had risen by more than 4, with the index reaching 446 units compared to 100 units in late 2019