7th Aug 2024 11:51
(Alliance News) - Coca-Cola Europacific Partners PLC on Wednesday reported lower half-year profit, as poor weather in Europe crimped volumes, but it said its geographic diversification came in handy.
The Uxbridge, London-based bottling company and beverage distributor for Coca-Cola Co in 29 European and Asian-Pacific countries said pretax profit fell 5.1% to EUR1.05 billion in the six months that ended June 28 from EUR1.10 billion a year prior.
Revenue climbed 9.5% to EUR9.83 billion from EUR8.98 billion.
Coca-Cola Europacific paid a first-half dividend of 74 euro cents in May. This was up 10% from 67c a year prior.
Chief Executive Officer Damian Gammell said: "The great performance of [Australia, Pacific & Southeast Asia], led by the Philippines, offset softer volumes in Europe driven by adverse weather. This demonstrates how our geographic diversification makes us a stronger and more robust business."
Cost of sales increased 5.8% to EUR6.33 billion from EUR5.71 billion, while administrative costs increased 18% to EUR744 million from EUR631 million. Finance costs were 37% higher at EUR129 million from EUR94 million.
For 2024, Coca-Cola EP expects comparable revenue growth of around 4%, slowed from 5.5% in 2023, and a comparable operating profit climb of about 7%, decelerated from 11% in 2023.
Reaffirming the company's outlook for 2024, CEO Gammell said: "Looking ahead, we are well placed operating in categories that remain resilient. We continue to invest for growth and have strong commercial plans in place for the rest of this year and beyond to engage customers and consumers.
"We remain focused on driving profitable revenue growth, actively managing our pricing and promotional spend to remain affordable and relevant to our consumers, alongside our focus on productivity and free cash flow."
Coca-Cola EP shares were flat at EUR67.60 each late Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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