23rd Mar 2020 11:22
(Alliance News) - Coca-Cola European Partners PLC on Monday said it has suspended its share buyback programme until further notice due to Covid-19.
The bottling company said it is working closely with suppliers, partners and Coca-Cola Co to ensure it is adapting to best serve its customers.
CCEP said it continues to build finished goods and raw material inventory and is shifting resources to meet changing customer demand from the away-from-home channel to the home channel.
Furthermore, the company said it is working with community partners to support them through this "difficult" time.
In terms of trading, CCEP said it has started to see an increasing impact on the away-from-home channel with some volume moving to the home channel.
CCEP is reviewing operating expenditure, including reducing discretionary spend in areas such as marketing, promotions, seasonal labour and merchandising.
In addition, the company suspended its EUR1 billion share buyback programme, with EUR130 million repurchased to-date.
CCEP said it has strong cash generation and good access to liquidity, with EUR1.8 billion available, being the aggregate of accessible cash and committed, unsecured bank facilities.
"Whilst we remain confident the post-pandemic future of the business remains strong, the significant uncertainty in relation to the duration and impact of the situation on our markets, leads us to believe it is appropriate to withdraw our guidance for the current financial year," the company said in its statement Monday.
The company will publish a first-quarter trading update on April 28. Shares were down 5.4% on Monday morning in London at EUR30.00.
By Evelina Grecenko; [email protected]
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