27th Mar 2020 08:34
(Alliance News) - Coca-Cola HBC AG on Friday said it still expects to propose a dividend despite potential disruption from Covid-19 to its business going forward.
The soft drinks bottling company said it has implemented contingency and business continuity plans in order to ensure its production plants and supply chain remain fully operational during the coronavirus outbreak.
However, Coca-Cola HBC warned that it may see some disruption going forward as governments step up their efforts to control the spread of Covid-19.
Trading in January and February was in line with expectations, Coca-Cola HBC said. However, during March, trading across the company's markets has been dependant on the severity of restrictions on mobility put in place in different geographies.
In markets with heavy restrictions, such as Italy and southern Europe, demand in the 'out of home' channel has been hurt, the company noted.
As a result, Coca-Cola HBC said it is looking to implement cost-saving measures and reassessing marketing and capital expenditure investments. These actions will help to support profitability, the company highlighted.
"Given the uncertainty of the duration and economic impact of this global pandemic, we no longer believe that it is prudent to provide guidance for the current financial year," the company said in its statement Friday.
However, Coca-Cola HBC said it still intends to propose a dividend of EUR0.62 per share to our shareholders in June.
"Our strong balance sheet and liquidity position, our leading market shares and largely variable cost base, together with our unique portfolio of brands and resilient and talented people will allow us to weather this unprecedented crisis," the company said.
Coca-Cola HBC said its ratio of net debt to earnings before interest, tax, depreciation and amortisation was 1.54 times, and it noted that none of its debt facilities are subject to any financial covenants that would impact liquidity or access to capital.
The stock was trading 1.4% lower on Friday at 1,722.50 pence a share in London.
By Evelina Grecenko; [email protected]
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