Coca-Cola HBC share price was down on Tuesday morning after CCHBC released 2021 earnings.
Coca-Cola HBC shares were trading down at 4% despite optimistic yearly report on Tuesday morning.
The group’s reported revenues increased by 16.9% helped by 14% volume-growth in their diversified brand portfolio and their strategic developments.
Emerging markets were a big driver of higher revenues with revenue up 27.1% like-for-like helped by performance in Nigeria, Russia, and Ukraine.
The group celebrated 70 years since operations began in Nigeria which was a big contributor to their Emerging markets segment.
CCHBC’s strategic decisions going forward are focused on their emerging markets. CCHBC is expanding into Egypt, expanding their emerging markets sector. They have managed to introduce their RTD Costa Coffee to 17 markets. CCHBC is on its way to secure a £250m investment by 2025 towards their Net Zero commitment.
Coca-Cola HBC operating profit grew 21% to €799m in 2021, up from €660m in the year prior.
The drinks company said they were increasing their Dividend payouts ratio from 35-45% to 40-50%. The board has proposed a €0.71 dividend which would represent as 7.8% increase in investor payout from last year.
“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,” said Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG.
“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.”
CCHBC’s have successfully navigated the fight against sugar and government policies to reduce sugar intake. Despite the Polish government levying a sugar tax in early 2021, CCHBC developing markets managed to contribute 18% to the revenues.
Overall, optimistic results from CCHBC today.