Coca Cola HBC Sees Signs Of Recovery After H1 Profits Slide

By Donna Ahern
Coca Cola HBC Sees Signs Of Recovery After H1 Profits Slide

Soft drinks bottler Coca Cola HBC AG on Wednesday posted a drop in first-half profit due to coronavirus-led closures of restaurants, cinemas and other public places, while saying sales had recovered some momentum from April lows as lockdowns eased.

The company, which bottles and sells Coca-Cola Co drinks in 28 countries, said comparable operating profit fell 35.8% to €208.8 million ($246.49 million) for the six months ended 26 June, missing company-supplied consensus of €191.7 million.

HBC said out-of-home volumes - which include sales at hotels, restaurants and cafes - during the initial weeks of lockdowns fell by 70%-90% but improved to declines of 25%-50% in May and June and 10%-40% in July.

The company's out-of-home channel typically accounts for slightly over 40% of its revenue.



The Zug, Switzerland-based company said its retail sales improved since April, when performance was hit by some customer de-stocking.

HBC said it expects a negative impact for 2020 due to weaker consumer environment and tourist season, as well as the risk of a second coronavirus wave.

U.S.-based Coca-Cola Co owns a 23.2% stake in Coca-Cola HBC, according to Refinitiv data.

News by Reuters edited by Donna Ahern, Checkout. Click subscribe to sign up for the Checkout print edition.

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