(Alliance News) - Coca-Cola Europacific Partners PLC reported strong results for the first half of 2021, helped by its acquisition of Sydney-based bottling peer Coca-Cola Amatil Ltd.
The Uxbridge-based soft drinks company made pretax profit of EUR455 million in the six months ended July 2, more than doubling from EUR211 million a year prior. Revenue was EUR5.92 billion, up 22% from EUR4.84 billion.
It said that the successful integration of Coca-Cola Amatil, which expanded its distribution in Australia, the Pacific and Indonesia, helped to enhance top-line growth, operating margin and free cash flow generation.
CCEP bought Coca-Cola Amatil from its independent shareholders and US brand owner Coca-Cola Co. The deal valued Amatil at AUD9.77 billion, about GBP5.40 billion, and completed in May.
Volume in the period was up 18%, with 1.23 billion unit cases selling compared to 1.04 billion in 2020.
Operating profit climbed 94% to EUR520 million from EUR268 million. Operating expenses were up 11% at EUR1.56 billion from EUR1.40 billion.
"Together with The Coca-Cola Company and our other franchise partners, our collective focus on our core brands alongside solid in-market execution has served us well, growing share both instore and online," said Coca-Cola EP Chief Executive Damian Gammell.
"We are resolved in our determination to move further and faster towards a stronger and even more sustainable future."
Two of the company's manufacturing sites in Spain and Sweden were certified carbon neutral in the half-year.
Coca-Cola EP plans to announce its full-year dividend in the third quarter.
Looking forward, it expects full-year revenue growth between 26% and 28% on a comparable basis and operating profit growth of 40% to 44%.
"Whilst we are reassured by the pace of recovery and are cautiously optimistic, our strong H1 performance and full-year guidance for 2021 demonstrate our confidence in the future of our business," added Gammell.
Shares in Coca-Cola EP were flat at EUR48.83 in London on Thursday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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Coca-cola Euro. (CCEP)