(Alliance News) - Coca-Cola Europacific Partners PLC on Wednesday said annual profit nearly doubled, helped by its acquisition of Coca-Cola Amatil, as it lifted its dividend above pre-virus levels.
The soft drink bottler said revenue increased 30% to EUR13.76 billion in 2021, from EUR10.61 billion in 2020, due to its acquisition of Coca-Cola Amatil in Australia. Pretax profit almost doubled to EUR1.38 billion from EUR695 million.
"2021 was an extraordinary year for CCEP. We are a stronger, more diverse business, built on great people, great service and great beverages - done sustainably. Solid top-line recovery, value share gains, operating margin expansion and remarkable free cash flow generation demonstrate our strong performance in a challenging environment. Our results also reflect the successful acquisition and integration of Coca-Cola Amatil," Chief Executive Damian Gammell commented.
The Uxbridge, England-based soft drinks bottler bought Sydney-based Coca-Cola Amatil from its independent shareholders and US brand owner Coca-Cola Co. The deal valued Amatil at AUD9.77 billion, about GBP5.17 billion at current exchange prices, and completed back in May 2021.
Following the acquisition, CCEP renamed itself Coca-Cola Europacific Partners from Coca-Cola European Partners. It previously had operated in the UK, France, Germany, Spain and Portugal, the Benelux region, and Sweden and Norway, while Amatil brought in Australia, New Zealand, Indonesia, Papua New Guinea and Fiji.
CCEP said pro-forma comparable currency-neutral revenue growth was 7.5% in 2021. By the same measure, it expects 6% to 8% growth in 2022.
Volumes should show a continued recovery in the year ahead as easing virus restrictions support the away-from-home category and tourism. Volumes were up 4.5% year-on-year on a comparable and proforma basis in 2021, but down 5.5% on 2019.
"We are well-placed as we look to FY22 and beyond...In the near-term, we expect to see further volume and mix recovery whilst managing our key levers of pricing, promotional spend and driving efficiencies across our business, collectively with the aim of mitigating inflationary pressures," said Gammell.
CCEP lifted its annual payout to EUR1.40 per share, up 65% on the year before and 13% higher than two years ago. For 2022, it will pay two interim dividends, rather than one final one.
Shares were down 0.6% at EUR50.38 in London early Wednesday.
By Lucy Heming; lucyheming@alliancenews.com
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Coca-cola Euro. (CCEP)