Coca-Cola HBC Earnings Slump 12%, Hikes Dividend
Coca-Cola HBC bumped up its dividend for 2022, despite recording a year-over-year decline in attributable profit due to major foreign currency translation losses.
Full year earnings fell about 12% to 703.8 million euros ($755.5 million), beating company-compiled analysts’ consensus of 658.2 million euros.
The Switzerland-headquartered bottling company said Tuesday that its board intends to propose a full-year dividend of 0.78 euro per share, up 9.9% from the year-ago period.
The dividend is payable in 2023, subject to approval by shareholders at the company’s upcoming annual general meeting.
The dividend was boosted on the back of a 14.2% surge in the bottler’s net sales revenue to 9.20 billion euros. The “record levels of revenue” were driven by price and mix, as well as good consumer demand for the company’s products, according to Chief Executive Officer Zoran Bogdanovic.
Despite the improved revenue, the London-listed group’s profit after tax attributable to owners of the parent declined to 415.4 million euros from 547.2 million euros as net finance costs rose by 15.1 million euros during the period.
The cost increase was triggered by a higher interest expense due to the consolidation of Egypt, as well as the increased hedging cost of borrowings in Nigeria. Additionally, it reflects a year-over-year surge in foreign currency translation losses to 252.6 million euros.
Nonetheless, Coca-Cola HBC forecasts a group organic revenue growth above its average target range of 5% to 6% in 2023. Meanwhile, organic EBIT growth is estimated to be between -3% and +3%, with net finance costs to be at a similar level as that in 2022.
Still, full-year net sales revenue rose 28.3% to 9.20 billion euros. Coca-Cola HBC said costs it incurred per case in 2022 rose 17% and it expected this to increase by low teens percent this year. #Coca-Cola HBC Earnings Slump 12%, Hikes Dividend
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