Coca-Cola HBC hikes dividend, sees strong recovery after virus hit

[ZUG, Switzerland] Soft drink bottler Coca-Cola HBC on Thursday raised its dividend and said it expects 2021 revenue to bounce back strongly as at-home demand cushions a hit to consumption in hotels and restaurants during Covid-19 restrictions.

The upbeat outlook and payout increase vaulted the British company's shares to the top of the FTSE 100 index, where they traded 5 per cent higher at £23.6 (S$43.2) by 0836 GMT.

Still, virus curbs hammered its out-of-home channel, which makes up 40 per cent of revenues, sending 2020 comparable net profit 17.4 per cent lower to 431.4 million euros (S$693 million).

"We expect to see a strong FX-neutral revenue recovery in 2021 on the back of gradual volume recovery against the CoviD-19 impact in 2020... Performance in the at-home channel strengthened through the year," said the company, which bottles and sells Coca-Cola drinks in 28 countries.

It proposed a dividend of 0.64 euros per share for 2020, a 3. per cent increase year-on-year.

The main US company, Coca-Cola Co, forecast a return to organic revenue growth this year, betting vaccine rollouts across the world will encourage consumers to return to cinemas and sporting events.

REUTERS