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.
De-Stocking
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.
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