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Coca-Cola Europacific Partners has reported ‘strong’ first half performance as volumes recovered in the second quarter as coronavirus restrictions eased across key territories.

Pro forma comparable volumes were up 22% in the three months to 2 July driven by the reopening of the away from home (AFH) channel across most of its markets and the soft comparable period in 2020.

AFH volumes were up 54% reflecting reopenings and the recovery of immediate consumption packs.

Its Home channel was up 8% supported by recovery of immediate consumption and continued growth in future consumption packs, with multipack cans up 3.5% from last year and 19% on 2019.

Second quarter pro forma revenues were up 29%, with reported revenue up 53.5%.

Sales (Fx neutral) were up in all territories, with GB up 27.5%, France 23%, Germany 25.5% Iberia 67.5% and newly acquired Asia Pacific up 27%.

GB performance reflected strong AFH rebound & restocking following the easing of restrictions, increased domestic tourism and cycling soft comparables. CCEP said Coca-Cola Zero Sugar and Monster continued to outperform, with volumes up against 2019 figures.

This strong second quarter performance saw first half pro forma revenues rise 11.5%, with comparable volumes up 6%.

Pro forma revenue per unit case increased 3% in the period, reflecting favourable brand mix alongside positive pack and channel mix driven by the improvement in AFH volumes in Q2 and favourable underlying price.

First half pro forma comparable operating profit was up 58% with reported operating profit up 94%.

Improved operating profit was driven increased revenues, the benefit of ongoing efficiency programmes and the company’s continuous efforts on discretionary spend optimisation.

Cost of sales per unit case increased 1.5%, reflecting increased revenue per unit case driving higher concentrate costs, emerging commodity inflation and adverse mix, partially offset by the favourable recovery of fixed manufacturing costs given higher volumes.

Its acquisition of Coca-Cola Amatil completed 10 May 2021 and integration is “well underway and on track”.

CEO Damian Gammell commented: “We are pleased to report a strong H1 performance, as we confidently navigate the varied impact of the pandemic across our markets, with our focus remaining on supporting our people, customers and communities.

“Top-line growth, operating margin improvement and stronger free cash flow generation demonstrate the strength of our business and the successful integration of Coca-Cola Amatil. We continue to be excited by this opportunity, being unlocked through the great collaboration and sharing across all our European markets and API.

“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. We are resolved in our determination to move further and faster towards a stronger and even more sustainable future. We continue to protect our business for the short-term whilst engaging in ongoing transformational programmes. We are taking meaningful actions to adjust our cost base to be fit and competitive for the longer-term, and we continue to invest for future growth, particularly in digital, sustainability, our portfolio and our people.

“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. We will go further together, creating greater, more sustainable value for all stakeholders.”

For the full year CCEP expects revenue comparable growth of 26%-28% and comparable operating profit growth of 40%-44%.

Morning update

Domino’s Pizza Group has completed the disposal of its entire shareholding in Domino’s Switzerland.

It announced on 9 August it had agreed to sell its Swiss business for CHF0.3m (£0.2m).

The disposal of Domino’s Switzerland is the final part of DPG’s planned exit from all directly operated international markets as part of a strategy to focus on its core UK and Ireland operations.

Last night the quarterly FTSE index review was completed, with Morrisons re-entering the index of the UK’s top 100 companies after its bid-driven share price surge saw its value jump to around £7bn.

Just Eat Takeaway.com has dropped out of the FTSE 100 after the index ruled it is a Dutch-domiciled firm rather than a British company.

On the markets this morning, the FTSE 100 has opened flat at 7,151.8pts.

Early risers include Science in Sport, up 2% to 75p, THG, up 1.6% to 647.6p and McBride, up 1.5% to 80p.

Fallers include Unilever, down 2.2% to 3,957p, Britvic, down 1.5% to 969.5p and Coca-Cola HBC, down 1.4% to 2,625.4p.

Yesterday in the City

The FTSE 100 regained the ground it lost on Monday yesterday, climbing back 0.4% to close at 7,149.8pts.

Risers included online retailers such as Just Eat Takeaway.com, up 7.6% to 7,055p, Ocado, up 3.6% to 2,086p, THG, up 3.6% to 637.5p, Naked Wines, up 3.6% to 870p and Deliveroo, up 3.2% to 359.7p.

Other risers included Marks & Spencer, up 2.8% to 184.5p, Nichols, up 2.5% to 1,347.5p, Greggs, up 2.5% to 3,117p and C&C Group, up 2.1% to 252p.

WH Smith fell 3.8% to 1,570p yesterday despite revealing it had performed better than expected as customer numbers at its travel sites and high street stores slowly recovered with Covid restrictions easing over the summer. Its shares ended the day

Other fallers included McColl’s Retail group, down 6.4% to 20.6p, Glanbia, down 2.8% to €14.63, Parsley Box, down 2.4% to 123.5p, Greencore, down 2.1% to 139p and Hilton Food Group, down 1.4% to 1,170p.

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