Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Coke Bottler CCEP Plans €1.5bn Share Buyback, Sees Higher Profit Growth

Coca-Cola European Partners (CCEP) plans to repurchase €1.5 billion worth of shares, and raised its profit expectations for the year as the drinks bottler benefited from warmer weather in Europe.

The buyback will be carried out in New York and Amsterdam, and will begin as soon as possible, with up to 500 million euros of shares to be repurchased in 2018, the company said in a statement.

CCEP's New York-listed shares are up about 8.6% so far this year, while its Dutch shares are up about 11% in the same period.

"I am particularly pleased with how our teams across Great Britain, Germany and Northern Europe have embraced the positive challenges brought by great weather. The strong performance allows us to slightly improve our full-year outlook, despite softer summer trading in Spain and France," CCEP Chief Executive Officer Damian Gammell said.

Pleasant Summer

Britain and much of Europe have experienced warmer weather this year. Forecasts by The Weather Company in late August showed that above-average temperatures are set to continue in most of Europe during the September to November period.

CCEP improved its full-year earnings-per-share growth forecast to a range of 7-8% from its earlier range of 5-6%. The company expects full-year revenue to grow by about 2-2.5%.

CCEP also said it intends to increase the fourth-quarter interim dividend payout ratio to 50% from 45%.

CCEP was formed after the merger of three European bottlers of Coca-Cola drinks in 2015. The company's shares trade on Euronext Amsterdam, the New York Stock Exchange and the Madrid Stock Exchange.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days