Beverage Firms Likely To See 'Significant Profit Improvement' In 2021: Moody's
A new report from Moody's has said that leading beverage firms are likely to see a 'significant profit improvement' this year, after 'unprecedented declines' in 2020 due to the coronavirus pandemic.
The report, Return to profit growth in 2021 but credit quality improvement will lag, says that sales volumes are set to recover from a low base this year, while drinks companies will continue to focus on higher margin, premium products.
Efficiency programmes are also likely to reap dividends, Moody's said – for example, Heineken is targeting €2 billion in cost savings by 2023, through cutting its workforce by 10% and implementing a number of efficiency measures.
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