Bottling firm Refresco has posted what it described as a 'solid' performance in the first half of its financial year, with a strong first quarter followed by volume reductions at the start of Q2.
According to the preliminary results, adjusted EBTIDA at the business was up 8% for the half-year period, to €233 million, it said.
Volume Impact
Refresco said that volumes saw a boost in the first quarter due to consumer stockpiling, a process which in turn led to a negative volume impact at the start of the second quarter.
'However, volumes have steadily recovered during the quarter, with June volumes already ahead of last year,' it said. 'Despite COVID-19 headwinds, volumes in Q2 2020 are largely in line with the same period last year.'
Over the half year, volumes were up 3% to 5.75 billion, up from 5.58 billion a year earlier.
Gross profit margin at the business was up by 6% to €925 million, it added, while total capital expenditure for the first half stood at €83 million, down slightly on the same period last year.
Overall, the company said that its first-half performance 'underlined Refresco's resilience', adding that its priority to 'ensure the health and safety of our employees, combined with a strong focus on service deliver to our customers, allowed us to continue to operate without any major production interruptions'.
New Term Loan
The company unveiled the trading update as it announced the placement of a new €400 million Term Loan B, which the company will use for 'accretive acquisition opportunities'.
The total in outstanding term loans amounts to €2,26 billion. In addition, the existing revolving credit facility is expected to increase by €100 million to €300 million, and has been placed with a consortium of banks.
Refresco, one of the largest independent bottlers for retailers and A-brands in Europe and North America, will publish further information and full financial results for the first-half period on 13 August.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
