The European Coca-Cola bottler appears to be facing a liquidity crisis!
Coca- Cola’s European distributor has been experiencing a liquidity crisis. Coca-Cola Europacific Partners’ second-quarter sales increased 54 % year over year to 3.6 billion euros, exceeding analysts’ expectations of 3.3 billion euros, according to sources. Lockdowns are already being eased, and out-of-home consumption is increasing, resulting in a $26 billion boost for the company. The majority of the profits from its Coca-Cola Amatil acquisition in Australia, on the other hand, are expected to be achieved next year.
Even though the outcome is positive, it is difficult to predict. The company’s shares in Amsterdam, Madrid, and London did not perform as well as expected. The stock was down 1.7 % in Spain, while it was up 0.5 % in the Netherlands. New York, on the other hand, is where the majority of its trading takes place. For a European company with a 44 % free float and a majority of revenue in euros, this makes no sense. Reduced rankings and a focus on Amsterdam would increase liquidity and reduce costs.
Source: Reuters
