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The group says the slowdown comes because of the timing of new content, and we’re cautiously optimistic it will be able to reach the much needed 2.5m figure.
While a big content bill is to be expected, we’d like to see margin expectations of 19 – 20% are intact.
Last we heard, organic sales for 2022 are expected to grow around 5% and next week’s trading update should shed some light on whether that outlook remains intact.
Pricing rose 3.1% in the final quarter of last year, to offset some of the headwinds mentioned above.
On a product level, coffee was the strongest contributor to organic growth last year.
A strong second half to last year, led by the performance of more premium brands like Moretti and Heineken, has given the group some momentum into 2022.
2022 will see the group expand its offerings in the more health-conscious beverage sector with products like Desperados Virgin Mojito and Lagunitas non-alcoholic IPA.
The group’s unlikely to give any specifics on margins next week, but commentary on how rising costs are being managed will be watched closely.
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