Business
Strategy/Company/Ops Update
Strategy/Company/Ops Update.
About this update from Coca-cola Hbc Ag
[{"type":"text","content":"\n \nRNS Number : 3126A Coca-Cola HBC AG 06 June 2016 \n\n \nFOR IMMEDIATE RELEASE\nCoca-Cola HBC AG Investor Day\n \nENTERING THE GROWTH ERA\n \nCoca-Cola HBC AG (\"Coca-Cola HBC\", \"Company\"), a leading bottler of the brands of The Coca-Cola Company, is hosting an investor event in London today, 6 June 2016, where management will present to investors and analysts on the Group's medium-term strategy. \nThe Company reported its first quarter trading update on 13 May 2016. No new trading information will be provided at the investor day. We will be discussing our plans to promote volume and value growth, and further improvements to operational efficiency. \nIn 2015 we delivered the best performance in five years in terms of volume growth and margin progression. We believe this reflects the underlying strengths of our organisation, including the flexibility to respond to evolving consumer trends and a dynamic retail landscape.\nLooking ahead, we expect an improving external environment to support growth in our markets over the period to 2020, including average annual non-alcoholic ready-to-drink industry volume growth of approximately 1.5% across our territory. This stronger backdrop, combined with the inherent growth opportunities in our portfolio, underpins our aspirations for an acceleration of performance going forward. Assuming this level of industry volume growth, our medium-term growth targets include:\n· average annual revenue growth rate in the range 4-5% on a currency-neutral basis (2015: 2.9%);\n· a reduction in comparable operating expenses as a percentage of net sales revenue to 26-27% (2015: 29.2%); and\n· comparable EBIT1 margin improvement to 11% (2015: 7.5%).\n \nWe reiterate our capital expenditure target as 5.5-6.5% of net sales revenue and our commitment to maintaining a negative working capital balance sheet position.\n \nDimitris Lois, Chief Executive Officer of Coca-Cola HBC AG, commented\n\"Over five years and in a difficult external environment, we have created a more efficient and stronger business that is now primed for growth in improving market conditions. We have a balanced spread of territories with structurally attractive characteristics and specific plans for growth. We have reflected these facto...