Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — FY2019 Earnings Presentation
23 slides from Coca-cola Hbc's earnings presentation, Feb 13, 2020
Slide 1: Results Presentation: Full Year Results 2019
RESULTS PRESENTATION FULL YEAR RESULTS 2019 13 FEBRUARY 2020
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Unless otherwise indicated, the condensed consolidated interim financial statements and the financial and operating data or other information included herein relate to Coca-Cola HBC AG and its subsidiaries (“Coca-Cola HBC” or the “Company” or “we” or the “Group”). This docu
Slide 3: Full Year Highlights
FULL YEAR HIGHLIGHTS • FX-neutral revenue growth of 4.4% (3.7% ex Bambi) • Weather headwind worth c. 1pp of revenue growth in the year • Volume up 3.3% (2.6% ex Bambi) with strong Q4 • Price/mix up 1.0% (1.1% ex Bambi) driven by price, package and category mix • Comparable EBIT up 11.5% (9.5% ex Bam
Slide 4: Financial Review
FINANCIAL REVIEW MICHALIS IMELLOS CHIEF FINANCIAL OFFICER
Slide 5: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW FY volume up 3.3% (2.6% ex Bambi) FY ‘19 FY ‘18 change Q4 volume up 8.3% (6.8% ex Bambi) Volume (m u.c.) 2,264.5 2,192.3 3.3% All three segments grew volumes with strong Net sales revenue (€m) 7,026.0 6,657.1 5.5% acceleration in Q4 FX-neutral net sales revenue (€m) 7,
Slide 6: Continued Margin Expansion
CONTINUED MARGIN EXPANSION 11.5% growth in Comparable EBIT (9.5% ex FY ‘19 FY ‘18 change Bambi) Comparable EBIT (€m) 758.7 680.7 11.5% 60 bps of EBIT margin expansion Comparable EBIT margin 10.8% 10.2% 60bps • 10bps from Bambi Comparable net profit (€m) 522.2 480.4 8.7% Comparable EPS(€) 1.436 1.306
Slide 7: Input Costs in Line
INPUT COSTS IN LINE FX-n input cost per case up 0.6%, in-line with low-single digit guidance • Sugar and aluminium input costs improved • PET resin costs deteriorated • Shifts to low/no-sugar variants and light-weighting initiatives are helping the input cost mix 7 FULL YEAR RESULTS FEBRUARY 2020
Slide 8: Strong Operating Leverage
STRONG OPERATING LEVERAGE OPEX as % of revenue improved by 80bps FY ‘19 FY ‘18 change Volume (m u.c.) 2,264.5 2,192.3 3.3 % • 30bps is due to operational leverage on logistics and admin costs Net sales revenue (€m) 7,026.0 6,657.1 5.5 % Comparable operating expenses (€m) 1,889.3 1,842.6 2.5 % • 50bp
Slide 9: Growth and Margin Expansion Across All Segments
GROWTH AND MARGIN EXPANSION ACROSS ALL SEGMENTS Comparable EBIT Revenue change margin FY ’19 vs FY ’19 vs FY ’19 vs FY ’19 vs FY’18 excl. FY’18 excl. FY’18 FY’18 Bambi Bambi Total CCH Total CCH Volume 2.6% 3.3% EBIT margin 10.7% 10.8% FXN-NSR per case 1.1% 1.0% EBIT margin expansion 50bps 60bps Esta
Slide 10: Continued Focus on Efficiency
CONTINUED FOCUS ON EFFICIENCY FY 2019 • €37.8m of pre-tax restructuring costs in the period • Restructuring mostly benefiting our Established and Emerging segment with a focus on Italy and Nigeria • Benefits from 2018 and 2019 efforts €30m FY 2020 Going forward we expect: • Pre-tax restructuring cha
Slide 11: Strong Growth in Cash Flow
STRONG GROWTH IN CASH FLOW Free cash flow generation up 19.6% while FY ‘19 FY ’18 change investing in the business EBITDA (€m) 1,110.7 968.7 142 • EBITDA up 14.7% on higher operating Working capital change (€m) 33.2 -45.5 78.8 profit Net capital expenditure (€m) -483.6 -426.6 -57 • Working capital i
Slide 12: New Debt Raised at Lower Interest Rates
NEW DEBT RAISED AT LOWER INTEREST RATES Debt maturity profile (€m) • Raised €1.8b of gross debt (€1,563m net), with 3 new bonds at an average effective interest rate of 1.3% • Blended interest rate on bonds lowered to 2.1% from 2.7% €600m €563m €600m €700m €500m • Net finance costs increased by €25.
Slide 13: Operational Review & Strategy
OPERATIONAL REVIEW & STRATEGY ZORAN BOGDANOVIC CHIEF EXECUTIVE OFFICER
Slide 14: Continued Growth in Sparkling
CONTINUED GROWTH IN SPARKLING Strong Sparkling momentum continues driven by YoY growth FY ’19 FY’18 areas of strategic focus: Sparkling 3.5% 4.3% • Low and no-sugar variants up 26.7% Trademark Coca-Cola 5.6% 5.0% • Adult Sparkling up 7.1% Coca-Cola Zero 26.2% 29.1% Energy saw another year of strong
Slide 15: Costa - Exciting Plans Across Multiple Markets & Channels
COSTA - EXCITING PLANS ACROSS MULTIPLE MARKETS & CHANNELS 15 FULL YEAR RESULTS FEBRUARY 2020
Slide 16: Disciplined, Purposeful Innovation
DISCIPLINED, PURPOSEFUL INNOVATION 16 FULL YEAR RESULTS FEBRUARY 2020
Slide 17: Excellent Progress in Established Markets
EXCELLENT PROGRESS IN ESTABLISHED MARKETS SWITZERLAND • Lower volume attributed GREECE +2.3% +13.1% +7.3% -0.4% +13.4% to poor weather • Good volume • Good progress on price performance helped mix due to pack/price by the country’s TRADEMARK COCA-COLA ADULT architecture changes economic recovery LOW
Slide 18: Strong Price/Mix Drives Developing Markets
STRONG PRICE/MIX DRIVES DEVELOPING MARKETS POLAND • Good growth in Sparkling and CZECH REPUBLIC Energy • Volumes impacted by • Double digit growth in Adult +3.7% +11.4% +9.1% -0.4% +2.3% adverse summer sparkling weather • Strong growth in Energy, with • Strong price/mix Monster up +49% and Coke impr
Slide 19: Strong Growth in Sparkling Drives Emerging Markets
STRONG GROWTH IN SPARKLING DRIVES EMERGING MARKETS ROMANIA RUSSIA • Volume growth in all • Volumes marginally up categories except for despite tough comparable RTD tea • Good growth in Sparkling • Innovations in Sparkling and Energy spurred growth +8.7% +57.9% +80.9% -0.4% +7.5% TRADEMARK COCA-COLA
Slide 20: Europe's Most Sustainable Beverage Company
EUROPE’S MOST SUSTAINABLE BEVERAGE COMPANY 2025 FY ’19 KPI target Energy-efficient coolers for our customers (%) 28 50 Renewable electricity used in our production sites in 89 100 EU/Switzerland (%) Primary packaging collected for recovery (%) 48 75 DJSI Europe FTSE CDP Climate and Water Russell ESG
Slide 21: Looking Ahead
LOOKING AHEAD A year of stronger FX-neutral revenue growth combined with ongoing EBIT margin expansion • Faster volume growth in all segments • Continued improvement in FX-neutral revenue per case • Low-single digit input cost inflation • Impact on EBIT from FX expected break-even in the year • Cont
Slide 22: Q&A
Q&A For further information on Coca-Cola Hellenic please visit our website at: www.coca-colahellenic.com Or contact our investor relations team: Joanna Kennedy – Investor Relations Director Joanna.Kennedy@cchellenic.com +44 (0)20 3744 4230 Carla Fabiano – Investor Relations Manager Carla.Fabiano@cch
Slide 23: Significant growth opportunities and strong portfolio
Significant growth Diverse, balanced opportunities country portfolio across high-value with very low occasions and per-capita categories consumption Strongest, broadest, most flexible, 24/7 portfolio of brands Relentless focus on cost and efficiency Strong balance sheet to fuel with opportunity to l