Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — H1 2017 Earnings Presentation
23 slides from Coca-cola Hbc's earnings presentation, Aug 10, 2017
Slide 1: Results presentation Half-year 2017
Results presentation Half-year 2017 10 August 2017
Slide 2: Forward-looking statements
Forward-looking statements 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 doc
Slide 3: Excellent first half performance
Excellent first half performance Half-year highlights • FX-neutral net sales revenue up 5.7% • Substantial improvement in FX-neutral revenue per case, up 4.3% • Volume up by 1.4%, with positive performance in all segments • Operating expenses as percentage of net sales revenue improved by 40bps • Co
Slide 4: Financial review
Financial review Michalis Imellos | Chief Financial Officer
Slide 5: Financial performance overview
Accelerating growth Financial performance overview HY '17 HY '16 change • FX-neutral net sales revenue Volume (m u.c.) 1,020.9 1,007.3 1.4% growth, up by 5.7% Net sales revenue (€m) 3,213.4 3,043.9 5.6% • Volume up by 1.4% FX-neutral net sales revenue (€m) 3,213.4 3,039.8 5.7% • Pricing actions and
Slide 6: Financial performance overview
Accelerating growth Financial performance overview HY '17 HY '16 change • Better price/mix and volume Comparable EBIT (€m) 291.1 229.6 26.8% leverage, more than offset increase in input costs and currency Comparable EBIT margin 9.1% 7.5% 150bps headwinds Comparable net profit (€m) 209.6 150.4 39.4%
Slide 7: Revenue performance in detail
Actions gaining traction Revenue performance in detail HY '17 vs. HY '16 Total CCH Volume 1.4% FX-neutral revenue per case 4.3% Established markets Volume 0.8% FX-neutral revenue per case 0.2% Developing markets Volume 0.8% FX-neutral revenue per case 3.4% Emerging markets Volume 1.9% FX-neutral rev
Slide 8: Input cost increases weighted to the second half
Actions ensuring cost control Input cost increases weighted to the second half • Input cost per case up 2.4% in the period on an FX-neutral basis • Contracts ensured favourable sugar costs in Europe • World market sugar prices grew • PET resin prices increased, reflecting higher oil prices, offset b
Slide 9: Operating leverage and cost efficiencies
Lean platform driving profit growth Operating leverage and cost efficiencies HY '17 HY '16 change • Operating leverage and ongoing cost Volume (m u.c.) 1,020.9 1,007.3 1.4% efficiency measures driving a 40 bps improvement in OPEX as % of revenue Net sales revenue (€m) 3,213.4 3,043.9 5.6% Comparable
Slide 10: Profit and margin growth
Established markets delivering profitability Profit and margin growth Comparable EBIT Comparable EBIT margin HY '17 HY '16 HY '17 change Established +3 106.7 103.8 8.9% 20bps Developing -10 33.3 43.0 6.0% -220bps Emerging +68 151.1 82.8 10.4% 410bps Total CCH +62 291.1 229.6 9.1% 150bps Financial in
Slide 11: Restructuring plans
Maintaining a lean platform Restructuring plans HY 2017 €13m of pre-tax restructuring costs in the period Restructuring efforts focused mostly on the Established markets FY 2017 Going forward we expect: • pre-tax restructuring charges totalling €26m for 2017 • total annualised benefits from 2017 ini
Slide 12: Free cash flow expected to normalise over the full year
Operational profitability generating cash Free cash flow expected to normalise over the full year HY '17 HY '16 change • Free cash flow lower than EBITDA (€m) 423.2 396.0 27.5 prior-year period due to phasing of certain working capital items Working capital change (€m) -101.4 16.2 -117.6 Net capital
Slide 13: Financing cost
Balance sheet efficiency Financing cost • €600 million November Debt maturity profile Half-year financing cost movements 2016 bond refinancing drives financing cost €800 improvement m €3.8m €35.0m €8.4m • €7.6 million savings on €600 an annual basis m €1.9m €3.7m €17.5m 2020 2024 HY 16 Lower One-off
Slide 14: EBIT margin development
Operating leverage driving margin expansion EBIT margin development +0.2pp -1.5pp -0.5pp +3.0pp +0.3pp 7.5% 9.1% 2016 HY Volume Revenue Cost FX & Input OpEx 2017 HY EBIT margin leverage leverage efficiencies costs one-offs EBIT margin 1.4% Volume 4.3% FX- Net result of Bad debt growth neutral revenu
Slide 15: Operational review and strategy
Operational review and strategy Dimitris Lois | Chief Executive Officer
Slide 16: HY volume by segment
Building volume momentum HY volume by segment +0.8% +1.9% +0.8% 1,021 1,007 HY 16 Established Developing Emerging HY 17 Results presentation | Half-year results | August 2017 16
Slide 17: Volume growth by category
Meeting the evolving preferences of our consumers Volume growth by category YoY growth HY '17 HY '16 Sparkling 1.8% 0.9% Trademark Coca-Cola 2.3% 0.3% Coca-Cola Zero 20.3% 11.3% Juice -1.8% -5.0% Multon brands 1.4% -11.0% Water 0.7% - Energy 17.6% 23.3% Tea -6.4% -6.1% Results presentation | Half-ye
Slide 18: Established markets
Focusing on value and execution Established markets Italy -2% Trademark +13% Coca-Cola Excellent volume growth in Stills and Energy Coca-Cola Zero Switzerland Water growing despite Good growth in Fanta the delisting of low value and Coca-Cola Zero brands +6% Decline driven by RTD Sparkling decline –
Slide 19: Developing markets
Continuing broad-based growth Developing markets Poland Volume up low single digits +3% Trademark +26% Coca-Cola Growth in Sparkling and Coca-Cola Zero Energy Declines in Water Czech Republic -11% Volume up high single digits All categories grew except for Water Hungary Water Mid single-digit volume
Slide 20: Emerging markets
Growing despite challenges in two major markets Emerging markets +5% Trademark -1% Juice Coca-Cola Romania Maintained positive +1% growth trend for the 10th quarter Growth in all categories Water Russia Market remains Nigeria challenging +1.9% +8.6% Good growth in Low single-digit volume Trademark C
Slide 21: Looking ahead to the second half of the year
Confident in maintaining growth Looking ahead to the second half of the year Good volume growth trends to continue FX-neutral net sales revenue per case to moderate Input cost headwind reducing to mid single-digit increase FX headwinds eased; now expected to be broadly unchanged for the full year An
Slide 22: Q&A
Q&A For further information on Coca-Cola Or contact our investor relations team Hellenic please visit our website at: investor.relations@cchellenic.com www.coca-colahellenic.com +30.210.6183 100
Slide 23: Most known brands in the world
Diverse Consistent Strong focus geographic Solid track Most Low per capita growth in on cost footprint record known consumption currency- leadership with strong of winning brands in with potential neutral and history emerging in the the world for growth revenue per of solid cash market marketplace c