Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — FY2023 Earnings Presentation
30 slides from Coca-Cola HBC's earnings presentation, Feb 14, 2024
Slide 1: Full Year 2023 Results
FULL YEAR 2023 RESULTS 14 February 2024
Slide 2: 2023 Highlights
2023 HIGHLIGHTS ZORAN BOGDANOVIC CHIEF EXECUTIVE OFFICER
Slide 3: Another year of strategic and operational progress
FY 2023 highlights Delivering strong performance Driving best-in-class growth Another year of strategic and operational progress Our growth strategy is working Growing Gaining Delivering affordability our market share, up 110 bps1 and premiumisation Our portfolio, operations and teams keep getting s
Slide 4: Strong financial performance in 2023
FY 2023 highlights Delivering strong performance Driving best-in-class growth Strong financial performance in 2023 Organic growth Comparable EBIT Margins and EPS + 16.9% Revenue growth €1,083.8 million 10.6% Comparable EBIT margin +1.7% Volume growth +17.7% Organic growth +21.8% Comparable EPS growt
Slide 5: All strategic priority categories delivering volume growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth All strategic priority categories delivering volume growth Sparkling Energy Coffee +2.5% +27.3% +31.5% volume growth volume growth volume growth Trademark Coke brands grew Double-digit growth for Monster Segmented strategy
Slide 6: Delivering higher growth from our diversified country footprint
FY 2023 highlights Delivering strong performance Driving best-in-class growth Delivering higher growth from our diversified country footprint Strong organic growth REVENUE EBIT Established +12.3% +23.0% Developing +18.2% +26.9% Emerging +19.9% +11.7% All percentages are of Group organic revenue or o
Slide 7: Delivering Strong Performance
DELIVERING STRONG PERFORMANCE BEN ALMANZAR CHIEF FINANCIAL OFFICER
Slide 8: Focused execution delivered strong organic growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth Focused execution delivered strong organic growth • Strong revenue growth, up 16.9% − Overcoming continued cost inflation, macroeconomic and geopolitical challenges • Volume growth of 1.7% with 6.8% organic 20.6% 16.9% vol
Slide 9: Third year of record comparable EBIT
FY 2023 highlights Delivering strong performance Driving best-in-class growth Third year of record comparable EBIT • Organic EBIT growth of 17.7% − Good conversion of price and mix initiatives, with limited impact on volumes − Effective actions on input cost inflation, 11.6% 10.8% 11.0% offset by im
Slide 10: Established markets
FY 2023 highlights Delivering strong performance Driving best-in-class growth Established markets Strong EBIT margin expansion Revenue up 12.3% • Revenue per unit case up 15.1%, driven by − price increases, weighted to H1 − positive category and package mix − 320 bps improvement in single-serve mix
Slide 11: Developing markets
FY 2023 highlights Delivering strong performance Driving best-in-class growth Developing markets Strong revenue per unit case improvement Revenue up 18.2% • Revenue per unit case up 20.2%, driven by − pricing initiatives − positive category and package mix • Volume down 1.7%, but with improving tren
Slide 12: Emerging markets
FY 2023 highlights Delivering strong performance Driving best-in-class growth Emerging markets Strong performance driven by focused execution Revenue up 19.9% • Revenue per unit case up 15.0%, driven by − pricing throughout the year − managing currency devaluation • Volume up 4.3% − Sparkling up mid
Slide 13: Comparable EPS up 21.8%
FY 2023 highlights Delivering strong performance Driving best-in-class growth Comparable EPS up 21.8% • Very strong EPS growth EPS Payout ratio • Finance costs €48.3 m (€82.7 m 2022) +21.8% 45% • Comparable tax rate 27%, as expected Comparable net profit Dividend per share €m € at the top end of our
Slide 14: Another year of investment and record FCF generation
FY 2023 highlights Delivering strong performance Driving best-in-class growth Another year of investment and record FCF generation • Capex at €674.9 million with investments in: Capex FCF − capacity expansion in high growth +€85.4m +€66.7m categories Capital expenditure Free cash flow Continued inve
Slide 15: Capital allocation discipline
FY 2023 highlights Delivering strong performance Driving best-in-class growth Capital allocation discipline driving higher returns for shareholders and improved ROIC Clear Capital Allocation Framework €400m Share Buy Back 1. Organic investment • Launched in November 2023 in the business 2. Progressi
Slide 16: Outlook 2024
FY 2023 highlights Delivering strong performance Driving best-in-class growth Outlook 2024 Strong 2023 outturn • 2023 performance ahead of expectations Positive 2024 outlook • Expect to deliver another good performance in 2024 − progress towards our medium-term growth targets • Group-level organic r
Slide 17: Driving Best-in-Class Growth
DRIVING BEST-IN-CLASS GROWH ZORAN BOGDANOVIC CHIEF EXECUTIVE OFFICER
Slide 18: Our purpose, vision and values
FY 2023 highlights Delivering strong performance Driving best-in-class growth Our team’s tireless efforts build on the clear purpose, vision and values that underpins everything OUR VALUES we do… OUR PURPOSE OUR VISION CUSTOMER THE FIRST OPEN UP LEADING WE OVER I MOMENTS 24/7 MAKE IT THAT BEVERAGE S
Slide 19: Track record of consistent growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth Track record of consistent growth driven by our three strategic priority categories Volume Price / Mix Revenue 2023 +1.7% 2023 +15.0% 2023 +16.9% 3 year +4.7% 3 year +12.2% 3 year +17.2% 5 year +2.4% 5 year +6.7% 5 year +9
Slide 20: Our growth algorithm is working to deliver strong growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth Our growth algorithm is working to deliver strong growth NARTD market Value share CCH price / value growth gain (NARTD) mix improvement Across categories, packs, channels and countries 2019-2023 2019-2023 2019-2023 +6% 1 +
Slide 21: Sparkling remains the foundation of our long-term growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth Sparkling remains the foundation of our long-term growth 2023 Strength of partnership with TCCC +16.0% • Strong consumer-centric marketing plans • Excellence in execution 3 year average • Innovation in Zeros and flavours •
Slide 22: Energy continues to drive significant growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth Energy continues to drive significant growth through increased consumption and footprint 2023 Build out consumption and coverage +27.1% • Segmented approach with different brands • Emerging market growth 3 year average • F
Slide 23: Coffee growth driven by data-led segmentation
FY 2023 highlights Delivering strong performance Driving best-in-class growth Coffee growth driven by data-led segmentation and continued investment in a strong footprint 2023 +37.5% PREMIUM 5-10% MASS PREMIUM 25-35% MASS 3 year average ~30% VALUE +95.3% ~30-40% 1 of volume Building our 360º capabil
Slide 24: Investing in bespoke capabilities
FY 2023 highlights Delivering strong performance Driving best-in-class growth Investing in bespoke capabilities to drive execution and capture market share Revenue growth management Route to market Personalised Data, insights & execution Talent analytics for development every outlet Digital commerce
Slide 25: Nigeria
FY 2023 highlights Delivering strong performance Driving best-in-class growth Who: consumer profile Matching who and where Where: channel / outlet Connected consumer profiles with the outlets where we can find them using a data-driven approach Combined Consumer Profile data with 6 profiles 1 Profile
Slide 26: Managing for consistent growth in every market
FY 2023 highlights Delivering strong performance Driving best-in-class growth Managing for consistent growth in every market experience of navigating risks and uncertainties Established 2023 3 year 5 year +12.3% +14.9% +6.4% Developing 2023 3 year 5 year +18.2% +21.7% +11.8% Emerging 2023 3 year 5 y
Slide 27: Continuing to invest in Sustainability as a growth enabler
FY 2023 highlights Delivering strong performance Driving best-in-class growth Continuing to invest in Sustainability as a growth enabler Packaging circularity in Innovating in Supporting local Romania • 100% recycled bottles Austria • New RGB1 line for 1 litre and new communities • in-house rPET 400
Slide 28: Strong platform for compounding profit and earnings growth
FY 2023 highlights Delivering strong performance Driving best-in-class growth Strong platform for compounding profit and earnings growth medium-term targets unchanged Organic revenue growth +6-7% on average p.a. Strong organic Organic EBIT margin EBIT growth COMPOUNDING EPS growth +20-40bps on ave
Slide 29: Q&A
DRIVING BEST-IN-CLASS GROWH Q&A
Slide 30: Forward-looking statement
Forward-looking statement This document contains forward-looking statements that involve risks and uncertainties. These statements may generally, but not always, be identified by the use of words such as ‘believe’, ‘outlook’, ‘guidance’, ‘intend’, ‘expect’, ‘anticipate’, ‘plan’, ‘target’ and similar