Coca-cola Europacific Partners Plc · NASDAQ:CCEP
Coca-cola Europacific Partners — H1 2021 Earnings Presentation
26 slides from Coca-cola Europacific Partners's earnings presentation, August 2021
Slide 1: Results for the Six Months Ended 2 July 2021
Results for the Six Months Ended 2 July 2021* *Unaudited
Slide 2: Forward looking statements
Forward looking statements This document contains statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, strategy and objectives of Coca-Cola Europacific Partners plc and its subsidiaries (together “CCEP” or the “Gr
Slide 3: 1H21 Key takeaways
1H21 Key takeaways Strong performance delivered by highly engaged colleagues #1 FMCG1 customer value creation2 & NARTD3 value gains Power of an even stronger relationship with TCCC4 & other brand partners Accelerating investments towards our 2040 net zero ambition & digital transformation API integr
Slide 4: Our Purpose
Our Purpose REFRESH Europe, the Pacific & Indonesia. Solid track record of delivery & execution Europe & API: Going Further Together Winning portfolio of products, brands & packs Highly engaged, talented & skilled workforce Leading position within attractive Solid balance sheet, focused on market1 g
Slide 5: Great People H1 Highlights
GREAT PEOPLE H1 Highlights Wellbeing & safety remain absolute priority Strong engagement & recognised as a ‘great place to work’ in our first global engagement survey ‘Everyone’s Welcome’ philosophy & diversity campaign activation Continued focus on digital workplace & flexible working Empowering ou
Slide 6: Great Service H1 Highlights
GREAT Great SERVICE People H1 Highlights Supporting HoReCa1 reopening across our markets Euros activation across all customers & channels in Europe Maintaining high customer service levels & ongoing investments in capacity B2B digital platforms continue to see strong growth Starstock & Wabi CCEP Ven
Slide 7: Great Beverages H1 Highlights
GREAT Great BEVERAGES People H1 Highlights CCZS: New taste, new look & new campaign launched in Europe Monster: Exciting innovation launched across all our markets Costa: Express machines installed in Belgium, Germany, Norway & Spain Fanta: Fanta Coco Pandan launched for Ramadan in Indonesia Topo Ch
Slide 8: Done sustainably, for a better shared future
Done sustainably, for a better shared future Belgium & Luxembourg: Transitioning to 100% rPET 1 GB: Transitioning to 100% rPET for on-the-go bottles1 Industry partnerships to build new PET recycling facilities in Australia & Indonesia Two manufacturing sites certified carbon neutral ON OUR JOURNEY A
Slide 9: H1 Performance highlights
H1 Performance highlights Winning Growing value share2 Strong rebound #1 customer value creator in NARTD +60bps Western Europe within FMCG1 Flavours +90bps Volume4 +6.0%, -7.5% vs 2019 Supporting HoReCa Energy +170bps Revenue/UC +3.0%, +0.5% vs 2019 reopening across our markets Revenue +11.5%, -6.0%
Slide 10: Ongoing digital transformation
Ongoing digital transformation Online grocery Strong continued growth1 RSV: +28%; Share: +100bps D2C Aspiring to D2C online store gaining momentum in GB Food aggregators Most ordered drinks on food be the world’s aggregator platforms most digitised Supply chain >100k hours of efficiency savings expe
Slide 11: H1 Financial summary
H1 Financial summary Operating Earnings Free Revenue COGS/UC profit per share cash flow4 € €5.9BN up €691M €1.09 €648M Comparable up 21.5%1 0.5%2 up 71.0%2 up 87.5%2 Comparable Pro forma €7.0BN €802M Up 1.5%3 €1.22 up 11.5%1 up 58.0%3 1. Fx-neutral (non-GAAP performance measures - refer to slide 2)
Slide 12: H1 Pro forma revenue
H1 Pro forma revenue Restrictions easing although varied by market Volume Revenue per UC Revenue 11.5% Vs 2020 Vs 2019 6.0% 3.0% 0.5%1 -6.0%1 -7.5% AFH reopening driving volume recovery & sustained Improving momentum in the Home channel channel & pack mix vs 2020, favourable underlying price Note: A
Slide 13: Q2 & H1 Pro forma revenue by segment
Q2 & H1 Pro forma revenue by segment Reopening Minimal of AFH in Q2 following Europe restrictions in Australia & API1 easing of New Zealand restrictions throughout H1 July & August: Vs 2020 Vs 2019 Vs 2020 Vs 2019 Volume slightly down +29.5% reflecting renewed +27.0% restrictions in API markets, sof
Slide 14: Pro forma cost of sales
Pro forma cost of sales Manufacturing 15% Fixed & D&A COGS per Mix effect Taxes UC1 15% & other Commodities 25% 1 up 1.5% Variable Concentrate & finished 45% goods Note. Cost of goods mix rounded to nearest 5%, based on estimate for pro forma comparable total CCEP 2021 mix 1. COGS/UC growth is pro f
Slide 15: Upward pressure on commodities
Upward pressure on commodities 1 Total commodities Aluminum: input pressure reflecting spot prices & can supply Mid to high single-digit rPET: input pressure reflecting sustainability focus & increased demand Sugar: ~3% recent increases expected to subside next year ~2% Overall hedge coverage2: 2021
Slide 16: Efficiency & combination savings update
Efficiency & combination savings update On track EUROPE to deliver proven track record €350-395m in synergy delivery, optimisation & leveraging best practice PRE-ANNOUNCED PERMANENT FY20 EUROPE API SAVINGS & ONGOING EFFICIENCY Accelerate Competitiveness FY21 ~€150m vs. FY19 FY22-24 €50-75m + Fightin
Slide 17: On track to deliver pre-announced efficiency & combination savings
On track to deliver pre-announced efficiency & combination savings € OPEX BROADLY FLAT ON Driven by opex savings FY21 OPEX HIGHER REVENUES Labour No return to Opex €1.74bn €1.71bn pre-pandemic cost base Trade marketing PF FY19 expenses (TME) H2: ~28% ~26% • Focused investment in TME to support recov
Slide 18: FY21 Guidance
FY21 Guidance Reflects assessment of the scale & magnitude of the pandemic Revenue: comparable growth of 26-28%1 Operating profit: comparable growth of 40-44%1 Comparable effective tax rate: ~20%1 Dividend payout ratio: c.50%1,2 1. Reflects the timing impact of the acquisition of Coca-Cola Amatil (C
Slide 19: Medium-term objectives: a reminder
Medium-term objectives: a reminder Revenue growth Comparable Free cash flow Dividend Low single-digit operating At least €1.25bn p.a.1,2 ~50%1,3 payout ratio profit growth1 Mid single-digit 1. Comparable operating profit, Free Cash Flow and Dividend payout ratio are non-GAAP performance measure - re
Slide 20: Amatil transaction
Amatil transaction Best Exciting, right deal at the right time practice sharing Significant performance improvement Structurally opportunities higher growth platform Focused Dividend policy on returning to Value Immediate maintained target leverage creating EPS accretion on larger within 3 years ear
Slide 21: Integration update: First 100+ days
Integration update: First 100+ days Well underway Key talent in place e.g. new Indonesia & PNG General Manager Leveraging digital capabilities e.g. procurement, analytics Delivering with speed e.g. Paradise Beverages buyout Developing value creating plans e.g. portfolio alignment with TCCC Aligning
Slide 22: H2 Focused actions
H2 Focused actions Integrate Grow API the core Drive cash flow & Drive operational smart RGM FURTHER efficiency Progress TOGETHER Create sustainability value for agenda customers Invest Leverage in people digital capabilities 22
Slide 23: H2 Excitement ahead
H2 Excitement ahead New look flavours in GB Continuing to support HoReCa reopening New taste, new look & new campaign Helping our customers on the #Race2Zero Launching in Australia Continued roll-out of New performance Building brand Express machines energy flavours awareness Innovation in On track
Slide 24: 1H21 Key takeaways
1H21 Key takeaways Strong performance delivered by highly engaged colleagues #1 FMCG1 customer value creation2 & NARTD3 value gains Power of an even stronger relationship with TCCC4 & other brand partners Accelerating investments towards our 2040 net zero ambition & digital transformation API integr
Slide 25: Thank you
Thank you Questions & Answers
Slide 26: IR contacts
IR contacts Sarah Willett Upcoming events Vice President Sarah.Willett@ccep.com 9 November 2021: Q3 Trading update Joe Collins Further information Associate Director Joe.Collins@ccep.com CMD presentation: here Factsheet: here Claire Copps Senior Manager Claire.Copps@ccep.com 26
Coca-Cola Europacific Partners — H1 2021 Earnings Presentation on 6ix