Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — H1 2023 Earnings Presentation
26 slides from Coca-cola Hbc's earnings presentation, Aug 9, 2023
Slide 1: Coca-Cola HBC 2023 Half Year Results
1 Coca-Cola HBC 2023 Half Year Results
Slide 2: Financial Review
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Slide 3: H1 2023 Highlights: Delivering today, investing for tomorrow
01 H1 2023 HIGHLIGHTS Delivering today Investing for tomorrow Focused execution, led by RGM1 capabilities, delivered strong organic revenue and EBIT growth Robust volume and market share performance in our priority categories Our teams were flexible, handling a range of challenges and opportunities
Slide 4: Strong financial performance
01 H1 2023 HIGHLIGHTS Strong financial performance Organic growth Comparable EBIT Margins and EPS revenue comparable + 17.8% growth €560.7 million 11.2 % EBIT margin volume organic comparable -1.0 % growth +17.7 % growth +22.3 % EPS growth Financial indicators on a comparable basis exclude the recog
Slide 5: Category growth: Sparkling
01 H1 2023 HIGHLIGHTS Category growth : Sparkling • Volume growth in all three segments +1.6% • Coke Zero volume up high-single digits in Established & mid-single digits in Developing • Fanta benefitting from fourth ‘What the Fanta?’ campaign volumes • Adult Sparkling double-digit revenue growth in
Slide 6: Category growth: Energy
01 H1 2023 HIGHLIGHTS Category growth : Energy +20.9% • Strong growth in each segment, led by Emerging • Successful launches in Egypt of Monster and Fury volumes • Established and Developing growth led by Monster Tea 2% Plant based <1% COFFEE SPARKLING ENERGY Snacks 72% <2% <1% 6% Juice 7% Hydration
Slide 7: Category growth: Coffee
01 H1 2023 HIGHLIGHTS Category growth : Coffee +21.9% • Particularly strong growth in Established and Developing • Scaling and investing in mass premium and super premium volumes • 10,200 outlets at end of H1 – up from 8,000 at year end 2022 Tea 2% Plant based <1% COFFEE SPARKLING ENERGY Snacks 72%
Slide 8: Category growth: Stills and other
01 H1 2023 HIGHLIGHTS Category growth : Stills and other • Water volumes down 14% as we focused on most profitable growth -11.2% • Sports Drinks volumes up high-single digits in Established & mid- single digits in Developing • Juice volume decline in Developing and Emerging volumes • Premium Spirits
Slide 9: Focused on delivering our sustainability goals
01 H1 2023 HIGHLIGHTS Focused on delivering our sustainability goals Investing strategically in sustainable packaging and reducing emissions INCREASING PERCENTAGE OF ENERGY-EFFICIENT COOLERS EXPANDED RANGE AND Exceeded our 50% target by 2025 CAPACITY OF REUSABLE PACKAGING $137.7m Greycroft Coca-Cola
Slide 10: Balanced performance across our three segments
01 H1 2023 HIGHLIGHTS Balanced performance across our three segments Strong organic growth REVENUE EBIT Established +16.9% +20.8% Developing +23.6% +27.2% Emerging +16.0% +13.9% 10 Coca-Cola HBC 2023 Half Year Results
Slide 11: Winning in a mixed market environment
01 H1 2023 HIGHLIGHTS Winning in a mixed market environment 01 NARTD1 and Sparkling industry revenues growing 02 Delivered market share gains in NARTD in H1 2023 03 Achieved positive results despite some weaker macroeconomic conditions 04 Applying our well-developed RGM2 capabilities to address affo
Slide 12: Data Insights and Analytics driving profitable promotion management
01 H1 2023 HIGHLIGHTS Data Insights and Analytics driving profitable promotion management Algorithms determine profitability of every event providing insights that guide our promotional strategy WHEN HOW OFTEN HOW MUCH HOW to promote to promote to promote to promote (e.g., time of the year, (frequen
Slide 13: Finlandia vodka acquisition – a unique opportunity
01 H1 2023 HIGHLIGHTS Finlandia vodka acquisition – a unique opportunity Acquisition will bring distribution expansion opportunities, a strengthened HoReCa offering, and improved mixability with our NARTD portfolio, to drive profitable revenue growth 13 Coca-Cola HBC 2023 Half Year Results
Slide 14: H1 2023 Highlights
01 H1 2023 HIGHLIGHTS 14 Coca-Cola HBC 2023 Half Year Results
Slide 15: Medium-term targets
01 H1 2023 HIGHLIGHTS Organic revenue Organic EBIT margin • Growing Free Cash Flow to growth growth support capital allocation priorities +6-7% • Continued focus on ROIC +20-40bps expansion on average p.a. on average p.a. • CAPEX 6.5-7.5% of revenue 15 Coca-Cola HBC 2023 Half Year Results
Slide 16: Financial Review
Slide 17: Consistent top-line growth
02 FINANCIAL REVIEW Consistent top-line growth Driven by our strategic priorities • Organic revenue up 17.8%, and organic revenue per case increased 19.0% +16.2% +18.7% +17.8% • Pricing the largest contributor to NSR/case expansion followed by package & category mix • Our strategic priorities best p
Slide 18: Organic EBIT up 17.7%
02 FINANCIAL REVIEW Organic EBIT up 17.7% Supported by Q2 performance • Record H1 EBIT delivery of €560.7m • Gross profit up 22.6% despite 13.1% COGS per case 811.6 inflation Organic EBIT growth • Strong top-line leverage & effective hedging strategy, which offset increased cost pressures & -487.4 +
Slide 19: Established markets
02 FINANCIAL REVIEW Established markets Top-line driven margins improvement • Good volume growth in Sparkling, Energy & Coffee − Strong performance of Coke Zero and Energy in Ireland − Benefitted from earlier activations for the summer season in Greece • Price / mix led by pricing, and positive pack
Slide 20: Developing markets
02 FINANCIAL REVIEW Developing markets Strong price/mix growth across markets • Volume growth in Sparkling, Energy & Coffee, offset by decline in Stills − Positive momentum continued in Poland, with share gains and growth in low / no sugar variants • Price / mix driven by pricing actions in all mark
Slide 21: Emerging markets
02 FINANCIAL REVIEW Emerging markets Resilient performance despite headwinds • Volume growth in Sparkling and strong momentum in Energy, offset by decline in Stills − Nigeria Q2 volumes back to growth − Strong performance in Serbia and Bulgaria driven by Sparkling • Strong price / mix development to
Slide 22: EPS growth of 22.3%
02 FINANCIAL REVIEW EPS growth of 22.3% • Finance costs decreased €11.3 million due to higher finance income • Comparable tax rate of 27% €m €m • Capex 4.8% of revenue; we expect to be within Earnings 1.058 our range of 6.5% to 7.5% in FY23 per share, € -26% 0.865 42.7 • Free Cash Flow was €76.3m lo
Slide 23: Strong balance sheet
02 FINANCIAL REVIEW Strong balance sheet • Balance sheet continues to provide firepower and flexibility to invest organically or through M&A • Dividend of €290m paid in June, 46% pay-out ratio • Finlandia acquisition expected to be completed in Q4 2023 • Net debt / EBITDA expected to be in the lower
Slide 24: FY2023 outlook
02 FINANCIAL REVIEW Mid-teens Organic EBIT growth organic in the range revenue growth +9% to +12% High-single digit COGS per case increase 24 Coca-Cola HBC 2023 Half Year Results
Slide 25: For further information on Coca-Cola HBC
For further information on Coca-Cola HBC please visit our website at: www.coca-colahellenic.com Or contact our investor relations team: John Dawson Marios Matar Head of Investor Relations Investor Relations Manager john.dawson@cchellenic.com marios.matar@cchellenic.com +44 (0)7522 619509 +30 697 444
Slide 26: 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