Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — H1 2018 Earnings Presentation
22 slides from Coca-Cola HBC's earnings presentation, Aug 9, 2018
Slide 1: Results presentation Half-year 2018
Results presentation Half-year 2018 UNDERSTAND ENERGISE EVOLVE 9 August 2018
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: Half-year highlights
Strong set of results as evolution of portfolio gathers pace Half-year highlights • Strong FX-neutral revenue growth, up 6.4%, with an acceleration in the second quarter – Driven by unprecedented number of new product launches • Volume up by 4.6%, with positive performance in all segments • FX-neutr
Slide 4: Financial review
UNDERSTAND ENERGISE EVOLVE Financial review Michalis Imellos | Chief Financial Officer
Slide 5: Financial performance overview
Capitalised on favourable backdrop Financial performance overview HY ‘18 HY ‘17 change • Volume up by 4.6% Volume (m u.c.) 1,067.4 1,020.9 4.6% • FX-neutral net sales revenue up by Net sales revenue (€m) 3,228.3 3,213.4 0.5% 6.4% FX-neutral net sales revenue (€m) 3,228.3 3,033.2 6.4% • Pricing actio
Slide 6: Financial performance overview
Capitalised on favourable backdrop Financial performance overview HY ‘18 HY ‘17 change • Better price/mix, volume and Comparable EBIT (€m) 310.5 291.1 6.7% revenue leverage and lower input cost more than offset adverse FX, Comparable EBIT margin 9.6% 9.1% 60pbs higher fees and higher investment Comp
Slide 7: Acceleration of revenue growth in Q2, driven by volume
Volume delivering fasterrevenue growth Acceleration of revenue growth in Q2, driven by volume HY ‘18 vs. HY ‘17 Total CCH Volume 4.6% FX-neutral revenue per case 1.8% Established markets Volume 0.9% FX-neutral revenue per case 1.1% Developing markets Volume 8.9% FX-neutral revenue per case 0.9% Emer
Slide 8: Input costs positively influenced by declining sugar prices
Careful management of input costs Input costs positively influenced by declining sugar prices • Input cost per case down 0.9% on an FX-neutral basis • An oversupplied market worldwide and the abolition of the EU quota regime pushed sugar prices to very low levels • Brent oil price evolution, combine
Slide 9: Operating leverage delivering, notwithstanding higher marketing investment
Lean platform driving profit growth Operating leverage delivering, notwithstanding higher marketing HY ‘18 HY ‘17 change investment Volume (m u.c.) 1.067.4 1.020.9 4.6% Net sales revenue (€m) 3.228.3 3.213.4 0.5% • Operating leverage and ongoing cost Comparable operating expenses (€m) 904.6 920.3 -1
Slide 10: Profit and margin growth
Developing markets recover profits Profit and margin growth Comparable EBIT Comparable EBIT Comparable EBIT margin (change €m) (€m) HY ‘18 HY ‘17 HY ‘18 change Established +4 110.8 106.7 9.2% 30bps Developing +23 56.5 33.3 9.2% 320bps Emerging -8 143.2 151.1 10.2% -20bps Total CCH +19 310.5 291.1 9.
Slide 11: Restructuring plans
Maintaining a lean platform Restructuring plans HY 2018 €4m of pre-tax restructuring costs in the period Restructuring efforts focused mostly on the Established and Emerging markets FY 2018 Going forward we expect: • pre-tax restructuring charges totalling €25m for 2018 • total annualised benefits f
Slide 12: Growing free cash flow driven by higher operational profitability
Operational profitability generating cash Growing free cash flow driven by higher operational profitability HY ‘18 HY ‘17 change EBITDA (€m) 465.9 423.2 42.7 • Free cash flow higher than in the prior- Working capital change (€m) -107.3 -101.4 -5.9 year period Net capital expenditure (€m) -178.4 -163
Slide 13: EBIT margin development
Operating leverage continues to drive margin expansion EBIT margin development 60 basis point expansion in the EBIT margin overall with the following components: + 80 bps from volume leverage + 100 bps from revenue leverage + 10 bps from our cost productivity initiatives - 70 bps from the combined i
Slide 14: Operational review and strategy
UNDERSTAND ENERGISE EVOLVE Operational review and strategy Zoran Bogdanovic | Chief Executive Officer
Slide 15: Volume by segment
Emerging markets contributes superior growth Volume by segment million unit cases +5.1% +0.9% +8.9% 1,067 1,021 HY 17 Established Developing Emerging HY 18 Results presentation | Half-year results | August 2018 15
Slide 16: Volume growth by category
A strong half for Sparkling drinks Volume growth by category YoY growth HY ‘18 HY ‘17 Sparkling 4.6% 1.8% Trademark Coca-Cola 5.3% 2.3% Coca-Cola Zero 24.9% 20.3% Schweppes 9.4% -0.1% Water 4.8% 0.7% Juice -0.1% -1.8% Energy 33.5% 17.6% Tea -0.6% -6.4% Results presentation | Half-year results | Augu
Slide 17: Established markets
Focusing on innovation and value Established markets Switzerland Good growth in +2% Trademark +15%Coca-Cola Sparkling Coca-Cola Zero Declines in Water and RTD Tea Italy Marginal volume Greece +16% Schweppes declines led by Water Good volume and full-sugar performance driven Sparkling by Water, Spark
Slide 18: Developing markets
Continued good growth in all markets Developing markets +7% +26% Poland Czech Republic Volumes up double Volume up 3% digit Trademark Coca-Cola All categories grew Sparkling up high Coca-Cola Zero except for Water single digit with growth from all brands Hungary Water volumes up double digit +21% Wa
Slide 19: Emerging markets
Medium-sized markets driving growth Emerging markets Romania +7% Trademark +47%Coca-Cola Strong results across Coca-Cola Zero all categories Sparkling growing particularly well Russia Positive volumes for the first half Sparkling up mid +4% Water single-digit Nigeria Volumes are marginally down for
Slide 20: Looking ahead
A better balance between volume and price/mix growth in the full year Looking ahead Volume growth to pick up in Established markets and moderate in Developing and Emerging markets in the second half FX-neutral net sales revenue per case to accelerate in the remainder of the year Input costs flattish
Slide 21: Q&A
Q&A UNDERSTAND ENERGISE EVOLVE For further information on Coca-Cola Hellenic please visit our website at: www.coca-colahellenic.com Or contact our investor relations team investor.relations@cchellenic.com
Slide 22: Most known brands in the world
Most Diverse Low per capita Consistent Solid track Strong focus known geographic consumption growth in record on cost brands in footprint with potential currency- of winning leadership the world with strong for growth neutral in the and history emerging revenue per marketplace of solid cash market c