Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — FY2022 Earnings Presentation
27 slides from Coca-Cola HBC's earnings presentation, Feb 14, 2023
Slide 1: Full Year 2022 Results, February 2023
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Slide 2: Chief Executive Officer
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Slide 3: Growth story priorities driving strong performance
01 02 Growth story priorities Winning in driving strong a growing market performance 03 04 Enabling our Delivering strong customers’ success financial results, while through our people navigating inflation 05 Investing to become the leading 24/7 beverage partner 3 Coca-Cola HBC 2022 Full Year Result
Slide 4: Strong financial progress
Strong financial progress Organic revenue growth Comparable EBIT Returns +14.2% €929.7 million €645 million fcf +22.7% Ex Russia & Ukraine 1.3% organic growth 14.1% ROIC Financial indicators on a comparable basis exclude the recognition of restructuring costs, unrealised commodity hedging results an
Slide 5: Sparkling gaining share versus branded and private label
Sparkling gaining Sparkling and Energy Flexible plans, Consumer share versus resilient and capabilities and tools behaviour resilient branded and private continue to be to adapt to every across a majority of label1 drivers of growth environment markets 1. Source: Nielsen 5 Coca-Cola HBC 2022 Full Ye
Slide 6: Volume momentum continues in Sparkling
Volume momentum continues in Sparkling • Sparkling largest driver of growth and profitability − Trademark Coca-Cola grew by 9.1%1 − Successful activations in Coke, Fanta and Sprite • Low/ no sugar fastest growing subcategory − Volumes up double digit SPARKLING1 LOW / ADULT NO SUGAR1 SPARKLING1 − Cok
Slide 7: Energy remains energised
Energy remains energised • Fastest growing category in NARTD − consistent value share gains − innovative activations yielding good results, especially in gaming • Revenue per case accretive ORGANIC % GROUP NEW • Ample opportunity to continue growing per-capita VOLUME1 REVENUE2 LAUNCHES consumption +
Slide 8: Coffee gaining scale
Coffee gaining scale • Costa Coffee saw strong out-of-home recruitment − number of outlets doubling vs. 2021 • Developing our super-premium offering with Caffè Vergnano • Investing in capabilities for the future ORGANIC # COSTA OOH # CAFFÈ VOLUME1 OUTLETS VERGNANO LAUNCHES +45% 8,000 13 1. Organic v
Slide 9: Opportunities to drive revenue per case further
Opportunities to drive revenue per case further → MIX Category, package and channel all positive contributors to mix ORGANIC NSR PER CASE SPARKLING VALUE SHARE #1 → PRICING FMCG VALUE +15.9% +170 bps CONTRIBUTOR Pricing decisions are data-driven, TO RETAILERS1 proactive and agile 1 Excluding 1. Sour
Slide 10: Digital commerce driving incremental revenues
Digital commerce driving incremental revenues → ROUTE-TO-CONSUMER 59% growth1 in e-retail & food delivery apps → ROUTE-TO-CUSTOMER Customer Portal B2B − 34% of orders in Czech & Slovakia − 36% of orders in Ireland Launch of HoReCa-focused B2B platform, Sirvis, in Italy 1. Excluding Russia and Ukrain
Slide 11: Data capabilities enhance customer segmentation
Data capabilities enhance customer segmentation Strengthening RGM and RTM ENHANCING SEGMENTED EXECUTION • Micro segmentation live in 10 markets with further roll-outs to come in 2023 • Optimising our marketing activity at a granular level • Targeting outlets for certain packs and products • Personal
Slide 12: Progress in Egypt
Progress in Egypt Building a stronger business Improving Integrating teams capabilities Improving efficiency Expanding portfolio Incorporating ESG Adapting to short-term realities Increasing price to Returnable glass manage inflation and portfolio offers Growing Opportunity Opportunity FX weakness a
Slide 13: Leading in sustainability
Leading in sustainability • Ranked world’s most sustainable beverage Converted disused plant to recycling company by Dow Jones Sustainability Index technology at Gaglianico, Italy 2022 for 6th time → transforms up to 30,000 tonnes of PET p.a. • PACKAGING AND CLIMATE → 100% renewable electricity − Pr
Slide 14: Financial Review, Chief Financial Officer
FINANCIA REVIEW - BEN can HIEF FINANCIAL OFFICER c
Slide 15: Consistently strong top-line performance
Consistently strong top-line performance Organic growth 20.6% excluding RU & UKR | 2022 14.2% 25.2% 5.8% 22.7% 12.1% 15.9% 14.0% 13.4% -1.5% -4.6% 11.6% 8.1% -4.1% Revenue Volume Price/mix H1 FY -8.5% Organic financial indicators exclude the impact from foreign currency translation and consolidation
Slide 16: Managing significant cost inflation in 2022
Managing significant cost inflation in 2022 How we are managing: 3% Pricing and other RGM actions 21% 31% COGS/ UC +18% Long term contracts with suppliers and hedging 45% Concentrate Raw materials, packaging & finished goods Productivity and Overheads & haulage operational efficiencies Depreciation
Slide 17: Organic EBIT up 1.3% despite cost inflation
Organic EBIT up 1.3% despite cost inflation Organic EBIT growth +1.3% Comparable EBIT growth +11.9% 929.7 831.0 831.0 ex. Cyprus asset sale 808.0 OPEX AS MARKETING % OF SALES EXPENSES 24.6% +11.5% -50 bps vs 2021 Ex Russia and Ukraine FY 2021 FY 2022 Financial indicators on a comparable basis exclud
Slide 18: Established markets
Established markets Well-balanced revenue growth • High-single digit volume growth across all main markets • Price/mix driven by price increases in all markets, and positive package, category and channel mix • Single-serve mix +4.5pp benefitting from out-of- home activations and growth in premium gl
Slide 19: Developing markets
Developing markets Strong volume growth • Double-digit volume growth across main markets • Price/mix driven by pricing actions in all markets, positive package, category and channel mix • In Poland, category recovery after sugar tax complemented by strong share gains • Organic EBIT growth despite CO
Slide 20: Emerging markets
Emerging markets Resilient performance despite headwinds • Growth negatively impacted by performance in Russia & Ukraine • Organic revenue grew by 23.5% and organic volumes by 4.3% when excluding Russia & Ukraine • Strong price/mix development to help offset inflation and FX weakness • Egypt will be
Slide 21: EPS up 7.7%
EPS up 7.7% • Another year of robust EPS progress EPS Payout ratio • Finance costs increased €15.1 million due to consolidation of Egypt +7.7% 46% • Comparable tax rate of 26%, at the mid point Comparable net profit Dividend per share of our guidance 25% to 27% €m € Earnings 1.706 per share • Divide
Slide 22: Another year of investment and record FCF generation
Another year of investment and record FCF generation • Capex up €49 million year on year with investments across: Capex FCF − capacity expansion in growth markets and on +€49m +€44m targeted package formats Capital expenditure % Free cash flow − cooler expansions to drive single-serve €m consumption
Slide 23: Continued ROIC expansion
Continued ROIC expansion • ROIC at 14.1%, or 15.8% excluding Egypt acquisition ROIC − increased profitability vs 2021 +100bps (ex Egypt) − improved capital turnover Ex. Cyprus Ex. − cycling the Cyprus property sale which added asset sale 15.8% Egypt 14.4% 14.8% 40bps in prior year ROIC 13.7% 14.2% 1
Slide 24: 2023 guidance
Organic revenue Organic EBIT growth above 5% growth in the to 6% average range +3% to -3% target range COGS per case increase by low teens 24 Coca-Cola HBC 2022 Full Year Results
Slide 25: Leader in an attractive, growing industry
Leader in an 24/7 portfolio and attractive, growing execution capabilities industry to win share Diversified Relentless cost geographies with efficiency and strong exposure to growth balance sheet Engaged team with Determined to remain a winning mindset a leader in sustainability 25 Coca-Cola HBC 20
Slide 26: Join us for our Investor Day 25 May in Rome
Join us for our INVESTOR DAY 25 May in ROME For further information on Coca-Cola HBC please visit our website at: www.coca-colahellenic.com Or contact our investor relations team: Joanna Kennedy Marios Matar Head of Investor Relations Investor Relations Manager joanna.kennedy@cchellenic.com marios.m
Slide 27: Forward-looking statement
Forward-looking statement 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 docu