Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — H1 2019 Earnings Presentation
22 slides from Coca-cola Hbc's earnings presentation, Aug 8, 2019
Slide 1: Results Presentation: Half-year results 2019
RESULTS PRESENTATION Half-year results 2019 8 August 2019
Slide 2: Forward-looking statements
Forward-looking statements Half-year results | August 2019 2 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”
Slide 3: Half-year highlights
Half-year highlights Half-year results | August 2019 3 Solid results; expectations unchanged • FX-neutral revenue growth +3.4% • Volume +2.2%, with positive performance in all segments – Impacted by challenging comparatives and adverse weather • FX-neutral revenue per case +1.2% with improvement in
Slide 4: Financial review
Financial review Michalis Imellos | Chief Financial Officer
Slide 5: Volume and price/mix growth
Financial performance overview Half-year results | August 2019 5 Volume and price/mix growth • FX-neutral net sales revenue +3.4% HY ‘19 HY ‘18 change • Volume +2.2% Volume (m u.c.) 1,090.4 1,067.4 2.2% Net sales revenue (€m) 3,352.4 3,228.3 3.8% • FX-neutral revenue per case +1.2%, and up 2.5% excl
Slide 6: Continued margin expansion & EPS growth
Financial performance overview Half-year results | August 2019 6 Continued margin expansion & EPS growth HY ‘19 HY ‘18 change • Improvements in OPEX more than Comparable EBIT (€m) 325.1 310.5 4.7% offset the growth in raw material costs Comparable EBIT margin 9.7% 9.6% 10bps and FX depreciation Comp
Slide 7: Input costs in line with expectations
Input costs Half-year results | August 2019 7 Input costs in line with expectations • Input cost per case +1.8% on an FX-neutral basis • Sugar costs improved due to favourable hedging positions • PET costs increased in the first half • Aluminium costs improved
Slide 8: Lean platform driving margin growth
Operating leverage Half-year results | August 2019 8 Lean platform driving margin growth HY ‘19 HY ‘18 change • Operating leverage and ongoing cost Volume (m u.c.) 1,090.4 1,067.4 2.2% efficiency measures driving a 50 bps improvement in OPEX as % of revenue Net sales revenue (€m) 3,352.4 3,228.3 3.8
Slide 9: Balanced delivery
Segmental revenue and profit Half-year results | August 2019 9 Balanced delivery Revenue change Comparable EBIT and EBIT margin (€m) HY ‘19 vs. HY ‘18 HY’ 19 HY’19 vs HY’18 Total CCH Total CCH Volume 2.2% EBIT 325.1 14.6 FX-neutral revenue per case 1.2% EBIT margin 9.7% +10bps Established markets Es
Slide 10: Maintaining a lean, efficient platform
Efficiencyprogrammes Half-year results | August 2019 10 Maintaining a lean, efficient platform HY 2019 €30m of pre-tax restructuring costs in the period Restructuring efforts focused mostly on the Established markets FY 2019 Going forward we expect: • no further significant restructuring opportuniti
Slide 11: Continuing to invest for growth
Solid free cash flow Half-year results | August 2019 11 Continuing to invest for growth HY ‘19 HY ‘18 change Higher tax payments and the phasing EBITDA (€m) 479.4 465.9 13.4 of working capital and CAPEX impacted free cash flow at H1 Working capital change (€m) -129.5 -107.3 -22.2 Net capital expendi
Slide 12: Strong balance sheet and improving cost of debt
Financing costs Halfl-year results | August 2019 12 Strong balance sheet Debt maturity profile Financing cost movements and improving cost of debt €13.3 €32.8m €563m €600m €700m €600m €13.7 million increase in total financing costs compared to prior year due to: €0.4m €19.1m - increased gross debt a
Slide 13: Margin guidance reiterated
EBIT margin development Half-year results | August 2019 13 Margin guidance reiterated H1 EBIT margin +10 bps, in line with expectations H2 EBIT margin expansion is expected to accelerate significantly: • FX transactional impact was -€20 m in H1 and expected to be a small positive in H2 • Consolidati
Slide 14: Operational review and strategy
Operational review and strategy Zoran Bogdanovic | Chief Executive Officer
Slide 15: All segments contributed to growth
Volume by segment Half-year results | August 2019 15 All segments Million unit cases contributed to growth +3.4% Group volume 1,090 increased by 2.2% +1.4% +0.4% Established grew by 0.4% driven by Italy and Ireland 1,067 Developing grew by 1.4% driven by Poland and Hungary Emerging increased by 3.4%
Slide 16: Innovation supporting category growth
Volume growth by category Half-year results | August 2019 16 Innovation supporting category YoY growth HY ‘19 HY ‘18 Sparkling 2.4% 4.6% growth Trademark Coca-Cola 4.5% 5.2% Coca-Cola Zero 34.6% 24.9% Growth is being accelerated by innovation Schweppes 7.3% 9.4% - new products, flavours and packages
Slide 17: Established markets: Encouraging performance in Italy
Established markets Half-year results | August 2019 17 Encouraging performance in Italy Switzerland New pack/price +2% Trademark +14%Coca-Cola architecture driving Coca-Cola Zero price/mix improvements Volume declined in +9% RTD tea and Water Italy Sparkling returns to Greece RTD tea revenue growth
Slide 18: Developing markets: Continued growth despite adverse weather
Developing markets Half-year results | August 2019 18 Continued growth despite adverse weather +3.5% +10% Poland Czech Republic Volume up low single Volume declined by digit with good Trademark Coca-Cola mid single digits price/mix Coca-Cola Zero Strong improvement improvement in price/mix drove Sin
Slide 19: Emerging markets: Nigeria continues to grow
Emerging markets Half-year results | August 2019 19 Volume impacted by weather while Nigeria continues to grow Romania +7% Trademark +93%Coca-Cola Sparkling volumes up Coca-Cola Zero mid single digits Lights and Zeroes as well as Adult brands Russia +6% are leading this Challenging comp growth due t
Slide 20: Looking ahead
Looking ahead Half-year results | August 2019 20 Expectations unchanged; another year of top-line growth and margin expansion • Volume growth expected to pick up in the second half, particularly in Emerging segment • FX-neutral net sales revenue per case is expected to maintain the H1 pace in the re
Slide 21: Q&A
Q&A 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: Strongest, broadest, most flexible,
Strongest, Relentless focus broadest, most on cost and flexible, efficiency to fuel 24/7 portfolio Strong balance investments for of brands sheet with growth opportunity to Leader in the leverage for dynamic, geographic growing NARTD expansion and bolt- industry on acquisitions Significant Diverse,