Coca-cola Hbc Ag · LSE:CCH
Coca-cola Hbc — H1 2021 Earnings Presentation
23 slides from Coca-cola Hbc's earnings presentation, Aug 12, 2021
Slide 1: Results Presentation – Half Year Results
RESULTS PRESENTATION HALF YEAR RESULTS 12 AUGUST 2021
Slide 2: 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
Slide 3: Operational Review & Strategy
OPERATIONAL REVIEW & STRATEGY ZORAN BOGDANOVIC CHIEF EXECUTIVE OFFICER 3 HALF YEAR RESULTS 12 AUGUST 2021
Slide 4: Growing share and accelerating momentum as markets reopen
GROWING SHARE AND ACCELERATING MOMENTUM AS MARKETS REOPEN ACCELERATING GROWTH WINNING IN THE MARKET • H1 FX-neutral revenue up 23.1% with • Value share gains increase Q2 up 39.5% (like for like) +50bps in NARTD • Like for like FX-n revenues are 4% • Gained or maintained Sparkling value above 2019 le
Slide 5: Delivering our strategy
DELIVERING OUR STRATEGY 1 2 3 4 5 GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR GROWTH PILLAR 24/7 WIN IN THE COMPETITIVENESS POTENTIAL LICENSE PORTFOLIO MARKET PLACE & INVESTMENT OF OUR PEOPLE TO OPERATE • Acceleration in • Price/mix accelerated – • In-house rPET • Talent development - •
Slide 6: Recovery in out of home
1 2 3 4 5 GROWTH PILLAR RECOVERY IN OUT OF HOME OUT-OF-HOME CHANNEL – re-opening plans accelerate growth -3% vs ‘19 OUT-OF-HOME TRENDS -9% vs ‘19 • Customer relationships strengthened during crisis • 24/7 portfolio and execution excellence driving ‘19 ‘20 ‘21 ‘19 ‘20 ‘21 performance Q1 Q2 AT-HOME CH
Slide 7: Improvement in single-serve mix
1 2 3 4 5 GROWTH PILLAR IMPROVEMENT IN SINGLE-SERVE MIX SINGLE-SERVE MIX PERFORMANCE What is driving the improvement? 2015-2019 FY2020 H1 2021 1 Reopening of the out-of-home channel Continual improvement COVID impact Strong recovery and increased mobility + >1pp per year -3.0pp YoY +5.1pp YoY 2 Incr
Slide 8: Prioritisation of opportunities is driving momentum
1 2 3 4 5 GROWTH PILLAR PRIORITISATION OF OPPORTUNITIES IS DRIVING MOMENTUM SPARKLING LOW/NO SUGAR 2020 2021 22.0% 2020 2021 56.6% • 22% of Sparkling volumes • Resilient during pandemic and growing faster than • Broad-based growth across 9.6% full sugar in all segments brands 5.4% 3.9% 3.1% 22.6% •
Slide 9: Coffee strategy strengthened
1 2 3 4 5 GROWTH PILLAR COFFEE STRATEGY STRENGTHENED NOW WITH A PREMIUM AND MASS PREMIUM OFFERING Costa roll-out continues: OUR MARKETING POSITION • Diverse product offering for both the at home and the out-of-home channels • Deepening and broadening penetration in first 16 markets • Accelerating ou
Slide 10: Expanding into Egypt – Strategic rationale
EXPANDING INTO EGYPT STRATEGIC RATIONALE • Adding significant scale − Increases population served to c. 715 million − With Egypt, CCH will operate in Africa’s two largest NARTD markets by volume • Attractive demographics − Egypt population >100 million, average age of 25 − Nigeria and Egypt combined
Slide 11: Expanding into Egypt – Financial rationale
EXPANDING INTO EGYPT FINANCIAL RATIONALE • Revenue of €410 million in 2020 • Low-single digit EPS accretion expected in the near term • Significant opportunity to create further value, progressively moving CCBCE’s margins towards group average over time • Expected closing late Q4 2021 11 HALF YEAR R
Slide 12: Emerging markets
EMERGING MARKETS STRENGTH IN LARGEST MARKETS- RUSSIA AND NIGERIA CONTINUES; RECOVERY THROUGH REST OF SEGMENT EMERGING MARKETS +22.9% +6.1% +30.3% • FX-neutral revenue is c. 19% above 2019 VOLUME* PRICE / MIX* FX-NEUTRAL • Recovery in Romania and REVENUE* Serbia adds to continued strong performance i
Slide 13: Developing markets
DEVELOPING MARKETS SHARE GAINS IN LARGEST MARKETS HELP TO MITIGATE SUGAR TAX IMPACT DEVELOPING MARKETS +0.6% +16.9% +17.6% • FX-n revenue is c. 2% below 2019 • Strong low/no sugar performance VOLUME PRICE / MIX FX-NEUTRAL and market share gains in Poland REVENUE drove stable volumes despite sugar ta
Slide 14: Established markets
ESTABLISHED MARKETS STRONG RECOVERY IN Q2 AS THE OUT-OF-HOME REOPENED ESTABLISHED MARKETS +11.8% +4.8% +17.1% • FX-n revenue is c. 8% below 2019 • Out-of-home opening drove VOLUME PRICE / MIX FX-NEUTRAL strong recovery REVENUE • Italy volumes are nearing pre- pandemic levels, while Greece is still i
Slide 15: Earning our license to operate
1 2 3 4 5 GROWTH PILLAR EARNING OUR LICENSE TO OPERATE World without waste Emissions reduction • New 100% rPET launches • Reduction of 50% over last decade • Swapping plastic wrapping for paperboard • Science-based reduction target to 2030 solution in 10 markets 15 HALF YEAR RESULTS 12 AUGUST 2021
Slide 16: Financial Review
FINANCIAL REVIEW BEN ALMANZAR CHIEF FINANCIAL OFFICER 16 HALF YEAR RESULTS 12 AUGUST 2021
Slide 17: Revenues accelerate
REVENUES ACCELERATE FX NEUTRAL REVENUE (like for like) % change YoY • Like-for-like FX-neutral revenues up 23.1% in H1 and 23.1% up 39.5% in Q2 6.2% • Strong acceleration in volume in Q2, up 26.5% drove FX neutral revenue 3.4% 15.9% H1 like-for-like volumes above 2019 levels -15.1% Volume 1.2% Price
Slide 18: Cost savings kept absolute opex flat
COST SAVINGS KEPT ABSOLUTE OPEX FLAT HY 2021 HY 2020 change • Gross Profit margin down 70bps Comparable gross profit margin 36.6% 37.2% -70bps − Input and FX cost pressure partially offset by hedging, price/mix and productivity gains (- Comparable operating expenses -852.0 -850.0 0.2% 50bps) Compara
Slide 19: Margins improve in all segments
MARGINS IMPROVE IN ALL SEGMENTS TOP LINE CHANGE EBIT MARGIN HY 2021 vs HY 2021 vs • Established margins accelerate HY 2020 HY 2020 fastest due to revenue recovery Total CCH driving strong operational leverage Volume 13.8% Total CCH • Developing margins include a c. Price/mix 6.2% EBIT margin 10.8% 2
Slide 20: H1 EBIT margin +340bps
H1 EBIT MARGIN +340BPS HY 2021 HY 2020 change • Comparable EBIT expanded 67.8% while Comparable EBIT (€m) 350.3 208.8 67.8% comparable EBIT margins expanded 340bps Comparable EBIT margin 10.8% 7.4% +340bps • We now expect 20-30bps EBIT margin expansion Comparable net profit (€m) 235.6 129.0 82.6% in
Slide 21: Capital allocation priorities
1 2 3 4 5 GROWTH PILLAR CAPITAL ALLOCATION PRIORITIES Investing for growth Returning cash to shareholders 1 Organic investment in the business 2 Progressive ordinary dividend policy • CAPEX target ratio: 6.5% - 7.5% of revenue • Target pay-out ratio: 35%-45% of comparable • Capacity expansion, coole
Slide 22: Outlook
OUTLOOK • Encouraging H1, vaccination rates are high and restrictions have eased but uncertainty about new variants remains • Continuously monitoring to prioritise opportunities 2021 guidance • Expect a strong FX-n revenue recovery − Continued volume recovery − Price / mix expansion • Now expect 20-
Slide 23: 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: Joanna Kennedy – Investor Relations Director Joanna.Kennedy@cchellenic.com +44 (0)7802 427505 Carla Fabiano – Investor Relations Manager Carla.Fabiano@cche