Coca-Cola HBC AG · LSE:CCH
Coca-Cola HBC — H1 2022 Earnings Presentation
25 slides from Coca-Cola HBC's earnings presentation, Aug 11, 2022
Slide 1: Half Year Results
Half Year Results 11 August 2022
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 Coca-Cola HBC 2022 Half Year Results August 2022 3
Slide 4: Delivering today while investing for tomorrow
Delivering today while investing for tomorrow 1 Disciplined execution of our strategy is driving performance 2 Strong top-line growth combined with share gains 3 Our actions protected profitability 4 Harvesting previous investment in growth, and continuing to invest for the future 5 Strength of part
Slide 5: Strong financial progress
Strong financial progress Organic volume Organic revenue / case + 4.7% + 14.0% Ex Russia Ex Russia + 12.1% & Ukraine +11.6% & Ukraine Organic revenue Organic EBIT + 19.4% + 23.0% + 25.2% Ex Russia & Ukraine Margin + 30bps Coca-Cola HBC 2022 Half Year Results August 2022 5
Slide 6: Volume momentum continues
Volume momentum continues Growth led by strategic priorities in Sparkling and Energy Sparkling Low / no sugar Adult Sparkling +11.2% +30.8% +18.7% Energy Stills Coffee +28.8% +13.0% +65.2% All performance H1 excluding Russia and Ukraine Coca-Cola HBC 2022 Half Year Results August 2022 6
Slide 7: Harnessing healthy consumer demand; ready to adapt
Harnessing healthy consumer demand; ready to adapt Demand remains healthy and consumers willing to spend Managing inflationary pressures through RGM capabilities and cost discipline Alert to any changes with ready-to- 24 go plans to adapt offer while still 7 driving healthy mix Coca-Cola HBC 2022 Ha
Slide 8: Data, insights & analytics sharpens RGM
Data, insights & analytics sharpens RGM We leverage data to drive insights to improve our price and mix Value drivers Data Insights & Opportunities Improving price and mix Consumer data Consumer Household panel Launching new packs & flavours Sell-in and sell-out data Entering whitespaces Weather and
Slide 9: Plenty of headroom to continue to drive mix improvement
Plenty of headroom to continue to drive mix improvement Balance between premiumisation and affordability initiatives to maximise the value of every transaction and meet consumer expectations, in an NSR/case accretive way Premiumisation Affordability Premium brands Single- Smaller Multi-serve Serves
Slide 10: B2B drives incremental revenue and micro-segmentation capability
B2B drives incremental revenue and micro-segmentation capability 8.4% >200,000 +28% Of orders in June Registered customers Active customers increase YoY in June Customer Portal enables Provides us valuable data for Scale of the platform growing our customers to order micro-segmenting and albeit with
Slide 11: Bright future for Egypt
Bright future for Egypt Large, growing Route-to-market Portfolio Integration of Gaining share market with improvement adjustment to back-office for the first mid-term margin through cooler generate growth including critical time since 2019 accretion potential investment and improve environmental rev
Slide 12: Remaining a leader in sustainability
Remaining a leader in sustainability • Launched a label-free Valser Water package to Commitment to biodiversity improve recyclability • Commitment to enhancing biodiversity by reducing • Launched 100% rPET across the whole portfolio emissions and water use, preserving and re-instating in Switzerland
Slide 13: Financial Review
FINANCIAL REVIEW Ben Almanzar Chief Financial Officer Coca-Cola HBC 2022 Half Year Results August 2022 13
Slide 14: Consistently strong top-line performance
Consistently strong top-line performance • Net sales revenue increased by 19.4% on an organic basis and 25.2% excluding Russia & Ukraine Organic growth excluding RU & UKR • Robust double-digit growth volume growth ex Russia and Ukraine 25.9% 24.6% 25.2% • Revenue growth propelled by both price/mix a
Slide 15: Inflationary pressure continues
Inflationary pressure continues H1 COGS split (%) Concentrate 31% In line with the increase in price / mix FY 2022 guidance COGS / case Raw materials 46% Commodities & mid-teens inflation and finished goods indirect energy impact Productions, overheads and 20% Direct energy haulage impact - utilitie
Slide 16: Levers to mitigate inflationary pressure
Levers to mitigate inflationary pressure RGM capabilities Long-term supply Productivity and Diligent OPEX enhanced through contracts and logistics initiatives management and data hedging in place in production cost discipline Drive revenue Help mitigate Operational growth COGS inflation gearing as r
Slide 17: Organic EBIT grew by 23.0%; margin expansion in all segments
Organic EBIT grew by 23.0%; margin expansion IN ALL SEGMENTS • Organic growth of EBIT margin +30bps Comparable EBIT €m • Significant improvement in OPEX as a percent of +32% revenue -250bps YoY offsetting Gross Profit margin 462.5 pressure 11.0% 350.3 • Benefiting from cost control as revenues grew
Slide 18: Established markets
Established markets Strong price/mix as volumes accelerate Volume EBIT margin • Volumes ahead of 2019 levels +11.4% 10.1% • Out-of-home recovery provided strong support to volumes Organic Organic • Price/mix was driven by pricing price / mix EBIT change actions in all markets, positive channel and p
Slide 19: Developing markets
Developing markets Broad-based strength Volume EBIT margin • Volumes above 2019 levels +20.7% 6.5% • Price/mix was driven by pricing actions in all markets, positive category and pack mix Organic Organic price / mix EBIT change • Poland saw a strong +10.7% +63.8% performance in Sparkling and executi
Slide 20: Emerging markets
Emerging markets Resilient performance despite headwinds Organic volume EBIT margin • Excluding Russia & Ukraine, -2.6% 13.3% volumes grew high-single digits • Price/mix benefited from pricing and pack mix, partly offset by Organic Organic negative country mix price / mix EBIT change • Organic reven
Slide 21: EPS expansion and FCF generation continue
EPS expansion and FCF generation continue • Strong EPS recovery Profitability Cash flow • Finance costs increased +23.1%, mainly due to EPS + 33.9% FCF +20.0% consolidation of Egypt • Comparable tax rate of 25%, at lower end of our Comparable net profit Free cash flow guidance 25% to 27% €m €m Earni
Slide 22: Balance sheet strength remains
Balance sheet strength remains • Expected gearing by end of 2022 within the 1.5-2x range • Balance sheet continues to provide firepower and flexibility to invest organically or through M&A Coca-Cola HBC 2022 Half Year Results August 2022 22
Slide 23: 2022 outlook
2022 outlook Expect positive Group organic revenue growth in 2022 • Excluding Russia and Ukraine we expect double digit organic revenue growth Expect Group Comparable EBIT in the range of €740-820 million • We now assume mid-teens COGS per case inflation for 2022 • We will remain disciplined on effi
Slide 24: Sustainable, long-term growth
Sustainable, long-term growth 24 7 Leader in an Diversified 24/7 portfolio Relentless Engaged Determined attractive, geographies and execution cost team with a to remain a growing with exposure capabilities to efficiency winning leader in industry to growth win share fuels profit mindset sustainabil
Slide 25: Q&A
Q&A For further information on Coca-Cola HBC please visit our website at: www.coca-colahellenic.com Or contact our investor relations team: Joanna Kennedy Head of Investor Relations [email protected] +44 (0)7802 427505 Jemima Benstead Investor Relations Manager jemima.benstead@cchellenic