2022 Full Year Results

STRONG EXECUTION DRIVES ANOTHER YEAR OF GROWTH 

Coca-Cola HBC AG, a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, reports its financial results for the twelve months ended 31 December 2022.

Full-year highlights

Focus on strategic priorities and excellence in execution delivered another year of strong organic growth¹, driven by price, mix and volume

• Organic revenue up 14.2%. Reported revenue up 28.3%
• Excluding Russia and Ukraine organic revenue up 22.7%
• Organic revenue per case up 15.9%, benefitted from pricing and targeted actions to improve mix throughout the year
• Broad-based volume growth outside of Russia and Ukraine, led by our priority categories: Sparkling, Energy and Coffee
• Execution excellence driven by focused channel activations and customer segmentation
• Gaining volume and value share

Comparable EBIT up 11.9% to €929.7 million with organic EBIT up 1.3% as pricing, mix and cost discipline drive profits despite the challenging inflationary backdrop

• Operating leverage and cost savings enabled operating expenses as a percent of revenue to improve by 50bps
• Continued investment in marketing, increased by 11.5% excluding Russia and Ukraine
• 2021 comparative included €23 million benefit to EBIT from one-off Cyprus property sale

Continued investment behind strategic priorities to drive profitable, sustainable growth 

• Investment behind Sparkling and Energy capacity and capability driving consistent performance
• Increased investment in capabilities to support prioritised opportunities in data, digital commerce, Egypt and Coffee
• Accelerating our sustainability agenda with the opening of €30 million recycled PET (rPET) facility in Italy

Another year delivering record free cash flow and an increased dividend

• Comparable EPS up 7.7%, impacted by a higher tax rate and finance charges, as expected
• Free cash flow increased by €43.8 million to €645.1 million, due to improved profit generation and effective working capital management
• Issue of first green bond for €500 million
• Board of Directors to propose an ordinary dividend of €0.78 per share, up 9.9% year on year representing a 46% pay-out

Segment highlights

Established and Developing show strong momentum, Emerging impacted by declines in Russia and Ukraine

• Established: Organic revenue increased by 18.6% with well-balanced volume and revenue-per-case expansion. Organic EBIT expanded 1.3%
• Developing: Organic revenue up 29.0%, led by double-digit volume growth across the main markets. Organic EBIT up 12.7%
• Emerging: Organic revenue up 5.5%, with 23.5% growth excluding Russia and Ukraine. Organic EBIT declined 1.1%

Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:

“We delivered a strong performance in 2022 against a challenging backdrop, achieving record levels of revenue, comparable EBIT and free cash flow.

The benefits of portfolio prioritisation were clear, with growth led by Sparkling, Energy and Coffee.

Consumer demand for our products and in our categories remained good. The power of our portfolio and consistent investment in our capabilities allowed us to balance pricing and mix enhancements, while also achieving another year of strong share gains.

We are making tangible progress towards our Mission 2025 and NetZeroby40 goals, with key milestones including the opening of a new rPET facility in Italy and the issuance of our first green bond.

Our strong performance is testament to the passion and dedication of our people and I would like to thank all our customers, partners and employees for their ongoing commitment and support.

Looking to 2023, our track record, portfolio, capabilities, the diversity of our markets and, above all, our talented people make us confident of achieving another year of strategic and financial progress, accelerating our journey to becoming The Leading 24/7 Beverage Partner.”

¹For details on APMs refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.

²Refer to the condensed consolidated income statement.

³Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.