2023 FULL YEAR RESULTS

STRONG EXECUTION POWERS 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 2023.

Full-year highlights

Focused execution of 24/7 strategy delivered 16.9% organic revenue growth[1]

• Organic volume growth of 1.7% led by our strategic priority categories, with Sparkling +2.5%, Energy +27.3% and Coffee +31.5%
• Strong finish to the year with 6.8% organic volume growth in Q4 and improving trends in all three reporting segments
• Organic revenue per case growth of 15.0%, reflecting the benefits of revenue growth management initiatives throughout the year
• Reported revenue up 10.7%, with strong organic growth partly offset by FX translation headwinds in Emerging markets
• Continued value share gains in 2023 in both Non-Alcoholic Ready-To-Drink (NARTD) and Sparkling of 110bps and 80bps respectively 

Strong organic EBIT growth of 17.7% driving good improvement in Return on Invested Capital

• Comparable EBIT of €1,083.8 million; Comparable EBIT margins improved 50 basis points on a reported basis to 10.6%, up 10 basis points on an organic basis
• Comparable gross profit margin up 80 basis points, reflecting easing cost pressures in the second half of the year
• Disciplined investment in growth capabilities and good operating leverage reduced comparable operating expenses as a percent of revenue by 10 basis points
• ROIC up 230 basis points to 16.4%

Double-digit organic revenue and EBIT growth across all segments

• Established: Organic revenue up 12.3%, led by pricing and mix. Organic EBIT grew 23.0%
• Developing: Organic revenue up 18.2%, with strong revenue per case expansion. Organic EBIT grew 26.9%
• Emerging: Organic revenue up 19.9%, with volume growth as well as revenue per case improvement. Organic EBIT grew by 11.7%

Strong EPS progress, record FCF generation and improved shareholder returns

• Comparable EPS grew by 21.8% to €2.08, supported by strong profit delivery and effective management of finance costs
• Free cash flow increased by 10.3% to a record €711.8 million
• Net debt of €1.6 billion and 1.1x net debt to comparable adjusted EBITDA, reflecting the strength of our balance sheet
• Launched a two-year share buyback programme of up to €400 million in November, reflecting the Board’s long-term confidence in business performance
• Board of Directors to propose an ordinary dividend of €0.93 per share, up 19.2% year on year and representing a 45% payout

Sustained investment across our strategic priorities 

• Capital expenditure of €674.9 million, up 14.5%, focused on sustainable growth
• Acquisition of Finlandia Vodka business from Brown-Forman for €180 million net consideration paid
• Accelerated investment in bespoke capabilities, particularly digital initiatives, and our agenda to further strengthen our ability to win in the market
• Launched Jack Daniel’s & Coca-Cola in Poland, Ireland and Hungary

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

“I am deeply proud of our team as we delivered a third year of double-digit growth and record profits. I would like to thank them for their tireless efforts, and their commitment to our company vision, our customers and consistent focused execution. I would also like to thank our customers and partners for their ongoing support throughout the year.

“2023 was another year of consistent execution of our growth strategy. We delivered volume growth, share gains, improved margins and record levels of free cash flow. As a result, we were able to increase shareholder returns, including the launch of a share buyback programme.

“The power of our 24/7 portfolio, our diversified country footprint and our sustained investment in building bespoke capabilities, driven by data, insights and analytics, are foundations of compounding growth.

“In 2023, we made significant progress towards our Mission 2025 and NetZeroby40 goals, with key milestones including commissioning a new in-house recycled plastic (rPET) production facility in Romania and a new line for returnable and resealable glass bottles in Austria. In December, we also announced that we are establishing a charitable foundation dedicated to supporting local communities where we operate.

“While we expect the macroeconomic and geopolitical environment to remain challenging, we remain confident that we will continue to make progress against our medium-term growth targets.”

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.