2024 Half Year Results

Strong growth and share gains

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 six months ended 28 June 2024.

Half-year highlights

• Focused execution of strategic priorities drives strong organic revenue growth of 13.6%¹
  • Organic volume grew 3.1%, with our strategic priority categories all driving growth, Sparkling +0.9%, Energy +32.8% and Coffee +21.6%; Q2 volumes grew 4.2%, with all segments contributing
  • Organic revenue per case growth of 10.2%, driven by targeted revenue growth management initiatives
  • Reported revenue growth of 3.1%, with strong organic growth mostly offset by FX headwinds in the Emerging segment
  • Further value share gains, with our share in Non-Alcoholic Ready-To-Drink (NARTD) up 170bps and Sparkling up 80bps year-to-date

• Robust organic EBIT growth of 7.5%, with Comparable EBIT reaching €564.1 million
  • Comparable gross profit margin grew 100 basis points, reflecting easing input cost inflation
  • Ongoing investment in the business as well as higher other operating expenses as a result of currency headwinds, resulted in opex as a percentage of revenue up 130 basis points
  • Resilient Comparable EBIT, up 0.6%; while margin was 30 basis points lower year-on-year on a reported basis, and down 60 basis points on an organic basis

• Segmental highlights: Broad-based organic revenue growth
  • Established: Organic revenue increased by 4.4%, led by revenue-per-case expansion and a resilient volume performance; organic EBIT grew 11.1% 
  • Developing: Organic revenue up 11.5%, driven by revenue-per-case expansion, as well as volume growth; organic EBIT up 62.3%
  • Emerging: Organic revenue up 22.7% as we utilised revenue growth management initiatives to navigate FX headwinds in Nigeria and Egypt, and continued to drive solid volume growth; organic EBIT down 8.6% 

• EPS impacted by higher finance costs, despite EBIT growth
  • Comparable EPS of €1.04, down 1.7% year-on-year, due to higher finance costs
  • Strong balance sheet and liquidity; dividend of €0.93 per share, up 19.2%, paid in June

• Continued investment behind our 24/7 portfolio and strategic priorities 
  • Close collaboration with The Coca-Cola Company to capitalise on the start of the summer with music and sport, driving growth in Sparkling
  • Monster Energy Green Zero Sugar launched in 16 markets in Q1 contributed to a strong performance of Energy, with strong ongoing activation through Q2
  • Coffee growth driven by increasing share of revenue in the out-of-home channel
  • We continue to focus on driving mixability and premiumisation, introducing innovation with Schweppes and Kinley, launching Three Cents in a further nine markets, and expanding Finlandia Vodka to 19 new markets 

• Sustainability remains at the forefront
  • Actively supported the launch of deposit return schemes in Ireland and Hungary, with both schemes expected to improve collection rates for beverage containers
  • Awarded $130 million loan in July by the European Bank of Reconstruction and Development (EBRD) to finance capex and working capital requirements, as well as supporting ongoing investment in people and sustainability, in Egypt

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