Wiki source code of Coca-Cola HBC

Version 12.1 by Asif Farooqui on 2022/07/29 03:04
Show last authors
1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Coca-Cola HBC is a consumer packaged goods business and strategic bottling partner of the Coca-Cola company.
8 * The Coca-Cola Company owns, develops and markets its brands with the end consumer.
9 * The company bottle and sell the beverages of The Coca-Cola Company exclusively in its 29 markets.
10 * The company serve more than 715 million consumers across a broad geographic footprint of 29 countries on 3 continents.
11
12 [[image:CCH0.png]]
13
14 (% id="cke_bm_266S" style="display:none" %) (%%)Coca-Cola HBC (LSE:CCH) is a growth-focused consumer packaged goods business and strategic bottling partner of the Coca-Cola company {{footnote}}https://www.coca-colahellenic.com/en/about-us/at-a-glance{{/footnote}}
15
16
17 = (% id="cke_bm_229S" style="display:none" %) (%%)Financial Highlights =
18
19 **Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:**{{footnote}}https://www.coca-colahellenic.com/en/media/news/financial_news/2022/2021-full-year-results{{/footnote}}
20
21
22 “The business has delivered a very strong recovery in 2021, with all key metrics above pre-pandemic levels, the result of consistent and disciplined focus on its strategic priorities over the last few years. The company finished the year with strong revenue growth, its highest ever EBIT margin and free cash flow while continuing to gain share. This performance demonstrates the strength of its 24/7 brand portfolio, revenue growth management capabilities and execution excellence in its markets. It is driven by the strong drive and passion of its people, who continue to show great creativity and adaptability in navigating the volatile operating environment while nurturing its culture which embraces change, challenge and care. The company's results and strong future plans are also a reflection of its stronger than ever partnership with The Coca-Cola Company.
23
24
25 2021 also marked 70 years since its early beginnings in Nigeria and I am more excited than ever by the growth potential of its business, further strengthened with the addition of Egypt to its country portfolio.
26
27
28 Revenue growth management actions focused behind both premium and affordable offers, as well as pricing and ongoing productivity improvements have enabled it to continue investing behind its strategic priorities, including in capabilities development, whilst achieving EBIT margin expansion.
29
30
31 Coca-Cola HBC is encouraged by the momentum the company see in the business. The company expect 2022 to be a year of strong sales supported by ongoing volume momentum, pricing actions and beneficial category mix. While mindful of inflationary headwinds and other risks, its track record and continuous focus on efficiencies give me confidence in delivering another year of EBIT growth. Given the positive long-term outlook for the business Coca-Cola HBC is increasing its targeted dividend pay-out range to 40-50%.”
32
33
34 Effective execution in a volatile environment drove strong recovery
35
36 * FX-neutral revenue growth +20.6% like-for-like1. Reported revenues +16.9%
37 * Business gained momentum in Q4, with FX-neutral revenue closing 10% above 20192 levels for the year like-for-like
38 * Value share gains continued to increase, +80bps in NARTD
39
40 Volume growth of 14.0% like-for-like, or 13% on a reported basis, led by the Emerging and Established segments as well as the strategic priorities in its portfolio
41
42 * Sparkling volume +13.8%, Low/no sugar +47.3%; Adult sparkling +31.8%
43 * Energy volume + 45.3%, driven by the performance of Monster, Burn and Predator
44
45 Strength of brand portfolio demonstrated as pricing and other revenue growth management actions drove FX-neutral revenue per case +5.8%, or +3.9% excluding Poland
46
47
48 Consistent investment behind strategic priorities building growth momentum
49
50 * Costa Coffee now available in 17 markets; Caffè Vergnano launched in Q4, now live in 5 markets
51 * Geographical expansion into Egypt adds exciting growth opportunity, integration on track
52 * Net Zero commitment backed by €250 million investment by 2025
53
54 Expanded EBIT margin while increasing marketing investment
55
56 * Comparable EBIT grew by 23.6% with margins +60bps to 11.6%, including c. 30bps benefit from Cyprus property sale. Reported EBIT grew by 21.0%
57 * Opex as a percent of revenue improved by 2.2pp, driven by operating leverage, cost savings higher than plan; 30 bps benefit from Cyprus property sale
58 * Marketing expenditure +63%, full year spend almost back to pre-pandemic levels
59
60 Strong earnings growth, record high free cash flow and increased dividend pay-out target range
61
62 * Comparable EPS up 33.7% to €1.58 on lower tax rate; free cash flow increased by €104.3 million to €601.3 million
63 * Increased dividend pay-out ratio target to 40-50%, previously 35-45%
64 * Board of Directors to propose ordinary dividend of €0.71 per share, up +10.9% year-on-year
65
66 (% style="width:899px" %)
67 |(% style="width:485px" %) |(% style="width:146px" %)**Full-Year**|(% style="width:136px" %) |(% style="width:129px" %)**%**
68 |(% style="width:485px" %) |(% style="width:146px" %)**2021**|(% style="width:136px" %)**2020**|(% style="width:129px" %)**Change**
69 |(% style="width:485px" %)Volume (m unit cases)|(% style="width:146px" %)2,412.70|(% style="width:136px" %)2,135.60|(% style="width:129px" %)13.00%
70 |(% style="width:485px" %)Net sales revenue (€ m)|(% style="width:146px" %)7,168.40|(% style="width:136px" %)6,131.80|(% style="width:129px" %)16.90%
71 |(% style="width:485px" %)Net sales revenue per unit case (€)|(% style="width:146px" %)2.97|(% style="width:136px" %)2.87|(% style="width:129px" %)3.50%
72 |(% style="width:485px" %)FX-neutral net sales revenue (€)|(% style="width:146px" %)7,168.40|(% style="width:136px" %)5,994.90|(% style="width:129px" %)19.60%
73 |(% style="width:485px" %)FX-neutral net sales revenue per unit case3 (€)|(% style="width:146px" %)2.97|(% style="width:136px" %)2.81|(% style="width:129px" %)5.80%
74 |(% style="width:485px" %)Operating expenses/ Net sales revenue ~(%)|(% style="width:146px" %)25.6|(% style="width:136px" %)27.4|(% style="width:129px" %) -190bps
75 |(% style="width:485px" %)Comparable operating expenses / Net sales revenue ~(%)|(% style="width:146px" %)25.1|(% style="width:136px" %)27.3|(% style="width:129px" %)-220bps
76 |(% style="width:485px" %)Operating profit (EBIT) (€ m)|(% style="width:146px" %)799.3|(% style="width:136px" %)660.7|(% style="width:129px" %)21.00%
77 |(% style="width:485px" %)Comparable EBIT (€ m)|(% style="width:146px" %)831|(% style="width:136px" %)672.3|(% style="width:129px" %)23.60%
78 |(% style="width:485px" %)EBIT margin ~(%)|(% style="width:146px" %)11.2|(% style="width:136px" %)10.8|(% style="width:129px" %)40bps
79 |(% style="width:485px" %)Comparable EBIT margin ~(%)|(% style="width:146px" %)11.6|(% style="width:136px" %)11|(% style="width:129px" %)60bps
80 |(% style="width:485px" %)Net profit5 (€ m)|(% style="width:146px" %)547.2|(% style="width:136px" %)414.9|(% style="width:129px" %)31.90%
81 |(% style="width:485px" %)Comparable net profit (€ m)|(% style="width:146px" %)578.1|(% style="width:136px" %)431.4|(% style="width:129px" %)34.00%
82 |(% style="width:485px" %)Basic earnings per share (EPS) (€)|(% style="width:146px" %)1.499|(% style="width:136px" %)1.14|(% style="width:129px" %)31.50%
83 |(% style="width:485px" %)Comparable EPS (€)|(% style="width:146px" %)1.584|(% style="width:136px" %)1.185|(% style="width:129px" %)33.70%
84 |(% style="width:485px" %)Free cash flow3 (€ m)|(% style="width:146px" %)601.3|(% style="width:136px" %)497|(% style="width:129px" %)21.00%
85
86 (% class="wikigeneratedid" id="HCompanyHistory" %)
87 (% id="cke_bm_621S" style="display:none" %)
88
89 = Markets =
90
91 The company manage and report on its business by grouping its geographical markets into three segments: emerging, developing and established markets. These groupings are based on a wide range of criteria, including socio-economic similarities, GDP per capita, consumption of sparkling drinks per capita and the state of development of the local drinks market.{{footnote}}https://www.coca-colahellenic.com/en/about-us/what-we-do/markets{{/footnote}}
92
93
94 == Established Markets ==
95
96 The company operate in the established markets: Austria, Cyprus, Greece, Italy, Northern Ireland, Republic of Ireland and Switzerland.
97
98
99 These countries share a tradition of political and economic stability and similar economic features, not least, high levels of disposable income per capita. This prosperity and economic security supports the affordability of its products, notably its single-serve packages.
100
101
102 Established countries generally show high levels of consumer sophistication. There are signs of activities concentrating in the retail sector – a critical indication for future channel development. A shift in demand towards domestic consumption, reflecting a reduction in disposable income, further supports this trend. In this context, activation at final points of sale is a key focus for its marketing and sales efforts.
103
104
105 == Developing Markets ==
106
107 The company operate in the developing markets: Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.
108
109
110 While developing markets have market-oriented economies, they generally have lower disposable income per capita than its established markets. In addition, these countries can be exposed to periods of economic volatility. Entry to the European Union has resulted in increased political stability, as countries increasingly conform to the EU’s principles, objectives and regulations.
111
112
113 == Emerging Markets ==
114
115 The company operate in the emerging markets: Armenia, Belarus, Bosnia & Herzegovina, Bulgaria, Egypt, Moldova, Montenegro, Nigeria, North Macedonia, Romania, the Russian Federation, Serbia (including the Republic of Kosovo) and Ukraine.
116
117
118 These countries share relatively similar political and economic volatility, with lower per capita GDP than its developing or established segments. As a result, consumer demand is especially price sensitive, making the affordability of Coca Cola HBC’s products even more important.
119
120
121 The company deliver its products with a strategy of specialised revenue growth management, packaging and promotional programmes – these are the considerations at the core of its response to the nuances of local economic conditions.
122
123
124 [[image:CCH3.png]]
125
126
127 = (% id="cke_bm_247S" style="display:none" %) (%%)Company Overview =
128
129 The company bottle and sell the beverages of The Coca-Cola Company exclusively in its 29 markets. The company also partner with other beverage businesses such as Monster Energy, Edrington, Brown-Forman and Campari to sell their products. The company create value for all its stakeholders by supporting the socio-economic development of the societies in which the company operate and believe building a more positive environmental impact is integral to its future growth.
130
131
132 The company's portfolio is one of the strongest, broadest and most flexible in the beverage industry, offering consumer-leading brands in the sparkling, juice, water, sport, energy, plant-based, ready-to-drink tea, coffee, adult sparkling, snacks and premium spirits categories. The company's products cater to a growing range of tastes with a wider choice of healthier options, premium products and increasingly sustainable packaging.
133
134
135 Along with its customers, the company serve more than 715 million consumers across a broad geographic footprint of 29 countries on 3 continents. This spans from the West Coast of Ireland to the Pacific coast of Russia; from Northern Europe to its most southerly market, Nigeria.
136
137
138 The company foster an open and inclusive work environment with its 36,000 employees. The company share a passion for serving its customers and communities and building a more positive environmental impact.
139
140
141 [[image:CCH1.jpg]]
142
143
144 == Partnership with the Coca-Cola Company ==
145
146
147 The Coca-Cola Company owns, develops and markets its brands with the end consumer. Coca-Cola HBC is responsible for producing, distributing, and selling these beverages. The company work together to ensure that Coca-Cola HBC has the right portfolio for its markets and to ensure excellent, efficient execution.{{footnote}}https://www.coca-colahellenic.com/en/about-us/who-we-are/relationship-with-tccc{{/footnote}}
148
149
150 The company buy concentrate from The Coca-Cola Company under an incidence-based pricing model. The company also share marketing costs and responsibilities; The Coca-Cola Company undertakes marketing to consumers while the company take responsibility for trade marketing to its customers.
151
152
153 [[image:CCH2.png]]
154
155
156 == ==
157
158
159 [[image:CCH5.jpg]]
160
161
162 == Brands ==
163
164 Coca-Cola HBC is a customer-centric business aiming to provide value to its customers by growing their business and through perfect execution in the marketplace.
165
166
167 The company grow by supporting its customers’ growth. To do this, the company leverage its 24/7 portfolio and segmented sales execution to grow the overall beverage industry, focusing on areas of high value opportunity and executing with excellence.
168
169
170 With over 100 brands covering eight categories – sparkling, water, juices, ready-to-drink tea, energy, plant-based, premium spirits and coffee – Coca-Cola HBC has more opportunities to help its customers delight consumers than ever before, by providing the brands and drinks people want, when and where they want them.
171
172
173 [[image:CCH6.png]]
174
175
176
177 == Company History ==
178
179 Coca-Cola HBC has a rich heritage and an exciting future – from the creation of coca cola in 1886 to being recognised as an industry leader by the DOW JONES sustainability indices today.{{footnote}}https://www.coca-colahellenic.com/en/about-us/who-we-are/history{{/footnote}}
180
181 (% class="info" %)|**Year**|**Milestone**
182 |1951|AG Leventis establishes the Nigerian Bottling Company in Lagos, Nigeria
183 |(% rowspan="2" %)1953|Production starts in Ebute-Metta plant, Nigeria
184 |Opening of Apapa plant in Nigeria
185 |1961|Second NBC plant in Ibadan commissioned
186 |1969|Hellenic Bottling Company established in Greece
187 |1972|NBC listed on the Nigerian Stock Exchange
188 |1977|Acquisition of Coca-Cola franchises in Ireland & Northern Ireland
189 |1978|NBC’s Ikeja plant commissioned
190 |1983|Amita launched in Greece
191 |1991|Listing on the Athens Stock Exchange
192 |1992|Hellenic Bottling Company enters Bulgaria
193 |(% rowspan="2" %)1994|Coca-Cola plant built in Moscow
194 |Hellenic Bottling Company enters Belarus and Moldova
195 |1996|Hellenic Bottling Company enters Armenia
196 |1997|Acquisition of IBP Beograd in Serbia
197 |1998|Hellenic Bottling Company invests in Pivara Skopje
198 |(% rowspan="2" %)2000|Merger of Hellenic Bottling Company SA with Coca-Cola Beverages PLC creates Coca-Cola HBC
199 |Coca-Cola HBC included in the FTSE 4 Good Index
200 |2001|The comapny acquire the Russian operation from TCCC
201 |(% rowspan="4" %)2002|The comapny acquire mineral water companies Dorna in Romania, Valser in Switzerland and Römerquelle in Austria
202 |Distribution center opens in Montenegro
203 |Coca-Cola HBC listed on the New York Stock Exchange
204 |The company acquire the operations in the Baltics (Latvia, Lithuania, Estonia) from TCCC
205 |2003|Distribution center opens in Kosovo
206 |(% rowspan="3" %)2005|The company open its first energy-efficient combined heat and power (CHP) plant in Hungary
207 |The company acquire Russian juice producer CJSC Multon and Vlasinka mineral water in Serbia
208 |Coke Zero launch
209 |(% rowspan="3" %)2006|Acquisition of Serbian juice producer Fresh & Co
210 |Coca-Cola HBC enters Cyprus through the acquisition of Lanitis Bros
211 |Acquisition of Fonti del Vulture mineral water in Italy
212 |2007|Founding of the PET to PET Recycling Plant in Austria
213 |(% rowspan="3" %)2008|Distribution agreement with Brown Forman (Jack Daniels, Finlandia, El Jimador) in Hungary. Currently Coca-Cola HBC is active with Brown Forman portfolio in 7 markets.
214 |Acquisition of Socib in Italy
215 |Coca-Cola HBC included in the DJSI for the first time
216 |(% rowspan="3" %)2011|Opening of Business Service Organization office in Sofia, Bulgaria
217 |All its plants are certified to ISO 9001
218 |Acquisition of Kykkos in Cyprus
219 |2013|Coca-Cola HBC is listed on the premium segment of the London Stock Exchange
220 |2015|Opening of Business Service Organization office in Nizhny Novgorod, Russia
221 |(% rowspan="2" %)2016|The company launch a new partnership with Gruppo Campari (Campari, Aperol, Grand Marnier) starting from Greece, distributing presently to 15 CCH markets
222 |Acquisition of Neptunas mineral water in Lithuania
223 |(% rowspan="2" %)2017|Acquisition of Rézangyal spirits brand in Hungary. Rézangyal is a well-known pálinka (traditional fruit brandy) offering Classic and Premium options in their product portfolio.
224 |Acquisition of MB Impex spirits producer in Serbia, which is the producer of the bitter liqueur Zlatni Pelin and the brandy Zlatna Rakia.
225 |2018|The company launched FUZETEA, its ready-to-drink tea in 27 of its markets across Europe
226 |(% rowspan="3" %)2019|The company acquired Bambi, the leading confectionery brand in Serbia
227 |The company complete the acquisition of Lurisia, the historic premium water and flavoured sparkling business, in Italy
228 |The company acquire Toma in Czech Republic – a locally relevant water with strong potential for growth
229 |(% rowspan="3" %)2020|The company achieve Water Stewardship Certification for 52 plants
230 |The company launch Costa Coffee in the first of its markets
231 |The company launch Topo Chico Hard Selzer in 5 markets
232 |2022|The company complete the acquisition of Coca-Cola Bottling Company of Egypt S.A.E.
233
234
235 = References =
236
237 {{putFootnotes/}}
This site is funded and maintained by Fintel.io