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Asif Farooqui 1.3 5 = Summary =
Asif Farooqui 1.1 6
Asif Farooqui 12.1 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.
Asif Farooqui 4.2 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.
Asif Farooqui 1.1 11
Asif Farooqui 4.2 12 [[image:CCH0.png]]
Asif Farooqui 1.1 13
Asif Farooqui 12.1 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}}
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Asif Farooqui 13.1 16 (% id="cke_bm_229S" style="display:none" %)
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Asif Farooqui 13.1 19 = Financial Highlights =
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Asif Farooqui 12.1 21 **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}}
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Asif Farooqui 12.1 23
24 “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.
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27 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.
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30 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.
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33 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%.”
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36 Effective execution in a volatile environment drove strong recovery
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38 * FX-neutral revenue growth +20.6% like-for-like1. Reported revenues +16.9%
39 * Business gained momentum in Q4, with FX-neutral revenue closing 10% above 20192 levels for the year like-for-like
40 * Value share gains continued to increase, +80bps in NARTD
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42 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
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44 * Sparkling volume +13.8%, Low/no sugar +47.3%; Adult sparkling +31.8%
45 * Energy volume + 45.3%, driven by the performance of Monster, Burn and Predator
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47 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
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50 Consistent investment behind strategic priorities building growth momentum
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52 * Costa Coffee now available in 17 markets; Caffè Vergnano launched in Q4, now live in 5 markets
53 * Geographical expansion into Egypt adds exciting growth opportunity, integration on track
54 * Net Zero commitment backed by €250 million investment by 2025
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56 Expanded EBIT margin while increasing marketing investment
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58 * 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%
59 * 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
60 * Marketing expenditure +63%, full year spend almost back to pre-pandemic levels
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62 Strong earnings growth, record high free cash flow and increased dividend pay-out target range
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64 * Comparable EPS up 33.7% to €1.58 on lower tax rate; free cash flow increased by €104.3 million to €601.3 million
65 * Increased dividend pay-out ratio target to 40-50%, previously 35-45%
66 * Board of Directors to propose ordinary dividend of €0.71 per share, up +10.9% year-on-year
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68 (% style="width:899px" %)
69 |(% style="width:485px" %) |(% style="width:146px" %)**Full-Year**|(% style="width:136px" %) |(% style="width:129px" %)**%**
70 |(% style="width:485px" %) |(% style="width:146px" %)**2021**|(% style="width:136px" %)**2020**|(% style="width:129px" %)**Change**
71 |(% style="width:485px" %)Volume (m unit cases)|(% style="width:146px" %)2,412.70|(% style="width:136px" %)2,135.60|(% style="width:129px" %)13.00%
72 |(% style="width:485px" %)Net sales revenue (€ m)|(% style="width:146px" %)7,168.40|(% style="width:136px" %)6,131.80|(% style="width:129px" %)16.90%
73 |(% style="width:485px" %)Net sales revenue per unit case (€)|(% style="width:146px" %)2.97|(% style="width:136px" %)2.87|(% style="width:129px" %)3.50%
74 |(% 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%
75 |(% 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%
76 |(% style="width:485px" %)Operating expenses/ Net sales revenue ~(%)|(% style="width:146px" %)25.6|(% style="width:136px" %)27.4|(% style="width:129px" %) -190bps
77 |(% style="width:485px" %)Comparable operating expenses / Net sales revenue ~(%)|(% style="width:146px" %)25.1|(% style="width:136px" %)27.3|(% style="width:129px" %)-220bps
78 |(% style="width:485px" %)Operating profit (EBIT) (€ m)|(% style="width:146px" %)799.3|(% style="width:136px" %)660.7|(% style="width:129px" %)21.00%
79 |(% style="width:485px" %)Comparable EBIT (€ m)|(% style="width:146px" %)831|(% style="width:136px" %)672.3|(% style="width:129px" %)23.60%
80 |(% style="width:485px" %)EBIT margin ~(%)|(% style="width:146px" %)11.2|(% style="width:136px" %)10.8|(% style="width:129px" %)40bps
81 |(% style="width:485px" %)Comparable EBIT margin ~(%)|(% style="width:146px" %)11.6|(% style="width:136px" %)11|(% style="width:129px" %)60bps
82 |(% style="width:485px" %)Net profit5 (€ m)|(% style="width:146px" %)547.2|(% style="width:136px" %)414.9|(% style="width:129px" %)31.90%
83 |(% style="width:485px" %)Comparable net profit (€ m)|(% style="width:146px" %)578.1|(% style="width:136px" %)431.4|(% style="width:129px" %)34.00%
84 |(% style="width:485px" %)Basic earnings per share (EPS) (€)|(% style="width:146px" %)1.499|(% style="width:136px" %)1.14|(% style="width:129px" %)31.50%
85 |(% style="width:485px" %)Comparable EPS (€)|(% style="width:146px" %)1.584|(% style="width:136px" %)1.185|(% style="width:129px" %)33.70%
86 |(% style="width:485px" %)Free cash flow3 (€ m)|(% style="width:146px" %)601.3|(% style="width:136px" %)497|(% style="width:129px" %)21.00%
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88 (% class="wikigeneratedid" id="HCompanyHistory" %)
89 (% id="cke_bm_621S" style="display:none" %)
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91 = Markets =
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93 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}}
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96 == Established Markets ==
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98 The company operate in the established markets: Austria, Cyprus, Greece, Italy, Northern Ireland, Republic of Ireland and Switzerland.
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101 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.
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104 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.
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107 == Developing Markets ==
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109 The company operate in the developing markets: Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.
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112 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.
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115 == Emerging Markets ==
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117 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.
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120 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.
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123 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.
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126 [[image:CCH3.png]]
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129 = (% id="cke_bm_247S" style="display:none" %) (%%)Company Overview =
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Asif Farooqui 13.1 131 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.
Asif Farooqui 1.1 132
Asif Farooqui 6.2 133
Asif Farooqui 1.3 134 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.
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Asif Farooqui 6.2 136
Asif Farooqui 13.1 137 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. The company has 36,000 employees.
Asif Farooqui 1.1 138
Asif Farooqui 6.2 139
140 [[image:CCH1.jpg]]
Asif Farooqui 1.3 141
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Asif Farooqui 6.2 143 == Partnership with the Coca-Cola Company ==
Asif Farooqui 1.3 144
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Asif Farooqui 13.1 146 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 with Coca-Cola HBC.{{footnote}}https://www.coca-colahellenic.com/en/about-us/who-we-are/relationship-with-tccc{{/footnote}}
Asif Farooqui 6.2 147
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Asif Farooqui 1.3 149 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.
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Asif Farooqui 6.2 152 [[image:CCH2.png]]
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Asif Farooqui 12.1 155
156 == Brands ==
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Asif Farooqui 13.1 158 Coca-Cola HBC is a customer-centric business
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Asif Farooqui 13.1 161 With over 100 brands covering eight categories – sparkling, water, juices, ready-to-drink tea, energy, plant-based, premium spirits and coffee.
Asif Farooqui 12.1 162
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164 [[image:CCH6.png]]
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Asif Farooqui 6.2 168 == Company History ==
Asif Farooqui 1.3 169
Asif Farooqui 6.2 170 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}}
Asif Farooqui 1.3 171
Asif Farooqui 6.2 172 (% class="info" %)|**Year**|**Milestone**
173 |1951|AG Leventis establishes the Nigerian Bottling Company in Lagos, Nigeria
174 |(% rowspan="2" %)1953|Production starts in Ebute-Metta plant, Nigeria
175 |Opening of Apapa plant in Nigeria
176 |1961|Second NBC plant in Ibadan commissioned
177 |1969|Hellenic Bottling Company established in Greece
Asif Farooqui 10.1 178 |1972|NBC listed on the Nigerian Stock Exchange
Asif Farooqui 6.2 179 |1977|Acquisition of Coca-Cola franchises in Ireland & Northern Ireland
180 |1978|NBC’s Ikeja plant commissioned
181 |1983|Amita launched in Greece
182 |1991|Listing on the Athens Stock Exchange
183 |1992|Hellenic Bottling Company enters Bulgaria
184 |(% rowspan="2" %)1994|Coca-Cola plant built in Moscow
185 |Hellenic Bottling Company enters Belarus and Moldova
186 |1996|Hellenic Bottling Company enters Armenia
187 |1997|Acquisition of IBP Beograd in Serbia
188 |1998|Hellenic Bottling Company invests in Pivara Skopje
189 |(% rowspan="2" %)2000|Merger of Hellenic Bottling Company SA with Coca-Cola Beverages PLC creates Coca-Cola HBC
190 |Coca-Cola HBC included in the FTSE 4 Good Index
191 |2001|The comapny acquire the Russian operation from TCCC
192 |(% rowspan="4" %)2002|The comapny acquire mineral water companies Dorna in Romania, Valser in Switzerland and Römerquelle in Austria
193 |Distribution center opens in Montenegro
194 |Coca-Cola HBC listed on the New York Stock Exchange
195 |The company acquire the operations in the Baltics (Latvia, Lithuania, Estonia) from TCCC
196 |2003|Distribution center opens in Kosovo
197 |(% rowspan="3" %)2005|The company open its first energy-efficient combined heat and power (CHP) plant in Hungary
198 |The company acquire Russian juice producer CJSC Multon and Vlasinka mineral water in Serbia
199 |Coke Zero launch
Asif Farooqui 10.1 200 |(% rowspan="3" %)2006|Acquisition of Serbian juice producer Fresh & Co
Asif Farooqui 6.2 201 |Coca-Cola HBC enters Cyprus through the acquisition of Lanitis Bros
202 |Acquisition of Fonti del Vulture mineral water in Italy
203 |2007|Founding of the PET to PET Recycling Plant in Austria
204 |(% 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.
205 |Acquisition of Socib in Italy
206 |Coca-Cola HBC included in the DJSI for the first time
Asif Farooqui 10.1 207 |(% rowspan="3" %)2011|Opening of Business Service Organization office in Sofia, Bulgaria
Asif Farooqui 6.2 208 |All its plants are certified to ISO 9001
209 |Acquisition of Kykkos in Cyprus
210 |2013|Coca-Cola HBC is listed on the premium segment of the London Stock Exchange
211 |2015|Opening of Business Service Organization office in Nizhny Novgorod, Russia
212 |(% 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
213 |Acquisition of Neptunas mineral water in Lithuania
214 |(% 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.
215 |Acquisition of MB Impex spirits producer in Serbia, which is the producer of the bitter liqueur Zlatni Pelin and the brandy Zlatna Rakia.
216 |2018|The company launched FUZETEA, its ready-to-drink tea in 27 of its markets across Europe
217 |(% rowspan="3" %)2019|The company acquired Bambi, the leading confectionery brand in Serbia
218 |The company complete the acquisition of Lurisia, the historic premium water and flavoured sparkling business, in Italy
219 |The company acquire Toma in Czech Republic – a locally relevant water with strong potential for growth
220 |(% rowspan="3" %)2020|The company achieve Water Stewardship Certification for 52 plants
221 |The company launch Costa Coffee in the first of its markets
222 |The company launch Topo Chico Hard Selzer in 5 markets
223 |2022|The company complete the acquisition of Coca-Cola Bottling Company of Egypt S.A.E.
Asif Farooqui 1.3 224
Asif Farooqui 9.1 225 = References =
Asif Farooqui 6.2 226
227 {{putFootnotes/}}
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