Coca-Cola HBC (CCH) 21st Annual dbAccess Global Consumer Conference 2024 summary

Business performance and growth strategy

• Achieved strong double-digit growth over the past three years across 29 markets, serving 2 million customers and 740 million consumers.

• Focused on sparkling, energy, and coffee as top revenue drivers, supported by disciplined investments in revenue growth management, data analytics, and digital transformation.

• Q1 2024 delivered 12.6% organic revenue growth, with 1.8% volume growth, but guidance for the year remains at 6%-7% organic revenue growth and 3%-9% EBIT growth, reflecting caution due to macroeconomic uncertainties.

• Midterm guidance was raised to 6%-7% organic revenue growth and 20-40 bps margin improvement per year, based on industry trends, portfolio expansion, and enhanced capabilities.

• Investments in people, culture, and sustainability are integral, with top rankings in global sustainability indices.

Market segmentation and regional performance

• Established markets have seen significant price mix expansion with minimal volume sacrifice, aided by data-driven revenue management and focus on affordability and premiumization.

• Italy is closing the per capita consumption gap with Spain through expanded out-of-home focus, broader portfolio, and targeted consumer activations.

• Developing markets are increasing single-serve penetration and out-of-home programs, especially in Poland, to drive higher value sales.

• In emerging markets like Nigeria, dynamic pricing and tailored revenue management have enabled both price mix and volume growth despite inflation and currency devaluation.

• Egypt is recovering from brand boycotts, with portfolio diversification and pricing interventions supporting positive volume trends.

Capabilities, portfolio, and future outlook

• Data insights and analytics are central to revenue growth management, especially in complex markets like Nigeria.

• Coffee portfolio now includes Costa (mass premium) and Caffè Vergnano (premium), enabling segmentation and broader market reach.

• Balance sheet strength supports ongoing investments in organic growth, progressive dividends, share buybacks, and readiness for M&A, with a focus on leveraging group capabilities in new territories.

• Strong alignment and collaboration with The Coca-Cola Company are seen as key accelerators for performance and strategic execution.