Coca-Cola HBC (CCH) Barclays 17th Annual Global Consumer Staples Conference summary

Business overview and growth strategy

• Operates in 29 countries across Europe and Africa, serving 2 million customers and 740 million consumers, with strong per capita growth opportunities in many markets.

• Growth is driven by a 24/7 brand portfolio, focusing on sparkling, energy, and coffee categories, supported by investments in data analytics and digital capabilities.

• Sustainability is embedded in the business model, with midterm guidance of 6%-7% organic revenue growth and 20-40 basis points annual EBIT margin improvement.

• Upgraded 2024 guidance following strong H1 results: 13.6% organic revenue growth and 7.5% organic EBIT growth, despite macroeconomic and geopolitical challenges.

Market performance and consumer trends

• Western European markets like Italy, Switzerland, and Austria face macro challenges, while Eastern Europe and Africa (e.g., Poland, Greece, Nigeria) show resilience and growth.

• Promotional activity has increased, especially in Europe, with a focus on value-added promotions and tailored strategies by market.

• Data analytics enable targeted execution, particularly in Nigeria, optimizing product placement and promotional efforts based on consumer profiles.

Integration and strategic priorities

• Egypt integration progressing well, with investments in SAP S/4HANA, commercial capabilities, and portfolio expansion, including energy drinks.

• Despite macro and geopolitical headwinds, Egypt benefits from external investments and remains a long-term strategic focus.

• Italy remains a high-potential market, with strong out-of-home channel investments and a strategy to balance price/mix and volume for future growth.