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.

• Focuses on a 24/7 brand portfolio, emphasizing sparkling, energy, and coffee categories, supported by investments in data analytics and digital technology.

• Prioritizes people development and sustainability, aiming for 6%-7% organic revenue growth and 20-40 bps annual EBIT margin improvement.

• Achieved 13.6% organic revenue growth and 7.5% organic EBIT growth in H1, with upgraded 2024 guidance despite macroeconomic challenges.

• Confident in delivering elevated 2024 guidance due to robust capabilities and portfolio.

Market performance and consumer trends

• Western European markets like Italy, Switzerland, and Austria face macro challenges, while Eastern Europe and Africa show resilience and growth.

• Positive volume performance in Q2, with a focus on affordability and balanced volume/price mix.

• Promotional activity increased in 2024, using both price and value-added promotions, tailored by market and tracked for effectiveness.

• Data analytics drive targeted execution, especially in Nigeria, enabling precise consumer segmentation and outlet targeting.

Integration and strategic investments

• Egypt integration progressing well, with SAP S/4HANA rollout and commercial investments despite macro headwinds.

• Expansion into energy drinks (Monster, Predator/Fury) and premium spirits (Finlandia Vodka) strengthens the 24/7 portfolio.

• Italy remains a key growth market, with strong out-of-home channel investments and a shift toward balanced price/volume growth.

• Coffee category investments include expanding sales teams, technical service, and coffee academies in 20+ markets.