Coca-Cola HBC (CCH) H1 2024 earnings summary

Executive summary

• Achieved strong organic revenue growth of 13.6% in H1 2024, with organic volumes up 3.1% and value share gains in NARTD (+170bps) and Sparkling (+80bps) year-to-date.

• Resilient EBIT performance, up 7.5% organically, despite FX headwinds in Nigeria and Egypt, and supported by continued investment in the 24/7 portfolio and premium spirits.

• Comparable EPS declined 1.7% to €1.04 due to higher finance costs; dividend of €0.93 per share paid, up 19.2% year-over-year.

• Upgraded 2024 guidance for organic revenue and EBIT growth, reflecting confidence in continued growth despite macroeconomic and geopolitical challenges.

• Continued investment in data analytics, digital commerce, and sustainability initiatives.

Financial highlights

• Organic revenue up 13.6% year-over-year; organic EBIT up 7.5% to €564.1m; comparable EBIT margin at 10.9%.

• Organic revenue per case increased by 10.2%; comparable gross profit up 6%, with a 100bps expansion in gross profit margin to 36.0%.

• Free cash flow of €220.2m, down year-over-year due to adverse working capital movements; capex at €202.8m.

• Net sales revenue: €5,175.6m (+3.1% reported, +13.6% organic); volume: 1,426.7m unit cases (+3.1%).

• Net debt: €1.83bn (up from €1.60bn at year-end 2023), reflecting new bond issuance and working capital movements.

Outlook and guidance

• Upgraded 2024 guidance: organic revenue growth of 8–12% (previously 6–7%) and organic EBIT growth of 7–12% (previously 3–9%).

• COGS per case guidance unchanged at low- to mid-single-digit expansion; FX headwind on EBIT of €30–50m expected.

• Net finance costs expected at €60–75m; effective tax rate at top end of 25–27%.

• Capex as a percentage of sales expected within 6.5–7.5% by year-end.

• Macroeconomic and geopolitical challenges expected to persist in H2.