Coca-Cola Içecek Anonim Sirketi (CCOLA) Q2 2024 earnings summary

Executive summary

• Consolidated volume grew 0.7% year-on-year in Q2 2024 to 451 million unit cases, with robust results in Türkiye and improved performance in Pakistan, Iraq, and Azerbaijan.

• Achieved record profitability and highest USD NSR/uc and EBIT/uc in a decade, driven by strong execution, mix management, and cost control.

• Adult Premium and Fuse Tea segments delivered double-digit growth, increasing stills category share.

• Strategic focus on quality growth, mix management, and operational excellence to navigate volatile macroeconomic conditions.

• Acquisition of Coca-Cola Bangladesh Beverages completed in February 2024, consolidated from March.

Financial highlights

• Net sales revenue for Q2 2024 was TL 36.6 billion under TAS 29, down 6.9% year-on-year; excluding inflation accounting, NSR grew 61.6% to TL 37.6 billion.

• Gross profit margin expanded by 487 bps to 38.1%; EBIT margin improved to 18.8% (+104 bps) under TAS 29, and 20.4% (35 bps improvement) without inflation accounting.

• Net profit reached TL 5.4 billion (up 20.2% y/y) under TAS 29; excluding TAS 29, net profit was TL 3.9 billion, up 63.4%.

• Net sales revenue per unit case hit $2.58, EBIT per unit case $0.53, both record highs for Q2 in the past decade (excluding inflation accounting).

• Net debt stood at $642 million (TL 21.2 billion), with net debt/EBITDA at 0.92x as of June 30, 2024.

Outlook and guidance

• 2024 full-year guidance revised: now expects flat to low single-digit consolidated volume growth (previously mid-single-digit), and low 30% FX-neutral NSR growth (previously low 40s%).

• EBIT margin guidance amended to slight decline to flat versus last year, citing macroeconomic headwinds and cautious pricing.

• Türkiye expected to see low-to-mid single-digit volume growth; international operations to see low single-digit volume decline.