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 in 2Q24 through strong execution, effective mix, and cost management, with highest USD NSR/uc and EBIT/uc in a decade.

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

• Interim consolidated financials for H1 2024 reviewed with no material misstatements by the independent auditor.

• The group operates in Türkiye, Pakistan, Central Asia, and the Middle East, with exclusive bottling and distribution rights for major beverage brands.

Financial highlights

• Net sales revenue for Q2 2024 was TL 36.6 billion, down 6.9% year-on-year under TAS 29; H1 2024 net revenue was TL 66.1 billion.

• Gross profit margin expanded by 487 basis points to 38.1% and EBITDA margin improved by 104 basis points year-on-year.

• EBIT margin reached 18.8% under TAS 29 and 20.4% excluding inflation accounting, the highest Q2 margin in a decade.

• Net profit was TL 5.4 billion in Q2 2024 (up 20.2% year-on-year); H1 2024 net profit attributable to equity holders was TL 8.35 billion.

• Net sales revenue per unit case hit $2.58 and EBIT per unit case reached $0.53, both record highs for Q2 in the last decade.

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, reflecting potential further deterioration in the operating environment.

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

• Management notes seasonality in beverage demand, with higher sales expected in summer months.