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 transactions up 2.9% and robust results in Türkiye, Iraq, Azerbaijan, and improved performance in Pakistan.

• 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, operational excellence, and prudent pricing amid 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 was TL 37.6 billion, up 61.6%.

• Gross profit margin expanded by 487 basis points to 38.1%; EBITDA margin improved by 104–249 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 (up 20.2% year-on-year) 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 and EBIT per unit case reached $0.53, both record highs for Q2 in the last decade.

Outlook and guidance

• Full-year 2024 guidance revised: 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 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.

• Continued focus on mix management, cost control, and prudent pricing to support profitability.