Coca-Cola Içecek Anonim Sirketi (CCOLA) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a 9.2% year-over-year decline in consolidated volume to 438 million cases, mainly due to macroeconomic pressures, weak consumer purchasing power, and geopolitical instability, especially in Türkiye and Pakistan.

• Despite volume declines, strong performance in Iraq and Azerbaijan, and recovery in Kazakhstan, supported portfolio diversification and market share gains.

• Stills category, especially Fuse Tea, grew and offset some declines in sparkling beverages.

• Strategic focus on quality mix, smaller packages, and on-premise/traditional channels contributed to resilience and margin management.

• Acquisition of Coca-Cola Bangladesh Beverages Limited completed in February 2024 and fully consolidated.

Financial highlights

• Consolidated revenue reached TL 36.7 billion in Q3 2024, with a 129 bps gross profit margin expansion to 36.4% and a 10 bps EBITDA margin improvement year-over-year.

• Net income was TL 5.2 billion in Q3, down 61.4% year-over-year due to inflation accounting; excluding TAS 29, net income grew 2.1% to TL 4.4 billion.

• NSR per unit case hit $2.70, the highest Q3 figure in a decade, up 9.9% year-over-year in USD terms.

• Adjusted EBITDA for nine months was TL 22.18 billion, with a margin of approximately 20.4%.

• Free cash flow for 9M24 was negative TL 1.9 billion, down from positive TL 4.0 billion in 9M23, due to increased capex.

Outlook and guidance

• Full-year sales volume guidance revised from flat/low single-digit growth to low/mid single-digit decline.

• FX-neutral net sales revenue growth guidance lowered from low 30% to high 10%-20% range.

• EBIT margin guidance maintained at slight decline to flat, supported by hedging and OPEX management.

• 2025 expected to remain challenging; detailed guidance to be provided early next year.