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Entering the growth era

2016 Integrated Annual Report

Over several years and in a difficult external environment, we have created a more efficient and stronger business that is now primed for growth in improving market conditions. We are benefitting from the underlying strengths of our organisation including the flexibility to respond to evolving consumer trends and a dynamic retail landscape.

We are excited about the potential of our business and we are confident in its future.

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Key highlights

  • Volume (m unit cases)
    2,058 2015: 2055
  • Net sales revenue (€m)
    6,219 2015: 6346
  • EBIT (€m)
    506 2015: 418
  • Comparable EBIT (€m)
    518 2015: 473
  • Comparable EBIT margin (%)
    8.3 2015: 7.5
  • FX-neutral net sales revenue per unit case (€)
    3.02 2015: 2.94
  • Comparable net profit (€m)
    352 2015: 314
  • Net profit (€m)
    344 2015: 280
  • Comparable earnings per share (€)
    0.972 2015: 0.864

For details on APMs refer to ‘Alternative Performance Measures’ section.

We are a stronger business

We are a leading bottler with sales of more than 2 billion unit cases annually. We have operations in 28 countries spanning three continents, reaching 595 million people. The opportunity we see is superior business growth, particularly through our presence in fast-growing emerging markets.

Emerging markets Population: 428 million
GDP per capita: US$5,020 Volume: 1,068mu.c
Established markets Population: 91 million
GDP per capita: US$36,349 Volume: 607mu.c
Developing markets Population: 76 million
GDP per capita: US$13,861 Volume: 383mu.c.
Engaged people

We have robust ways of assessing employee engagement regularly. Our overall score in 2016 rates highly within our peer group.

88%Employee engagement
Strong balance sheet

With a sharp focus on working capital management and a disciplined approach to capital expenditure, combined with consistent cash conversion, we have strengthened our balance sheet.

1.25 timesNet debt comparable EBITDA ratio
Industry leader

We are the industry leader amongst all beverage companies in the Dow Jones World and Europe Sustainability Indices and have been since 2014.

3 years 

Sustainability commitments

Over the last few years, we have communicated sustainability related targets with a 2020 horizon, which are relevant to almost all aspects of our business. These 2020 sustainability targets form part of our overall strategic plan that has enabled Coca-Cola HBC to become leader in sustainability among beverage companies, and reflect our determination to grow our business responsibly, profitably and sustainably.

Take 40% of the total energy we use from renewable and clean energy sources Recover for recycling an average of 40% of total packaging we introduce to our markets Source 20% of the total PET we use from recycled PET and/or PET from renewable material Reduce packaging by 25% per litre of beverage produced Certify over 95% of our key agricultural ingredients against the Coca‑Cola System’s Sustainable Agricultural Guiding Principles Invest 2% of our annual pre-tax profit in communities Double the number of employees taking part in volunteering initiatives during work time to 10% of our people Reduce water use internally by 30% Reduce direct carbon emissions intensity by 50% Reduce carbon emissions intensity in the value chain by 25% Certify all of our plants in European Water Stewardship or Alliance for Water Stewardship standard. 2020 Sustainability commitments How Community Trust links to our 2020 sustainability commitments How Cost Leadership links to our 2020 sustainability commitments
2020 Sustainability commitments
Take 40% of the total energy we use from renewable and clean energy sources
Recover for recycling an average of 40% of total packaging we introduce to our markets
Source 20% of the total PET we use from recycled PET and/or PET from renewable material
Reduce packaging by 25% per litre of beverage produced
Certify over 95% of our key agricultural ingredients against the Coca‑Cola System’s Sustainable Agricultural Guiding Principles
Invest 2% of our annual pre-tax profit in communities
Double the number of employees taking part in volunteering initiatives during work time to 10% of our people
Reduce water use internally by 30%
Reduce direct carbon emissions intensity by 50%
Reduce carbon emissions intensity in the value chain by 25%
Certify all of our plants in European Water Stewardship or Alliance for Water Stewardship standard.

Overseeing an era of growth

Integrating entrepreneurial drive and leadership with risk management is vital as we steer our Company through its next stage of growth. Anastassis G. David
Chairman of Coca-Cola HBC AG
Chairman's statement

Driving growth to new levels

The improving macroeconomic conditions in our markets mean that we can expect a volume tailwind in addition to the growth we can achieve with our efforts, and more scope for improving the price and mix of our product portfolio, creating more value to share with all of our stakeholders.

Growth expected in the NARTD industry (average % p.a.)
CCHBC
Established markets
Developing markets
Emerging markets

IMF (no data for Sicily, Kosovo, Northern Ireland), Company and TCCC estimates

Value created

By running a profitable, sustainable, responsible business, we create value which is subsequently retained by both our business, making it stronger, and shared with all of our stakeholders.

Our Business model
Direct employment 31,083

Employees

Developing, recognising and rewarding our people secures a skilled and motivated workforce.
Met or exceeded
customers’ expectations
94.8%

Customers

Our efforts to produce products efficiently and responsibly build value for our customers’ businesses.
Net profit 344m

Shareholders

Through the process of managing all inputs to our business well, we create profits which benefit shareholders through dividend payments and share value.
Total supplier spend 3,138m

Suppliers

As we create value, we support businesses throughout our value chain, and support job creation beyond our business.
Total taxes 281m

Communities

When our business is profitable, sustainable and responsible, the communities where we operate benefit through job creation, tax payments to governments, useful products and services, and minimisation of environmental impact. We also have a commitment to invest 2% of our pre-tax profits in programmes to support communities in our territory.

Continued good progress in margin recovery

We have delivered solid currency-neutral revenue growth and another year of significant growth in margins and profits, representing a sustainable and well established recovery. Dimitris Lois
Chief Executive Officer
CEO Q&A

Our strategy

Our vision is to be the undisputed beverage leader in every market in which we compete.

Our strategic report

Focusing on our strategic pillars

Trusted by our communities

Invested in community programmes and initiatives 7.3m
Employee volunteering during work time 17,952h
Investment in youth development 1.7m

Remaining relevant for our consumers

Energy category growth 21%
Single-serve mix improvement +140bps
Reduction in complaints vs. 2015 8%

Preferred supplier for our customers

DIFOTAI
Deliver in full, on time and accurately invoice
97.9%
Met or exceeded customer expectations 94.8%
Employee engagement score in commercial team 88%

Remaining focused on cost efficiencies

Reduction in number of plants since 2008 -30%
Improvement in water use ratio 3.2%
Plants that have eliminated all waste to landfill 4

Unlocking our talent potential

Our people are fundamental to our growth and our ability to create value. We seek to offer a workplace where our people are inspired to take advantage of opportunities to learn, grow and take charge of their careers.

Key people in key positions 87%
Retention of all new hires
after 12 months
82%
Values Index 90%

2016 GRI Indicators list

Find out more about our Company’s sustainability-related policies, programmes and performance.

2016 GRI Indicators List

UN Global Compact - Communication on Progress (COP)

Find out more about our Company’s sustainability-related policies, programmes and performance.

UN Global Compact

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