Latest financial update

Full year 2016 results - continued good progress in margin recovery

Full-year highlights

  • Another year of good progress, with the business developing in line with our 2020 strategic plan
  • Net sales revenue up 3.0% on an FX-neutral basis; taking account of currency movements, net sales revenue declined
    by 2.0%
  • FX-neutral revenue per case grew in all geographic segments, up 2.9% overall; this substantial increase reflects our
    focus on value through price increases, mainly in Emerging markets, as well as better package and category mix
  • Volume increased by 0.1%, with good growth led by Nigeria and Romania, offset by continuing decline in Russia and
    weaker volume performance in Italy and Austria
  • Cost efficiencies resulted in a 100 basis-point reduction in comparable operating expenses as a percentage of net sales
    revenue
  • Comparable EBIT margin increased by 90 basis points to 8.3%, benefiting from our revenue growth management
    initiatives, cost efficiencies and benign input costs; EBIT margin improved by 160 basis points to 8.1% on a reported
    basis
  • Increased profits helped generate €431.2 million of free cash flow, up €19.4 million year on year
  • Comparable EPS increased by 12.5% to €0.972; reported EPS increased by 23.1% to €0.949
  • The Board of Directors proposes a €0.44 dividend per share, a 10% increase on the 2015 dividend
  Full-year Change
  2016 2015  
Volume (m unit cases) 2,057.9 2,055.0 0.1%
Net Sales Revenue (€ m) 6,219.0 6,346.1 -2.0%
Net Sales Revenue per Unit Case (€) 3.02 3.09 -2.1%
FX-neutral net sales revenue1 (€)
6,219.0 6,038.0 3.0%
FX-neutral net sales revenue1 per unit case (€) 3.02 2.94 2.9%
Operating expenses (€ m) (1,792.5) (1,909.2) -6.1%
Comparable operating expenses1(€ m) (1,756.8) (1,855.2) -5.3%
Operating profit EBIT1 (€ m) 506.3 418.2 21.1%
Comparable EBIT margin1 (€ m) 517.5 473.2 9.4%
EBIT margin (%) 8.1 6.6 160bps
Comparable EBIT margin1 (%) 8.3 7.5 90bps
Net profit2 (€ m) 343.5 280.3 22.5%
Comparable Net Profit1,2 (€ m) 352.1 314.3 12.0%
Basic earnings per share (EPS) (€) 0.949 0.771 23.1%
Comparable EPS1 (€) 0.972 0.864 12.5%
Free cash flow1 (€ m) 431.2 411.8 4.7%

1For details on APMs refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.
2Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.

Dimitris Lois, CEO Coca-Cola HBC
I am delighted with our 2016 performance and the momentum in the business. We have delivered solid currency-neutral revenue growth and another year of significant growth in margins and profits, representing a sustainable andI am delighted with our 2016 performance and the momentum in the business. 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. Cost and efficiency actions continue to improve profitability and enable the business to maximise the gains from top line growth. In 2017, we expect slightly better economic conditions to support volume growth. We take confidence from these improving underlying trends as well as the success of both our commercial activities and cost initiatives, which will remain key focus areas in our plans. We are confident that 2017 will be a year of currency-neutral revenue growth and margin expansion as we continue to make progress towards our 2020 targets. Dimitris Lois, Chief Executive Officer of Coca‑Cola HBC AG