2022 Half Year Results

Strong volumes, revenue, EBIT; investing in growth

Coca-Cola HBC AG, a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, reports its financial results for the six months ended 1 July 2022.

Half-year highlights

• Execution of our strategy drove continued strong organic growth¹, well balanced between volume and price/mix
  • Organic revenue +19.4%. Reported revenues +29.6%
  • Excluding Russia and Ukraine organic revenue +25.2%, with volume +12.1%
  • Organic revenue per case of 14.0% benefited from pricing and targeted actions to improve mix, further supported by out-of-home channel recovery
  • Broad based volume momentum continues outside of Russia and Ukraine, with growth led by strategic priorities
  • Integration of Egypt progressing well; 7 pp addition to reported revenue growth
  • Further value and volume share gains in NARTD and Sparkling
• Organic EBIT up 23.0%, with margins up 30bps on an organic basis to 11%, benefiting from pricing, mix and cost discipline
  • Quality of revenue growth driving underlying profit expansion
  • Opex as a percent of revenue improved, driven by operating leverage and cost savings
  • Marketing expenses excluding Russia and Ukraine increased by 9%
• Continued investment behind strategic priorities to drive profitable growth
  • Consistent investment behind adult sparkling proposition driving continued strong performance, with volumes +18.7% excluding Russia and Ukraine
  • Acquisition of craft adult sparkling business, Three Cents, expected to complete in Q3, strengthens premium brand offering
  • Coffee volumes +56% with accelerating contribution from out-of-home
  • Rapid digitisation of the enterprise - our proprietary B2B, Customer Portal now has more than 200,000 customers
  • Deployment of our key revenue growth and route to market capabilities in Egypt 
• Improved cash generation and continued strong balance sheet
  • Comparable EPS +33.9%; free cash flow increased by €55.4 million to €332.9 million
  • Strong balance sheet and liquidity remains after paying the €0.71 dividend in August

Segment highlights

Established and Developing show strong momentum, Emerging impacted by declines in Russia 

• Established: Organic revenue increased by 19.1% with well-balanced volume and
  revenue-per-case expansion. Organic EBIT expanded 26.5% with margins up 60bps
• Developing: Organic revenue up 33.6%, led by strong share gains. Organic EBIT up 63.8% with margins up 120bps
• Emerging: Organic revenue up 14.2% driven by momentum in markets excluding Russia and Ukraine. Organic EBIT up 15.5% with organic margins up 20bps

¹For details on APMs refer to ‘Alternative Performance Measures’ and ‘Definitions and reconciliations of APMs’ sections.

² Refer to the condensed consolidated interim income statement.

³Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.