Slides
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PUBLIC 12024 RESULTS FY2024 Results
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PUBLIC 22024 RESULTS Forward Looking Statements This presentation includes forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek’s (“CCI”) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally be identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “target,” “believe” or other words of similar meaning. These forward-looking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from CCI’s expectations include, without limitation: changes in CCI’s relationship with The Coca-Cola Company and its exercise of its rights under our bottler’s agreements; CCI’s ability to maintain and improve its competitive position in its markets; CCI’s ability to obtain raw materials and packaging materials at reasonable prices; changes in CCI’s relationship with its significant shareholders; the level of demand for its products in its markets; fluctuations in the value of the Turkish Lira or the level of inflation in Türkiye; other changes in the political or economic environment in Türkiye or CCI’s other markets; adverse weather conditions during the summer months; changes in the level of tourism in Türkiye; CCI’s ability to successfully implement its strategy; and other factors. Should any of these risks and uncertainties materialize, or should any of management’s underlying assumptions prove to be incorrect, CCI’s actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated or expected. Forward-looking statements speak only as of this date and CCI has no obligation to update those statements to reflect changes that may occur after that date.
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PUBLIC 32024 RESULTS Important Disclaimer Based on the CMB's decision dated 28 December 2023 and numbered 81/1820 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published by the POA with the announcement made on 23 November 2023, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of December 31, 2023. As of December 31, 2024, an adjustment has been made in accordance with the requirements of TAS 29 (“Financial Reporting in High Inflation Economies”) regarding the changes in the general purchasing power of the Turkish Lira. TAS 29 requirements require that financial statements prepared in the currency in circulation in the economy with high inflation be presented at the purchasing power of this currency at the balance sheet date and that the amounts in previous periods are rearranged in the same way. The indexing process was carried out using the coefficient obtained from the Consumer Price Index in Turkey published by the Turkish Statistical Institute (“TUIK”). The relevant figures for the previous reporting period are rearranged by applying the general price index so that comparative financial statements are presented in the unit of measurement valid at the end of the reporting period. Information disclosed for previous periods is also presented in the measurement unit valid at the end of the reporting period. However, certain items from our financials are also presented without inflation adjustment for information purposes in order to give an idea of our performance relative to our 2024 forecasts, which we announced at the beginning of the year and which we stated were based on the financials without inflation adjustment. These unaudited figures are clearly labelled where relevant. All financial figures without such disclosure are reported in accordance with TAS29.
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PUBLIC 42024 RESULTS Highlights Focusing on Affordability 1 Execution & Mix Improvement On Track • IC package share grew by 183 bps y/y to 29.2% • Low/No sugar share among total sparkling increased by 2.5 pps y/y • 37 bps y/y increase in Traditional channel share 2 Robust Profitability • 259 bps y/y gross profit margin improvement, reaching 35.3% • 47 bps y/y EBITDA margin improvement in 2024, reaching 18.4% • Net income up by 12.5% y/y in 2024 excluding TAS 29 3 Nov 1, 2023 # of Transactions 11.5 -1.6% y/y Financial PerformanceOperational Performance Volume 1.5 -2.2% y/y Immediate Consumption Mix 29.2 +183 bps y/y (uc) % Billion Net Sales Revenue (TL) 137.7 -5.6% y/y Billion 18.9 -9.6% y/y Billion Net Income (TL) 14.8 -50.1% y/y Billion EBIT (TL) Billion Our focus on daily execution, affordability, and quality mix remained strong despite external challenges • Volume growth in Iraq, Azerbaijan - recovery in Türkiye • Sparkling category was weaker, while all other categories posted solid growth • NSR/uc w/o TAS29 increased 46%
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PUBLIC 52024 RESULTS -5.9% y/y My Coke Fuse Tea +37bps Traditional share +19.7% y/y Consolidated Volume Highlights +0.4% y/y Adult Premium Water +2.5pps Low/No sugar share in Sparkling +5.8% y/y Sparkling y/y -4.4% Stills y/y +9.4% Immediate Consumption Share y/y +183bps Softness in sparkling offset by strong stills performance, highlighting the value of a diverse brand portfolio
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PUBLIC 62024 RESULTS Gross Profit & EBITDA margin expansion driven primarily by strong cost management, with support of quality mix Sparkling 3.9% y/y growth in Coca Cola Zero in 2024 20.6% y/y growth in iced teas in 2024 Net Sales Revenue bn TL 4Q24 +25.0% y/y -1.7% y/y +19.7% y/y Volume Performance m UC EBITDA (exc.other) bn TL Türkiye Stills 17.3% y/y growth in mineral water in 2024 Water Effective execution of marketing plans and revenue management supported performance Without TAS 29, NSR grew by 48.6% and NSR/uc realized as TL96.0 with 48.4% y/y improvement thanks to continued focus on quality mix 131 bps y/y EBITDA margin (excl. other) expansion in 2024 on the back of higher gross profitabilty Share of Volume in Total CCI38% 2024 -2.5% y/y +7.8% y/y +4.0% y/y 4Q23 4Q24 88 104 +18.4% y/y 2023 2024 567 568 +0.1% y/y -5.0% y/y 4Q23 4Q24 11.8 11.2 2023 2024 67.4 62.4 -7.5% y/y n.m. y/y 4Q23 4Q24 0.6 -0.2 2023 2024 7.3 7.6 +3.8% y/y
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PUBLIC 72024 RESULTS Sparkling 12.2% y/y growth of in Adult premium in 2024 International Stills Water Share of Volume in Total CCI62% Signs of relative volume recovery in some markets and continued mix improvement supported NSR/uc growth Without TAS 29, NSR/uc grew by 4% to $2.5 thanks to dedicated focus on quality mix Positive contributions from Pakistan, Iraq and Azerbaijan in 4Q counteracted full year weakness in volume performance 18.7% y/y growth in iced teas in 2024 15.2% y/y growth in mineral water in 2024 4Q24 +0.4% y/y +27.6% y/y -12.4% y/y 2024 -5.2% y/y +12.1% y/y +10.1% y/y Net Sales Revenue bn TL Volume Performance m UC EBITDA (exc.other) bn TL 4Q23 4Q24 164 166 +1.4% y/y 2023 2024 968 934 -3.6% y/y -11.8% y/y 4Q23 4Q24 12.4 11.0 2023 2024 78.5 75.5 -3.9% y/y 5.2% y/y 4Q23 4Q24 1.5 1.5 2023 2024 17.9 15.7 -11.9% y/y 227 bps EBITDA margin (excl. other) expansion in 4Q due to 360 bps improvement in Immediate Consumption share
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PUBLIC 82024 RESULTS 11% • Volume market share in sparkling category increased by 48 bps y/y • 10% growth y/y in Adult Sparkling Premium category • 76bps y/y increase in On-Premise channel share -6.4% Volume (y/y) • 303bps y/y increase in On-Premise channel share and 441bps y/y increase in Traditional channel • Immediate Consumption share increased by 94bps y/y • 44% growth y/y in Fuse Tea brand -3.8% Volume (y/y) Kazakhstan Uzbekistan 21% -14.2% Volume (y/y) • Gradual recovery in volume market share • 12 bps y/y increase in On-Premise channel share • 208 bps y/y increase in the share of Immediate ConsumptionPakistan Largest International Markets 2024 (y/y) 12% 8% • 149bps y/y improvement in Traditional channel • 48 bps y/y increase in the share of Immediate Consumption • 14% growth y/y in Sparkling category Volume +12.1% Iraq (y/y) 5% Azerbaijan Volume +9.3% • Strong market share in sparkling category • 12% growth y/y in Stills category • 22% growth y/y in Fuse Tea brand (y/y)
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PUBLIC 92024 RESULTS About Bangladesh 8th largest country by population in the world 25.7 median age; 56% < 30 years of age NARTD per cap among lowest globally Rapidly urbanizing (2019: 37% vs. 2023: 41%) About CCI Bangladesh 1 plant 3 warehouses ~ 200 active distributor partners Underdeveloped Packages Beverage Industry 84% 2% 10% 3% Total Beverage Industry 15.1bn uc Tap Water Brewed Tea Loose Milk NARTD First Year Anniversary Of CCI Bangladesh Great momentum and future opportunities NARTD Breakdown 376mn uc Super Sparkling Juice Packaged Water Cola Non Cola 25% 16% 37% 7% 16% Integration Update Introducing CCI playbook Building fundamentals Embedding CCI culture Building infrastucture Increased cooler availability and production capacity Redesigned RTM with no overlapping responsibilities Distributor Warehouse upgrade to meet CCI standards Distributor training – first time in Bangladesh Simplified OBPPC structure Organizational structure changes in line with CCI standards
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PUBLIC 102024 RESULTS FINANCIAL REVIEW
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PUBLIC 112024 RESULTS Summary Financials Profitability impacted by softer volumes and limited scale advantages Net Sales Revenue (TL) 137.7 BILLION -5.6% y/y Without TAS 29: NSR growth of 25.6% in 4Q24, 42.6% in 2024 259 bps expansion in Gross Profit margin with EBITDA margin improvement of 47 bps. EBIT (TL) Net Income (TL) 2024 22.1 BILLION -8.4% y/y 4Q24 18.9 BILLION -9.6% y/y 2024 24 MILLION -97.2% y/y 4Q24 14.8 BILLION -50.1% y/y 2024 -0.4 BILLION n.m. y/y 4Q24 13.7% MARGIN 0.1% MARGIN 10.8% MARGIN n.m. MARGIN -61 bps -346 bps -961bps n.m. pps Without TAS 29: Net profit increased by 12.5% in 2024
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PUBLIC 122024 RESULTS EBIT per UC COGS per UC Consolidated (TL) - TL, with TAS 29 Net Sales Revenue per UC 4Q23 2023 -3.5% y/y 95.8 95.0 Per UC Metrics Nov 1, 2023 Without TAS 29, NSR/uc grew by 45.8% in 2024 4Q24 2024 81.8 91.7 -14.7% y/y 4Q23 2023 -7.2% y/y 67.1 63.9 4Q24 2024 56.7 59.3 -15.4% y/y 4Q23 2023 -7.6% y/y 3.4 13.6 4Q24 2024 0.1 12.6 -97.4% y/y Without TAS29: TL NSR/uc growth of 45.8% in 2024, USD NSR/uc growth of 5.7%, reaching $2.64 Without TAS29: EBIT/uc growth of 32.2% in 2024, thanks to effective cost management Without TAS29: COGS/uc growth of 43.0% ~ in line with NSR/uc growth in 2024
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PUBLIC 132024 RESULTS Securing long term visibility & controlled cost base COGS Breakdown Cost of Sales 20% OVERHEAD 20% SUGAR 30% PACKAGING 30% CONCENTRATE Proactive Risk Management Policy 224 Dynamic Hedging Nov 1, 2023 2025 Proactive Risk Management Policy Hedging & Pre-buy Rates Sugar 61%* Aluminium 56% Resin 72% *69%, in markets where financial hedge is available 2025
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PUBLIC 152024 RESULTS (*) Other includes Taxation, Investing Activities, Gain/Loss from JV and Minority Income -14.9 billion NSR COGS OpEx2023 Net Income 2024 Net Income -50.1% y/y (mTL) 29,713 8,201 9,088 2,901 2,686 12,817 2,617 14,813 50.1% decline in Net Income y/y 20.4% 10.8% Net Income Development Financial Inc/Exp. Monetary Gain/Loss Other*
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PUBLIC162024 RESULTS Low leverage and strong liquidity maintained Debt& Cash Composition Net Debt / EBITDA FX Position Debt Maturity Other 14% TRY 29% EUR 6% USD 51% Other 32% TRY 18% USD 50% Gross Debt Cash 1.1x 0.6x 0.8x 1.0x 21 22 23 24 42% 7% 4% 4% 43% 25 26 27 28 29-30 $58m $546m $96m $58m $555m Total NIH: 580 $1.39B $662M Average Maturity 3 years Disciplined Financial Management -778 162 218 362 -36 FX Debt FX Cash & Forwards FX Cash (NIH) NIH FX pos
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PUBLIC172024 RESULTS 2025 Guidance The forward looking guidance is given on a reported basis. Mid-single digit NSR/uc growth Low 20s percentage FX Neutral NSR/uc growth with revenue increases in local currencies balancing cost inflation and price affordability to drive volume growth Net Sales Revenue/ Unit Case Consolidated • Mid to high-single-digit growth in international Mid-single-digit volume growth on a consolidated basis: • Low-to-Mid-single digit growth in Türkiye Sales Volume ₺ Flat EBIT margin EBIT Margin Slight pressure on EBIT margin With TAS29 Without TAS29 • Mid to high-single-digit growth in international Mid-single-digit volume growth on a consolidated basis: • Low-to-Mid-single digit growth in Türkiye
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PUBLIC 182024 RESULTS CLOSING REMARKS
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PUBLIC 202024 RESULTS In-store Execution Excellence Capturing Opportunities for Growth and Innovation BE AVAILABLE BE VISIBLE BE EFFECTIVE BE TRAINED Digital Customer ExperienceSuggested OrderConsumer Engagement Platform Online Order & Payment Digital Engagement & Communication AI-based order prediction Commercial Analytics Smart Sales Assistant Segmentation Consumer Recruitment Point Collection ONE NUMBER EXECUTION SCORE
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PUBLIC212024 RESULTS For more information, please contact cci-ir@cci.com.tr