REG - Coca-Cola HBC AG - Strong execution drove continued profitable growth
13/02/2025 07:00
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RNS Number : 9284W Coca-Cola HBC AG 13 February 2025
Strong execution drives continued profitable 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 twelve months ended 31 December 2024.
Full-year highlights
· Focused execution of strategic priorities drives strong organic
revenue growth of 13.8%(1)
o Organic volume grew 2.8%, with all our strategic priority categories
driving growth, Sparkling +1.5%, Energy +30.2% and Coffee +23.9%
o Organic revenue per case growth of 10.7%, driven by targeted revenue
growth management (RGM) initiatives
o Reported revenue growth of 5.6%, with strong organic growth partly offset
by FX headwinds in the Emerging segment
o Further value share gains, with our share in Non-Alcoholic Ready-To-Drink
(NARTD) up 150bps and Sparkling up 20bps in 2024
· Strong organic EBIT growth of 12.2%
o Comparable EBIT of €1,192.1 million; Comparable EBIT margins improved 40
basis points on a reported basis to 11.1%, down 20 basis points on an organic
basis
o Comparable gross profit margin up 110 basis points to 36.1%, reflecting
RGM initiatives and easing input cost inflation, with comparable COGS per unit
case up 1.0%
o Higher operating expenses in the first half related to currency headwinds,
as well as ongoing investment in the business through the year, resulted in
comparable opex as a percentage of revenue up 70 basis points
o ROIC up 190 basis points to 18.3%
· Organic revenue and volume growth across all segments, in a range
of macro conditions
o Established: Organic revenue up 3.3%, led by revenue per case expansion
and positive volume; organic EBIT broadly flat
o Developing: Organic revenue up 12.7%, with strong revenue per case
expansion and good volume progress; organic EBIT grew 39.6%
o Emerging: Organic revenue up 23.3%, as we utilised RGM initiatives to
navigate FX headwinds while still driving solid volume growth; organic EBIT
grew 13.0%
· Robust EPS and FCF performance, and improved shareholder returns
o Comparable EPS grew by 9.5% to €2.28, supported by strong EBIT delivery
o Free cash flow slightly increased year-on-year, at €712.6 million
o Net debt to comparable adjusted EBITDA of 1.0x, reflecting the strength of
our balance sheet
o Returned €226 million to shareholders since the start of our ongoing
share buyback programme
o Board of Directors to propose an ordinary dividend of €1.03 per share,
up 11% year on year and representing a 45% payout
· Further investment across our strategic priorities
o Continued close partnership with The Coca-Cola Company to drive growth in
Sparkling, capitalising on key consumer moments, including the Olympic Games,
Euro 2024, music festivals and other events tailored to local markets
o Monster Energy Green Zero Sugar launched in 16 markets in 2024 and saw
ongoing strong performance of the category, notably with affordable brands in
Africa
o Coffee growth driven by increasing share of revenue in the out-of-home
channel, in line with our plans
o We continue to focus on driving mixability and premiumisation, with our
24/7 portfolio, notably through Adult Sparkling and Premium Spirits, including
expansion of Finlandia Vodka to 19 new markets
o We continue to lead in Sustainability and were recognised as the world's
most sustainable beverage company by the 2024 Dow Jones Best-in-Class
Indices(2) for the eighth time
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:
"I am proud that we have delivered yet another year of double-digit growth,
with a 13.8% increase in organic revenues and volume growth in each of our
segments. 2024 demonstrated that we can achieve a consistently strong
financial performance even in a range of market conditions. I would like to
thank our team for their commitment to our vision and our consistent focused
execution. I would also like to thank our customers, The Coca-Cola Company and
all our valued partners for their ongoing support.
"We continued to invest in our bespoke capabilities, driven by data, insights
and analytics, to enable segmented and focused execution. We also made choices
to further strengthen our 24/7 portfolio to drive growth and always with our
customers at the heart of our decision making. We achieved share gains, and
volume growth across all three of our priority categories, Sparkling, Energy
and Coffee.
"In 2024, we made significant progress towards our Mission 2025 and
NetZeroby40 goals. We saw encouraging results for our countries with newly
launched Deposit Return Schemes in 2024, and we collaborated with governments
and NGOs to assist communities impacted by floods across Europe and Nigeria.
"While we expect the macroeconomic and geopolitical environment to remain
challenging, in the year ahead, we are confident that our portfolio,
capabilities and people will enable us to make progress against our
medium-term growth targets."
Full Year
2024 2023 % %
Change Reported Change Organic(1)
Volume (m unit cases) 2,914.5 2,835.5 2.8% 2.8%
Net sales revenue (€ m) 10,754.4 10,184.0 5.6% 13.8%
Net sales revenue per unit case (€) 3.69 3.59 2.7% 10.7%
Operating profit (EBIT)(3)(€ m) 1,185.4 953.6 24.3%
Comparable EBIT(1)(€ m) 1,192.1 1,083.8 10.0% 12.2%
EBIT margin (%) 11.0 9.4 170bps
Comparable EBIT margin(1)(%) 11.1 10.6 40bps -20bps
Net profit(4)(€ m) 820.6 636.5 28.9%
Comparable net profit(1,4)(€ m) 828.8 764.2 8.5%
Basic earnings per share (EPS) (€) 2.253 1.730 30.2%
Comparable EPS(1)(€) 2.275 2.078 9.5%
Free cash flow(1)(€ m) 712.6 711.8 0.1%
(1)For details on APMs refer to 'Alternative Performance Measures' and
'Definitions and reconciliations of APMs' sections
(2)These indices were formerly known as the Dow Jones Sustainability Indices
(DJSI).
(3)Refer to the condensed consolidated income statement.
(4)Net Profit and comparable net profit refer to net profit and comparable net
profit respectively after tax attributable to owners of the parent.
Business Outlook
We have delivered a strong performance in 2024, in mixed market conditions. We
expect the macroeconomic and geopolitical backdrop to remain challenging, but
we have high confidence in our 24/7 portfolio, bespoke capabilities, our
people, and the opportunities for growth in our diverse markets. In 2025 we
expect to make continued progress against our medium-term growth targets.
Our guidance for 2025 is:
· Organic revenue growth of 6% to 8%
· Organic EBIT growth of 7% to 11%
Technical 2025 guidance
FX: We expect the impact of translational FX on our Group comparable EBIT to
be a €15 to 35 million headwind.
Restructuring: We do not expect significant restructuring costs to occur.
Tax: We expect our comparable effective tax rate to be within a range of 26%
to 28%.
Finance costs: We expect net finance costs to be between €40 to 60 million.
Group Operational Review
Leveraging our unique 24/7 portfolio
Full year organic revenue grew by 13.8%, driven by growth in volumes, price
and mix. Reported net sales revenue increased by 5.6%, with adverse FX
translation effects in the Emerging segment partially offsetting strong
organic growth across the Group.
Volumes increased by 2.8% on an organic basis, led by our strategic priority
categories of Sparkling, Energy and Coffee.
· Sparkling volumes grew by 1.5%. Trademark Coke grew by low-single
digits and Coke Zero grew mid-single digits, benefitting from our strong
partnership with The Coca-Cola Company to capitalise on key moments across the
year, executing programmes tailored to local markets. We delivered high-single
digit growth in Adult Sparkling, supported by new flavours and package formats
of Schweppes and Kinley, as well as the launch of Three Cents in a further
eleven markets. Fanta and Sprite volumes declined low-single digit in the
year.
· Energy volumes grew by 30.2%, making 2024 the ninth year of
consecutive double-digit growth. We made good progress in all segments despite
new regulation in Poland and Romania. In Established and Developing markets,
we achieved high-single digit growth, driven by Monster. In Emerging we saw
strong double-digit growth, supported by Predator in Africa. Monster Energy
Green Zero Sugar was launched in 16 markets, with encouraging signs in the
first year of launch.
· Coffee volumes grew 23.9%, with growth across all segments. Our
primary focus was on the out-of-home channel, and we made good progress in
terms of customer recruitment, adding another 4,300 outlets in the year. We
see greater long-term potential in the out-of-home channel and have taken
steps to re-focus our attentions here.
· Stills volumes grew by 3.3%. In Sports Drinks we grew mid-teens,
supported by the growth of Powerade, where we launched the brand in three new
markets, leveraged the Olympic Games, and placed dedicated Powerade coolers in
key markets. We also launched Vitamin Water in two new markets. Water grew
mid-single digits on soft comparatives. Ready-to-Drink Tea increased
mid-single digits and Juices declined low-single digits in challenging market
dynamics.
· Premium Spirits volumes grew by 31.8%, led by the Developing
segment. We expanded Finlandia Vodka into 19 markets where we did not have
distribution rights prior to acquisition. Finlandia Vodka is enhancing our
premium spirits credentials and opening incremental mixability opportunities
for our NARTD portfolio. We also launched Jack Daniel's & Coca-Cola in a
further 15 markets in the year.
Winning in the marketplace
Organic net sales revenue per case grew by 10.7% in the full year. Our revenue
growth management (RGM) capabilities enabled us to navigate varying levels of
inflation, currency devaluation, regulation and taxation across our markets
during the year. In our European markets, inflationary pressures generally
eased, but in Africa, we took pricing actions to mitigate currency devaluation
and cost inflation.
One of the benefits of our RGM framework is that it allows us to meet demand
for both affordability and premiumisation. We benefit from the breadth of our
portfolio, with categories and brands at different price points, as well as
our ability to adapt package formats for different occasions and affordability
needs.
Affordability was more relevant in 2024, and we have continued to tailor
initiatives to each market's local reality. We focused on entry and smaller
packs, that offer a lower price point, and rolled out the 300ml PET affordable
entry pack to Hungary, Croatia and Romania. Affordability is also addressed by
targeted promotional activities, leveraging our advanced analytics tools to
determine the most effective promotion mechanism, maximise value for
customers, as well as improve return on investment. In Nigeria and Egypt, we
delivered a strong performance from our affordably priced, returnable glass
bottles (RGB), with volume growth of 19% and 22% respectively.
Alongside the focus on affordability, premiumisation remains important for
specific shoppers. In 2024, we expanded our premium RGB portfolio in the
at-home channel in Austria, drove mini-can and single-serve multi-pack
activation, and continued to make good progress with premium small glass
bottles in the hotels, restaurants and cafes (HoReCa) channel.
Our leading Data, Insights and Analytics capability is enhancing our RGM
framework, and we continued to make progress through the year. We now have the
ability to micro-segment our customers in all of our markets, which helps us
to address specific consumer needs and personalise execution. We are further
enhancing segmentation of the HoReCa channel with our bespoke tools to segment
outlets.
Package mix saw further improvements, with total single-serve mix up 100 basis
points in the year. All segments saw improvements in single-serve mix.
Category mix also saw further improvements, driven by good growth in Adult
Sparkling, Energy and Finlandia, partially offset by higher contribution of
Water.
Our focused execution in the marketplace and joint value creation with
customers enabled us to gain further value share. We gained 150 basis points
of value share in NARTD in 2024. In Sparkling we gained 20 basis points of
value share at the Group level. This was negatively impacted by country mix,
due to stronger growth in Africa, where our share is lower. We were again the
number one contributor to retail customers' absolute revenue growth within
fast moving consumer goods (FMCG) in Europe, according to Nielsen.
Operating profit, margins and cost control
Comparable gross profit grew by 8.9%, with gross profit margins up 110 basis
points to 36.1%. Comparable COGS per case increased 1.0%, reflecting easing
input cost inflation and the benefit from translational FX on the COGS line.
Comparable operating expenses as a percentage of revenue increased by 70 basis
points to 25.1% in the full year. In the first half, we faced headwinds in
operating costs, including a non-cash foreign currency remeasurement of
balance sheet items in Emerging markets, as well as continued investment
across the business. In the second half, we saw a good improvement in the
trend of operating costs as a percentage of revenue, due to better operating
leverage while we continued investing in the market.
Comparable EBIT increased by 10.0% on a reported basis to €1,192.1 million,
principally driven by organic growth across our markets, only partially offset
by negative foreign currency movements. The comparable EBIT margin was 11.1%,
up 40 basis points on a reported basis, benefitting from operational leverage.
On an organic basis, comparable EBIT increased by 12.2%, and margins
contracted 20 basis points, mainly due to negative foreign currency movements.
We saw a negative translational and transactional currency impact in 2024,
driven mainly by the depreciation of the Nigerian Naira, Russian Rouble and
Egyptian Pound.
Net profit and free cash flow
Comparable net profit of €828.8 million and comparable basic earnings per
share of €2.275 were 8.5% and 9.5% higher respectively. Reported net profit
and reported basic earnings per share of €820.6 million and €2.253 were
28.9% and 30.2% higher respectively compared to 2023.
Comparable taxes amounted to €306.8 million, representing a comparable
effective tax rate of 27.0%.
ROIC expanded by 190 basis points to 18.3%, driven by higher profit and lower
capital employed.
Net finance costs were €12.2 million higher than the prior year at €60.5
million, as the increase in interest expenses along with negative foreign
currency movements more than offset the increase in finance income.
Capital expenditure increased by €4.4 million to €679.3 million as we
continued to invest in growth initiatives such as production capacity, ongoing
automation in supply chain, digital and data solutions, and energy-efficient
coolers. Capex as a percentage of revenue was 6.3%, slightly below our target
range of 6.5% to 7.5%, impacted by low levels of investment in Russia.
Free cash flow was €712.6 million, slightly increased compared to the prior
year, largely reflecting higher operating profit, partially offset by higher
taxes paid.
ESG leadership
Sustainability remains a key priority, and we were pleased to be recognised in
2024, as the world's most sustainable beverage company by the 2024 Dow Jones
Best-in-Class Indices(5), for the eighth time, and achieved a double-A rating
from CDP on climate and water. We remained focused on delivering our Mission
2025 and NetZeroby40 goals, and in December, the SBTi gave formal approval of
our net zero targets based on their new guidelines.
We continue to support packaging circularity including the launch of deposit
return schemes (DRS). In 2024, schemes went live in the Republic of Ireland
and Hungary, and in Austria in January 2025. Poland and Greece are expected to
launch in 2025. DRS help to consistently deliver high packaging collection
rates. For example, in Romania (launched December 2023), results are
encouraging with an average return rate of 77% of containers sold in the
market in the last three months of 2024.
Also in the year, we collaborated with governments and NGOs to assist
communities severely impacted by floods across Europe and Nigeria, delivering
over 270,000 litres of beverages through a network of local charities and
municipalities, supported by The Coca-Cola HBC Foundation.
On 31 January 2025 in Nigeria, the first-ever Coca-Cola System-owned and
operated packaging collection facility was opened. The facility, in which we
have co-invested with The Coca-Cola Company, has the capacity to process up to
13,000 metric tonnes of plastic bottles annually and we are operating the
facility on behalf of the System.
(5)These indices were formerly known as the Dow Jones Sustainability Indices
(DJSI).
Operational Review by Reporting Segment
Established markets
Full Year
2024 2023 % %
Change Reported Change Organic
Volume (m unit cases) 631.3 628.7 0.4% 0.3%
Net sales revenue (€ m) 3,501.3 3,358.5 4.3% 3.3%
Net sales revenue per unit case (€) 5.55 5.34 3.8% 3.0%
Operating profit (EBIT) (€ m) 385.8 379.2 1.7%
Comparable EBIT (€ m) 388.0 381.1 1.8% -0.1%
EBIT margin (%) 11.0 11.3 -30bps
Comparable EBIT margin (%) 11.1 11.3 -30bps -40bps
Net sales revenue grew by 3.3% and 4.3% on an organic and reported basis
respectively, as we were impacted by positive movement in the Swiss Franc and
the consolidation of Finlandia.
Organic growth in net sales revenue per case was 3.0%, with the segment
benefitting from pricing actions and package mix. A focus on single-serve
activation drove a 110 basis points improvement in single-serve mix.
Established markets volume increased by 0.3% on an organic basis. Sparkling
declined low-single digits, despite growth from Coke Zero, Sprite and Adult
Sparkling. Energy saw continued good momentum, with volumes growing
high-single digits in the period, despite tough comparatives. Stills grew
low-single digits, with Sport drinks growing mid-single digits.
· Volumes in Greece grew by 6.1%, despite tough comparatives, driven
by strong execution throughout key trading periods, capitalising on good
tourism trends. Sparkling expanded mid-single digits driven by Coke Zero,
Sprite and Adult Sparkling. Coffee grew mid-teens and Stills were up by
high-single digits driven by Water.
· In Ireland, volumes declined by 0.4%, as consumers adjusted to the
impact of the DRS launched in February in the Republic of Ireland.
Encouragingly, volumes returned to growth in H2. Sparkling volumes declined by
low-single digits, but we saw growth in Coke Zero and Sprite. Energy grew
low-double digits on tough comparatives. Stills were slightly down
year-on-year, driven by Juices.
· In Italy, volumes declined 2.3%, impacted by some consumer
sensitivity, as well as a softer summer season due to adverse weather.
Sparkling declined low-single digits, but we saw growth in Coke Zero, Coke
Zero Sugar Zero Caffeine, Sprite and Adult Sparkling. Energy grew low-double
digits, while Stills declined low-single digits, driven by Water.
· In Switzerland, volumes decreased by 1.1%, in a sensitive consumer
environment and with adverse weather. Sparkling volumes fell by mid-single
digits, although we drove growth in Sprite and Coke Zero Sugar Zero Caffeine.
Energy volumes grew strong double-digits. In Stills, Water grew mid-single
digits.
Comparable EBIT in the Established segment increased by 1.8% to €388.0
million, broadly unchanged on an organic basis. Comparable EBIT margin was
11.1%, down 40 basis points on an organic basis, due to a step up in
investment to drive growth.
Developing markets
Full Year
2024 2023 % %
Change Reported Change Organic
Volume (m unit cases) 482.6 471.0 2.5% 2.5%
Net sales revenue (€ m) 2,385.2 2,088.6 14.2% 12.7%
Net sales revenue per unit case (€) 4.94 4.43 11.5% 10.0%
Operating profit (EBIT) (€ m) 223.6 152.6 46.5%
Comparable EBIT (€ m) 227.4 153.8 47.9% 39.6%
EBIT margin (%) 9.4 7.3 210bps
Comparable EBIT margin (%) 9.5 7.4 220bps 180bps
Net sales revenue grew by 12.7% and 14.2% on an organic and reported basis
respectively, with positive impacts from the consolidation of Finlandia and
from movements in the Polish Zloty.
Organic net sales revenue per case increased by 10.0%. The segment benefitted
from pricing actions, as well as favourable category mix. Ongoing growth in
Premium Spirits, particularly due to the rollout of Finlandia distribution,
also benefitted our revenue per case.
Developing markets volume grew 2.5% on an organic basis. Sparkling volumes
grew by low-single digits, driven by Coke Zero and Sprite. Energy delivered
high-single digit growth, driven by Monster. Stills declined low-single
digits, driven by Water and Juice, however Sports Drinks grew strong
double-digits.
· Poland volumes increased by 0.7%. Sparkling declined low-single
digits, but we drove growth in Coke Zero, Coke Zero Sugar Zero Caffeine,
Sprite and Adult Sparkling. Energy grew by high-single digits, despite
regulation in Q1, with a return to double-digit growth in H2. Stills volumes
declined mid-single digits, driven by Water.
· In Hungary, volumes increased by 2.8%. Sparkling grew low-single
digits, driven by Coke Zero, Sprite and Adult Sparkling. Energy grew by high
teens, while Coffee grew strong double digits. Stills declined low-single
digits, impacted by Water, however Sports drinks grew strong double-digits.
· Volume in the Czech Republic increased by 10.0%, supported by
growth in both Sparkling and Stills. Trademark Coke saw a strong rebound of
low-double digit growth, on soft comparatives. Coffee delivered strong
double-digit growth.
Comparable EBIT in the Developing segment increased by 39.6% and 47.9% on an
organic and reported basis respectively, to €227.4 million. Comparable EBIT
margin was 9.5%, up 180 basis points on an organic basis, as operational
leverage and cost control more than offset COGS inflation.
Emerging markets
Full Year
2024 2023 % %
Change Reported Change Organic
Volume (m unit cases) 1,800.6 1,735.8 3.7% 3.7%
Net sales revenue (€ m) 4,867.9 4,736.9 2.8% 23.3%
Net sales revenue per unit case (€) 2.70 2.73 -0.9% 18.9%
Operating profit (EBIT) (€ m) 576.0 421.8 36.6%
Comparable EBIT (€ m) 576.7 548.9 5.1% 13.0%
EBIT margin (%) 11.8 8.9 290bps
Comparable EBIT margin (%) 11.8 11.6 30bps -110bps
Net sales revenue grew by 23.3% on an organic basis, or by 2.8% on a reported
basis, as currency headwinds from the Nigerian Naira, Egyptian Pound and
Russian Rouble partially offset strong organic growth.
Net sales revenue per case grew 18.9% organically, primarily due to pricing
actions taken throughout the year to manage the impact of currency
devaluation, regulation and cost inflation.
Emerging markets volume grew by 3.7% organically. Sparkling volumes grew by
low-single digits, while Energy and Coffee volumes grew strong double-digits.
Still volumes were up mid-single digits.
· Volume in Nigeria grew by 6.1%, as we continued to execute well in
a challenging macroeconomic environment. Growth was led by Sparkling, up
high-single digits, with growth led by affordable offers, with RGBs up 19%.
Trademark Coke brands grew low-double digits and Adult Sparkling grew strong
double-digits, as our premiumisation initiatives to drive Schweppes continued
to see good results. Energy delivered strong double-digit growth, driven by
Predator. Stills declined high-single digits due to Juices.
· Volumes in Egypt declined by 2.2%, in a dynamic market. Sparkling
declined by high-single digits, with Trademark Coke down double-digits as it
saw the greatest impact from pushback against some Western brands. Energy
continued to perform very strongly. Water increased mid-single digits.
· Volume in Romania declined by 2.5%, impacted by a challenging
consumer environment after the introduction of a sugar tax in January, the
launch of a DRS in November 2023 and a VAT increase in 2023. Sparkling fell
mid-single digits, while Stills grew low-single digits. Coffee continued to
grow above 20%, while Energy declined low-teens, impacted by the introduction
of regulatory measures in March.
· Volume in Ukraine grew by 3.1%. Sparkling grew by low-single
digits, with growth in Coke Zero, Adult Sparkling and Sprite. We saw good
growth in Energy, up over 20%. Stills was in low-single digit decline, with
good growth in Water offset by declines in RTD Tea.
· Volumes in Serbia, excluding Bambi, increased mid-single digits.
Sparkling volume grew low-single digits, driven by Coke Zero, Sprite and Adult
Sparkling. Energy and Coffee accelerated, with Energy growing high-teens and
Coffee growing strong-double digits. Volumes of our snacks business, Bambi,
declined around 50% in the second half of the year, impacted by a fire in the
production plant at the end of June, resulting in a total volume decline for
the market of 1.0%.
· Volumes in Russia grew by 9.3%. We continue to operate a local,
self-sufficient business focused on local brands.
Comparable EBIT in the Emerging segment grew by 13.0% on an organic basis and
5.1% on a reported basis, to €576.7 million. Comparable EBIT margin was
11.8%, up 30 basis points on a reported basis, but down 110 basis points on an
organic basis. The devaluations of the Nigerian Naira and Egyptian Pound meant
that we faced transactional FX headwinds at the COGS level, as well as higher
other operating expenses, due to the foreign currency mark-to-market
(remeasurement) of balance sheet items in H1.
Conference call
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analysts on Thursday, 13 February 2025 at 9:30 am GMT. To join the call, in
listen-only mode please join via webcast
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Next event
30 April 2025 2025 First quarter trading update
Enquiries
Coca-Cola HBC Group
Investors and Analysts:
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Head of Investor Relations jemima.benstead@cchellenic.com
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Sonia Manesi
Coca-Cola HBC Group
Coca-Cola HBC is a growth-focused consumer packaged goods business and
strategic bottling partner of The Coca-Cola Company. We open up moments that
refresh us all, by creating value for our stakeholders and supporting the
socio-economic development of the communities in which we operate. With a
vision to be the leading 24/7 beverage partner, we offer drinks for all
occasions around the clock and work together with our customers to serve 740
million consumers across a broad geographic footprint of 29 countries. Our
portfolio is one of the strongest, broadest and most flexible in the beverage
industry, with consumer-leading beverage brands in the sparkling, adult
sparkling, juice, water, sport, energy, ready-to-drink tea, coffee, and
premium spirits categories. These include Coca-Cola, Coca-Cola Zero Sugar,
Fanta, Sprite, Schweppes, Kinley, Costa Coffee, Caffè Vergnano, Valser,
FuzeTea, Powerade, Cappy, Monster Energy, Finlandia Vodka, The Macallan, Jack
Daniel's and Grey Goose. We foster an open and inclusive work environment
amongst our 33,000 employees and believe that building a more positive
environmental impact is integral to our future growth. We rank among the top
sustainability performers in ESG benchmarks such as the 2024 Dow Jones
Best-in-Class Indices, CDP, MSCI ESG, FTSE4Good and ISS ESG.
Coca-Cola HBC is listed on the London Stock Exchange (LSE: CCH) and on the
Athens Exchange (ATHEX: EEE). For more information, please visit
https://www.coca-colahellenic.com/ (https://www.coca-colahellenic.com/)
Financial information in this announcement is presented on the basis of
International Financial Reporting Standards ('IFRS')
Special Note Regarding the Information set out herein
Unless otherwise indicated, the condensed consolidated financial statements
and the financial and operating data or other information included herein
relate to Coca-Cola HBC AG and its subsidiaries ('Coca-Cola HBC' or the
'Company' or 'we' or the 'Group').
Forward-Looking Statements
This document contains forward-looking statements that involve risks and
uncertainties. These statements may generally, but not always, be identified
by the use of words such as 'believe', 'outlook', 'guidance', 'intend',
'expect', 'anticipate', 'plan', 'target' and similar expressions to identify
forward-looking statements. All statements other than statements of historical
facts, including, among others, statements regarding our future financial
position and results, our outlook for 2025 and future years, business strategy
and the effects of the global economic slowdown, the impact of the sovereign
debt crisis, currency volatility, our recent acquisitions, and restructuring
initiatives on our business and financial condition, our future dealings with
The Coca-Cola Company, budgets, projected levels of consumption and
production, projected raw material and other costs, estimates of capital
expenditure, free cash flow, effective tax rates and plans and objectives of
management for future operations, are forward-looking statements. By their
nature, forward-looking statements involve risk and uncertainty because they
reflect our current expectations and assumptions as to future events and
circumstances that may not prove accurate. Our actual results and events could
differ materially from those anticipated in the forward-looking statements for
many reasons, including the risks described in the 2023 Integrated Annual
Report for Coca-Cola HBC AG and its subsidiaries.
Although we believe that, as of the date of this document, the expectations
reflected in the forward-looking statements are reasonable, we cannot assure
you that our future results, level of activity, performance or achievements
will meet these expectations. Moreover, neither we, nor our directors,
employees, advisors nor any other person assumes responsibility for the
accuracy and completeness of the forward-looking statements. After the date of
the condensed consolidated financial statements included in this document,
unless we are required by law or the rules of the UK Financial Conduct
Authority to update these forward-looking statements, we will not necessarily
update any of these forward-looking statements to conform them either to
actual results or to changes in our expectations.
Alternative Performance Measures
The Group uses certain Alternative Performance Measures ('APMs') in making
financial, operating and planning decisions as well as in evaluating and
reporting its performance. These APMs provide additional insights and
understanding to the Group's underlying operating and financial performance,
financial condition and cash flow. The APMs should be read in conjunction with
and do not replace by any means the directly reconcilable IFRS line items. For
more details on APMs please refer to 'Definitions and reconciliations of APMs'
section.
Group Financial Review
Income statement Full Year
2024 2023 % %
€ million € million Change Reported Change Organic
Volume (m unit cases) 2,914.5 2,835.5 2.8% 2.8%
Net sales revenue 10,754.4 10,184.0 5.6% 13.8%
Net sales revenue per unit case (€) 3.69 3.59 2.7% 10.7%
Cost of goods sold (6,876.9) (6,626.6) 3.8%
Comparable cost of goods sold(6) (6,875.8) (6,622.0) 3.8%
Gross profit 3,877.5 3,557.4 9.0%
Comparable gross profit(6) 3,878.6 3,562.0 8.9%
Operating expenses (2,705.7) (2,613.5) 3.5%
Comparable operating expenses(6) (2,700.1) (2,487.9) 8.5%
Share of results of integral equity method investments(7) 13.6 9.7 40.2%
Operating profit (EBIT)(7) 1,185.4 953.6 24.3%
Comparable operating profit (EBIT)(6) 1,192.1 1,083.8 10.0% 12.2%
Adjusted EBITDA(6) 1,597.8 1,487.8 7.4%
Comparable adjusted EBITDA(6) 1,604.1 1,506.1 6.5%
Finance costs, net (60.5) (48.3) 25.3%
Share of results of non-integral equity method investments(7) 3.1 5.0 -38.0%
Profit before tax 1,128.0 910.3 23.9%
Comparable profit before tax 1,134.7 1,040.5 9.1%
Tax (308.3) (274.6) 12.3%
Comparable tax(6) (306.8) (277.1) 10.7%
Net profit(8) 820.6 636.5 28.9%
Comparable net profit(6,8) 828.8 764.2 8.5%
Basic earnings per share (€) 2.253 1.730 30.2%
Comparable basic earnings per share (€)(6) 2.275 2.078 9.5%
(6)Refer to the 'Alternative Performance Measures' and 'Definitions and
reconciliations of APMs' sections.
(7)Refer to the condensed consolidated income statement.
(8)Net Profit and comparable net profit refer to net profit and comparable net
profit respectively after tax attributable to owners of the parent.
Net sales revenue grew by 5.6% on a reported basis in 2024 compared to the
prior year, primarily reflecting the benefits from pricing initiatives and
volume growth, which were partially offset by unfavourable foreign currency
movements mainly in connection with the Nigerian Naira, the Egyptian Pound and
the Russian Rouble. On an organic basis, net sales revenue grew by 13.8% in
2024 compared to the prior year.
Both comparable and reported cost of goods sold increased by 3.8% in 2024
compared to the prior year, mainly reflecting higher volume, increased input
costs as well as higher excise duties and taxes, partially offset by the
translational impact from foreign currency movements.
Comparable operating expenses increased by 8.5% in 2024 compared to the prior
year, mainly driven by higher selling and administrative expenses, while
operating expenses increased by 3.5%, further benefitting from the cycling of
prior-year's goodwill impairment, which was primarily related to the Group's
subsidiary in Egypt.
Comparable operating profit increased by 10.0% in 2024 compared to the prior
year, primarily reflecting the benefits from top-line growth, partially offset
by unfavourable foreign currency movements, while operating profit increased
by 24.3%, further benefitting from the cycling of prior-year's goodwill
impairment, which was primarily related to the Group's subsidiary in Egypt.
Net finance costs increased by €12.2 million in 2024 compared to the prior
year, mainly driven by higher foreign exchange losses arising due to the
devaluation of the Nigerian Naira and higher interest expense from bonds
issued during the year, despite the higher finance income earned on the
Group's cash and cash equivalents and financial assets, as well as the gain
arising from successful execution of a targeted bond buy-back.
On a comparable basis, the effective tax rate was 27.0% for 2024 and 26.6% for
2023. On a reported basis, the effective tax rate was 27.3% for 2024 and 30.2%
for 2023, also cycling the impact of prior-year's goodwill impairment. The
Group's effective tax rate varies depending on the mix of taxable profits by
territory, the non-deductibility of certain expenses, non-taxable income and
other one-off tax items across its territories.
Comparable net profit grew by 8.5% compared to the prior year, due to higher
operating profitability, partially offset by higher net finance costs and
taxes, while net profit grew by 28.9%, further cycling the impact of
prior-year's goodwill impairment.
Balance Sheet
As at 31 December
2024 2023 Change
Assets € million € million € million
Total non-current assets 6,091.0 5,970.6 120.4
Total current assets 4,562.7 3,910.2 652.5
Total assets 10,653.7 9,880.8 772.9
Liabilities
Total current liabilities 3,907.8 3,847.3 60.5
Total non-current liabilities 3,442.9 2,846.8 596.1
Total liabilities 7,350.7 6,694.1 656.6
Equity
Owners of the parent 3,205.7 3,092.8 112.9
Non-controlling interests 97.3 93.9 3.4
Total equity 3,303.0 3,186.7 116.3
Total equity and liabilities 10,653.7 9,880.8 772.9
Net current assets 654.9 62.9 592.0
Total non-current assets increased by €120.4 million during 2024, as a
result of the Group's continued investment in property, plant and equipment,
which was partially offset by foreign currency translation. Net current assets
increased by €592.0 million, mainly reflecting higher financial assets and
cash and cash equivalents following the issuance of the €500 million
Euro-denominated fixed rate bond in November 2024. Non-current liabilities
increased by €596.1 million in 2024, mainly due to the issuance of the new
bonds in the year, less the short-term portion of long-term debt reclassified
to current liabilities and the bond buy-back.
Cash flow statement
Full Year
2024 2023 %
€million € million Change
Net cash from operating activities(9) 1,391.9 1,386.7 0.4%
Capital expenditure(9) (679.3) (674.9) 0.7%
Free cash flow(9) 712.6 711.8 0.1%
( )
(9)Refer to the 'Definitions and reconciliations of APMs' section.
Net cash from operating activities in 2024 slightly increased compared to the
prior year, as increased operating profitability was largely offset by lower
cash generated from working capital movements and higher taxes paid.
Capital expenditure in 2024 was consistent with that of the prior year,
amounting to €679.3 million of which 56% was related to investment in
production equipment and facilities and 16% to the acquisition of marketing
equipment. In 2023, capital expenditure amounted to €674.9 million of which
53% was related to investment in production equipment and facilities and 17%
to the acquisition of marketing equipment.
As a result, free cash flow in 2024 was slightly increased compared to the
prior year.
Definitions and reconciliations of APMs
1. Comparable APMs(10)
In discussing the performance of the Group, 'comparable' measures are used.
Comparable measures are calculated by deducting from the directly reconcilable
IFRS measures the impact of the Group's restructuring costs, the
mark-to-market valuation of the commodity hedging activity, the acquisition,
integration and divestment-related costs, the impairment of goodwill and
indefinite-lived intangible assets, the Russia-Ukraine conflict impact and
certain other tax items, which are collectively considered as items impacting
comparability, due to their nature. More specifically the following items are
considered as items that impact comparability:
1) Restructuring costs
Restructuring costs comprise costs arising from significant changes in the way
the Group conducts business, such as significant supply chain infrastructure
changes, outsourcing of activities and centralisation of processes. These
costs are included within the income statement line 'Operating expenses';
however, they are excluded from the comparable results so that the users can
obtain a better understanding of the Group's operating and financial
performance achieved from underlying activity. Restructuring costs resulting
from initiatives driven by the Russia-Ukraine conflict are presented under the
'Russia-Ukraine conflict impact' item, to provide users complete information
on the financial implications of the conflict.
2) Commodity hedging
The Group has entered into certain commodity derivative transactions in order
to hedge its exposure to commodity price risk. Although these transactions are
economic hedging activities that aim to manage our exposure to sugar,
aluminium, gas oil and plastics price volatility, hedge accounting has not
been applied in all cases. In addition, the Group recognises certain
derivatives embedded within commodity purchase contracts that have been
accounted for as stand-alone derivatives and do not qualify for hedge
accounting. The fair value gains or losses on the derivatives and embedded
derivatives are immediately recognised in the income statement in the cost of
goods sold and operating expenses line items. The Group's comparable results
exclude the gains or losses resulting from the mark-to-market valuation of
these derivatives to which hedge accounting has not been applied (primarily
plastics) and embedded derivatives. These gains or losses are reflected in the
comparable results in the period when the underlying transactions occur, to
match the profit or loss to that of the corresponding underlying transactions.
We believe this adjustment provides useful information related to the impact
of our economic risk management activities.
3) Acquisition, integration and divestment-related costs or gains
Acquisition costs comprise costs incurred to effect a business combination
such as finder's fees, advisory, legal, accounting, valuation and other
professional or consulting fees as well as changes in the fair value of
contingent consideration recognised in the income statement. They also include
any gain from bargain purchase arising from business combinations, as well as
any gain or loss recognised in the income statement from the remeasurement to
fair value of previously held interests and the reclassification to the income
statement of items of other comprehensive income resulting from step
acquisitions. Integration costs comprise direct incremental costs necessary
for the acquiree to operate within the Group. Divestment-related costs
comprise transaction expenses, including advisory, consulting, and other
professional fees to effect the disposal of a subsidiary or equity method
investment, any impairment losses or write-downs to fair value less costs to
sell recognised in the income statement upon classification as held for sale
and any relevant disposal gains or losses or reversals of impairment
recognised in the income statement upon disposal. These costs or gains are
included within the income statement line 'Operating expenses', however, to
the extent that they relate to business combinations or divestments that have
been completed or are expected to be completed, they are excluded from the
comparable results so that the users can obtain a better understanding of the
Group's operating and financial performance achieved from underlying activity.
4) Impairment of goodwill and indefinite-lived intangible assets
Impairment losses recognised for goodwill and indefinite-lived intangible
assets as well as reversals of impairment losses recognised for
indefinite-lived intangible assets, are included within the income statement
line 'Operating expenses', however they are excluded from comparable results
so that the users can obtain a better understanding of the Group's ongoing
operating and financial performance.
5) Russia-Ukraine conflict impact
As a result of the conflict between Russia and Ukraine, the Group recognised
net impairment losses for property, plant and equipment, intangible assets and
equity method investments as well as restructuring costs, in connection with
the new business model in Russia and adverse changes to the economic
environment. The Group also recognised incremental allowance for expected
credit losses and write-offs of inventory and property, plant and equipment
resulting from the Russia-Ukraine conflict. The aforementioned net impairment
losses were included within the income statement line 'Exceptional items
related to Russia-Ukraine conflict' so as to provide users with enhanced
visibility over these items considering their materiality, while remaining
costs were included within 'Operating expenses' and 'Cost of goods sold' lines
of the income statement accordingly. Net impairment losses and other costs
directly attributable to the Russia-Ukraine conflict are excluded from the
comparable results so that the users can obtain a better understanding of the
Group's operating and financial performance from underlying activity.
6) Other tax items
Other tax items represent the tax impact of (a) changes in income tax rates
affecting the opening balance of deferred tax arising during the year and (b)
certain tax related matters selected based on their nature. Both (a) and (b)
are excluded from comparable after-tax results so that the users can obtain a
better understanding of the Group's underlying financial performance.
(10)Comparable APMs refer to comparable COGS, comparable gross profit,
comparable operating expenses, comparable EBIT, comparable EBIT margin,
comparable Adjusted EBITDA, comparable profit before tax, comparable tax,
comparable net profit and comparable EPS.
The Group discloses comparable performance measures to enable users to focus
on the underlying performance of the business on a basis which is common to
both periods for which these measures are presented.
The reconciliation of comparable measures to the directly related measures
calculated in accordance with IFRS is as follows:
Reconciliation of comparable financial indicators (numbers in € million
except per share data)
Full Year 2024
COGS Gross Operating EBIT Adjusted Profit before tax Tax Net EPS
Profit expenses EBITDA Profit(11) (€)
As reported (6,876.9) 3,877.5 (2,705.7) 1,185.4 1,597.8 1,128.0 (308.3) 820.6 2.253
Restructuring costs - - 3.3 3.3 3.3 3.3 (0.7) 2.6 0.007
Commodity hedging 1.1 1.1 - 1.1 1.1 1.1 - 1.1 0.003
Acquisition costs - - 1.9 1.9 1.9 1.9 - 1.9 0.005
Impairment of indefinite-lived intangible assets - - 0.4 0.4 - 0.4 (0.1) 0.3 0.001
Other tax items - - - - - - 2.3 2.3 0.006
Comparable (6,875.8) 3,878.6 (2,700.1) 1,192.1 1,604.1 1,134.7 (306.8) 828.8 2.275
Full Year 2023
COGS Gross Operating EBIT Adjusted Profit before tax Tax Net EPS
Profit expenses EBITDA Profit(11) (€)
As reported (6,626.6) 3,557.4 (2,613.5) 953.6 1,487.8 910.3 (274.6) 636.5 1.730
Restructuring costs - - 8.3 8.3 6.9 8.3 (1.6) 6.7 0.018
Commodity hedging 4.6 4.6 - 4.6 4.6 4.6 (1.3) 3.3 0.009
Acquisition costs - - 6.3 6.3 6.3 6.3 - 6.3 0.017
Russia-Ukraine conflict impact - - 0.5 0.5 0.5 0.5 (0.1) 0.4 0.001
Impairment of goodwill and indefinite-lived intangible assets - - 110.5 110.5 - 110.5 - 110.5 0.301
Other tax items - - - - - - 0.5 0.5 0.002
Comparable (6,622.0) 3,562.0 (2,487.9) 1,083.8 1,506.1 1,040.5 (277.1) 764.2 2.078
(11)Net Profit and comparable net profit refer to net profit and comparable
net profit respectively after tax attributable to owners of the parent.
Reconciliation of comparable EBIT per reportable segment (numbers in €
million)
Full Year 2024
Established Developing Emerging Consolidated
EBIT 385.8 223.6 576.0 1,185.4
Restructuring costs (0.1) 0.2 3.2 3.3
Commodity hedging 0.4 3.6 (2.9) 1.1
Acquisition costs 1.9 - - 1.9
Impairment of indefinite-lived intangible assets - - 0.4 0.4
Comparable EBIT 388.0 227.4 576.7 1,192.1
Full Year 2023
Established Developing Emerging Consolidated
EBIT 379.2 152.6 421.8 953.6
Restructuring costs 0.9 1.1 6.3 8.3
Commodity hedging (0.9) (2.0) 7.5 4.6
Acquisition costs 1.9 1.0 3.4 6.3
Russia-Ukraine conflict impact - - 0.5 0.5
Impairment of goodwill and indefinite-lived intangible assets - 1.1 109.4 110.5
Comparable EBIT 381.1 153.8 548.9 1,083.8
2. Organic APMs
Organic growth
Organic growth enables users to focus on the operating performance of the
business on a basis which is not affected by changes in foreign currency
exchange rates from year to year or changes in the Group's scope of
consolidation ('consolidation perimeter') i.e. acquisitions, divestments and
reorganisations resulting in equity method accounting. Thus, organic growth is
designed to assist users in better understanding the Group's underlying
performance.
More specifically, the following items are adjusted from the Group's volume,
net sales revenue and comparable EBIT in order to derive organic growth
metrics:
(a) Foreign Currency impact
Foreign Currency impact in the organic growth calculation reflects the
adjustment of prior-year net sales revenue and comparable EBIT metrics for the
impact of changes in exchange rates applicable to the current year.
(b) Consolidation perimeter impact
Current year volume, net sales revenue and comparable EBIT metrics, are each
adjusted for the impact of changes in the consolidation perimeter. More
specifically adjustments are performed as follows:
i. Acquisitions:
For current-year acquisitions, the results generated in the current year by
the acquired entities are not included in the organic growth calculation. For
prior-year acquisitions, the results generated in the current year over the
period during which the acquired entities were not consolidated in the prior
year, are not included in the organic growth calculation.
For current-year step acquisitions where the Group obtains control of a)
entities over which it previously held either joint control or significant
influence and which were accounted for under the equity method, or b) entities
which were carried at fair value either through profit or loss or other
comprehensive income, the results generated in the current year by the
relevant entities over the period during which these entities are
consolidated, are not included in the organic growth calculation. For such
step acquisitions of entities previously accounted for under the equity method
the share of results for the respective period described above, is included in
the organic growth calculation of the current year. For such step acquisitions
of entities previously accounted for at fair value through profit or loss any
fair value gains or losses for the respective period described above, are
included in the organic growth calculation. For such step acquisitions in the
prior year, the results generated in the current year by the relevant entities
over the period during which these entities were not consolidated in the prior
year, are not included in the organic growth calculation. However, the share
of results or gains or losses from fair value changes of the respective
entities, based on their accounting treatment prior to the step acquisition,
for the current-year period during which these entities were not consolidated
in the prior year are included in the organic growth calculation.
ii. Divestments:
For current-year divestments, the results generated in the prior year by the
divested entities over the period during which the divested entities are no
longer consolidated in the current year, are included in the current year's
results for the purpose of the organic growth calculation. For prior-year
divestments, the results generated in the prior year by the divested entities
over the period during which the divested entities were consolidated, are
included in the current year's results for the purpose of the organic growth
calculation.
iii. Reorganisations resulting in equity method accounting:
For current-year reorganisations where the Group maintains either joint
control or significant influence over the relevant entities so that they are
reclassified from subsidiaries or joint operations to joint ventures or
associates and accounted for under the equity method, the results generated in
the current year by the relevant entities over the period during which these
entities are no longer consolidated, are included in the current year's
results for the purpose of the organic growth calculation. For such
reorganisations in the prior year, the results generated in the current year
by the relevant entities over the period during which these entities were
consolidated in the prior year, are included in the current year's results for
the purpose of the organic growth calculation. In addition, the share of
results in the current year of the relevant entities, for the respective
period as described above, is excluded from the organic growth calculation for
such reorganisations.
The calculations of the organic growth and the reconciliation to the most
directly related measures calculated in accordance with IFRS are presented in
the below tables. Organic growth (%) is calculated by dividing the amount in
the row titled 'Organic movement' by the amount in the associated row titled
'2023 reported' or, where presented, '2023 adjusted'. Organic growth (%) for
comparable EBIT margin is the organic movement expressed in basis points.
Reconciliation of organic measures
Full Year 2024
Volume (m unit cases) Established Developing Emerging Group
2023 reported 628.7 471.0 1,735.8 2,835.5
Consolidation perimeter impact 0.9 - - 0.9
Organic movement 1.7 11.6 64.8 78.1
2024 reported 631.3 482.6 1,800.6 2,914.5
Organic growth (%) 0.3% 2.5% 3.7% 2.8%
Full Year 2024
Net sales revenue (€ m) Established Developing Emerging Group
2023 reported 3,358.5 2,088.6 4,736.9 10,184.0
Foreign currency impact 14.2 25.2 -789.3 -749.9
2023 adjusted 3,372.7 2,113.8 3,947.6 9,434.1
Consolidation perimeter impact 18.7 3.2 0.3 22.2
Organic movement 109.9 268.2 920.0 1,298.1
2024 reported 3,501.3 2,385.2 4,867.9 10,754.4
Organic growth (%) 3.3% 12.7% 23.3% 13.8%
Full Year 2024
Net sales revenue per unit case (€)(12) Established Developing Emerging Group
2023 reported 5.34 4.43 2.73 3.59
Foreign currency impact 0.02 0.05 -0.45 -0.26
2023 adjusted 5.36 4.49 2.27 3.33
Consolidation perimeter impact 0.02 0.01 - 0.01
Organic movement 0.16 0.45 0.43 0.36
2024 reported 5.55 4.94 2.70 3.69
Organic growth (%) 3.0% 10.0% 18.9% 10.7%
Full Year 2024
Comparable EBIT (€ m) Established Developing Emerging Group
2023 reported 381.1 153.8 548.9 1,083.8
Foreign currency impact 1.9 2.5 -40.3 -35.9
2023 adjusted 383.0 156.3 508.6 1,047.9
Consolidation perimeter impact 5.5 9.2 1.8 16.5
Organic movement -0.5 61.9 66.3 127.7
2024 reported 388.0 227.4 576.7 1,192.1
Organic growth (%) -0.1% 39.6% 13.0% 12.2%
Full Year 2024
Comparable EBIT Margin (%)(12) Established Developing Emerging Group
2023 reported 11.3% 7.4% 11.6% 10.6%
Foreign currency impact - - 1.3% 0.5%
2023 adjusted 11.4% 7.4% 12.9% 11.1%
Consolidation perimeter impact 0.1% 0.4% - 0.1%
Organic movement -0.4% 1.8% -1.1% -0.2%
2024 reported 11.1% 9.5% 11.8% 11.1%
Organic growth (%) -40bps 180bps -110bps -20bps
(12)Certain differences in calculations are due to rounding.
3. Other APMs
Adjusted EBITDA
Adjusted EBITDA is calculated by adding back to operating profit the
depreciation and net impairment of property, plant and equipment, the
amortisation and net impairment of intangible assets, the net impairment of
equity method investments, the employee share option and performance share
costs and items, if any, reported in line 'Other non-cash items' of the
condensed consolidated cash flow statement. Adjusted EBITDA is intended to
provide useful information to analyse the Group's operating performance
excluding the impact of operating non-cash items as defined above. The Group
also uses comparable Adjusted EBITDA, which is calculated by deducting from
Adjusted EBITDA the impact of: the Group's restructuring costs, the
acquisition, integration and divestment-related costs, the mark-to-market
valuation of the commodity hedging activity and the impact from the
Russia-Ukraine conflict. Comparable Adjusted EBITDA is intended to measure the
level of financial leverage of the Group by comparing comparable Adjusted
EBITDA to Net debt.
Adjusted EBITDA and comparable Adjusted EBITDA are not measures of
profitability and liquidity under IFRS and have limitations, some of which are
as follows: Adjusted EBITDA and comparable Adjusted EBITDA do not reflect our
cash expenditures, or future requirements, for capital expenditures or
contractual commitments; Adjusted EBITDA and comparable Adjusted EBITDA do not
reflect changes in, or cash requirements for, our working capital needs;
although depreciation and amortisation are non-cash charges, the assets being
depreciated and amortised will often have to be replaced in the future, and
Adjusted EBITDA and comparable Adjusted EBITDA do not reflect any cash
requirements for such replacements. Because of these limitations, Adjusted
EBITDA and comparable Adjusted EBITDA should not be considered as measures of
discretionary cash available to us and should be used only as supplementary
APMs.
Free cash flow
Free cash flow is an APM used by the Group and defined as cash generated by
operating activities after payments for purchases of property, plant and
equipment net of proceeds from sales of property, plant and equipment and
including principal repayments of lease obligations. Free cash flow is
intended to measure the cash generation from the Group's business, based on
operating activities, including the efficient use of working capital and
taking into account its net payments for purchases of property, plant and
equipment. The Group considers the purchase and disposal of property, plant
and equipment as ultimately non‑discretionary since ongoing investment in
plant, machinery, technology and marketing equipment, including coolers, is
required to support the day-to-day operations and the Group's growth
prospects. The Group presents free cash flow because it believes the measure
assists users of the financial statements in understanding the Group's cash
generating performance as well as availability for interest payment, dividend
distribution and own retention. The free cash flow measure is used by
management for its own planning and reporting purposes since it provides
information on operating cash flows, working capital changes and net capital
expenditure that local managers are most directly able to influence.
Free cash flow is not a measure of cash generation under IFRS and has
limitations, some of which are as follows: free cash flow does not represent
the Group's residual cash flow available for discretionary expenditures since
the Group has debt payment obligations that are not deducted from the measure;
free cash flow does not deduct cash flows used by the Group in other investing
and financing activities and free cash flow does not deduct certain items
settled in cash. Other companies in the industry in which the Group operates
may calculate free cash flow differently, limiting its usefulness as a
comparative measure.
Capital expenditure
Capital expenditure is defined as payments for purchases of property, plant
and equipment plus principal repayments of lease obligations less proceeds
from sales of property, plant and equipment. The Group uses capital
expenditure as an APM to ensure that the cash spending is in line with its
overall strategy for the use of cash.
The following table illustrates how Adjusted EBITDA, Free Cash Flow and
Capital Expenditure are calculated:
Full Year Full Year
2024 2023
€ million € million
Operating profit (EBIT) 1,185.4 953.6
Depreciation and impairment of property, plant and equipment, including 395.7 399.9
right-of-use assets
Amortisation and impairment of intangible assets 1.1 113.9
Employee performance shares 15.6 20.4
Adjusted EBITDA 1,597.8 1,487.8
Share of results of integral equity method investments (13.6) (9.7)
Gain on disposals of non-current assets (4.5) (1.3)
Cash generated from working capital movements 100.8 135.7
Tax paid (288.6) (225.8)
Net cash from operating activities 1,391.9 1,386.7
Payments for purchases of property, plant and equipment(13) (627.1) (623.0)
Principal repayments of lease obligations (60.8) (59.1)
Proceeds from sales of property, plant and equipment 8.6 7.2
Capital expenditure (679.3) (674.9)
Free cash flow 712.6 711.8
( )
(13)Payments for purchases of property, plant and equipment for 2024 include
€11.7 million (2023: €12.3 million) relating to repayment of borrowings
undertaken to finance the purchase of production equipment by the Group's
subsidiary in Nigeria, classified as 'Repayments of borrowings' in the
condensed consolidated cash flow statement.
Net debt
Net debt is an APM used by management to evaluate the Group's capital
structure and leverage. Net debt is defined as current borrowings and
non-current borrowings plus the fair value of fixed-to-floating interest rate
swaps, less cash and cash equivalents and financial assets (time deposits and
money market funds), as illustrated below:
As at 31 December
2024 2023
€ million € million
Current borrowings 888.7 948.1
Non-current borrowings 3,091.9 2,476.4
Interest rate swaps (fixed-to-floating) (24.0) -
Other financial assets (884.0) (568.6)
Cash and cash equivalents (1,548.1) (1,260.6)
Net debt 1,524.5 1,595.3
Return on invested capital ('ROIC')
ROIC is an APM used by management to assess the return obtained from the
Group's asset base and is defined as the percentage of comparable net profit
excluding net finance costs divided by the five-quarter average capital
invested in the business ('capital employed'). Capital employed is defined as
the average net debt and shareholders' equity attributable to the owners of
the parent, as illustrated below. The Group presents ROIC because it believes
the measure assists users of the financial statements in understanding the
Group's capital efficiency.
Year ended 31 December
2024 2023
€ million € million
Comparable operating profit 1,192.1 1,083.8
Plus: Share of results of non-integral equity method investments 3.1 5.0
Less: Comparable tax (306.8) (277.1)
Tax shield(14) (16.3) (13.0)
Comparable net profit excl. finance costs, net (a) 872.1 798.7
Average net debt(16) 1,715.5 1,676.1
Plus: Average equity attributable to owners of the parent(16) 3,042.1 3,194.2
Capital employed (b) 4,757.6 4,870.3
Return on invested capital (a/b) 18.3% 16.4%
(14)Tax shield is calculated as comparable effective tax rate times finance
costs, net as illustrated below:
Year ended 31 December
2024 2023
€ million € million
Finance costs, net 60.5 48.3
Comparable effective tax rate (%)(15) 27% 27%
Tax shield 16.3 13.0
(15)Comparable effective tax rate is calculated as comparable tax divided by
comparable profit before tax, as illustrated below:
Year ended 31 December
2024 2023
€ million € million
Comparable tax 306.8 277.1
Comparable profit before tax 1,134.7 1,040.5
Comparable effective tax rate (%) 27% 27%
(16)Five-quarter average net debt and equity attributable to owners of the
parent are calculated as presented below:
2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Average
€ million € million € million € million € million € million(*)
Net debt 1,595.3 1,876.3 1,826.6 1,754.8 1,524.5 1,715.5
Equity attributable to owners of the parent 3,092.8 2,943.2 2,909.7 3,059.2 3,205.7 3,042.1
2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Average
€ million € million € million € million € million € million(*)
Net debt 1,673.3 1,827.2 1,779.4 1,504.9 1,595.3 1,676.1
Equity attributable to owners of the parent 3,282.3 3,255.2 3,005.0 3,335.6 3,092.8 3,194.2
(*)Certain differences in calculations are due to rounding.
Condensed consolidated financial statements for the six months and the year ended
31 December 2024
Condensed consolidated income statement (unaudited)
Six months ended
31 December
Note 2024 2023
€ million € million
Net sales revenue 3 5,578.8 5,162.5
Cost of goods sold (3,570.9) (3,366.7)
Gross profit 2,007.9 1,795.8
Operating expenses (1,395.5) (1,405.1)
Share of results of integral equity method investments 6.9 5.6
Operating profit 3 619.3 396.3
Finance costs, net 5 (14.1) (16.9)
Share of results of non-integral equity method investments 1.8 3.3
Profit before tax 607.0 382.7
Tax 6 (167.6) (132.1)
Profit after tax 439.4 250.6
Attributable to:
Owners of the parent 439.0 250.8
Non-controlling interests 0.4 (0.2)
439.4 250.6
Basic and diluted earnings per share (€) 7 1.21 0.68
Condensed consolidated statement of comprehensive income (unaudited)
Six months ended
31 December
2024 2023
€ million € million
Profit after tax 439.4 250.6
Other comprehensive income:
Items that may be subsequently reclassified to income statement:
Cost of hedging (0.8) (4.4)
Net (loss)/gain on cash flow hedges (11.3) 1.3
Foreign currency translation losses (77.7) (91.6)
Share of other comprehensive income/(loss) of equity method investments 0.2 (3.9)
Income tax relating to items that may be subsequently reclassified 3.4 (0.5)
to income statement
(86.2) (99.1)
Items that will not be subsequently reclassified to income statement:
Valuation loss on equity investments at fair value through other (0.1) -
comprehensive income
Actuarial losses (0.3) (19.7)
Income tax relating to items that will not be subsequently 0.9 2.7
reclassified to income statement
0.5 (17.0)
Other comprehensive loss for the period, net of tax (85.7) (116.1)
Total comprehensive income for the period 353.7 134.5
Total comprehensive income attributable to:
Owners of the parent 353.3 136.2
Non-controlling interests 0.4 (1.7)
353.7 134.5
Condensed consolidated income statement (unaudited)
Year ended 31 December
Note 2024 2023
€ million € million
Net sales revenue 3 10,754.4 10,184.0
Cost of goods sold (6,876.9) (6,626.6)
Gross profit 3,877.5 3,557.4
Operating expenses (2,705.7) (2,613.5)
Share of results of integral equity method investments 13.6 9.7
Operating profit 3 1,185.4 953.6
Finance costs, net 5 (60.5) (48.3)
Share of results of non-integral equity method investments 3.1 5.0
Profit before tax 1,128.0 910.3
Tax 6 (308.3) (274.6)
Profit after tax 819.7 635.7
Attributable to:
Owners of the parent 820.6 636.5
Non-controlling interests (0.9) (0.8)
819.7 635.7
Basic and diluted earnings per share (€) 7 2.25 1.73
Condensed consolidated statement of comprehensive income (unaudited)
Year ended 31 December
2024 2023
€ million € million
Profit after tax 819.7 635.7
Other comprehensive income:
Items that may be subsequently reclassified to income statement:
Cost of hedging (2.3) (7.1)
Net gain on cash flow hedges 10.8 19.7
Foreign currency translation losses (209.5) (484.6)
Share of other comprehensive loss of equity method (4.6) (11.7)
investments
Income tax relating to items that may be subsequently reclassified to 1.0 (3.0)
income statement
(204.6) (486.7)
Items that will not be subsequently reclassified to income statement:
Valuation (loss)/gain on equity investments at fair value through other (0.2) 0.4
comprehensive income
Actuarial gains/(losses) 1.0 (16.4)
Income tax relating to items that will not be subsequently reclassified to 0.1 1.9
income statement
0.9 (14.1)
Other comprehensive loss for the year, net of tax (203.7) (500.8)
Total comprehensive income for the year 616.0 134.9
Total comprehensive income attributable to:
Owners of the parent 617.8 141.3
Non-controlling interests (1.8) (6.4)
616.0 134.9
Condensed consolidated balance sheet (unaudited)
As at 31 December
2024 2023
Note € million € million
Assets
Intangible assets 8 2,506.7 2,569.8
Property, plant and equipment 8 3,197.3 3,057.1
Other non-current assets 387.0 343.7
Total non-current assets 6,091.0 5,970.6
Inventories 863.9 773.3
Trade, other receivables and assets 1,248.7 1,205.1
Other financial assets 10 901.7 667.9
Cash and cash equivalents 10 1,548.1 1,260.6
4,562.4 3,906.9
Assets classified as held for sale 0.3 3.3
Total current assets 4,562.7 3,910.2
Total assets 10,653.7 9,880.8
Liabilities
Borrowings 10 888.7 948.1
Other current liabilities 3,019.1 2,899.2
Total current liabilities 3,907.8 3,847.3
Borrowings 10 3,091.9 2,476.4
Other non-current liabilities 351.0 370.4
Total non-current liabilities 3,442.9 2,846.8
Total liabilities 7,350.7 6,694.1
Equity
Owners of the parent 3,205.7 3,092.8
Non-controlling interests 97.3 93.9
Total equity 3,303.0 3,186.7
Total equity and liabilities 10,653.7 9,880.8
Condensed consolidated statement of changes in equity (unaudited)
Attributable to owners of the parent
Share capital Share premium Group reorganisation reserve Treasury shares Exchange equalisation reserve Other reserves Retained earnings Total Non-controlling interests Total equity
€ million € million € million € million € million € million € million € million € million € million
Balance as at 1 January 2023 2,024.3 2,837.4 (6,472.1) (131.2) (1,218.2) 292.5 5,949.6 3,282.3 103.3 3,385.6
Shares issued to employees exercising stock options (Note 11) 6.0 8.2 - - - - - 14.2 - 14.2
Share-based compensation:
Performance shares - - - - - 20.4 - 20.4 - 20.4
Movement in shares held for equity compensation plan - - - - - 0.2 - 0.2 - 0.2
Appropriation of reserves (Note 11) - - - 29.7 - (25.0) (4.7) - - -
Purchase of shares held by non-controlling interests (Note 14) - - - - - - (9.9) (9.9) (2.7) (12.6)
Acquisition of treasury shares (Note 11) - - - (42.6) - - - (42.6) - (42.6)
Dividends (Note 13) - (289.9) - - - - 2.7 (287.2) (0.3) (287.5)
Transfer of cash flow hedge reserve, including cost of hedging to inventories, - - - - - (25.9) - (25.9) - (25.9)
net of tax ((17))
2,030.3 2,555.7 (6,472.1) (144.1) (1,218.2) 262.2 5,937.7 2,951.5 100.3 3,051.8
Profit for the year, net of tax - - - - - - 636.5 636.5 (0.8) 635.7
Other comprehensive loss for the year, net of tax - - - - (490.7) 9.9 (14.4) (495.2) (5.6) (500.8)
Total comprehensive income for the year, net of tax((18)) - - - - (490.7) 9.9 622.1 141.3 (6.4) 134.9
Balance as at 31 December 2023 2,030.3 2,555.7 (6,472.1) (144.1) (1,708.9) 272.1 6,559.8 3,092.8 93.9 3,186.7
((17))The amount included in other reserves of €25.9 million represents the
cash flow hedge reserve, including cost of hedging, transferred to inventories
of €30.8 million gain, and the deferred tax expense thereof amounting to
€4.9 million.
((18))The amount included in the exchange equalisation reserve of €490.7
million loss for 2023 represents the exchange loss attributable to owners of
the parent, primarily related to the Nigerian Naira, the Russian Rouble and
the Egyptian Pound, including €11.7 million loss relating to the share of
other comprehensive income of equity method investments.
The amount of other comprehensive income, net of tax included in other
reserves of €9.9 million gain for 2023 consists of cash flow hedges gain of
€12.6 million, valuation gains of €0.4 million on equity investments at
fair value through other comprehensive income and the deferred tax expense
thereof amounting to €3.1 million.
The amount included in retained earnings of €622.1 million gain attributable
to owners of the parent for 2023 comprises profit for the year, net of tax of
€636.5 million, actuarial losses of €16.4 million and the deferred tax
income thereof amounting to €2.0 million.
The amount of €6.4 million loss included in non-controlling interests for
2023, represents the exchange loss attributable to the non-controlling
interests of €5.6 million, and the share of
non-controlling interests in profit for the year, net of tax amounting to
€0.8 million loss.
Condensed consolidated statement of changes in equity (unaudited)
Attributable to owners of the parent
Share capital Share premium Group reorganisation reserve Treasury shares Exchange equalisation reserve Other reserves Retained earnings Total Non-controlling interests Total equity
€ million € million € million € million € million € million € million € million € million € million
Balance as at 1 January 2024 2,030.3 2,555.7 (6,472.1) (144.1) (1,708.9) 272.1 6,559.8 3,092.8 93.9 3,186.7
Shares issued/granted to employees exercising stock options (Note 11) 1.8 2.0 - 5.2 - (2.4) - 6.6 - 6.6
Share-based compensation:
Performance shares - - - - - 15.6 - 15.6 - 15.6
Movement in shares held for equity compensation plan - - - - - 0.4 - 0.4 - 0.4
Appropriation of reserves (Note 11) - - - 23.4 - (183.2) 159.8 - - -
Purchase and dilution of shares held by non-controlling interests (Note 14) - - - - - - (8.1) (8.1) 5.2 (2.9)
Acquisition of treasury shares(Note 11) - - - (183.0) - - - (183.0) - (183.0)
Dividends (Note 13) - (342.9) - - - - 3.2 (339.7) - (339.7)
Transfer of cash flow hedge reserve, including cost of hedging to inventories, - - - - - 3.3 - 3.3 - 3.3
net of tax((19))
2,032.1 2,214.8 (6,472.1) (298.5) (1,708.9) 105.8 6,714.7 2,587.9 99.1 2,687.0
Profit for the year, net of tax - - - - - - 820.6 820.6 (0.9) 819.7
Other comprehensive loss for the year, net of tax - - - - (213.2) 9.3 1.1 (202.8) (0.9) (203.7)
Total comprehensive income for the year, net of tax((20)) - - - - (213.2) 9.3 821.7 617.8 (1.8) 616.0
Balance as at 31 December 2024 2,032.1 2,214.8 (6,472.1) (298.5) (1,922.1) 115.1 7,536.4 3,205.7 97.3 3,303.0
((19))The amount included in other reserves of €3.3 million represents the
cash flow hedge reserve, including cost of hedging, transferred to inventories
of €4.0 million loss, and the deferred tax expense thereof amounting to
€0.7 million.
((20))The amount included in the exchange equalisation reserve of €213.2
million loss for 2024 represents the exchange loss attributable to owners of
the parent, primarily related to the Nigerian Naira, the Russian Rouble and
the Egyptian Pound, including €4.6 million loss relating to the share of
other comprehensive income of equity method investments.
The amount of other comprehensive income, net of tax included in other
reserves of €9.3 million gain for 2024 consists of cash flow hedges gain of
€8.5 million, valuation loss of €0.2 million on equity investments at fair
value through other comprehensive income and the deferred tax income thereof
amounting to €1.0 million.
The amount included in retained earnings of €821.7 million gain attributable
to owners of the parent for 2024 comprises profit for the year, net of tax of
€820.6 million, actuarial gains of €1.0 million and the deferred tax
income thereof amounting to €0.1 million.
The amount of €1.8 million losses included in non-controlling interests for
2024, represents the exchange loss attributable to the non-controlling
interests of €0.9 million, and the share of non-controlling interests in
profit for the year, net of tax amounting to €0.9 million loss.
Condensed consolidated cash flow statement (unaudited)
As at 31 December
Note 2024 2023
€ million € million
Operating activities
Profit after tax 819.7 635.7
Finance costs, net 5 60.5 48.3
Share of results of non-integral equity method investments (3.1) (5.0)
Tax charged to the income statement 6 308.3 274.6
Depreciation and impairment of property, plant and equipment, including 395.7 399.9
right-of-use assets
Employee performance shares 15.6 20.4
Amortisation and impairment of intangible assets 8 1.1 113.9
1,597.8 1,487.8
Share of results of integral equity method investments (13.6) (9.7)
Gain on disposals of non-current assets (4.5) (1.3)
Increase in inventories (150.0) (142.6)
Increase in trade and other receivables (71.7) (212.7)
Increase in trade and other payables 322.5 491.0
Tax paid (288.6) (225.8)
Net cash inflow from operating activities 1,391.9 1,386.7
Investing activities
Payments for purchases of property, plant and equipment (615.4) (610.7)
Proceeds from sales of property, plant and equipment 8.6 7.2
Receipts from integral equity method investments 15 11.7 6.7
Receipts from non-integral equity method investments 15 2.2 7.0
Net (payments for)/proceeds from investments in financial assets at amortised (561.9) 473.5
cost
Net proceeds from investments in financial assets at fair value through profit 259.9 -
or loss
Payments for investments in financial assets at fair value through other (7.0) (5.9)
comprehensive income
Loans to related parties (8.0) (4.7)
Repayments of loans by related parties 0.9 0.5
Interest received 89.6 38.0
Payment for business combinations, net of cash acquired 14 (1.5) (180.4)
Net cash outflow from investing activities (820.9) (268.8)
Financing activities
Proceeds from shares issued/granted to employees, exercising stock options 11 6.6 14.2
Payments for purchases of shares held by non-controlling interests 14 (2.9) (12.6)
Acquisition of treasury shares 11 (183.0) (42.6)
Proceeds from borrowings 1,265.2 136.4
Repayments of borrowings (748.5) (89.7)
Principal repayments of lease obligations (60.8) (59.1)
(Payments for)/proceeds from settlement of derivatives and funded forward (42.0) 4.6
contracts regarding financing activities
Interest paid (100.4) (76.2)
Dividends paid to owners of the parent (339.7) (287.2)
Dividends paid to non-controlling interests - (0.2)
Net cash outflow from financing activities (205.5) (412.4)
Net increase in cash and cash equivalents 365.5 705.5
Movement in cash and cash equivalents
Cash and cash equivalents as at 1 January 1,260.6 719.9
Net increase in cash and cash equivalents 365.5 705.5
Effect of changes in exchange rates (78.0) (164.8)
Cash and cash equivalents as at 31 December 1,548.1 1,260.6
The accompanying notes form an integral part of these condensed consolidated
financial statements
Selected explanatory notes to the condensed consolidated financial statements
(unaudited)
1. Basis of preparation and accounting policies
Basis of preparation
These condensed consolidated financial statements are prepared in accordance
with International Accounting Standard (IAS) 34, 'Interim Financial
Reporting', as adopted by the European Union (EU), and the Disclosure Guidance
and Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority. These condensed consolidated financial statements do not include
all the information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's annual
consolidated financial statements for the year ended 31 December 2023.
Going concern
The condensed consolidated financial statements have been prepared on a going
concern basis. As part of its assessment, management has considered the
Group's financial performance in the year and overall financial position, as
well as a quantitative viability exercise, including the performance of
various stress tests, that consider the Group's principal risks, including
those related to climate change, and confirms the Group's ability to generate
cash in 12 months from the date of approval of these condensed consolidated
financial statements and beyond. Management has also considered the
geopolitical events involving Russia and Ukraine as well as the continued
tensions in the Middle East and no impact has been identified to the Group's
ability to continue as a going concern. Therefore, it is deemed appropriate
that the Group continues to adopt the going concern basis of accounting for
the preparation of the condensed consolidated financial statements.
Accounting policies
The accounting policies used in the preparation of the condensed consolidated
financial statements of Coca-Cola HBC AG ('Coca-Cola HBC', the 'Company' or
the 'Group') are consistent with those used in the 2023 annual consolidated
financial statements, except for the adoption of applicable amendments to
accounting standards effective as of 1 January 2024. The Group has not early
adopted any standard, interpretation or amendment that has been issued but is
not yet effective.
Amended and new standards adopted by the Group
The below amendments to accounting standards became applicable as of 1 January
2024 and were adopted by the Group. The adoption of these amendments did not
have a significant impact on the Group's condensed consolidated financial
statements.
Amendment to IAS 1 - Classification of Liabilities as Current or Non-current
& Non-current liabilities with covenants: These amendments clarify that
liabilities are classified as either current or non-current, depending on the
rights that exist at the end of the reporting period. The amendments also aim
to improve the information an entity provides when its right to defer
settlement of a liability is subject to compliance with covenants within
twelve months after the reporting period.
Amendment to IFRS 16 - Leases on sale and leaseback: These amendments include
requirements for sale and leaseback transactions in IFRS 16 to explain how an
entity accounts for a sale and leaseback after the date of the transaction.
Sale and leaseback transactions where some or all the lease payments are
variable lease payments that do not depend on an index or rate are most likely
to be impacted.
Amendments to IAS 7 and IFRS 7 - Supplier finance arrangements: These
amendments require disclosures to enhance the transparency of supplier finance
arrangements and their effects on a company's liabilities, cash flows and
exposure to liquidity risk.
Change in accounting estimate
In 2024, the Group reassessed the useful lives of certain categories of
software assets and coffee machines, driven by relevant business developments
that affected the anticipated period of usage of these assets. As a result,
effective 1 January 2024, the expected useful life of the specific categories
was extended by three to six years, while the resulting decrease of
depreciation expense in the current year was insignificant.
Changes in comparative information
Comparative information of the condensed consolidated balance sheet has been
revised to reflect the measurement period adjustment in connection with the
acquisition of Finlandia (refer to Note 14). More specifically: 'Intangible
assets', 'Other current liabilities' and 'Other non-current liabilities' as at
31 December 2023 appear increased by €1.2 million, €1.0 million and €0.2
million respectively, compared to the information disclosed in the 2023
Integrated Annual Report.
2. Foreign currency and translation
The Group's reporting currency is the Euro (€). Coca-Cola HBC translates the
income statements of foreign operations to the Euro at average exchange rates
and the balance sheets at the closing exchange rates on 31 December. The
principal exchange rates used for translation purposes in respect of one Euro
are:
Average rate for the year ended Closing rate as at
31 December 2024 31 December 2023 31 December 2024 31 December 2023
US Dollar 1.08 1.08 1.04 1.11
UK Sterling 0.85 0.87 0.83 0.87
Polish Zloty 4.31 4.54 4.27 4.32
Nigerian Naira 1,602.37 695.06 1,614.99 1,056.96
Hungarian Forint 394.86 381.75 410.56 382.03
Swiss Franc 0.95 0.97 0.94 0.94
Russian Rouble 100.14 92.40 107.50 101.68
Romanian Leu 4.97 4.95 4.98 4.98
Ukrainian Hryvnia 43.43 39.54 43.75 41.63
Czech Koruna 25.12 24.00 25.20 24.69
Serbian Dinar 117.09 117.25 116.97 117.16
Egyptian Pound 48.75 33.15 52.92 34.16
As a result of the local authorities' efforts to liberalise the foreign
exchange markets and restore liquidity in foreign currency, the Nigerian Naira
and Egyptian Pound depreciated against the US Dollar in 2024. The Group is
continuously monitoring the situation to ensure that timely actions are
undertaken as planned to minimise the adverse impact from the currency
devaluation to the Group's business in Nigeria and Egypt.
3. Segmental analysis
The Group has essentially one business, being the production, sale and
distribution of ready-to-drink, primarily non-alcoholic, beverages across 29
countries. The Group's markets are aggregated in reportable segments as
follows:
Established markets: Austria, Cyprus, Greece, Italy, Northern Ireland, the Republic of Ireland and
Switzerland, Global exports(*).
Developing markets: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia
and Slovenia.
Emerging markets: Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, Egypt, Moldova,
Montenegro, Nigeria, North Macedonia, Romania, the Russian Federation, Serbia
(including the Republic of Kosovo) and Ukraine.
*The Global exports market refers to the export business for Finlandia Vodka
and Three Cents in countries where the Group does not have
operations in connection with non-alcoholic ready-to-drink beverages.
a) Volume and net sales revenue
The Group sales volume in million unit cases(21) for the six months and the
years ended 31 December was as follows:
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
Established 325.0 322.3 631.3 628.7
Developing 248.3 243.7 482.6 471.0
Emerging 914.5 886.4 1,800.6 1,735.8
Total volume 1,487.8 1,452.4 2,914.5 2,835.5
(21)One unit case corresponds to approximately 5.678 litres or 24 servings,
being a typically used measure of volume. For Premium Spirits volume, one unit
case also corresponds to 5.678 litres. For biscuits volume, one unit case
corresponds to 1 kilogram. For coffee volume, one unit case corresponds to 0.5
kilograms or 5.678 litres. Volume data is derived from unaudited operational
data.
Net sales revenue per reportable segment for the six months and the years
ended 31 December is presented below:
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Established 1,786.2 1,730.5 3,501.3 3,358.5
Developing 1,261.9 1,103.4 2,385.2 2,088.6
Emerging 2,530.7 2,328.6 4,867.9 4,736.9
Total net sales revenue 5,578.8 5,162.5 10,754.4 10,184.0
In addition to non-alcoholic, ready-to-drink beverages as well as coffee and
snacks ('NARTD'), the Group sells and distributes Premium Spirits. An analysis
of volume and net sales revenue per product type for the six months and the
years ended 31 December is presented below:
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Volume in million unit cases
NARTD 1,483.6 1,449.8 2,907.9 2,831.2
Premium spirits 4.2 2.6 6.6 4.3
Total volume 1,487.8 1,452.4 2,914.5 2,835.5
Net sales revenue (€ million)
NARTD 5,322.9 4,992.6 10,340.1 9,886.1
Premium spirits 255.9 169.9 414.3 297.9
Total net sales revenue 5,578.8 5,162.5 10,754.4 10,184.0
b) Other income statement items
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Operating profit
Established 191.8 208.4 385.8 379.2
Developing 106.2 85.4 223.6 152.6
Emerging 321.3 102.5 576.0 421.8
Total operating profit 619.3 396.3 1,185.4 953.6
Reconciling items
Finance costs, net (14.1) (16.9) (60.5) (48.3)
Tax (167.6) (132.1) (308.3) (274.6)
Share of results of non-integral equity 1.8 3.3 3.1 5.0
method investments
Non-controlling interests (0.4) 0.2 0.9 0.8
Profit after tax attributable to owners 439.0 250.8 820.6 636.5
of the parent
4. Restructuring costs
As part of the effort to optimise its cost base and sustain competitiveness in
the marketplace, the Group undertakes restructuring initiatives. Restructuring
costs mainly consist of employees' termination benefits, and are included
within operating expenses. Restructuring costs per reportable segment for the
six months and years ended 31 December are presented below:
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Established - 0.9 (0.1) 0.9
Developing 0.2 1.1 0.2 1.1
Emerging 1.0 5.2 3.2 7.0
Total restructuring costs 1.2 7.2 3.3 9.0
5. Finance costs, net
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Finance income (60.9) (35.7) (106.2) (55.7)
Finance costs 65.7 45.3 123.0 88.1
Net foreign exchange losses 9.3 7.3 43.7 15.9
Finance costs, net 14.1 16.9 60.5 48.3
6. Tax
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Profit before tax 607.0 382.7 1,128.0 910.3
Tax (167.6) (132.1) (308.3) (274.6)
Effective tax rate 27.6% 34.5% 27.3% 30.2%
The Group's effective tax rate for 2024 may differ from the theoretical amount
that would arise using the weighted average tax rate applicable to profits of
the consolidated entities. This difference can be a consequence of a number of
factors, the most significant of which are the application of statutory tax
rates of the countries in which the Group operates, the non-deductibility of
certain expenses, the non-taxable income and one-off tax items.
OECD Pillar Two model rules
As disclosed in the 2023 Integrated Annual Report, the Group is within the
scope of the OECD Pillar Two model rules. Under Pillar Two legislation(22),
the Group may be liable to pay a top-up tax for the difference between their
Global Anti-Base Erosion ('GloBE') effective tax rate per jurisdiction and the
15% minimum rate(23).
As of 31 December 2024, Pillar Two legislation has been enacted or
substantively enacted in certain jurisdictions in which the Group has
presence. In particular, Pillar Two legislation has been enacted or
substantively enacted in Austria, Bulgaria, Croatia, Czech Republic, Finland,
Greece, Hungary, Republic of Ireland, Italy, The Netherlands, Romania,
Slovakia, Slovenia, Switzerland and the United Kingdom (Northern Ireland). In
Poland final legislation has been published and will come into force as of 1
January 2025, whereas in Cyprus final legislation has been published which is
in force from 31 December 2023, however the Domestic Minimum Top-up Tax (DMTT)
is introduced for financial years starting from 31 December 2024 onwards. In
Estonia, Latvia and Lithuania application of Pillar Two rules has been
deferred based on exception allowed by the EU Directive.
The Group applies the exception to recognising and disclosing information
about deferred tax assets and liabilities related to Pillar Two income taxes,
as provided in the amendments to IAS 12 issued in May 2023.
As per the local legislation in Switzerland, the Income Inclusion Rule (IIR)
will be applicable from 1 January 2025 onwards. In this respect, any potential
top-up tax which may arise in a jurisdiction where the Pillar Two legislation
is not applicable for 2024, will be payable from Coca-Cola HBC Holdings
B.V.(24) which is located in The Netherlands.
The Group has performed an assessment for all countries in which it has
presence, of the potential tax expense arising from Pillar Two rules,
including:
• the determination of all Group entities in scope for the Pillar Two
rules;
• the assessment of the entities in jurisdictions for which no Pillar
Two liability is expected to arise based on the Country-by-Country Reporting
Safe Harbor transitional rules in place; and
• the calculation of the estimated liability for entities in locations
where a Pillar Two liability is expected to arise.
For the above assessment, which excludes joint ventures(25), the financial
accounts of the Constituent Entities(26) used in the preparation of the
Group's condensed consolidated financial statements under IFRS for 2024 have
been considered, in order to determine:
• entities eligible for the transitional exceptions based on which no
Pillar Two liability is expected to arise; and
• the Pillar Two liability of entities for which no transitional
exception was applicable.
Conclusions on such analysis were validated using also data for the fiscal
year ended 31 December 2023.
Based on the assessment described above, considering also the impact of
specific adjustments in the Pillar Two legislation, the Group has recognised
an additional income tax expense arising from Pillar Two rules of €5.3
million, driven by Constituent Entities located in the following
jurisdictions: Bosnia-Herzegovina, Bulgaria, Cyprus, Republic of Ireland, the
Republic of Kosovo, Montenegro, Romania and Moldova. This has been recognised
within the 'Tax' line of the condensed consolidated income statement and
'Other non-current liabilities' line of the condensed consolidated balance
sheet.
(22)Pillar Two legislation refers to OECD Global Base Anti-Erosion Rules
('OECD Globe Rules') introducing minimum taxation effective on low tax
jurisdictions.
(23)The top-up tax is calculated on the GloBE income after deduction of the
Substance Based Excluded Income (i.e. after deducting part of the income
calculated based on the local personnel costs and local tangible assets as per
Pillar Two rules).
(24)Coca-Cola HBC Holdings B.V. qualifies as an Intermediate Parent Entity
based on the definitions of Pillar Two rules.
(25)Joint ventures have not been included in the assessment for simplicity
purposes. Had they been included, we would not expect a material impact to the
Group's effective tax rate.
(26)Constituent Entities are the entities in scope of the Pillar Two rules,
i.e. entities included in the financial statements with full consolidation and
joint ventures to which the Group participates with a 50% ownership share.
7. Earnings per share
Basic earnings per share is calculated by dividing the net profit attributable
to the owners of the parent by the weighted average number of shares
outstanding during the period (full year of 2024: 364,295,186; full year of
2023: 367,824,641; six months ended 31 December 2024: 362,791,601; six months
ended 31 December 2023: 368,133,839). Diluted earnings per share is calculated
by adjusting the weighted average number of ordinary shares outstanding to
assume conversion of all dilutive ordinary shares arising from exercising
employee stock options.
8. Intangible assets and property, plant and equipment
Intangible Property, plant
assets and equipment
€ million € million
Net book value as at 1 January 2024 excluding right-of-use assets 2,569.8 2,847.5
Additions - 649.3
Reclassified to assets held for sale - (0.3)
Assets held for sale classified back to property, plant and equipment - 1.8
Reclassified from right-of -use assets - 5.7
Disposals - (17.6)
Amortisation, depreciation and impairment (1.1) (334.2)
Foreign currency translation (62.0) (206.2)
Net book value as at 31 December 2024 excluding right-of-use assets 2,506.7 2,946.0
Net book value as at 1 January 2024 of right-of-use assets (Note 12) 209.6
Net book value as at 31 December 2024 of right-of-use assets (Note 12) 251.3
Net book value as at 31 December 2024 3,197.3
Impairment of intangible assets
The Group performed its annual impairment testing in 2024 where the
recoverable amount was higher than the carrying amount of all cash-generating
units (CGUs), including its Egyptian CGU, for which an impairment loss of
€109.4 million was recognised in 2023. The Group continuously monitors its
Egyptian CGU in order to ensure that timely actions and initiatives are
undertaken to minimise any potential adverse impact on its expected
performance, particularly in relation to macroeconomic volatility and the
continued tensions in the Middle East.
In 2024, the Group recognised an impairment loss of €0.4 million in
connection with a juice trademark in its Emerging markets, as the recoverable
amount was lower than the carrying amount. The recoverable amount was €0.6
million and was determined based on relief-from-royalty method calculations,
considering management's best estimates of future revenue attributable to the
trademark, discounted at a rate of 22.9%. The impairment loss was driven
mainly by the higher discount rate used due to worsening macroeconomic
conditions and was included in line 'Operating expenses' of the condensed
consolidated income statement.
In 2023, the Group also recognised an impairment loss of €3.1 million in
connection with its self-serve coffee vending business in Poland (the 'Costa
Express Business'), as disclosed in the 2023 Integrated Annual Report. In
2024, the Group partially reversed the impairment loss relating to other
finite-lived intangible assets of the Costa Express Business by €0.4
million, as a result of the finalisation of the negotiations regarding scope
and duration of a contract with a key customer. The reversal of the impairment
loss was included in line 'Operating expenses' of the condensed consolidated
income statement and under Developing markets for segmental allocation
purposes.
9. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial risks: market risk
(including currency risk, interest rate risk and commodity price risk), credit
risk, liquidity risk and capital risk. There have been no material changes in
the risk management policies since the previous year end.
As described in the 2023 Integrated Annual Report, the Group actively manages
its liquidity risk. The Group maintains a healthy liquidity position and is
able to meet its liabilities as they fall due. As at 31 December 2024, the
Group had net debt of €1.5 billion (Note 10). In addition, as at 31 December
2024, the Group had cash and cash equivalents and other financial assets of
€2.4 billion (Note 10), an undrawn Revolving Credit Facility of €0.8
billion, an uncommitted Money Market Loan agreement of €0.2 billion, as well
as €0.8 billion available out of the €1.0 billion Commercial Paper
Programme. None of the Group's debt facilities are subject to any financial
covenants that would impact its liquidity or access to capital. The Group's
Standard & Poor's and Moody's credit ratings as disclosed in the 2023
Integrated Annual Report were reaffirmed in 2024.
The Group's financial instruments recorded at fair value are included in Level
1, Level 2 and Level 3 within the fair value hierarchy as described in the
2023 Integrated Annual Report.
As at 31 December 2024, the fair value of bonds and notes payable applying the
clean market price was €3,261.2 million compared to their book value of
€3,372.3 million. The money market funds recorded at fair value are included
in Level 1 within the fair value hierarchy. As at 31 December 2024, the fair
value of the money market funds amounted to €265.0 million (2023: €513.8
million).
As at 31 December 2024, the total derivatives included in Level 2 were
financial assets of €41.6 million and financial liabilities of €23.8
million. The Group recognises embedded derivatives whose risks and economic
characteristics were not considered to be closely related to the commodity
contract in which they were embedded. The valuation techniques used to
determine their fair value maximised the use of observable market data. The
fair value of the embedded derivatives as at 31 December 2024 amounted to a
financial liability of €2.3 million and are classified within Level 2.
In 2024, the Group entered into fixed-to-floating interest rate swaps with a
notional amount of €600 million in connection with the €600 million bond
issued in February 2024 and maturing in February 2028, in anticipation of
interest rates' decrease, which were designated as fair value hedges. The fair
value of the interest rate swaps as at 31 December 2024 amounted to a
financial asset of €24.0 million and are classified within Level 2.
The Group uses derivatives to mitigate the commodity price risk related to
plastics. As the valuation of these derivatives uses prices that are not
observable in the market, it is classified within Level 3. The fair value of
the derivatives related to plastics as at 31 December 2024 amounted to a
financial liability of €5.4 million.
There were no transfers between Levels 1, 2 and 3 during the year ended 31
December 2024.
10. Net debt
As at 31 December
2024 2023
€ million € million
Current borrowings 888.7 948.1
Non-current borrowings 3,091.9 2,476.4
Interest rate swaps (fixed-to-floating) (24.0) -
Less: Cash and cash equivalents (1,548.1) (1,260.6)
- Financial assets at amortised cost (619.0) (54.8)
- Financial assets at fair value through profit or loss (265.0) (513.8)
Less: Other financial assets (884.0) (568.6)
Net debt 1,524.5 1,595.3
In February 2024 the Group issued a €600 million Euro-denominated fixed rate
bond maturing in February 2028 with a coupon rate of 3.375%. The net proceeds
of the new issue were used to fully repay the €600 million eight-year fixed
rate bond, which matured in November 2024.
In July 2024, the Group established a loan facility of US Dollar 130.0 million
with the European Bank for Reconstruction and Development (EBRD) to finance
the capital expenditure and working capital requirements of the Group's
subsidiary in Egypt. The loan facility is guaranteed by Coca-Cola HBC AG and
ultimately matures in 2031. As at 31 December 2024, the outstanding liability
amounted to €4.8 million.
In September 2024, Coca-Cola HBC Finance B.V. completed a partial buyback of
the 1.625%, €600 million twelve-year fixed rate bond due in May 2031,
amounting to €23.4 million. The buyback principal amount was cancelled in
November 2024.
In November 2024 the Group issued a €500 million Euro-denominated fixed rate
bond maturing in November 2032 with a coupon rate of 3.125%.
In December 2019 the Group established a loan facility of US Dollar 85.0
million to finance the purchase of production equipment by the Group's
subsidiary in Nigeria. The facility has been drawn down by Nigerian Bottling
Company Ltd ('NBC') over the course of 2020 and 2021 maturing in 2027. The
obligations under this facility are guaranteed by Coca-Cola HBC AG. As at 31
December 2024, the outstanding liability amounted to €36.1 million (31
December 2023: €45.4 million).
Currently, as a result of sanctions and other regulations, there are certain
restrictions in Russia and Ukraine that affect the Group's ability to
repatriate profits. However, these restrictions are not expected to have a
material impact on the Group's liquidity. Cash and cash equivalents held by
the Group's operations in Russia (including Multon) amounted to €490.7
million equivalent in Russian Rouble, US Dollar and Euro as at 31 December
2024 (2023: €278.7 million).
The financial assets at amortised cost comprise of time deposits amounting to
€619.0 million (31 December 2023: €54.8 million). The financial assets at
fair value through profit or loss are related to money market funds. Included
in 'Other financial assets' of the condensed consolidated balance sheet are
derivative financial instruments of €16.8 million (31 December 2023: €97.5
million) and related party loans receivable of €0.9 million (31 December
2023: €1.8 million).
11. Share capital, share premium, treasury shares and other reserves
Number of shares Share Share
(authorised capital premium
and issued) € million € million
Balance as at 1 January 2023 372,086,095 2,024.3 2,837.4
Shares issued to employees exercising stock options 891,127 6.0 8.2
Dividends (Note 13) - - (289.9)
Balance as at 31 December 2023 372,977,222 2,030.3 2,555.7
Shares issued to employees exercising stock options 262,340 1.8 2.0
Dividends (Note 13) - - (342.9)
Balance as at 31 December 2024 373,239,562 2,032.1 2,214.8
In 2024, the share capital of Coca-Cola HBC increased by the issuance of
262,340 (2023: 891,127) new ordinary shares following the exercise of stock
options pursuant to the Coca-Cola HBC AG's employees' stock option plan. Total
proceeds from the issuance of the shares under the stock option plan amounted
to €3.8 million (2023: €14.2 million). Additional proceeds of €2.8
million in 2024 (2023: €nil) related to exercised stock options settled via
treasury shares as described below and reflected under 'Other reserves' in the
condensed consolidated statement of changes in equity.
Following the above changes, on 31 December 2024 the share capital of the
Group amounted to €2,032.1 million and comprised 373,239,562 shares with a
nominal value of CHF 6.70 each.
During 2024, an amount of €28.6 million in treasury shares was provided to
employees in connection with vested performance share awards (€23.4 million)
and exercised stock options (€5.2 million) respectively, under the Company's
employee incentive schemes (2023: €29.7 million in connection with vested
performance share awards), which was reflected as a reclassification from
'Treasury shares' to 'Other reserves' in the condensed consolidated statement
of changes in equity.
On 20 November 2023, the Group announced the launch of a share buyback
programme of up to a maximum of 18,000,000 ordinary shares to be purchased in
a manner consistent with the Company's general authority to repurchase shares
granted at its Annual General Meeting on 17 May 2023 and any such authority
granted at its following annual general meetings. The programme commenced on
21 November 2023 and is expected to run for a period of around two years. At
its Annual General Meeting on 21 May 2024, the Company's general authority to
repurchase shares was renewed. As at 31 December 2024, the Group had purchased
shares under the programme for a total consideration of €183.0 million
(2023: €42.6 million), which was reflected in line 'Acquisition of treasury
shares' of the condensed consolidated cash flow statement and the condensed
consolidated statement of changes in equity.
An amount of €163.3 million was reclassified from 'Other reserves' to
'Retained earnings' in the condensed consolidated statement of changes in
equity, reflecting capitalisation of tax-free reserves.
12. Leases
The leases which are recorded on the condensed consolidated balance sheet are
principally in respect of buildings and motor vehicles. The Group's
right-of-use assets and lease liability are presented below:
As at 31 December
2024 2023
€ million € million
Land and buildings 141.9 105.2
Plant and equipment 109.4 104.4
Total right-of-use assets 251.3 209.6
Current lease liabilities 63.5 55.3
Non-current lease liabilities 190.5 154.8
Total lease liability 254.0 210.1
13. Dividends
On 17 May 2023, the shareholders of Coca-Cola HBC AG at the Annual General
Meeting approved a dividend distribution of 0.78 euro per share. The total
dividend amounted to €289.9 million and was paid on 19 June 2023. Of this,
an amount of €2.7 million related to shares held by the Group.
The shareholders of Coca-Cola HBC AG approved a dividend distribution of 0.93
euro per share at the Annual General Meeting held on 21 May 2024. The total
dividend amounted to €342.9 million and was paid on 24 June 2024. Of this,
an amount of €3.2 million related to shares held by the Group.
The Board of Directors will propose a 1.03 euro dividend per share in respect
of 2024. If approved by the shareholders of Coca-Cola HBC AG, this dividend
will be paid in 2025.
14. Business combinations and purchases of shares held by non-controlling
interests
Acquisition of Finlandia Vodka Oy
On 1 November 2023, the Group acquired 100% of the issued shares of
Brown-Forman Finland Oy ('BFF'), established in Finland, owner of the
Finlandia Vodka brand. BFF was later renamed to Finlandia Vodka Oy
('Finlandia'). The acquisition enhances the Group's premium spirits business,
while complementing its existing adult sparkling beverages portfolio and
better positions the Group to strengthen partnerships with customers in
strategically important channels such as hotels, restaurants and cafes
(HoReCa).
The fair value of the consideration for the acquisition of Finlandia consisted
of US Dollar 193.8 million (€183.9 million), which was paid as at 31
December 2023, and an additional payment, based on Finlandia's net financial
position and working capital movement, of US Dollar 1.6 million (€1.5
million), which was finally agreed with the seller, according to the terms of
the sale and purchase agreement, late in the first quarter of 2024 and paid in
April 2024.
The net assets acquired reflect the final total consideration of US Dollar
195.4 million (€185.4 million). Details of the acquisition with regards to
the finally determined fair values of the net assets acquired and goodwill are
presented in the table on the next page.
Fair value
€ million
Trademarks 198.2
Property, plant and equipment(27) 6.7
Inventories 4.9
Trade, other receivables and assets 9.1
Cash and cash equivalents 3.5
Borrowings(27) (6.5)
Trade and other payables (9.7)
Net deferred tax liability (28.2)
Net identifiable assets acquired 178.0
Add: Goodwill arising on acquisition 7.4
Net assets acquired 185.4
(27.)Property, plant and equipment and borrowings acquired relate to
right-of-use assets and lease liability, respectively.
The finalisation of the additional consideration is a measurement period
adjustment under IFRS 3 'Business combinations', which resulted in an increase
of 'Trademarks', 'Net deferred tax liability' and 'Other current liabilities'
by €1.2 million, €0.2 million and €1.0 million respectively, compared to
the provisionally determined fair values of the net assets acquired and the
additional consideration payable disclosed in the 2023 Integrated Annual
Report. Accordingly, the comparative information of the consolidated balance
sheet was revised to reflect the effect from finalisation of the additional
consideration for the acquisition of Finlandia, as described above.
The goodwill arising from the acquisition is attributable to the brand's
growth potential across the Group's markets. Acquisition costs of €5.6
million were included in line 'Operating expenses' of the condensed
consolidated income statement in 2023, as a result of the above acquisition.
Acquisition of BDS Vending Solutions
During the first half of 2024, the Group reached an agreement to acquire 100%
of BDS Vending Solutions Ltd, a well-established food and drink vending
services business in Ireland. The acquisition was approved by the Competition
and Consumer Protection Commission in Ireland on 12 February 2025 and is
expected to be completed in the first quarter of 2025, according to the terms
of the share purchase agreement. Acquisition costs incurred during 2024 in
connection with the above acquisition amounted to €1.9 million (2023: €0.7
million) and were included in line 'Operating expenses' of the condensed
consolidated income statement.
Purchases of shares held by non-controlling interests
During 2024, the Group acquired a further 0.1% interest in Coca-Cola HBC Egypt
for a consideration of €0.1 million (2023: a further 3.1% interest, for a
consideration of €12.6 million), which was presented in line 'Purchase of
shares from non-controlling interests' of the condensed consolidated cash flow
statement.
In addition, during 2024, following capitalisation of certain intercompany
loans by Coca-Cola HBC Egypt as well as the successful completion of an equity
injection in the subsidiary, which was covered in its entirety by the Group,
the relevant non-controlling interest was diluted by approximately 2.0%. This
resulted in a reclassification of €5.5 million accumulated losses from
'Non-controlling interests' to 'Retained Earnings' in the condensed
consolidated statement of changes in equity.
During 2024, the Group acquired a further 0.6% interest in CCHBC Bulgaria EAD
for a consideration of €2.8 million (2023: €nil), which was presented in
line 'Purchase of shares from non-controlling interests' of the condensed
consolidated cash flow statement.
15. Related party transactions
a) The Coca-Cola Company ('TCCC')
As at 31 December 2024, TCCC indirectly owned approximately 21% (2023: 21%) of
the issued share capital of Coca-Cola HBC. The below table summarises
transactions with TCCC and its subsidiaries:
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Purchases of concentrate, finished products
and other items 895.0 882.9 1,912.5 1,861.4
Net contributions received for marketing and
promotional incentives 77.8 67.8 155.8 125.1
Sales of finished goods and raw materials 2.9 2.1 5.2 4.7
Other income 4.9 2.2 6.7 4.1
Other expenses 3.1 1.8 3.4 3.6
( )
As at 31 December 2024, the Group was owed €30.5 million (2023: €42.8
million) by TCCC and owed €274.3 million (2023: €273.4 million) to TCCC.
b) Frigoglass S.A. ('Frigoglass'), Kar-Tess Holding and AG Leventis
(Nigeria) Ltd
As at 31 December 2024, Truad Verwaltungs AG indirectly owned approximately
99% (2023: 99%) of AG Leventis (Nigeria) Ltd and indirectly controlled
Kar-Tess Holding, which held approximately 23% (2023: 23%) of Coca-Cola HBC's
total issued capital.
As at 1 January 2023, Truad Verwaltungs AG also indirectly owned approximately
48% of Frigoglass. In April 2023, Frigoglass restructured its debt which
resulted in changes to its ownership structure. The restructured Frigoglass
Group no longer meets the definition of related party as per IAS 24 'Related
party disclosures' for Coca-Cola HBC AG. During the four months ended 28 April
2023, the Group purchased coolers and other equipment, as well as raw and
other materials of €24.4 million and incurred maintenance, rent and other
expenses of €10.0 million from Frigoglass and its subsidiaries. During the
six months and full year ended 31 December 2024, the Group incurred other
expenses of €3.0 million and €6.0 million (2023: €3.9 million and
€11.0 million respectively) from AG Leventis (Nigeria) Ltd. As at 31
December 2024, the Group owed €1.3 million (2023: €1.1 million) and had a
lease liability of €0.6 million (2023: €1.2 million) to AG Leventis
(Nigeria) Ltd.
c) Other related parties
During the six months and full year ended 31 December 2024, the Group incurred
other expenses of €9.7 million and €19.8 million (2023: €5.6 million and
€15.5 million respectively) mainly related to maintenance services for cold
drink equipment and installations of coolers, fountains, vending and
merchandising equipment, as well as subsequent expenditure for fixed assets of
€0.7 million and €1.9 million (2023: €1.7 million and €3.2 million
respectively) from other related parties. In addition, during the six months
and year ended 31 December 2024, the Group purchased coolers and other
equipment, as well as inventory of €23.5 million and €43.3 million (2023:
€18.7 million and €44.1 million respectively) from other related parties.
We disclosed in the 2023 Integrated Annual Report that Frigoglass Industries
(Nigeria) Limited, an associate in which the Group holds an effective interest
of approximately 24% through its subsidiary Nigerian Bottling Company Ltd is a
guarantor under the senior secured notes issued in 2023 by the restructured
Frigoglass Group. The Group has no direct exposure arising from this guarantee
arrangement, but the Group's investment in this associate, which stood at
€11.6 million as at 31 December 2024 (2023: €14.0 million), would be at
potential risk if there was a default under the terms of the senior secured
notes and the restructured Frigoglass Group (including the guarantor) were
unable to meet their obligations thereunder.
During the six months and the year ended 31 December 2024, the Group received
dividends of €1.2 million and €2.2 million from other related parties
(2023: €nil and €7.0 million respectively), which are included in line
`Receipts from non-integral equity method investments' of the condensed
consolidated cash flow statement.
As at 31 December 2024, the Group owed €7.2 million (2023: €9.1 million)
to and was owed €15.5 million including loans receivable of €12.3 million
(2023: €6.7 million including €4.3 million loans receivable) from other
related parties.
Capital commitments to other related parties amounted to €2.5 million as at
31 December 2024 (2023: €3.8 million).
d) Joint ventures
The below table summarises transactions with joint ventures:
Six months ended Year ended
31 December 31 December
2024 2023 2024 2023
€ million € million € million € million
Purchases of inventory 16.9 14.4 32.6 26.0
Sales of finished goods and raw materials 4.5 4.0 8.9 7.8
Other income 4.5 4.8 10.1 10.4
Other expenses 4.4 4.0 8.4 8.3
As at 31 December 2024, the Group owed €13.8 million including loans payable
of €2.7 million (2023: €8.6 million including loans payable of €2.7
million) to and was owed €8.5 million including dividends and loans
receivable of €nil and €3.5 million, respectively (2023: €12.3 million
including dividends and loans receivable of €2.6 and €4.3 million
respectively) from joint ventures. During the six months and year ended 31
December 2024, the Group received dividends of €9.1 million and €11.7
million from integral joint ventures (2023: €5.2 million and €6.7 million
respectively), which were included in line `Receipts from integral equity
method investments' of the condensed consolidated cash flow statement.
e) Directors
There have been no transactions between Coca-Cola HBC and the Directors and
senior management except for remuneration for both the six months and years
ended 31 December 2024 and 2023.
16. Contingencies
In relation to the Greek Competition Authority's decision of 25 January 2002,
one of Coca-Cola Hellenic Bottling Company S.A.'s competitors had filed a
lawsuit against Coca-Cola Hellenic Bottling Company S.A. claiming damages in
an amount of €7.7 million. The court of first instance heard the case on 21
January 2009 and subsequently rejected the lawsuit. The plaintiff appealed the
judgement and on 9 December 2013 the Athens Court of Appeals rejected the
plaintiff's appeal. On 19 April 2014, the same plaintiff filed a new lawsuit
against Coca-Cola Hellenic Bottling Company S.A. (following the spin-off,
Coca-Cola HBC Greece S.A.I.C.) claiming payment of €7.5 million as
compensation for losses and moral damages for alleged anti-competitive
commercial practices of Coca-Cola Hellenic Bottling Company S.A. between 1994
and 2013. On 21 December 2018, the plaintiff served their withdrawal from the
lawsuit. However, on 20 June 2019, the same plaintiff filed a new lawsuit
against Coca-Cola HBC Greece S.A.I.C. claiming payment of €10.1 million as
compensation for losses and moral damages again for alleged anti-competitive
commercial practices of Coca-Cola Hellenic Bottling Company S.A. for the same
period between 1994 and 2013. On 16 July 2021, the Athens Multimember Court of
First Instance issued its judgement number 1929/2021 (hereinafter the
"Judgment"), which adjudicates that Coca-Cola HBC Greece S.A.I.C. is obliged
to pay to the plaintiff an amount of circa €0.9 million plus interest as of
31 December 2003. Both Coca-Cola HBC Greece S.A.I.C. and the plaintiff have
appealed against this decision to the court of appeals. Both appeals were
heard on 19 January 2023. Decision no. 2312/2024 was issued by the Court of
Appeal which (a) rejected the appeal of the plaintiff, (b) accepted the appeal
of Coca-Cola HBC Greece S.A.I.C., (c) annulled the Judgement and (d) rejected
the plaintiff's lawsuit, dated 20 June 2019. On 30 September 2024 the
plaintiff filed an appeal in cassation, before the Supreme Court, against the
decision of the Court of Appeal. No hearing date has been set yet. Management
believes that any liability to the Group that may arise as a result of these
pending legal proceedings will not have a material adverse effect on the
results of operations, cash flows, or the financial position of the Group
taken as a whole.
With respect to the investigation of the Greek Competition Commission
initiated on 6 September 2016, regarding Coca-Cola HBC Greece S.A.I.C.'s
operations in certain commercial practices in the non-alcoholic beverages
market, the Rapporteur of the Greek Competition Commission appointed for this
case issued her Statement of Objections on 5 July 2021, alleging that
Coca‑Cola HBC Greece S.A.I.C. undertook a series of anti-competitive
practices in the market of instant consumption for cola and non-cola
carbonated soft drinks, thereby excluding competitors and limiting their
growth potential. Coca‑Cola HBC Greece S.A.I.C. has vigorously defended its
commercial practices, in rebuttal of the allegations set out in the Statement
of Objections. The hearing of the case, before the plenary session of the
Greek Competition Commission, was concluded on 29 November 2021 and the
supplementary briefs of the parties were submitted on 16 December 2021. On 3
November 2022, the Hellenic Competition Commission notified Coca‑Cola HBC
Greece S.A.I.C. of its ruling on the case, according to which Coca‑Cola HBC
Greece S.A.I.C. allegedly abused its dominant position in the Greek immediate
consumption market segment for cola and non‑cola carbonated soft drinks. The
Hellenic Competition Commission ruling imposed on Coca‑Cola HBC Greece
S.A.I.C. a fine of €10.3 million, as well as a behavioural remedy in
relation to beverage coolers valid until end of 2024. Coca‑Cola HBC Greece
S.A.I.C. paid the fine in May 2023. Coca‑Cola HBC Greece S.A.I.C. strongly
disagrees with this ruling and has challenged it before the competent Court of
Appeal. The hearing of the appeal before the Administrative Court of Appeal,
was originally set for 26 September 2024, and following postponement, was
heard on 12 December 2024. The decision by the Administrative Court of Appeal
is pending.
In 1992, our subsidiary NBC acquired a manufacturing facility in Nigeria from
Vacunak, a Nigerian company. In 1994, Vacunak filed a lawsuit against NBC,
alleging that a representative of NBC had orally agreed to rescind the sale
agreement and instead enter into a lease agreement with Vacunak. As part of
its lawsuit, Vacunak sought compensation for rent and loss of business
opportunities. NBC discontinued all use of the facility in 1995. On 19 August
2013, NBC received the written judgement of the Nigerian court of first
instance issued on 28 June 2012 providing for damages of approximately €5.1
million. The Appeal Court dismissed NBC's appeal and Vacunak's cross‑appeal
and affirmed the judgement of the first instance court in 2023. Both NBC and
Vacunak have filed an appeal against the judgement before the Supreme Court.
Based on advice from NBC's outside legal counsel, we believe that it is
unlikely that NBC will suffer material financial losses from this case. We
have consequently not provided for any losses in relation to this case.
The tax filings of the Group and its subsidiaries are routinely subjected to
audit by tax authorities in most of the jurisdictions in which the Group
conducts business. These audits may result in assessments of additional taxes.
The Group provides for additional tax in relation to the outcome of such tax
assessments, to the extent that a liability is probable and estimable.
The Group is also involved in various other legal proceedings. Management
believes that any liability to the Group that may arise as a result of these
pending legal proceedings will not have a material adverse effect on the
results of operations, cash flows, or the financial position of the Group
taken as a whole.
Considering the above, there have been no significant adverse changes in
contingencies since 31 December 2023 (as described in the 2023 Integrated
Annual Report available on the Coca-Cola HBC's web site:
www.coca-colahellenic.com (http://www.coca-colahellenic.com) ).
17. Commitments
As at 31 December 2024 the Group had capital commitments including commitments
for leases and the share of its joint ventures' capital commitments amounting
to €294.2 million (2023: €203.4 million), which mainly relate to plant and
machinery equipment.
18. Number of employees
The average number of full-time equivalent employees in 2024 was 33,015 (2023:
32,747).
19. Subsequent events
There were no subsequent events following 31 December 2024.
Volume by market for 2024 and 2023
% Change
Unit cases (million)(28) 2024 2023 2024 vs 2023
Established Markets
Austria 83.8 83.2 1%
Cyprus 17.0 16.6 2%
Greece 127.8 120.7 6%
Italy 247.8 253.5 -2%
Republic of Ireland and Northern Ireland 84.8 85.1 -
Switzerland 68.7 69.5 -1%
Global exports(*) 1.4 0.1 NM
Total 631.3 628.7 -
Developing Markets
Baltics 38.3 38.1 1%
Croatia 34.2 32.7 5%
Czech Republic 57.8 52.6 10%
Hungary 100.0 97.3 3%
Poland 217.8 216.6 1%
Slovakia 25.3 24.5 3%
Slovenia 9.2 9.2 -
Total 482.6 471.0 2%
Emerging Markets
Armenia 15.7 15.5 1%
Belarus 61.0 50.7 20%
Bosnia and Herzegovina 24.6 24.5 -
Bulgaria 76.0 72.5 5%
Moldova 9.3 8.8 6%
Nigeria 440.9 415.5 6%
Romania 182.2 186.8 -2%
Russian Federation 403.1 368.7 9%
Serbia (including the Republic of Kosovo) 164.0 165.7 -1%
Ukraine 122.9 119.3 3%
Egypt 300.9 307.8 -2%
Total 1,800.6 1,735.8 4%
Total Coca-Cola HBC 2,914.5 2,835.5 3%
(28)One unit case corresponds to approximately 5.678 litres or 24 servings,
being a typically used measure of volume. For Premium Spirits volume, one unit
case also corresponds to 5.678 litres. For biscuits volume, one unit case
corresponds to 1 kilogram. For coffee, one unit case corresponds to 0.5
kilograms or 5.678 litres. Volume data is derived from unaudited operational
data.
*Global exports market refers to the export business for Finlandia Vodka and
Three Cents.
- Our joint venture with Heineken in North Macedonia generated volume of 28.5
million unit cases in 2024 (2023: 27.7 million unit cases), increased by 3%
compared to the prior year.
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