COCA-COLA HBC A.G. - THIRD QUARTER 2023 TRADING UPDATE - Strong growth driving further value creation

THIRD QUARTER 2023 TRADING UPDATE

Strong growth driving further value creation 

Coca-Cola HBC AG, a growth-focused Consumer Packaged Goods business and strategic bottling partner of The Coca-Cola Company, today announces its Q3 2023 trading update.

Third quarter highlights

• Another quarter of strong organic growth[1], driven by continued execution of our 24/7 strategy
  • Organic revenue up 15.3%; year-to-date organic revenue growth of 17.0%
  • Organic volume growth of 2.2% was led by our strategic priority categories, with Sparkling +1.5%, Energy +24.8% and Coffee +33.5%
  • Organic revenue per case growth of 12.9%, reflecting the cumulative benefits of revenue growth management initiatives over the last twelve months, across all categories and segments
  • Reported revenue up 3.8%, with strong organic growth offset by FX headwinds in Emerging markets
  • Further improvement in value share gains year-to-date; 110bps gain in Non-Alcoholic Ready-To-Drink (NARTD) and 60bps in Sparkling

• Segmental highlights: Broad-based organic revenue growth, with a particularly strong performance in Emerging 
  • Established: Organic revenue increased by 7.7%, led by revenue-per-case expansion, with a mixed volume performance against tough comparatives and varied weather conditions
  • Developing: Organic revenue up 15.9%, with a strong volume performance in Energy and Coffee, partially offsetting weaker volumes in Sparkling, Water and Juices
  • Emerging: Organic revenue up 21.8%, with a strong improvement in volume growth, notably in Egypt

Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:

“We're pleased to have delivered another solid performance, and a second consecutive quarter of organic volume growth. This was driven by our strong execution, underpinned by a continued focus on our strategic priority categories of Sparkling, Energy and Coffee, as well as our focus on bespoke capability development to drive personalised execution for every outlet. Our sophisticated revenue growth management, powered by data, insights and analytics, is helping us to adapt our initiatives and execution to different consumer environments and successfully balance affordability and premiumisation. As a result, we have both enhanced revenue per case and driven higher levels of market share.

“We continue to invest in our future with a clear focus on delivering against our sustainability agenda.
In Austria, we have introduced an industry-leading alternative to plastic shrink film for multipacks of multi-serve bottles, and in Romania, we have invested in recycled PET capabilities to drive packaging circularity.

“We reiterate our guidance for strong growth in 2023 and, despite continued macro uncertainties, we are well placed to deliver on our medium-term targets.”

Business outlook

Our performance in the third quarter was in line with expectations, underpinned by a second successive quarter of organic volume growth and despite tougher trading conditions in some markets. While we remain attentive to macroeconomic and geopolitical risks, we have a high degree of confidence in our broad 24/7 portfolio, the growth opportunities in our diverse markets, enhanced by our focus on execution and prioritised capabilities, and above all, the abilities of our talented people. Our expectations for 2023 are unchanged:

• We continue to expect mid-teens full-year organic revenue growth

• We continue to assume COGS/case increases by high-single digits in 2023, as inflationary pressures begin to moderate

• We continue to expect organic EBIT growth in the range of 9% to 12% in 2023