Financial Performance Overview - Group revenue increased by 1% for the full year, with a gross profit margin improvement of 1.3 percentage points to 51.3% [6][30] - Profit from operations grew substantially by 9622%, and profit attributable to equity shareholders increased by 102% to HKD235 million [7][30] - EBITDA increased by 29% year on year, driven by higher gross profit contribution and effective operating cost rationalization [5][30] - Cash on hand was HKD1.27 billion, with a net cash position of HKD657 million and a gearing ratio decreased to 20% [8] Business Line Performance - Mainland China revenue grew by 2% in the second half, contributing to a full-year growth of 1% amid intensified market competition [12][15] - Operating profit in Mainland China increased by 41%, achieving a 9% operating margin [19] - Hong Kong's operating profit grew by 24%, with a 12% operating profit margin, driven by higher sales volumes and favorable commodity costs [23] - Australia saw a revenue growth of 5% in local currency, with a narrowed operating loss by more than 30% in local currency terms [24] Market Performance - Mainland China remains the largest market, accounting for 54% of group revenue [15] - Singapore experienced a slight revenue decrease, but growth in the export tofu business helped offset some softness in beverage sales [25] - The Philippines joint venture with Universal Robina Corporation continued to drive scale and market share growth [25] Company Strategy and Industry Competition - The company will prioritize sustaining business scale and profitability amid geopolitical and economic challenges [14][30] - Focus on maintaining structural profitability in Mainland China while solidifying core portfolio in Hong Kong [14] - Plans to improve field sales execution and increase portfolio innovation to enhance value competitiveness [20] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in gradual improvement and long-term prospects despite short-term macro challenges [15][30] - The company aims to leverage local sourcing and manufacturing to mitigate international tariff risks [14] - Emphasis on enhancing energy efficiency and sustainable practices as part of the long-term strategy [29] Other Important Information - The company announced an updated sustainability framework with ambitious goals for reducing sugar content in products [28][29] - The eleventh annual sustainability report will be available in July, highlighting progress on sustainability targets [26] Q&A Session Summary Question: What are the expectations for growth in Mainland China? - Management indicated that sales growth must come from market share due to significant competitive pricing pressure [19] Question: How is the company addressing the competitive environment in Australia? - The company is implementing commercial programs to improve brand presence and impact across grocery and coffee channels [24] Question: What are the sustainability goals moving forward? - The company aims for 80% of its portfolio to be low sugar or no added sugar products by 2030, reflecting a stronger focus on health trends [28]

Summary of Coca Cola HBC Conference Call Company Overview - Coca Cola HBC is one of the largest global strategic bottling partners of the Coca Cola Company, operating in 29 markets across Europe and Africa, including both established markets like Italy and emerging markets like Nigeria and Egypt [1] Key Strategies and Performance - The company focuses on a "twenty four seven portfolio" that caters to consumer needs throughout the day, from coffee in the morning to non-alcoholic beverages mixed with premium spirits [2] - Coca Cola HBC has a proven track record of delivering results, with a guidance update for organic revenue growth set at 6-7% per year and EBIT margin improvement of 20-40 basis points annually [4] - In Q1, the company reported a 10.6% organic sales growth with a volume growth of 1.8% [4][6] Market Dynamics and Consumer Behavior - The company acknowledges consumer sensitivity to pricing and sentiment, which remains below 2021 levels, impacting revenue growth management strategies [8][13] - Price mix is expected to soften this year, with a more balanced ratio between price, mix, and volume anticipated in the midterm [10][11] - The company is focused on affordability initiatives across all markets to support consumer needs [14] Segment Performance - Coca Cola HBC expects all three segments (emerging, developing, and established markets) to contribute to growth, with emerging markets showing the strongest growth potential [15][16] - In Italy, the company is focusing on lunch occasions, particularly with pizza, and has seen strong performance from its Zero Sugar portfolio [20][22] - In Nigeria, dynamic pricing strategies are being employed to navigate market volatility while maintaining volume growth [25][26] Challenges and Opportunities - The company is facing challenges in Egypt due to high inflation and devaluation, but sees opportunities for growth and share gains as the situation stabilizes [34][36] - The energy category has shown strong growth, with innovations and partnerships contributing to its success [43][44] Digital Insights and Analytics - Coca Cola HBC has invested in digital insights and analytics, which are seen as a competitive advantage, enabling personalized execution and improved planning [56][58] Cash Deployment and Future Outlook - The company has a strong balance sheet with a net debt to EBITDA ratio below one, and is looking for opportunities to scale capabilities within the Coca Cola system [60][61] - Future cash deployment may include acquisitions or special dividends, depending on strategic fit and economic viability [62][63]