Coca-Cola Europacific Partners(CCEP)2021-02-12 20:58Financial Data and Key Metrics Changes - Revenue declined by 11% on an FX-neutral basis, driven by a 10% comparable volume decline due to the COVID-19 pandemic [17][18] - Comparable gross profit decreased by 17%, leading to a comparable operating profit of €1.2 billion, down 28.5% on a comparable and FX-neutral basis [20][21] - Free cash flow generation was strong at €925 million, close to the medium-term annual objective of at least €1 billion [22][23] Business Line Data and Key Metrics Changes - Coca-Cola Zero Sugar was the number 1 NARTD brand for absolute value growth, with strong performance in multipack cans for Fanta and Sprite [26] - Energy business saw volume growth of 13%, with Monster achieving 15% volume growth, becoming the number 1 energy brand in Spain and Portugal [26][27] - Online grocery revenue grew by 44%, with market share online surpassing in-store [27][28] Market Data and Key Metrics Changes - Away-from-home channel volumes declined by approximately 28%, while home channel volumes grew by around 2% [30][31] - The pandemic led to a significant impact on on-the-go consumption, with volumes down nearly 25% [32] - Trading in the home channel remained stable, benefiting from revenue growth management initiatives [31] Company Strategy and Development Direction - The company aims for a future that is green and digitally led, with a commitment to net zero greenhouse gas emissions by 2040 [15][46] - The focus will be on core brand investments and future revenue streams, including Costa, Tropico, and Topo Chico [46][50] - The company is implementing an efficiency program to become a leaner business, with expected savings in 2021 [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through short-term challenges and emerging as a more efficient and sustainable business [7][53] - The rollout of COVID-19 vaccines brings optimism, and the company is prepared for a faster recovery [7][64] - Management highlighted the importance of maintaining investments in digital and sustainability despite the pandemic [46][64] Other Important Information - The company returned approximately €130 million to shareholders via share buybacks before suspending the program [23] - The acquisition of Coca-Cola Amatil is progressing, with approval from the Australian Foreign Investment Review Board [51] Q&A Session Summary Question: Details on permanent discretionary expense reductions and marketing spend - Management is confident in the investment plan for 2021, maintaining consumer pricing programs and focusing on retail and online growth [56][57] Question: Preparedness for a faster recovery and cooler placement - The company is well-prepared for a faster recovery and has increased cooler investments for 2021 [64][66] Question: Incremental sustainability investment costs - Sustainability investments are viewed as long-term investments rather than costs, with ongoing management of commodities inflation [68][71] Question: Market share performance in different regions - The company gained market share across all markets, with challenges primarily related to customer group negotiations in Germany and Belgium [72][73] Question: Impact of Coca-Cola Amatil's recent results on the acquisition - The company is awaiting further developments regarding the acquisition and believes it can achieve favorable financing terms [80][81]