Financial Data and Key Metrics Changes - Organic revenue grew by 13.9%, with volumes up 4% and price mix up 9.5% [8] - Reported revenue increased by 8.9%, despite facing currency headwinds [8] - Revenue per unit case showed continued momentum with both price and mix expansion [9] Performance by Business Line - Sparkling beverages saw volumes up 3.9%, with Trademark Coke growing low-single digits and Coke Zero up mid-single digits [11] - Energy category volumes surged by 28%, continuing strong growth [12] - Coffee volumes increased over 35%, driven by out-of-home segment performance [12] - Water and Sports Drinks also experienced growth, with Sports Drinks up high teens [12] Performance by Market - Established markets reported net sales revenue growth of 3%, with volume growth despite consumer sensitivity [14] - Developing markets saw net sales revenue grow by 12.6%, led by strong price/mix [15] - Emerging markets delivered organic revenue growth of 24.1%, with price/mix being the main driver [15] Company Strategy and Industry Competition - The company is focused on agile execution and investment in bespoke capabilities to drive growth [7] - Ongoing revenue growth management initiatives are tailored to address affordability and premiumization needs [9] - The company is adapting its plans to consumer sensitivity in various markets, particularly in Italy and Switzerland [32][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic and geopolitical backdrop but expressed confidence in continued performance [17] - Updated guidance for 2024 includes organic revenue growth expectations of 11% to 13% and organic EBIT growth of 10% to 12% [17] - Management remains optimistic about maintaining positive volume growth despite market challenges [26] Other Important Information - The company is making progress on ESG initiatives, particularly in packaging circularity [13] - The fire at the Bambi plant in Serbia posed challenges, but the team managed to maintain operations [16] Q&A Session Summary Question: Why hasn't the operating profit guidance been raised despite lower COGS? - Management indicated that the dynamic market environment and ongoing challenges led to a cautious approach in raising profit guidance [20][21] Question: What is the impact of the fire at the Bambi plant and the product recall in Austria? - Management confirmed that the impact of the fire and recall is accounted for in the guidance, with no material impact expected from the recall [22][23] Question: How does the company anticipate consumer sensitivity affecting volume growth? - Management emphasized the importance of data insights and revenue growth management to tailor promotions and maintain volume growth [25][26] Question: What is the outlook for the Energy and spirits categories? - Management highlighted strong growth in the Energy category and positive integration of the Finlandia brand into the spirits portfolio [27][29] Question: How are consumer pressures in Italy and Switzerland being addressed? - Management is adjusting promotional strategies and pack sizes to respond to consumer sensitivity in these markets [32][50] Question: What is the regulatory outlook regarding sugar taxes and inflation in Nigeria and Egypt? - Management is preparing for upcoming regulatory changes and monitoring inflationary pressures in these markets [46][47]
Coca-Cola HBC(CCHGY) - 2024 Q3 - Earnings Call Transcript