Coca-Cola Europacific Partners(CCEP)2023-02-17 01:50Financial Data and Key Metrics Changes - The company reported total revenue of €17.3 billion, an increase of 15.5% year-over-year [43] - Adjusted free cash flow generation was €1.8 billion, enabling a record dividend payment of €1.68 per share, up 20% from 2021 [15][42] - COGS per unit case increased by 9%, slightly above the guidance of 8.5% [45] Business Line Data and Key Metrics Changes - Revenue per unit case grew by 6%, driven by strong growth in the away-from-home channel and effective revenue growth management initiatives [13][16] - The company successfully launched new flavors and products, including Fanta and Sprite, contributing to brand excitement and consumer engagement [11][40] Market Data and Key Metrics Changes - Great Britain and Iberia showed strong performance, with away-from-home volumes in double-digit growth compared to 2019 [44] - The home channel continued to grow, benefiting from increased at-home consumption, with volumes up 4% versus 2021 [44] Company Strategy and Development Direction - The company aims to maintain a focus on sustainability and innovation, with ongoing investments in digital tools and supply chain improvements [6][10] - A new efficiency program was announced, targeting €350 million to €400 million in incremental savings by 2028 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the NARTD category and the company's ability to maintain or grow market share despite inflationary pressures [51][52] - The company anticipates revenue growth of 6% to 8% for 2023, primarily driven by pricing strategies [49] Other Important Information - The company completed the acquisition of Coca-Cola Company's 29.4% minority stake in its Indonesia business, increasing ownership to 100% for €282 million [20] - The company was included in the 2023 Bloomberg Gender Equality Index, reflecting its commitment to diversity and inclusion [6] Q&A Session All Questions and Answers Question: Can you talk about progress in pricing so far year-to-date and the cadence of pricing through 2023? - Management noted that pricing strategies are being implemented across various markets, with some already completed in Iberia, Nordics, and Australia, while France is currently under negotiation [28][29] Question: How is the company managing consumer demand amidst inflation? - Management indicated that recent trading has not shown significant changes in underlying consumer demand, and they are focused on balancing pricing and affordability [91][92] Question: Are there any volume declines embedded in the 6% to 8% organic revenue guidance for 2023? - Management clarified that they expect volume growth and aim to maintain or grow market share, with the guidance reflecting a balanced approach [70][94]