H Coca-Cola HBC AG, a growth-oriented consumer products group and strategic bottling partner of The Coca-Cola Company, presents the financial results for the six months ended June 28, 2024.

Basic financial figures for the semester

• Focusing on the implementation of our strategic priorities, leads to a significant increase in net sales revenue by 13.6% on an organic basis

o Sales volume increased organically by 3.1%, with all strategic priority categories contributing to growth. Carbonated soft drinks rose 0.9%, energy drinks 32.8% and coffee 21.6%. Sales volumes increased in the second quarter by 4.2%, with all markets posting increases.

o Net revenue per case increased 10.2% on an organic basis, driven by targeted revenue growth management initiatives.

o Net sales increased 3.1% on a reported basis, with strong organic growth largely offset by unfavorable currency movements in emerging markets.

o Further growth in our market share by value, in both the ready-to-drink non-alcoholic beverages and carbonated beverages categories by 170 and 80 basis points respectively, in the half-year.

• Strong increase in operating profits by 7.5% on an organic basis, with comparable operating profits amounting to €564.1m.

o Comparable gross margin increased by 100 basis points, reflecting the reduced rate of increase in raw material cost inflation.

o Continued investments in our business, as well as higher other operating expenses as a result of negative changes in foreign exchange rates, resulted in higher operating expenses as a percentage of sales revenue by 130 basis points.

o Maintained the level of comparable operating profit, increasing 0.6%, while the relative profit margin decreased compared to the corresponding period last year on a published and organic basis by 30 and 60 basis points respectively.

• Key figures by market: Broad-based net sales growth on an organic basis

o Developed Markets: Net sales revenue increased 4.4% on an organic basis, driven primarily by net revenue per case expansion and resilient volume performance. Operating profit increased by 11.1% on an organic basis.

o Emerging Markets: Net sales revenue increased 11.5% on an organic basis, thanks to the expansion of net revenue per case, as well as increased sales volume. Operating profit increased by 62.3% on an organic basis.

o Emerging Markets: Net sales revenue increased 22.7% on an organic basis as we leveraged revenue growth management initiatives to counter the negative impact of currency fluctuations in Nigeria and Egypt, and continued to deliver strong growth of sales volume. Operating profit was down 8.6% on an organic basis.

• Earnings per share were negatively impacted by higher finance costs, despite an increase in operating profit

o Comparable earnings per share decreased by 1.7% compared to the same period last year and amounted to €1.04, due to higher financial expenses.

o Strong balance sheet and liquidity. A dividend of €0.93 per share, up 19.2%, was paid in June.

• Continued investment in 24/7 consumption product portfolio and strategic priorities

o Close collaboration with The Coca-Cola Company to capitalize on the start of the summer season with music and sporting events, which drove growth in the carbonated soft drinks category.

o The launch of Monster Energy Green Zero Sugar in 16 markets in the first quarter contributed to the strong performance of the energy drink category, with strong promotional activity continuing in the second quarter.

o Growth in the coffee category, thanks to an increase in our revenue share in the out-of-home consumption channel.

o We continue to focus on blending capabilities and providing premium options for our product categories, introducing innovations to Schweppes and Kinley, launching Three Cents in nine more markets and expanding Finlandia Vodka to 19 new markets.

• Sustainable development remains in the foreground

o Actively support the new packaging return schemes in Ireland and Hungary, which are expected to improve collection rates of soft drink packaging.

o Secured a $130m loan in July from the European Bank for Reconstruction and Development (EBRD) to finance capital expenditure and working capital requirements, as well as support continued investment in people and sustainable development, in Egypt.

Mr. Zoran BogdanovicCEO of Coca-Cola HBC AG, commented:

“It was a strong first half, despite the challenging environment in several of our markets. Focused execution of our initiatives related to the 24/7 consumption product portfolio led to a 13.6% increase in sales revenue on an organic basis. Backed by our systematic and targeted investments, we achieved organic volume growth in each of our strategic priority categories – carbonated soft drinks, energy drinks and coffee – and further increased our market share by value in ready-to-drink, non-alcoholic, soft drinks.

I would like to thank our teams, together with our customers, suppliers and partners, for their cooperation and passion for achieving growth together. I would also like to give a special thanks to the team at The Coca-Cola Company, with whom we work closely in all our markets, with flexibility and speed, adapting to changing local market trends.

Our teams continue to execute our go-to-market plan with excellence, co-creating value with our customers, leveraging our specialized capabilities, as well as the strength of our 24/7 consumption product portfolio. While we recognize the macroeconomic and geopolitical challenges and heightened uncertainty around the consumer environment, we are upgrading our financial guidance for the year, reflecting the strong first half performance and the expectation that we can continue our positive market momentum.”