Coca Cola HBC : Half-yearly financial report for the six months ended 26 June 2020

ENCOURAGING SIGNS AS MARKETS REOPEN

Coca‑Cola HBC AG, a leading consumer products business and strategic bottling partner of The Coca‑Cola Company, reports its financial results for the six months ended 26 June 2020.

Half-year highlights

- Employees remain safe, customers served, production and logistics fully operational

-FX-neutral revenue fell by 14.7%, with volumes down 9.2% and FX-neutral revenue per case down 6.1%, as the pandemic had a significant impact on the out-of-home channel, leading to lower volumes, the vast majority of which came from single-serve package formats, in turn adversely impacting price/mix¹

- Sequential improvements in FX-neutral revenue since the April decline of 36%, to a 5% decline in July

- Continue to gain or maintain share in the majority of our markets in Sparkling and Non-alcoholic ready-to-drink

- FX-neutral revenue growth by segment heavily influenced by severity of lockdowns, timing and pace of easing and relative exposure to the out-of-home channel:

• Established: -21.1% as countries in the segment entered lockdown first and derive a larger proportion of revenues from the out-of-home channel
• Developing: -16.4% as several larger countries eased restrictions faster and the segment is relatively less exposed to the out-of-home channel
• Emerging: -8.4% supported by growth in Nigeria and low exposure to the out-of-home channel in Russia

- Effective management of input costs and lower PET prices offset FX deterioration

- Strong cost control brought €61m of €100m savings planned for the year; comparable OPEX down 7.8%

- Operational deleverage drove comparable EBIT margins down 2.3pp to 7.4%. Comparable EBIT fell by 35.8% to €208.8m¹

- Comparable EPS was €0.355, down 42.0%, while basic EPS was €0.341, down 36.4%.

- Strong balance sheet and adequate liquidity remains after paying a €0.62 dividend in July

	Half-Year		Change
	2020	2019
Volume1 (m unit cases)	990.5	1,090.4	-9.2%
Net sales revenue1 (€ m)	2,831.2	3,352.4	-15.5%
Net sales revenue per unit case1 (€)	2.86	3.07	-7.0%
FX-neutral net sales revenue1,2 (€)	2,831.2	3,318.6	-14.7%
FX-neutral net sales revenue per unit case1,2 (€)	2.86	3.04	-6.1%
Operating expenses/ Net sales revenue (%)	30.1	28.5	160bps
Comparable operating expenses / Net sales revenue (%)	30.0	27.5	250bps
Operating profit (EBIT)3 (€ m)	202.9	288.9	-29.8%
Comparable EBIT2 (€ m)	208.8	325.1	-35.8%
EBIT margin (%)	7.2	8.6	-150bps
Comparable EBIT margin2 (%)	7.4	9.7	-230bps
Net profit4 (€ m)	124.0	195.1	-36.4%
Comparable net profit2,4 (€ m)	129.0	222.8	-42.1%
Basic earnings per share (EPS) (€)	0.341	0.536	-36.4%
Comparable EPS2 (€)	0.355	0.612	-42.0%
Free cash flow2 (€ m)	(38.5)	79.3	NM

¹For performance excluding the impact of acquisitions and accounting changes refer to the 'Technical adjustments and the Bambi acquisition' and 'Supplementary information' sections.
²For details on APMs refer to 'Alternative Performance Measures' and 'Definitions and reconciliations of APMs' sections.
³Refer to the condensed consolidated income statement.
⁴Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.

Coca‑Cola HBC Group

Coca‑Cola HBC is a growth-focused CPG business and strategic bottling partner of The Coca‑Cola Company. We create value for all our stakeholders by supporting the socio-economic development of the societies in which we operate and we believe building a more positive environmental impact is integral to our future growth. Together, we and our customers serve more than 600 million consumers across a broad geographic footprint of 28 countries on 3 continents. Our portfolio is one of the strongest, broadest and most flexible in the beverage industry, offering consumer-leading partner brands in the sparkling, juice, water, sport, energy, plant-based, ready-to-drink tea, coffee, adult sparkling and premium spirits categories. These brands include Coca‑Cola, Coca‑Cola Zero, Schweppes, Kinley, Royal Bliss, Costa Coffee, Valser, Romerquelle, Fanta, Sprite, Powerade, FuzeTea, Dobry, Cappy, Monster and Adez. We foster an open and inclusive work environment amongst our more than 28,000 employees and we are ranked among the top sustainability performers in ESG benchmarks such as the Dow Jones Sustainability Indices, CDP, MSCI ESG and FTSE4Good.

Coca‑Cola HBC has a premium listing on the London Stock Exchange (LSE:CCH) and is listed on the Athens Exchange (ATHEX:EEE). For more information, please visit http://www.coca-colahellenic.com.