Coca-Cola HBC: 2017 full-year results

EXCEPTIONAL SET OF RESULTS

Coca-Cola HBC AG, a leading bottler of The Coca-Cola Company, reports its financial results for the full year ended 31 December 2017.

Full-year highlights

• Another year of significant progress towards our 2020 strategic objectives
• Good balance of volume and price/mix growth drove net sales revenue up 5.9% on an FX-neutral basis; reported net sales revenue increased by 4.9%
• FX-neutral revenue per case improved in all segments, up 3.6% overall

˗   acceleration compared to 2016 driven by price increases taken in the Emerging segment and better package and category mix across the business

• Volume increased by 2.2%, with growth in all segments

˗   good momentum in Emerging and Developing segment countries except for Nigeria and Russia, which delivered marginally lower volumes in challenging environments

˗   growth in both Sparkling and Still drinks

• Comparable EBIT up 20.0% to €621.0 million; comparable EBIT margin up 120 basis points to 9.5%; reported margin up 90 basis points to 9.0%

˗   benefits of revenue growth management initiatives including price increases

˗   carefully managed input costs and a marginally positive foreign exchange impact

˗   marketing spend up 10 basis points as percentage of revenue to invest in future growth

˗   operating leverage drove a 30 basis-point reduction in comparable operating expenses as a percentage of net sales revenue

• Free cash flow was €425.9 million; higher operating cash flow was offset by a €46 million increase in investments in revenue-generating assets as planned
• The Board of Directors proposes a €0.54 dividend per share, a 23% increase on the 2016 dividend

¹For details on APMs refer to 'Alternative Performance Measures' and 'Definitions and reconciliations of APMs' sections.

² Refer to the condensed consolidated income statement.

³Net Profit and comparable net profit refer to net profit and comparable net profit respectively after tax attributable to owners of the parent.

Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC AG, commented:

"I am fortunate to have taken over a business performing well and with a clear strategic direction. 2017 was an exceptional year for us, and we are delighted to have delivered strong growth in volume, revenue and margin, overall demonstrating significant progress towards our 2020 objectives.

"We are excited about the year ahead, which has a particularly strong pipeline of product innovation and commercial activity around our route to market and in-store execution. There is good momentum in the business and a determination to build on our success. We are confident that 2018 will be another successful year."

017 FULL-YEAR RESULTS - EXCEPTIONAL SET OF RESULTS