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CCEP Coca-Cola Europacific Partners

Participants
Sarah Willett IR
Damian Gammell CEO
Nik Jhangiani CFO
Bonnie Herzog Goldman Sachs
Lauren Lieberman Barclays
Richard Withagen Kepler
Edward Mundy Jefferies
Rob Ottenstein Evercore ISI
Simon Hales Citi
Charlie Higgs Redburn
Fintan Ryan JPMorgan
Sean King UBS
Call transcript
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Sarah Willett

Thank you, and good afternoon, Europe, or good morning in the U.S. Thank you all for joining us today. I'm here with Damian Gammell, our CEO; and Nik Jhangiani, our CFO.

Before we begin with our opening remarks from our preliminary results for the fourth quarter and full year 2020, a reminder of our cautionary statements. This call will contain forward-looking management comments and other statements reflecting our outlook. filed considered morning's with the release statements in be contained cautionary detailed should U.S., found this U.K., in as reports comments in Spanish the conjunction language cautionary Dutch These and the authorities. with well as this of on available is www.cocacolaep.com. our information at copy A website Prepared Nik accompanied made by a and be remarks Damian slide will by and deck.

over We will questions. then to turn your the call

the as a I soon transcript made over turn as will on call, will full the CEO, available Following our website. possible our now Damian. call to be

Damian Gammell

Thank us you, all an challenging everyone Sarah, and many for thanks unprecedented today. to joining of year clearly XXXX us. was and

support So and pandemic good communities momentum, huge We performance their they thank our with let customers, CCEP throughout a in solid and entered XXXX agility for XXXX track hit by Then incredible our at me strong saying you commitment the to the as year. provided building consumers start the to communities. and a record. everyone and a markets on as well

standout program the our we ability cost will the confidence future. which doubt in efficiency our over-delivered a Coca-Cola the to our journey deliver have be rapid, an but market of business compromising of not course, will gives our by opportunity free Our future fantastic talk launched leaner million after had. evidenced digital no that our exciting to year sustainability, response protect longer platform of significant in of resilience year we Amatil. provides green-led. also and clearly gains. to for even digital return. exciting on of investments proud short-term were acquire our And cash on without mitigation about performance able term. am and growth, demonstrated Competitiveness our another I We I'll a Accelerate us And more and we amount brands the future, in our foundation have actions, the an our our portfolio, €XXX given plans, This of to continued even flow, And we performance a behind share over was we and portfolio

the there the of While brings rollout impact vaccines COVID-XX of about uncertainty optimism. the new duration pandemic, and remains some

put actions during to stronger are crisis in the a and decisive remain Our sustainable in year confident the this have that emerge to will XXXX. us restrictions react we position an We facing we from more even business. efficient renewed

an of seen and same, remains operate We will in a this valuable geographies. our category. market-leading do We scale enjoy strength. before, message the attractive the a from we across You and position have come all position and

brands, and packaging We exciting a of products strong have future portfolio an of pipeline with innovation.

a offer. to this of lot too, create We service value our continue customers, through we great for

to sheet. And be solid continue to our we a with We a balance a have challenging aligned partner, strongly franchise lot And Coca-Cola all despite Company generate of The cash. and partners. brand other largest year, continue we our

in pandemic and engaged a decarbonizing strong strengthened leading further to be determination such our our As go sustainability key colleagues. faster priority know, And and is talented privileged to the and of us, you am dedicated, business. I for team has a

communications space and has employees, relief our work. place those thanking reinforced to the utilizing worked continuity Coca-Cola the work last emergency our partners logistics made of focus, has with addition with I'd our helped like joint for the We in consumer we has price architecture for continue This at a to colleagues to close extend to big meant levels Company, behavior. been customers SKUs, our provided quickly been to aid of online training tools possible. year. on the brand all we safe relationship needed emotional where Securing able to transportation pack changes and well-being of support, The optimize And our by driving well digital as of closely We Company supply keep mental The We the and gratitude really substantial my and our assets visibility emphasis The and including we and Safeguarding demand in our and we further of also In worked to increased our Coca-Cola all brands the we have communities. X/X, on health of maintain with availability in us product a collective down efficiencies remotely, and through in priority. height our over who support the brands people to well were We driving pandemic home to us hard with our The which our internal number business larger widespread our to to rollout core quickly greater workplace our great markets. sharp core backdrop. the challenging react sizes. office meant X support modules. our closure across as power majority belief and to media available the other pandemic services ensure to our at share a were partners. Reducing able were customer in away-from-home service plans. chain. despite our low investment our consumption XXX% Together channel,

criteria, to to of focus and innovation. from XX% We and brands have, SKUs capture opportunities. premium that we both channel, especially deals growth of digital successfully in-store strong some as these the extra permanent segments. packs, and we both a course, core to in online aim resource occasions coverage been capabilities home. to of BXB our to such capture on reallocated reintroduced reduction with field meal our for business, revenue home and and BXB across based home the with business And leveraged away-from-home pushed key increase in sales, on moved introduced the Some dining We adjacencies but home more away-from-home continue our a the our within stringent have

and we to actions brand focus gain and our achievement. protect market customers both and the us to performance, collaboration overall short- bold close And the share, took long-term. allowed with in fantastic the a partners Importantly, finally,

have ensuring and been all perspective, disciplined was to essential. CapEx limited from extremely OpEx and be to a continue was We what cost

our managing to also actions capital our We cash requirements. working protect and took

next. All neutral, is important zero of by greenhouse December, old XXXX. announced forward. by this become And plan. emissions up enabled strengthened reach sustainability us to we sheet. further go journey determination solid generate cash in strong maintain I free and will our ambition our an pandemic to and our to gas on setting we net ambitions come on to carbon which balance took flow sustainability finally, This In the The has integrated to faster our step

from ambition, by value set entire the interim Our focus reducing target on support we source greenhouse value packaging be an across XX% to to our the use, To by gas and the across we XXXX. ingredients emissions reduce emissions have sell. raw obsolesce will this drinks we our chain chain, we entire

to at space. incentive CCEP time reduction to Our journey of targets, the our an carbon decision recycled This core became this at this early in pleased sustainability long-term are since this reduction Packaging that PET XX% the everything not in the from year. XX% follow plastic the to a into time Norway and for in CCEP. do we to the Netherlands, our central target, Iceland XXXX, despite XX% first our year. was metric progressing and carbon system, plan making the of the the stop initiatives first course, Coca-Cola integrate adopter I'm is, market XXX% reflected pandemic, closer move But there. we last recycled and the to will continued to with Sweden in first

to are that for recognized our We proud we be efforts. sustainability continue

year. Dow Sustainability position just included on list Indices and on We water to reaffirmed CDP for the for X climate are the Jones our recently companies one fifth of the and A be beverage had consecutive

would also hand retained like rating. to our in the talk ESG to AAA We financials. I Nik to to more MSCI Nik? detail over now

Nik Jhangiani

and us Thank all joining today. to you good of good afternoon, Damian, you, morning and

Let summary. our me with financial start XXXX

impact volume a geographic decline, in moment. decline FX-neutral X.X% revenue the of reflecting adverse unit per the channel, come a pandemic, Our case. resulted COVID-XX revenue the XX% driven combination by basis, and course, an a declined in to in XX% on of by of back mix The comparable pack I'll which

find geography our volumes, for appendices unit of On cost our basis, the that revenue adverse presentation mainly under-recovery release. with combined due costs, to the in the in cans. by the demand lower X.X% performance given per commentary You'll on driven and mix this of increased and with fixed case, higher FX-neutral detailed our mainly by comparable a

aluminum were costs approximately prices, namely COGS and in PET reminder, in to sugar a XXXX relates XX%, mainly offset our XX% for D&A. costs, a an As with lower by fixed and prices. manufacturing Commodities, increase which favorable partially accounts of further

concentrate revenue line lower decline addition, of in driven In per the we incidence our full The with our costs breakdown model. the by from included the COGS unit is appendices. in benefited case, in

guidance not COGS commodities While hedged policy. providing we're today, hedging is year this please our as per our for exposure note XXXX largely that multiyear

of Given currently anticipate commodities year you coverage, of and X%, the progresses. approximately the we keep we current level as updated inflation will

OpEx in comparable profit driven gross declined unit XX% discretionary revenue OpEx COGS savings case. an by by and Combined with of in reflecting the XX%, comparable costs decline adverse Our profit comparable XX.X% operating reduction per of and basis. million, detail this down comparable talk €XXX about savings circa FX-neutral a and the discretionary a operating I'll led more in shortly. to €X.X on billion,

due XX%, change on share well down basis. France and rate of mix. effective tax declined to in earnings comparable FX-neutral corporate mainly profit diluted lower as per in and comparable Our as resulted to tax a Belgium comparable This a in rates €X.XX, XX.X%

aware, and CCEP. our objective of core has the returns, on are to generating returned delivered €X a in suspension billion billion of of highlights priority million, close a capital strong flow cover million working cash year. flow generation This us generation flow in and of been at CapEx finally, which for free And be shortly. least to program here buybacks our supported approximately detail challenging also annual initiatives, our the I'll medium-term strength our share free continues via cash last €X €XXX March you shareholder more we as shareholders year. the at So cash by €XXX before we to Despite backdrop, free

of dividend circa We year with paid in December, of dividend also to XX%, line payout in fully remain our committed. dividend ratio €X.XX which policy maintaining full we share our per a

remains key priority. to highlights. our value Joint revenue with Now a some creation customers

of So XXXX. category it the we see retail an adding were versus is creator the NARTD million €XXX that in additional value to XXXX, largest great in

our and Sprite. Monster in XX%, pushed track size growth the also larger is Fanta optimizing the markets as delivered growth number in of offering in flavors the growth SKU resilient in value the X our our into are new packs by volume brand and volume was in-store volume very promotional Red Spain Portugal. reallocation to energy helped growth of of business. and now nearest performance revenue been not initiatives, a such the absolute would saw brand ahead smart home the In and brands. energy number channel. meet growth the share as Pacific and Sugar as such the standout both of supported broader twice our a driven These have share at opportunity on our the has during performer initiatives ensured fact, we of during take NARTD of This for leading and portfolio. nearly represents level, so of consumers for Zero cans growth well value GB. XX%, field sales X Punch online. our by We've the the the adjacencies Monster for value year. both embraced also of of gains to us Impressively, management resilient multipack absolute Coca-Cola multipack we a core been digital And brands These without such competitor. Bull, we And doubling and both in-store, have much with supply efficiency, brand, X our possible rationalization the market as as reps was value X additional we year, with solid in goal customers. for we was Energy as

strong share see just And food away-from-home customers. momentum our in-store, of further restrictions surpassed value drive our growth with our we our to around have In growth revenue basis e-commerce fact, than limited grocery. XX% the socializing, as of during continued in In year. delivery points. online has what's sales in to share of online GB, our online resulting But goes actually online XXX have grocery revenue with grew dedicated reflecting much digital that XX%, efforts together market gains

XX,XXX more myccep.com, a around the using winning that of have with platform, and continues year, the We BXB number the beginning to with this grow. at than Xx customers portal now

our launched Your we continue brand become finally, continue beverage Coca-Cola pandemic, of invest core streams as Pilot, with the direct-to-consumer sales and global future also GB We the company we platform behind aligned to And partners. a [ innovation first-ever revenue to diversify to our our ]. despite

COVID-XX. impact now So the of to

see can the monthly away-from-home declined XX%. You volatilities been outlet volumes restrictions. the on circa Unsurprisingly, extent on impact mirroring chart, in the most by significant this lockdowns, clearly, of volumes our has closures varying channel, where and

particularly measures during fourth saw volumes during December. a initial quarter marked we While volumes the deteriorated, the and by of favorable quarter in reflecting again impacted easing lockdown November the improvement in restrictions, X, and renewed weather,

channel year stable has the volumes growth growth as as on-the-go of more in negatively home home I the X%, down Future also consumption benefiting such and the customer nearly packs, cans as PET On as been in dispute the volume RGM particularly was of with large second well pack home the multipack and France across channels The performed half, in initiatives the circa better, XX%. mentioned trading Germany. earlier. supported from both volumes full impacted perspective, From whole, with resolution particularly consumption online, in channel. in a our

account As volumes, XX% immediate consumption the and a away-from-home around and our reminder, XX% channel typically respectively. of for

appendices be markets. volume by The to weaker our breakdowns the You'll with the of challenged more start to tougher pandemic, color than find by most impacted on volumes in QX, continues of deck. restrictions XXXX January this these in

business place While restrictions, considerable XXXX in way any duration through the our the navigate short-term of our uncertainty have we of we and will effectively. That most we that confidence remains quarter. over the depth us learnings said, throughout adapted these remain first and challenges anticipate they gives will from

now to costs. Moving

given solid Importantly, This XXXX, initiatives. enabled the our in the more we came to into synergy base, cost understanding of our around the of program Competitiveness work ongoing with a merger crisis quickly us closeout alongside even react delivered robust decline ahead when operating The total, hit million, pandemic €XXX was, the moderated of markets. of range therefore, we OpEx spend. our on In €XXX of profit action discretionary in our million. savings million by to guided Accelerate €XXX

scale some course, work in we marketing well efficient travel with targeted and also as seasonal as begin like invest company and to million given €XXX and offset such reduce are as savings the lower This chain, impacted for as of to the of by These the closely make as declined ones of in includes in This meet changing business protective to enabling XXXX restrictions a approximately that around longer equipment costs and of anticipate in lift will OpEx from travel how We variable Coca-Cola the the between trade bad when will consultancy. costs would more compared chart. course, our inflation. one-off and difficult we to of services program, are and benefits million as to become work. headcount course, you this is, to some the expenses million and functions. changes decisions XXXX. our Some items partially and, will us but labor, €XXX X/X of on X/X from are, though, related mind, mitigation return. reminder, some was and right customers. see our volumes simplify as program, duplication, with reduction Accelerate write-offs €XXX volumes area and increase roles such naturally, supply XXXX into see OpEx total as where our closure X,XXX were in inventory as to as roughly of able colleagues the as program launched to savings We for Keep central business, meetings of permanent fixed debts, address our efficiency and OpEx incentives, as we variable. And less that continue well other These key total be we this October. we savings such across anticipate We our the This spend bridging which X volume as an term, the in and structural that Competitiveness as T&E the spend. coming benefits our initial plants more well efficient support needs finance result

not always, base I manage we Importantly, OpEx our to to despite we gives our actions as And This initiatives we inflationary will in are our it it will these of lower a initial a XXXX XXXX the from result, have a permanently return more base. cost to And XXXX before, prepandemic in again, structurally perspective. and efficient full to benefits for in as business. taking cost but will us we become run be leaner to ability beyond. as future. expect look sustainable become said return that I'll to we given a business rate year say growth continue to focus our confidence the pressures, than the the multiyear continuous

by of still million, and by This continued X/X sources flexibility. other included noncritical equipment. well and COVID importance €XXX circa cash as back targeted technologies Recognizing the as to on Despite cash spent cash metric flow. backdrop, speed turning us. first When key the in This of all pandemic components. generated to a moved important at €XXX the So slide for free hugely around digital flow deferring investments, of markets, free the hit projects. maximum we out detail, lays supply our chain, reducing uses leases to challenging we CapEx million the more preserve reduce excluding we

our disciplined across all channels. in guidance the portfolio right maintain customers have At to to levels, all provide continue distribution our cannot we sell XXXX stage, our recognizing ensure uncertain current to the to at spend with this CapEx environment. specific capabilities to we today, expect and that products will but CapEx any XXXX be We

We in will, this XXXX of €XXX and however, that inflow and spend capital this which bucket about XX% of pandemic, XX% continue about compares in anticipate we year, a And scaling up million account will our working XX% in the delivered digital our for investments XXXX. despite to XXXX.

our since approximately is multiyear approximately so our But cumulative this improvements, capital to reflecting we improvements timing, to of million, as to routines to new cross-functional been receivables driven down drive working has the expect payables, retain and we'll do solid focus driving track XXXX. across inventories. collaboration taking well all balance on our performance through finally, reverse. sheet. as and This strong on Some strong €XXX results million trade €XXX And

EBITDA net entered cash committed rating. reflecting we strength, a more We of net debt ratio owing flow a merger, XXXX free having by the adjusted than We the decline this ended our know, of crisis in offsetting a you remain As position with strong debt. quickly investment-grade post from the delevered to strong X.Xx, profit driven in reduction pandemic, to fully to generation.

balanced and debt. we're maturities an favorable repayment conditions. additional secure debt have €X.X maturing liquidity in market long-term to the us pleased of very a flexibility, shows, to markets including with funding These profile the additional as billion chart of taking of last continue year, We of and provide proceeds the advantage debt

billion to access liquidity, €X.X We sustainability-linked have holding cash also sources billion and including €X.X other of currently to continue RCF. of around

€X.X any have paper to we the utilization market That via program. multicurrency RCF commercial not commercial billion Additionally, paper or outstanding. currently do access our we have said,

we providing financial debt long-term our flexibility liquidity, covenants on the us in either or uncertain facilities. our no importantly, are So there And environment. continued have with ample

hand Damian. I'm going back with that, to So to Damian?

Damian Gammell

you, Thank Nik.

green and will be digitally future led. Our

in platforms The to continue important We digital customers, the increase has across and the we and and playing right shown to consumers continue business. pandemic digital are colleagues the our role investments for opportunity have our harness. will

sparkling net We make and Tropico the with continue strong invest This to supported zero to with to and and brand to double also partners. streams our overarching to to in and growing already energy but see skewed want alongside our XXXX. We continue Costa, sustainability core, all our portfolio like continued future Topo revenue commitment business. now investments Chico, by aligned

a Costa. We growth are building coffee now also with for platform in

are great great we built business of about X So beverages. great pillars: rightly and people, confident upon our service the future

efficiency embraces And We a in XXXX. culture our first in diversity move program savings being, inclusion, an here growth equality. the to in to to to well And with that for we've key business. will out strengthen look support are as platform, forward even due workplace XXXX also some and that our leaner highlights launched we land mind, new with becoming

the campaign, core, the itself of Fanta for the lending What to out playful the nature watch brand. On The

Monster customers exciting the time like sizes low-calorie of alongside sugar. and variants Portugal the Monster flavors this new will flavors flavors, campaign. home New of launching mix underway, hard without sold, between Energy's seltzer, taste in with pack orange raspberry first is opportunity. launch Building new with Coke more peach packaging early way especially new supported and the on innovation, energy including its and a the like Mule, mint, space, It's Tropico days, entered a XXXX and energy. new And be be of Cherry. for to tropical, for There a for flavors. Fuze coffee a exciting major new and advertising category. feedback and the including juice Chico is course, to now across year. Topo clementine, will is underway and Coke the Zero channel Early Coke Tea greater ultra including enthusiastic in by larger Costa. drive platform Energy is ranges, X And the and brew relaunch indeed a new Coke an ginger are In in the encouraging. And on elderberry launch growing brand large but growth for

new within have place in Costa team to dedicated We manage a CCEP.

Germany, vanilla on this Ready-to-Drink, Express We to latte. plans building launching more We in Express starting XXXX. sharing new a machines in due GB, look Outside and with of Serve, forward be are to Costa wonderful markets, Benelux Proud and variants landing course. all our focus the with Proud our white in like flat Serve to and Norway with year and busy will the

We acquisition Coca-Cola of Amatil. the are with progressing

transaction. You given is will no large this doubt understand a the sensitivity,

we are receiving announced from to as we meantime, the seen In as Review limited can approval So at Board. the Australian for Foreign have recently, this you'll we say the transaction what time. Investment

next including the conditions, approval Amatil are customary as and them of expert ahead commissioned to New to the waiting soon terms now remains Booklet Zealand sharing we vote. receive and scheme moving independent the approval, court for to The steps, In Scheme Amatil forward reports investment foreign the more by with other publish of naturally shareholder ahead you regulatory subject process scheme we approval. look and We the in can. as then

a So through like was the our challenging relationship Company The in partners. am of environment. rapidly XXXX takeaways well changing other, such but managed with reinforced our we a all proud I key crisis power of year of how brand our no XXXX. Coca-Cola The and

to the our to core The has Our served business thing did collective not do long-term. us us well. continuing continuing crisis in the for the invest right brands stop in belief position to

We of portfolio. in digital continue in sustainability, and, our invest, to course, particularly

note cost as by colleagues, this reality We of business a come. look wish a as standout. have future. of the a And the cash engaged efficiency flow our the started free adjusted I strength program, to the base I to And we so wider committed launched new same and thanking more my and to end real on to was generation

navigate, face to While which the future to continue with confidence. face our optimism we we restrictions, comfortably significant business and continues

in And grow, we would more done ambitious ability for Thank questions. Operator? very our as sustainable future, to better happy win like a We now I'm for that but are you. sustainably open ultimately believe businesses we longer to will term. shared

Operator

first And our the with question [Operator from comes Sachs. Goldman Bonnie Herzog of Instructions] line

Bonnie Herzog

that know I was discussed. just there confidence have year, year. thinking guidance the a I And little thoughts a guess that when expense you're details I reductions top maybe expense us any the on marketing in but provide hoping the position new fair and level, a a about expect won't line, permanent on specifically, given And you would you guess impact to pullback I'm instance? with expand share negative for to discretionary margins, I savings program? on on you are now, reductions reductions your if then spend that then could your more margins to right wondering examples the hear this to or high give certainly necessarily it your be bit not this

Damian Gammell

Maybe Bonnie. question over I'll then Nik. to your marketing Thanks, I'll the cover around and hand investment,

Company. which throughout flow impact to our we share, the So and consumer with with confident against critically maintained terms business felt And crisis of the and that through that to that online. was The side in our their is on of winning, 'XX. really really feel we because pricing on and opening and saw invest the will programs year, continue both behind the level we for 'XX retail we that investments was programs, important, plan and Coca-Cola fully And the last we

in in to just is from the restrictions So thing be only going top growth I think the the hold that back a perspective, line away-from-home. near-term us will

brands and in online clearly, strong nicely. growing And our across food-to-go, or we're away-from-home where takeaway is open see to continue and growth retail. also We

taken confident our bottom feel where spend about choiceful pretty savings TME good we investment throughout our feel and to we more around So some and And levels. we the just about released to clearly, has that we have XXXX our be that. opportunity line,

fund looking fully we markets that to So forward. to our reopening, move placed as well fully we're very much and forward

broader you just to cost. if Nik, the on you, to cover over want So question

Nik Jhangiani

sure. Yes,

there. largely So we you what at Bonnie, million, did if X look in there's buckets XXXX, €XXX the

And got Damian retain point you've that spend; million and then cetera; you've got it's the we incentives; You've on that that things just meetings, got in got P&E XXXX, made. versus we to €XXX et communicated, definitely back you've I've discretionary can the really believe travel, other spend.

in back to will coming savings initiated and years the programs some in actually that's we the that that and we've by number in TME reinvest got are hence, that see looking you deliver new We But 'XX down. fact have then that beyond. supported also

feel there's So we're going I that looking to And in is the for. to that needs P&L. this accounted saved we with we've that's what's if already combined at, be definitely TME, what investment what in happen think confident more

it's So actually outgoing almost that the in announced we've continuing have late years, of for programs the then XXXX. the of for like this XXXX. benefits base is And the some we

you despite in clearly, to mathematically, at against that, shopper coming look rate expect, and improvement that on as well are revenue, So would if mix the see investments as we'd improvement deducted we line. expect top consumer

from will look talked commodity about clearly versus of expect Clearly, we at XXXX coming terms positive elements have a overhead can will, around if obviously, it the our COGS perspective. recovery. volume impact which a in that I You see back, you

the and at can't both OpEx supported give you expansion just I that at the I margin versus savings profit be number, level by the to would described terms XXXX. but the of for operating a there what clearly, see then So level, in will we numbers expect margin see you expansion. gross

So hopefully, helps. that

Operator

with the of Lauren going Barclays. next our Lieberman to from question And line come is

Lauren Lieberman

for that the I about make And Great. cooler you should I then secondly, curious conversation. prepared do can if about than well? as a How faster you outcome recovery was come talk curious placement sure bit was are you little expected?

allocated to later. 'XX, rather particularly sooner here You if how much mobility, 'XX. budget are CapEx curious as of And was or hopefully, cold drink in again, Nik, was shared, than for your things better increases I equipment coolers

Damian Gammell

And Yes. look a outcome. would much prepared are you. that to mean for forward we obviously, very I thank recovery. faster Lauren, fully

were to in while think base, from the continue something we question, future. our Bonnie's what including cost we that the to against I kind rebased earlier in also was think highlighted managed that financials money opportunity well I to XXXX spend conscious our TME Nik of and

So in we growth. to sustainability, obviously invest invest like as in packaging a particularly called out of is we chain projects to out, driver that on continued, We a going we some cans, of future but be key know supply to Nik number digital. that continue closed also our

capacity from So to the Clearly, placed we've well muscle of business. certainly, protected a perspective, the recover. we're

that redirected the in online of muscle business, market, circumstances, asset our was we when we We capabilities. retained and restructuring, So given we've about home our talked away-from-home to the but retain which coverage did necessary, the the frontline.

that And we're more see moving decisions one that can confidence our for I us as beat recovery, the that that customers. fair yes, of we we've to market our than right continue done share So continue cash make and to a capture lot and and the goals is profit placed. to recovery hopefully, well forward, and gives that, of because clearly, of we our we think generate we

something foundation and conscious a place and customers, both So with give we've into and was come were XXXX of in place. well that's on a us our good that we pricing as solid to rate, in

reopens, So do. ready really, variable we'll is the that go to as what with lift against these market managing and we're and the restrictions we're speed, that's

Lauren Lieberman

question, And was the that great. follow-up. cooler then the That's other

Nik Jhangiani

Sure.

the cooler... On

Damian Gammell

Yes, Nik, you want to at take a it? look

Nik Jhangiani

have level Damian as back if chain moving well we is on issue about Sure. would digital I look were our and the both look would but our Lauren, putting projects no have there. we and and cooler supply business same, at said, you we And coolers we on €XXX a be upped into recovering as with some on. midstream more like weighted definitely the XXXX, more XXXX, it kind coming towards coolers, around faster, clearly, our investment feel speed in million spent, base if of little the If at we of but that. was that we CapEx,

continue in to to the market recovery. around be committed clearly So focused and invest faster

Operator

come going line question the next Withagen is our And with Instructions] Kepler. of [Operator from to Richard

Richard Withagen

have which sustainability, P&L through go through and €XXX period, part the the On CapEx. a in partially investment you XXXX-XXXX million will

cost already through So has your XXXX? wondering to gone incremental the I how P&L be And of base? in much investment this how much was will

Nik Jhangiani

on to angle just of rundown P&L such cetera. a you give particular, doing what we're really the what's gone to in So perspective elements as rPET, board quick from the an areas a piece in investing in shrink are from of conversion, et biggest

look circa that elements for additional in included includes in per same that number continue included talked COGS amount about. to will the inflation, a as of to going mean, That's case. We linked there. our that investments, in those out P&L. X.X% on our number In that the commodities given fair obviously, in there's break investments unit X% forward, separately. I've base, don't our then And that's see you you So the our sustainability cost I to we COGS in I again, number you

sustainability, can for equities. right you our longer-term So brand do our thing the keep see, our check in investments and managing in to our very much we're despite and commodities inflation to it's line, in business and

Richard Withagen

then And maybe...

Damian Gammell

follow-up X a campaign we a around as as new I than that a happy to with investment say to could, much investments a but how customers this around yes, our to to out into closer rolling leaning surprised we'll because, sorry, what are -- shopper. how valuing think probably that and I'm the just And see morning, -- be our a we get doing. even I just really leveraged X, we Nik's I compared Coca-Cola may sustainability see actually, Richard, years that that as ago, a at to mean, it's going look clearly, in to cost. now that I at was continually sustainability add fair we're to haven't to Europe, And I debate comments. had even And The we're Company message direction an much new consumer rather and

it's So we on. and turn but focused what yes, cost a a cost, an if really into don't investment, it's only that's it we're

Richard. Sorry,

Richard Withagen

follow-up. a as Yes, Maybe right. yes. that's quick all No,

well gained the You really overall the give XXXX. share? where terms Can you in of behind market on market some and in ones markets you perhaps where did color you lack share

Damian Gammell

all had across to with groups. markets, Yes. really definitely of I We We some customer well have say. our did challenges

I think think specific that the to share, bit groups. So during talked with market I We a it it's look about we of probably lasted look longer. at easier when some challenges at XXXX, particularly buying

like market. our of all Belgium, we customer was and countries a group that across our more than markets function challenge, gained rather but of share and impacted Outside of that buying the the Germany universe So across our customers.

more Belgium. overall that of XXXX part So we particular specific [Agico] the obviously, agreement that than in really, challenge negotiations of and and from we share recover affected markets -- saw as nicely But rather latter were with buying market. group Germany a with the was our scale reached a group. But were, it definitely by longer-than-expected very perspective, an any customer the

yes, group our very on to positive slightly move say. impacted overall, share pretty I our buying So all on But did negotiations. NARTD, markets sparkling have well, by was

Operator

Edward Jefferies. with come next of to the going from Mundy question And our is line

Edward Mundy

at and or you the any scenario? think able not share please. opportunity? give Coke relative Amatil reopening able what you you able And say, printed how lot in results -- I reopening to they And at an again, Two Europe, get bad can a environment place of much crystal a or you be recently. can wondering change XXXX, the second takes is you think the you there good to, reopening back quickly lost update revenue be good lot but on quite of there's and on how to then but don't have cost I an was that probably depend, I might going try for see XXXX quite can Does to think me, say, on still you to large awful let's extent, I financing whether appreciate ball noticed in probably scenario the stage, achieve this stage you some might the on is anyway. think, you the is to it this deal? But ask on Growth, awful a volatile. to in I'm a you you're appreciate and going reopening late not that

Nik Jhangiani

Great.

first the reopenings. market you'll we we think -- we to rollout probably our is in at when I look challenged. be And vaccine probably the one take relation to business, et see are QX starting -- so that restrictions QX happens, end as the to in So Clearly, hopefully, second ease of I'll towards, most expecting take the the me hear let terms as of cetera.

was So if the quarter think I year. worst it from mean, our angle QX about at that look hit think recovery, we an I last

to you've but seen because have strong the the away-from-home was year, again, you'll a regardless results there's strong that the going of the because severe clearly, So that particularly lockdown believe challenged, there And a in we're not the upside, clearly, given half be saw. in second level that QX, seeing that of clearly numbers. in fact we results, where are those of recovery quarter we

clearly, downside a longer, that even of be I at lot see a half So see a in and scenario, you second you're period situation, you're to at going we a if relatively in into maybe But lockdown if looking should stronger, weaker QX going in QX. or some that stronger. terms think look I mean, it not,

we better ramp-up to doing quickly. So we got be able do control very perspective, feel capabilities We've chain to to execution our that's a everything good about be what we're from focused within that on can great supply focus. brand

as good from should as things a to perspective sharp say. the things and fast of we come of, that on transaction, the really, So angle From think about I soon an feel recovery start our hopefully opening couple up.

if better see with we can the trading that, seen our as share trading better you -- that. results, we've your Amatil. start Firstly, the around I from Clearly, question were expecting first update in

we're Booklet So the Amatil which Scheme the waiting of as ahead scheme commissioned the independent then receive to Damian of said, report, expert for vote. now they've and publishing

So we'll update forward. you on that going

a where €XXX raise X-year basis of mean, had the terms million, towards last of able an and basis you were coupon of about points million points. then great recap XX cost for €XXX where did both the saw In end again, in year, effective we of of XX deal financing, we we money coupon had terms we I a to some of

quantum benchmarks. very the be able just from think higher. those where I that the are, clearly, would particularly we Now of what to look be angle would it of you should look significantly view at an for if if comfortably within be looking at would of recap, magnitude transaction size. in I But the forward at the we going that And be do referred we deal terms to that we I as

bit, Ed. little So helps a hopefully, that

Operator

of line Ottenstein Evercore the from come to Rob going is question with ISI. next our And

Rob Ottenstein

strong a performance on in challenging times. most Congratulations very

X,XXX the -- of it -- correctly. of about given of needs One going and Can us that's needs changing reduce in be are So mentioned to question, you wondering, talk how XXXX? customers, the the a if I little would recall developing that was that changing that what the Ready-to-Drink things mean my And these talk needs question. you COVID just or that changing been you sort if were see is as learned to you about second roles then I bit you world? Costa about the in I changes. can you've meet post-COVID ongoing them first received to

Damian Gammell

on Thank we future. Yes, are focused the you, made changes the really that Robert.

in journey I through COVID, they they're And in those but and roles. mean, a our anchored our obviously customer So of quite environment support very Europe. much they're post-COVID view consumer broad,

SKU come of Some our driving. that's that and rationalization from efficiency them the

Some businesses of we're from come them that exiting.

technology investing value we that. in So created we going going a we've more to and a there going brands become efficient story forward. productive to through number were felt of shareholder the contribute not always water been that CCEP, our opportunity to be to was since lot Obviously, and

the of So of those our on can back technology come investment. changes some

lot broad, going So hear of this, future. that allowed a clearly, the to anyway. accelerate we us is the were the some well it's do we decisions saying and sets made but very up of I'm to has us it on you changes but for back And of quite CEOs pre-COVID, sure

very much known. On very ready-to-drink So The future-based. excited out rolling Costa, brand U.K. portfolio seeing that well is our across do Europe. the we're well. about in We're

Serve comments. fantastic. the of Costa are some his on around also a do level propositions Proud holistic I in Express We're and machines with Nik which highlighted think other to going to that our it

clearly, category. excited platform we're And the a brand great a So ready-to-drink It's outside us very in growing U.K. Costa win about gives the that. to of

Costa. invest the of some well. in to said, our Nik And looking what we're at to as continue to Costa So we echo program made decisions XXXX for in were that's how capital

Rob Ottenstein

What share...

Damian Gammell

ready. And us to get

Rob Ottenstein

ready-to-drink What the in you for get did U.K.? share

Damian Gammell

X% just now, Robert. over I think we're

So just share. X.X% X%, over

So pleased as so start, quick that a well. with we're from

Nik Jhangiani

one Costa. sorry, on the -- And Robert build around on, to point just on one just build last last comment point to

As Damian we said, accelerated clearly, that.

announced XXXX factors look the of well 'XX million next those there's programs if look the the in another X So announced million forward years, €XX to because 'XX, out continuing. But I the as about to million of if on run you for rate. and €XX at those the €XXX that talked savings then just least we mitigation programs, elements as based

cost clearly, So strongly focused on our base.

Operator

And from our Citi. Hales Simon line of next come from question will the

Simon Hales

that last sort be particularly million? getting, the comment savings there Nik, I maybe €XXX ongoing the top that the tough around of of backdrop, facing €XXX on Can year just at on and in and think, your in €XXX of QX, the I you'll you're in separate just up the certainly this some Or given they million moment Europe? clarify are following year, the includes of ongoing. million savings this

Nik Jhangiani

question. your get In QX of didn't I XXXX... Sorry,

Simon Hales

XXXX.

Nik Jhangiani

I'll give to you ahead. some sorry, go amounts --

Simon Hales

second there sense wave hope Is you? have they ago. on are make months way the million Nik, the million into clearly, But challenged. X or still I'm here, very still we some of €XXX might the savings XXXX last ongoing part that Yes, as of €XXX People than in is lockdowns short-term the and X been Does is of we've in the or the -- OpEx separate in perhaps buckets savings top of year's sort XXXX, all traveling that's to of that? savings. trading the there retention mitigation of come aren't encompassing to still given X trying backdrop cost just of

Nik Jhangiani

it. Got

and the talked about, able in about mind, the business. invest million more year. to that clearly, question, of first towards So at the I've we is we earlier, as think, weighted half if would we the in look you €XXX it be talked I And I Lauren's with keep move think faster

that's would I'd savings, planned more. million a have We not recovery baseline and we Clearly, almost this say our €XXX coming, investing. guide and is for are

X-weighted. more X. half definitely is million than would €XXX within I that than but -- more QX-weighted half half And X-weighted So say

for I said Robert's to is at would So obviously we look it. way XXXX. the I that's this And have question, then what just as

savings to range You ongoing that as €XX versus we've €XX that would the well million in million see to 'XX million to in will in 'XX. programs addition deliver €XXX announced some of be base 'XX our that those in

that So hopefully, helps.

Operator

come the And from our line of is Redburn. question going Higgs with Charlie next to

Charlie Higgs

that first channel, there The shift potentially and be cycle? working that are price on color the a a of any way would just improve on maybe the retail people can useful, there mix to in a more maybe question is do of the very I to for better growth, bit Just one working price positive is mix just things for pack mix headwind? that or from capital new sustained If that you kind will pandemic. are home post then at-home more is mean strong business? an second be ongoing on give is And more for color working please. digital that what maybe margins, and means

Damian Gammell

mean mix you, improving Thank we Charlie. price Yes. going I see forward.

precrisis We had exponential from the dynamics with food quickly winning new have growth to some mean I with them because were aggregators. of around anyway. they We've we adapted doing well working home. were

and home. as they their family platform. celebrating with see we has really as, we with But were business them as we've formats maybe a and, felt had at changing accelerated them obviously, we've growing out-of-home meals accelerated, pack sizes having good people been transaction So are

So that's working very well.

lockdown, delivery. that sizes a the in we which saw, or profitability pack even where points people our larger home based in less the lot of at shopping in obviously, pack we year. experience obviously, being packs first second offer and outs, continuing to also are driving in, last to faster or really able using of We look more to And frequently special We slightly changed success retail. formats on of enjoyed half

We're lot price back the gain prepared that's when bars, be restaurants, than So to of eventuality go travel also people trends for previously, remain. clearly, even those reopening as and it's to we obviously that slightly And if and mix happens. of expect us. will for a bars going less restaurants a

aggregators, say platform even with really people I'd closer seeing food restrictions, believe helping not, which takeaway we the eating investments have will both our happening. and out about prepared But eventualities. in are we're current about whether speculation or for is an of excited will their across we're a to Europe, even There's for become so blowouts And getting bigger lot that us. our end

to business, business something basically margins home we drain delivery and And predominantly clearly, work that online last served through that our therefore, is online their is with Our our retailers again, because your well. our point, platforms retailers. doesn't our has through us

obviously, that's We small have about. very direct-to-consumer the got margins a a for of initiative And excited our trial going good well as conscious going to forward. U.K. that's something But be in we're that clearly,

we're it at moment. So at that's how the looking

Operator

next our JPMorgan. with the going line is come to of And question from Fintan Ryan

Fintan Ryan

around me, two Just your please, for mostly portfolio. and

growth see, great, CapEx I think, how OpEx sort you in in years, and risk regards expansion we and item Sprite? your portfolio again, already you from to share cola color particularly what of -- Following there the what the the to just line And the around you Express specifically of few then of I'm rollout meaningful cannibalize And like Portugal. your evolving next in Spain rollout Nik, Is your capital any the on commentary energy opportunities any done quantify you there. of regards that with terms you to you've ways, actual energy see that thoughts growth, of "opportunities" or wondering sparkling Costa around secondly, if a should as flavors, machines? see category cash the drink do should double targets could in see terms around your your within sort So incremental many and statement Costa further seeing and equipments? a the for sort be please. on these to become flow that vending could, would you're business. in Fanta bit give more you could take of market long-term the

Damian Gammell

with of Costa. then can Thank second and you, question, your deal the Nik Fintan. comment on part I'll on capital maybe

number great success by a had we've the Energy Coke story energy, coming led Monster in. particularly got So years, over of last and in we've

the best-performing a able the more. little So of to it's been growth been We've throughout enjoy category the XXXX. bit category

Our depending absolute the in the is category on at, look XXs. markets share, still you

like we mainstream at cola look we that you business, building what well when compare we the it's enjoy flavors, that So still share categories enjoy. or in of other what below if to our

some in out called that, So Portugal. and the think we believe participate you we market can growth I Spain, we've demonstrated take as share. And in

strong market great We Europe. has for GB a business have Clearly, a while. across been a

as And for we're for we profitable. category, taking It's already being about And fair doesn't quick of the confidence what or than as a portfolio. we've can. to setup over in growth it. pipeline the from of impact for combined Coke clearly, that share I and growth. X the innovation we've So us great I excited building the a more It's lot Monster the last with But X see Company of this that well gives rest do shown it's in of what think both think us it we're business. we're and ourselves we and headroom still our effect, space, done, years, challenging our in quality

Nik, And comment CapEx? do about to the on So you that. yes, want excited

Nik Jhangiani

Yes.

think it's it's it. play I I great and So choose we a category a category, mean, profitable in it's growing to category a as Damian said, as

the clearly and about which right at talked ready-to-drink, time. that doing we in-house we the do that will So continue

be Serve to a then the you've will be per the that to us. Express But for about. it's got and case excited there And So Proud investments and we some continue revenue product margin good there. Costa good

with faster -- out the would coolers with the And that, Costa. machines for business out do we're a will go faster senior of that, Costa we'll CapEx referred Norway view at actually team leadership with really indicated we're rollout for But time, the to I've investments, limiting we that's included markets, Lauren separate you cetera. plan and XXXX, factor So to indicated X-year and look us. included with to. in a that being is and obviously, Costa, on at number. we what our And our as plan recovery appropriate not that again, numbers laying Germany and Damian is team on I that to the you to rolling for you et the for be a priority we've Belgium margins, share piece, in we XXXX, in as our want as If including

Operator

And UBS. our King the line from this will last come of question Sean morning with for

Sean King

packaging, lot cost. which more about sustainable more is coming a We've and been at a hearing

are customers Any to pay the your initiatives. getting price sustainable industry? the these for to is that consumers evidence mentioned just behind packaging? in You really more pay of this willing being Or

Damian Gammell

haven't Thank you, the Sean. seen to pay Great question. preparing Currently, more. we consumer

brands function able But our I number a pretty of factored into to extract think it's factors. we something premium-priced on. to that's modeling. something a obviously, of that we well already. be our are more It that haven't Clearly, is value look

and and have going can more pay So to benefit we that of built certainly, into time, understand the a now can into managing a And we market. is about working earlier, to directly getting talk could we're benefit the packaging of may made back consumers to translate pricing brand to translate that, think over a sustainability, And we love. comment that on We platform the the are power I we more that. function into certainly And it. the 'XX, see our over more how 'XX time, value. of willingness in

about. that's we're So excited something

factored in. We haven't that

think, as more see investment be be to It's are our sustainable seeing that clearly logical, more genuine that case. brands So that will we being upside I to valuable.

space that them our keep green carbon and exploring engagement giving with footprint. It's more true. partnering translate certainly agenda definitely and it's aligning we're into in-store, something customers to The I shelf ability reducing to that's around think, around think testing. going I with us to their pricing,

on engagement win great as of brand and you that. price we the on customers, that to to on value, with definitely a side definitely, a increasing So the more opportunity if higher can extract see race come back

Operator

I will closing Damian Gammell to over turn comments. for today's now conference

Damian Gammell

you us thank big a again, today. everybody all, of for to joining first So

we've certainly, we're and as we that still with we that a and move face in had restrictions, performance, As dealing very have realized you will QX, heard, we resilient forward.

base to continuing our and adjusted a look new flow as both are new Topo reality, sharing The right cost of continues very, agenda. strategically and very excited progressing, Amatil. we can. coming our and is on transaction the business about XXXX, course, from We costs. across more to news to in Chico, on core our a standout, Costa to innovation brand, our This in and digital forward delivering free to sustainability our is a process invest and, also innovation, we We've some as cash of you and moving We're soon with and more come. be strength there we're forward Coca-Cola

well. to with and I So safe our I'd you very and you Thank everybody call, thank again hope continues and stay close much. to like that,

Operator

participating you today's again, call. and you Once your Thank conference in that disconnect. please we for appreciate ask participation,