Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Fuze Tea outperformed with volumes up 23%, reflecting continued growth across Europe especially in France and Germany |
| As I said generally it's got a better gross margin profile due to the refillable nature of the pack |
| I have just been there recently and very, very strong growth in away-from-home |
| I mean, I think we see strong revenue growth in away-from-home and home |
| 2023 was another great year for CCEP |
| And then clearly as we look through the year, we know that as I mentioned few times, we have got an opportunity to hopefully enjoy a more reasonable summer in Northern Europe and that will certainly help on volume as we go through the second half of the year |
| So I think that's going to give us good momentum coming out of Q1 |
| Our retail customers importantly continue to share in our success since 2017, we've created more value for them than any of our peers |
| Energy will benefit from the wider launch of the very well-received Monster Green Zero Sugar and the launch of new and exciting flavor extensions and Reign Storm |
| So I think we've enjoyed good volume performance |
| The business is established with a proven track record, and it operates in a highly attractive and growing market, led by a great local team |
| The Philippines is the 13th largest country globally with solid GDP and population growth and importantly, a fast-growing middle class, all metrics that are clearly ahead of Europe |
| I'm really pleased with our performance in 2023, delivering on all key metrics |
| We achieved solid top and bottom line growth, value share gains in the market and as always, an impressive free cash flow generation |
| Top line growth was price/mix led, but also supported by solid volume growth in Europe, Australia and New Zealand, where we also grew transactions at of volume |
| We are a stronger and better business |
| Within the NARTD category, sparkling is well established, representing around 55% of volume where per caps over 4 times higher than the average for Asia Pacific |
| And as you know, working capital remains a core focus for us, and I'm really pleased that we delivered yet another year of significant benefits taking the cumulative amount to approximately $1.3 billion since 2017 |
| This collectively makes us well-placed for full year 2024 and beyond, underpinning our commitment to create continued shareholder value |
| It generated around EUR 1.7 billion of revenue and EUR 105 million of operating profit, so already a business with attractive scale and profitability |
| Starting with our great people, we achieved an excellent score in our global engagement survey, position us comfortably ahead of our industry benchmark group |
| Our strong focus on capital allocation and our long-term mindset will ensure we invest in this established business to support the market's long-term 10% growth expectations |
| So our legacy, as I'm confident you would agree, we have a strong track record of integrating and driving value creation |
| And we were recognized for our great service in the Advantage survey results where we ranked number one globally among our top retailers up from last year |
| We believe that will support margin expansion |
| As you all know, we are in the early stages of our long-term transformation journey, and we are making good progress |
| Sparkling transactions, a key metric are growing ahead of volume and Coke Trademark is achieving decade record volumes in what is a traditionally Sprite led market |
| A good example being the recent launch of Coca-Cola Zero Sugar and Sprite Zero, a really great opportunity for the future and off to a promising start |
| As I said at the start, 2023 was another great year for CCEP, delivering on all key metrics |
| We are a stronger and better business, more diverse, now including the great market of the Philippines, and robust -- and our categories remain resilient despite ongoing macroeconomic and some geopolitical volatility |
| Statement |
|---|
| Unfortunately, as highlighted previously, consumer spending remains under pressure, generally impacted by wider market inflation and the reduction in fuel subsidies |
| So, I think the business cycled out of what was a very challenging 2022 both from a weather perspective leading to basically a shortage of sugar which the team then had to allocate across the portfolio |
| We've called out that on a gross margin level, clearly, we've had a headwind on sugar |
| And we recognize our retailers as much as our consumers are also under some pressure around offering affordability in the cost living kind of backdrop that we have |
| I think depending on the country you're in, I think away-from-home volumes were a little bit under more pressure based on, obviously weather coming out of Q3 |
| Although consumer spending has held up reasonably well we fully understand that some of our consumers are feeling the pressure |
| So the challenges in the Philippines really go beyond any one pack size |
| We are, however, still seeing some inflationary pressures across the industry, albeit lower than last year |
| Just wondering if you could expand on that? Which markets? Where did you get pricing? And certainly, there have been some headlines related to competitors about retailer pushback and delistings in certain European markets |
| Just curious you talked a lot more about affordability, consumer pressures particularly in Europe |
| But in margin percentage terms it just comes down, because of the fact that your revenue is higher and hence you get a mathematical element |
| Of course, we continue to see inflationary pressures in labor within the manufacturing line |
| You spoke a little bit about 2022 being held back by lack of the sugar availability |
| Clearly, from a margin perspective, there's -- if you talk about structural issues, I would say the main one really comes back to some of the cost of that commodity in particular relative to where the world market is |
| It has been a similar environment for the consumer over not just the last quarter or even in this quarter I think it's been – we talked a lot about 2023 that that affordability mindset and cost of living pressure has existed |
| And so effectively that mix benefit that we continue to see gets wiped out as we rebase with the lower revenue per case coming in from the Philippines |
| And Charlie, there's a bit of a technical or mathematical issue because in 2018 there was an excise tax introduced in the Philippines and that's continued to increase |
| Keep in mind, these numbers include the Philippines, which is at a much lower revenue per case |
| We've been pleasantly surprised at the success of that in Indonesia |
| Headline pricing last year although ahead of pre-pandemic levels was below realized cost inflation as we continue to prioritize relevance and affordability for our consumers |
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