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CCI’s Resilient and Flexible Business Model Helps Hit Second Quarter Goals

CCI’s Resilient and Flexible Business Model Helps Hit Second Quarter Goals

09.08.2023

CCI released it’s second quarter financial results. While recording 23 billion TL net sales revenue, CCI’s FX-neutral growth was 41%. “Building on our execution capabilities and dynamic marketing initiatives, we reiterate our 2023 guidance despite the setbacks faced in the second quarter” said Burak Başarır, CEO of Coca-Cola İçecek (CCI).

In the second quarter of 2023, Coca-Cola İçecek (CCI) recorded 23 billion TL net sales revenues with 58% growth, while FX-neutral growth was 41%. CCI’s 2Q23 financial results also includes Anadolu Etap İçecek’s (acquired 80% by CCI) operational results in May and June 2023. Thanks to the timely price adjustments, improving package mix, and prudent opex management, EBIT grew by 90.5% to 4.7 billion TL with a 20.0% EBIT margin. Improving by 3.4 pp on a yearly basis, this was the highest second-quarter EBIT margin in CCI’s history. 

CCI’s CEO Burak Başarır: “Our second quarter financial results proved the resilience and flexibility of our business model”

Burak Başarır, CEO of CCI commented: “Our 2Q23 financial results proved the resilience and flexibility of our business model in an operating environment characterized by extraordinary headwinds in our key geographies. For the rest of 2023, we will closely monitor the rapidly changing external environment and evolving consumer preferences to support them by catering to their needs with the diverse portfolio of brands we operate. Building on our execution capabilities and dynamic marketing initiatives, we reiterate our 2023 guidance despite the setbacks faced in 2Q23. While we anticipate volume growth to be towards the lower end of our guidance, the topline growth and EBIT margin outlooks are projected to remain intact for the full year 2023.”

Burak Başarır added: “In the second quarter, we faced several challenges in our operating environment, some already included in our business plans, and some were more severe than expected. Accordingly, volume declined 9.4% in Türkiye and 8.6% in international operations. The ongoing macroeconomic challenges in Pakistan have significantly affected the consumption patterns of households, resulting in a further decline in their consumption appetite. Moreover, the unexpected increase in excise taxes necessitated higher price increases than planned, subsequently impacting sales volume. The volume decline in Türkiye and Pakistan was partially mitigated by the double-digit volume growth achieved in Central Asia.”   

Başarır commented: “Fitch Ratings upgraded CCI’s rating by one notch to 'BBB’ which was a testament to our resilient financial and operational performance

In it’s report in the same quarter, Fitch Ratings reflects CCI's continued strong operating profitability with successful execution of its expansion plan, leading to its revenues and EBITDA almost doubling in 2022 compared to previous year.

Başarır noted that Fitch Ratings’ upgrading of CCI’s Long-Term Issuer Default Rating by one notch to 'BBB' is a proof of its strong financial and operational performance. “This upgrade was a testament to our resilient financial and operational performance in a complicated macroeconomic landscape with ongoing challenges in our key markets. I am confident that our digitally enabled omnichannel strategy, strong execution capabilities, and innovative product pipeline will continue accelerating our quality growth in the coming periods” said Burak Başarır.
Emphasizing on CCI’s agile business model, strong talent pipeline, sound free cash flow generation, and strong balance sheet, Başarır said he is determined that CCI is well-positioned to expand its know-how and footprint to new geographies. “Accordingly, preliminary discussions have been initiated regarding the potential acquisition of Coca-Cola Bangladesh Beverages” he added.

About CCI

CCI (Coca-Cola İçecek) is a multinational beverage company operating in 11 countries: Türkiye, Pakistan, Kazakhstan, Iraq, Uzbekistan, Azerbaijan, Jordan, Turkmenistan, Kyrgyzstan, Tajikistan, and Syria. CCI produces, distributes, and sells sparkling and still beverages of The Coca-Cola Company.
CCI employs more than 10 thousand people and has 30 bottling and 3 fruit processing plants, offering a wide range of beverages to a consumer base of 430 million people. In addition to the sparkling beverages, its product portfolio includes juice, ice tea, still water, sparkling water, sports drink, energy drink and coffee. 
CCI's shares are traded on the Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS".