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COCA-COLA İÇECEK A.Ş.

Earnings Release Mar 4, 2025

5900_rns_2025-03-04_cb6dc290-68d4-4d04-81a6-99653015e315.pdf

Earnings Release

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CCI Makes Progress Towards Its Long-term Strategy Despite Headwinds

2024 HIGHLIGHTS

• Sales volume: -2.2%

With TAS 29:

  • Net sales revenue (NSR): -5.6%
  • EBIT: -9.6%
  • EBIT margin: 13.7%, - 61bps y/y
  • Net profit of TL 14.8billion

Without TAS 29:

• NSR: +42.6%

  • FX-Neutral NSR: +20.4%
  • EBIT: +29.2%

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• EBIT margin: 16.3%, - 169bps y/y

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2024 Results Webcast;

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• Net profit of TL 9.3billion

Karim Yahi, CEO of Coca-Cola Içecek (CCI), commented:

In 2024, we navigated a complex operating environment characterized by macroeconomic challenges, the cumulative impact of years of inflation, and ongoing geographical sensitivities caused by the spillover from the conflict in the Middle East, all contributing to the decline in consumer purchasing power and demand. Despite these challenges, our teams remained committed, and our operating model proved once again its resilience in the face of a difficult environment.

Sales volumes faced pressures in most of our markets, yet our focus on remaining affordable, winning in the store and strengthening the quality of our portfolio helped us navigate challenges effectively. Our actions combined with early signs of improving market dynamics paved the way towards gradual recovery in volume performance towards the end of the year.

Accordingly, in 4Q24, we achieved a 7.3% y/y growth in consolidated sales volumes, reaching 271 million unit cases ("uc"). Türkiye grew 18%, Azerbaijan and Iraq recorded mid-single digit growth, while Pakistan grew by 5%, following 6 quarters of decline. This improvement partially offset the softness in our FY2024 volume, which was 2.2% lower than the same period last year, with 1.5 billion unit cases.

Throughout the year, we continued to track consumers' behaviors and accelerated recruitment by focusing on smaller packs, the on-premise channel and the low/no sugar portfolio. Accordingly, Immediate Consumption ("IC") package share grew by 183 bps to 29.2% in FY24 and the share of low/no sugar portfolio among total sparkling sales increased by 2.5pps y/y, reaching 15.8% as of FY2024.

Previously, we disclosed our 2025 volume guidance, projecting mid-single-digit growth on a consolidated basis, low to mid-single-digit growth in Türkiye, and mid to high-single-digit growth in international operations. Looking ahead to 2025, our focus on leveraging Revenue Growth Management proactively will continue. This enables us to find a balance between our portfolio's affordability for consumers and the increase in our cost base. With inflation accounting, year-end revenue growth will greatly depend on the actual inflation, therefore we refrain from providing a certain guidance for Net Sales Revenue ("NSR") growth. Nevertheless, with inflation accounting, our commitment is to deliver mid-single digit growth in NSR/uc while keeping margins flat. Without the impact of inflation accounting, we expect to deliver low twenties growth in FX neutral NSR/uc with revenue increases in local currencies balancing cost inflation and price affordability to drive volume growth with slight pressure on EBIT margin due to higher raw material costs in comparison with prior year and cycling a favorable 2024.

In line with our principle to invest ahead of demand and demonstrating our belief in the longterm potential of our markets, our two new plants in Iraq and Azerbaijan will become operational in 2025. Almost half of their capital expenditures were realized in 2024.

As we look ahead, we remain optimistic yet vigilant. While economic and political challenges persist, we are confident in our ability to navigate them with agility, discipline, and a relentless focus on growth. Our strategy is clear, our fundamentals are strong, and our vision for the future is bright.

We remain committed to delivering quality growth over the long term. Based on our learnings from 2024, we will continue to focus on what we can control to create volume growth, and we will therefore focus on disciplined daily execution, smart pricing to ensure our products remain affordable to consumers across our markets and quality mix management.

Key P&L Figures and Margins

Consolidated (million TL) 4Q24 4Q23 Change % 2024 2023 Change %
Volume (million UC) 271 252 7.3% 1,501 1,535 -2.2%
Net Sales 22,138 24,174 -8.4% 137,683 145,884 -5.6%
Gross Profit 6,851 7,252 -5.5% 48,590 47,702 1.9%
EBIT 24 863 -97.2% 18,885 20,899 -9.6%
EBIT (Exc. other) 54 996 -94.6% 18,366 20,546 -10.6%
EBITDA 1,780 2,295 -22.4% 25,347 26,171 -3.2%
EBITDA (Exc. other) 1,530 2,324 -34.2% 24,468 26,183 -6.5%
Profit Before Tax -319 5,069 n.m. 19,942 37,475 -46.8%
Net Income/(Loss) -351 6,286 n.m. 14,813 29,713 -50.1%
Gross Profit Margin 30.9% 30.0% 35.3% 32.7%
EBIT Margin 0.1% 3.6% 13.7% 14.3%
EBIT Margin (Exc. other) 0.2% 4.1% 13.3% 14.1%
EBITDA Margin 8.0% 9.5% 18.4% 17.9%
EBITDA Margin (Exc. other) 6.9% 9.6% 17.8% 17.9%
Net Income Margin n.m. 26.0% 10.8% 20.4%
Türkiye (million TL) 4Q24 4Q23 Change % 2024 2023 Change %
Volume (million UC) 104 88 18.4% 568 567 0.1%
Net Sales 11,183 11,776 -5.0% 62,391 67,450 -7.5%
Gross Profit 2,997 3,649 -17.9% 23,178 21,017 10.3%
EBIT -764 11,201 n.m. 14,398 18,931 -23.9%
EBIT (Exc. other) -953 0 n.m. 4,711 4,597 2.5%
EBITDA 12 11,927 -99.9% 17,355 21,641 -19.8%
EBITDA (Exc. other) -237 650 n.m. 7,555 7,281 3.8%
Net Income/(Loss) -1,148 15,406 n.m. 11,677 22,046 -47.0%
Gross Profit Margin 26.8% 31.0% 37.1% 31.2%
EBIT Margin n.m. 95.1% 23.1% 28.1%
EBIT Margin (Exc. other) n.m. n.m. 7.6% 6.8%
EBITDA Margin 0.1% 101.3% 27.8% 32.1%
EBITDA Margin (Exc. other) n.m. 5.5% 12.1% 10.8%
Net Income Margin n.m. 130.8% 18.7% 32.7%
International (million TL) 4Q24 4Q23 Change % 2024 2023 Change %
Volume (million UC) 166 164 1.4% 934 968 - 3.6%
Net Sales 10,965 12,435 -11.8% 75,498 78,537 -3.9%
Gross Profit 3,692 3,631 1.7% 25,417 26,773 -5.1%
EBIT 878 442 98.7% 12,697 22,223 -42.9%
EBIT (Exc. other) 776 781 -0.7% 12,482 14,916 -16.3%
EBITDA 1,771 1,233 43.6% 16,460 25,143 -34.5%
EBITDA (Exc. other) 1,536 1,459 5.2% 15,741 17,870 -11.9%
Net Income/(Loss) 273 227 20.1% 8,217 18,012 -54.4%
Gross Profit Margin 33.7% 29.2% 33.7% 34.1%
EBIT Margin 8.0% 3.6% 16.8% 28.3%
EBIT Margin (Exc. other) 7.1% 6.3% 16.5% 19.0%
EBITDA Margin 16.2% 9.9% 21.8% 32.0%
EBITDA Margin (Exc. other) 14.0% 11.7% 20.8% 22.8%
Net Income Margin 2.5% 1.8% 10.9% 22.9%

TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented

Operational Overview

Acquisition of 100% in Coca-Cola Bangladesh Beverages Limited ("CCBB") was completed on February 20th, 2024, and accordingly CCBB financial results are consolidated in our financials as of 1 March 2024. Therefore, all operational performance metrics presented in this release are on a reported basis (including CCBB), except indicated otherwise. Unit case data is not within the scope of independent audit.

Sales Volume

CCI's consolidated volume in 2024 was down by 2.2% at 1.5 billion unit cases ("uc") compared to prior year. While Iraq, Azerbaijan and Türkiye contributed positively to the volume growth, with 12.1%, 9.3% and 0.1% y/y increase, respectively; Pakistan, Kazakhstan and Uzbekistan diluted the volume performance. Overall, international operations' volume share stood at 62.2% with 88 bps decrease y/y.

Throughout 2024, we faced a challenging operating environment, marked by persistent economic volatility, elevated inflationary pressures, and ongoing geopolitical tensions. These factors had a substantial impact on consumer confidence, purchasing power, and overall demand dynamics. In this context, we have focused on what we can impact. We stayed dedicated to our purpose of creating value for all stakeholders by maintaining a focus on worldclass daily execution and advancing our long-term strategic goals.

In FY24, sparkling category experienced a 4.4% y/y decline, with Coca-Cola™ performance aligning closely with the category trend. The stills category grew by 9.4% on top of the 6.2% growth realized in 2023, led by the robust growth of 19.7% of Fusetea, while the water category grew by 5.8% y/y.

We kept a close eye on consumer trends and intensified recruitment efforts by focusing on smaller pack options, the on-premise channel, and our low/no-sugar product portfolio. Accordingly, IC package share grew by 183 bps to 29.2% in FY24 and share of the on-premise channel remained unchanged at 20.2%. In 4Q24, IC mix was up by 106 bps reaching 32.4%, while the on-premise mix stood at 21.6%. Continued focus on low/no sugar portfolio also yielded positive results, as low/no sugar portfolio share among total sparkling sales increased by 2.5pps y/y, reaching 15.8% as of FY24.

In FY24, we recorded a 0.1% volume increase in Türkiye, while 18.4% growth in the fourth quarter was promising. Building on the low base of 4Q23, which was shaped by the political unrest in the Middle East that emerged late last year combined with high inflation and lack of salary increase in the economy, our successful execution of marketing plans, timely consumer activations combined with the right pricing delivered strong volume growth.

IC package share grew by 16 bps to 33.7% in 2024. Share of on-premise channel slightly declined by 96 bps to 31.6% in Türkiye whereas share of traditional channel increased by 238 bps to 37.9%. Continued focus on low/no sugar portfolio also contributed positively, as low/no sugar portfolio share among total sparkling sales jumped by 7pp y/y to 46.1% as of FY24.

International operations recorded a 3.6% y/y decline in FY24, mainly driven by weakened volume momentum in Pakistan. However, in 4Q24, international operations grew by 1.4% y/y, with positive contributions from Pakistan, Iraq and Azerbaijan. Our focus on quality mix continued to yield positive results in our international operations as well. IC package share grew by 271 bps to 26.4% in 2024 and share of on-premise channel improved by 13 bps to 13.1%.

Change (YoY) Breakdown Change (YoY) Breakdown
4Q24 4Q23 4Q24 2024 2023 2024
Sparkling 6.8% -16.5% 77.4% -4.4% -3.3% 80.1%
Stills 8.8% 12.7% 11.2% 9.4% 6.2% 9.5%
Water 9.6% 11.2% 11.4% 5.8% -3.5% 10.4%
Total 7.3% -11.5% 100% -2.2% -2.6% 100%

Totals may not add up due to rounding differences.

Pakistan's economic landscape witnessed significant developments in 2024. Inflation declined sharply to 4.1% in December 2024, down from 29.7% during the same period the previous year. However, high energy costs, taxes and the cumulative impact of prior years of inflation, continued to weigh on consumer confidence and spending. Accordingly, Pakistan posted 14.2% volume decline in FY24 vs. last year (cycling 16.4% decline) and 4.8% growth in 4Q24 (cycling a 31.7% decline).

Iraq recorded a notable volume growth of 12.1% y/y in FY24, building on the solid base of 10.7% growth in the previous year. The growth in the sparkling category in Iraq in 2024 was the highest growth achieved in the Coca-Cola system globally. Similarly, Azerbaijan achieved a volume increase of 9.3% y/y in FY24. In both countries, the positive volume performance reflects the positive impact of the combination of strong consumer-centric plans and disciplined market execution.

Uzbekistan recorded 3.8% volume decline in FY24, reflecting the impact of new regulations and taxes, as well as cycling an exceptionally strong base established in the prior year, when it recorded an impressive 25.8% growth. Kazakhstan's sales volumes declined by 6.4% y/y in FY24, following two consecutive years of growth partially driven by temporary migration from neighboring countries. In 2024, Kazakhstan's sparkling category declined by 10.4%, yet over the same period, stills category managed to achieve an increase of 6.9%.

Financial Overview

Based on the CMB's decision dated 28 December 2023 and numbered 81/1820 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published by the POA with the announcement made on 23 November 2023, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of December 31, 2023.

As of December 31, 2024, an adjustment has been made in accordance with the requirements of TAS 29 ("Financial Reporting in High Inflation Economies") regarding the changes in the general purchasing power of the Turkish Lira. TAS 29 requirements require that financial statements prepared in the currency in circulation in the economy with high inflation be presented at the purchasing power of this currency at the balance sheet date and that the amounts in previous periods are rearranged in the same way. The indexing process was carried out using the coefficient obtained from the Consumer Price Index in Türkiye published by the Turkish Statistical Institute ("TUIK").

The relevant figures for the previous reporting period are rearranged by applying the general price index so that comparative financial statements are presented in the unit of measurement valid at the end of the reporting period. Information disclosed for previous periods is also presented in the measurement unit valid at the end of the reporting period.

However, certain items from our financials are also presented without inflation adjustment for information purposes in order to give an idea of our performance relative to our 2024 forecasts, which we announced at the beginning of the year and which we stated were based on the financials without inflation adjustment. These unaudited figures are clearly labelled where relevant. All financial figures without such disclosure are reported in accordance with TAS 29.

In FY 2024:

  • The net sales revenue ("NSR"), decreased by 5.6% y/y and recorded as 137.7 billion TL with 3.5% y/y NSR/uc decline during the period. Excluding the effects of inflation accounting, NSR and NSR/uc grew by 42.6% and 45.8%, respectively, driven primarily by effective revenue growth management initiatives.
  • Türkiye recorded 7.5% and 7.6% NSR and NSR/uc decline in 2024, respectively. Without TAS 29 adjustments, NSR in Türkiye grew by 48.6% and NSR/uc realized as TL95.97 with 48.4% y/y improvement thanks to continued focus on efficient RGM initiatives.
  • In international operations, NSR declined by 3.9% y/y to TL 75.5 billion, while NSR/uc recorded a minimal 0.3% y/y decrease. Although local currency prices increased in major markets, it was below the inflation adjustment rate. Without the impact of TAS 29, NSR increase was 38.8% y/y and NSR/uc improvement was 43.9% y/y.
Net Sales Revenue (TL mn) NSR per U.C. (TL)
2024 YoY Change 2024 YoY Change
Türkiye 62,391 -7.5% 109.9 -7.6%
International 75,498 -3.9% 80.9 -0.3%
Consolidated 137,683 -5.6% 91.7 -3.5%

• Effective cost management, driven by favorable sugar and other raw material prices, as well as relatively stronger Turkish Lira significantly boosted gross margin performance in Türkiye. Türkiye recorded 599 bps y/y gross margin improvement in 2024. With the focus on affordability in international operations, price increases lagged the increase of certain cost items. Accordingly, international operations' gross profit margin slightly contracted by 43 bps y/y. Overall, the consolidated gross margin reached 35.3%, reflecting a 259 bps year-on-

year expansion on the back of very solid performance of Türkiye. Excluding the impact of TAS 29 accounting, the gross margin increased by 132 bps to 36.8%, again supported by the solid expansion of Türkiye gross profit margin.

  • Operating expenses increased mainly on employment, digital technology and insurancerelated expenses. Accordingly, our consolidated EBIT margin was 13.7% with a decline of 61 bps. Without TAS 29 accounting, EBIT margin was realized as 16.3% with a 169 bps contraction.
  • The EBITDA margin improved by 47 bps to 18.4% in 2024. Without TAS 29 accounting, EBITDA margin was realized as 19.8% in 2024, down by 97 bps compared to last year.
  • Net financial expense, including lease payables related to TFRS 16, was (8,747) million TL in 2024 compared to (6,061) million TL in 2023 mainly due to the rise in interest rates and higher borrowing levels.
Financial Income / (Expense) (TL million) 4Q24 4Q23 2024 2023
Interest income 467 514 1,840 1,408
Interest expense (-) -2,459 -1,938 -9,593 -6,392
FX gain / (loss) – Borrowings 34 -864 -1,431 -4,663
Other -70 505 436 3,586
Financial Income / (Expense) Net -2,027 -1,782 -8,747 -6,061
  • Non-controlling interest (minority interest) was 78 million TL in 2024, compared to 838 million TL in 2023. Full ownership of Pakistan operations as of November 2023 resulted in lower minority interest compared to last year.
  • Net profit is recorded as 14.8 billion TL in 2024. Excluding the TAS 29 accounting, net profit grew by 12.5% in TL terms, reaching 9.3 billion TL.
  • The free cash flow ("FCF") was (2.2) billion TL in 2024 vs 5.6 billion TL of 2023. We continue to invest ahead of demand. Thus, in line with this strategy, two greenfield investments and line investments have been completed during the year. Without TAS 29 accounting, FCF amounted to 1.6 billion TL.
  • Capex was 12.5 billion TL as of 2024. 26% of the total capital expenditure was related to the Türkiye operation, while 74% was related to international operations. Capex/Sales stood at 9.1% for the year vs. 6.1% previous year.
  • Consolidated debt was 49.1 billion TL (USD 1.39 billion) by 31 December 2024 and consolidated cash was 23.3 billion TL (USD 662 million), bringing consolidated net debt to 25.8 billion TL (USD 729 million). Net Debt to consolidated EBITDA was 1.02x as of December 31, 2024.
Financial Leverage Ratios 2024 2023
Net Debt / EBITDA 1.02 0.82
Debt Ratio (Total Fin. Debt / Total Assets) 33% 34%
Fin. Debt-to-Equity Ratio 80% 82%
  • As of December 31, 2024, 51% of our consolidated financial debt is in USD, 6% in EUR, 29% in TL, and the remaining 14% in other currencies. This marks a significant decline in FX position compared to previous year, where the share of local currency loans were 26% vs 74% of USD&EUR.
  • The average maturity of the consolidated debt portfolio is 3 years, and the maturity profile was as follows:
Maturity Date 2025 2026 2027 2028 2029-30
% of total debt 42% 7% 4% 4% 43%

Unaudited Highlighted Items Without the Impact of TAS 29

The following section is presented without the impact of TAS 29 to allow an assessment of the material expectations/assumptions/guidance shared previously and is unaudited.

  • NSR recorded as 129.8 billion TL in 2024, growing by 42.6% y/y and NSR/uc improved by 45.8% y/y.
  • In 2024, consolidated gross profit margin improved by 132 bps y/y and reached 36.8%, while EBIT margin declined by 169 bps to 16.3%.
  • Net income reached 9.3 billion TL in 2024.
Consolidated (million TL) 4Q24 4Q23 Change % 2024 2023 Change %
Volume (million UC) 271 252 7.3% 1,501 1,535 -2.2%
Net Sales 25,693 20,453 25.6% 129,809 91,016 42.6%
Gross Profit 8,466 7,109 19.1% 47,826 32,336 47.9%
EBIT 1,429 2,396 -40.4% 21,127 16,348 29.2%
EBITDA 2,893 3,281 -11.8% 25,754 18,939 36.0%
Net Income/(Loss) -559 557 n.m. 9,345 8,306 12.5%
Gross Profit Margin 33.0% 34.8% 36.8% 35.5%
EBIT Margin 5.6% 11.7% 16.3% 18.0%
EBITDA Margin 11.3% 16.0% 19.8% 20.8%
Net Income Margin n.m. 2.7% 7.2% 9.1%
Türkiye (million TL) 4Q24 4Q23 Change % 2024 2023 Change %
Volume (million UC) 104 88 18.4% 568 567 0.1%
Net Sales 10,929 7,721 41.6% 54,485 36,678 48.6%
Gross Profit 3,328 3,162 5.3% 22,383 13,841 61.7%
EBIT (Exc. other) -314 833 n.m. 7,016 5,087 37.9%
EBITDA (Exc. other) -47 1,043 n.m. 8,000 5,840 37.0%
Net Income/(Loss) -1,806 6,207 n.m. 5,788 4,824 20.0%
Gross Profit Margin 30.5% 41.0% 41.1% 37.7%
EBIT Margin (Exc. other) n.m. 10.8% 12.9% 13.9%
EBITDA Margin (Exc. other) n.m. 13.5% 14.7% 15.9%
Net Income Margin n.m. 80.4% 10.6% 13.2%
International operations (million TL) 4Q24 4Q23 Change % 2024 2023 Change %
Volume (million UC) 166 164 1.4% 934 968 -3.6%
Net Sales 14,772 12,758 15.8% 75,498 54,396 38.8%
Gross Profit 4,974 3,961 25.6% 25,417 18,544 37.1%
EBIT (Exc. other) 1,467 1,422 -3.1% 12,482 10,331 20.8%
EBITDA (Exc. other) 2,374 2,035 16.7% 15,741 12,377 27.2%
Net Income/(Loss) 742 1,273 -41.7% 8,217 12,476 -34.1%
Gross Profit Margin 33.7% 31.0% 33.7% 34.1%
EBIT Margin (Exc. other) 9.9% 11.1% 16.5% 19.0%
EBITDA Margin (Exc. other) 16.1% 15.9% 20.8% 22.8%
Net Income Margin 5.0% 10.0% 10.9% 22.9%

Accounting Principles

The consolidated financial statements and disclosures have been prepared in accordance with the communiqué numbered II-14,1 "Communiqué on the Principles of Financial Reporting in Capital Markets. In accordance with article 5 of the CMB Accounting Standards, companies should apply Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS" / "TFRS") and interpretations regarding these standards as adopted by the Public Oversight Accounting and Auditing Standards Authority ("POA").

As of December 31, 2024, the list of CCI's subsidiaries and joint ventures is as follows:

Subsidiaries and Joint Ventures Country Consolidation Method
Coca-Cola Satış ve Dağıtım A.Ş. Türkiye Full Consolidation
JV Coca-Cola Almaty Bottlers LLP Kazakhstan Full Consolidation
Azerbaijan Coca-Cola Bottlers LLC Azerbaijan Full Consolidation
Coca-Cola Bishkek Bottlers Closed J. S. Co. Kyrgyzstan Full Consolidation
CCI International Holland BV. Holland Full Consolidation
The Coca-Cola Bottling Company of Jordan Ltd Jordan Full Consolidation
Turkmenistan Coca-Cola Bottlers Turkmenistan Full Consolidation
Sardkar for Beverage Industry Ltd Iraq Full Consolidation
Waha Beverages BV. Holland Full Consolidation
Coca-Cola Beverages Tajikistan LLC Tajikistan Full Consolidation
Al Waha LLC Iraq Full Consolidation
Coca-Cola Beverages Pakistan Ltd Pakistan Full Consolidation
Coca-Cola Bottlers Uzbekistan Ltd Uzbekistan Full Consolidation
CCI Samarkand Ltd LLC Uzbekistan Full Consolidation
CCI Namangan Ltd LLC Uzbekistan Full Consolidation
Anadolu Etap Penkon Gıda ve İçecek Ürünleri A. Ş Türkiye Full Consolidation
Syrian Soft Drink Sales and Distribution LLC Syria Equity Method
Coca-Cola Bangladesh Beverages Ltd. Bangladesh Full Consolidation

EBITDA Reconciliation

The Company's "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)" definition and calculation is defined as; "Profit/(loss) from operations" plus relevant non-cash expenses including depreciation and amortization, provision for employee benefits like retirement and vacation pay (provision for management bonus not included) and other noncash expenses like negative goodwill and value increase due to change in scope of consolidation. As of December 31, 2024, and December 31, 2023, the reconciliation of EBITDA to profit / (loss) from operations is explained in the following table:

EBITDA (TL million)
4Q24
4Q23
TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented 2024 2023
24
863
Profit / (loss) from operations 18,885 20,899
1,404
1,223
Depreciation and amortization 5,546 5,079
17
53
Provision for employee benefits 326 314
279
103
Foreign exchange (gain) / loss under other operating income / expense 359 -365
56
52
Right of use asset amortization 231 245
1,780
2,295
EBITDA 25,347 26,171

Totals may not foot due to rounding differences.

Foreign Currency Translations

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recorded in the consolidated income statement of the relevant period, as foreign currency loss or gain. Foreign currency translation rates announced by the Central Bank of the Republic of Türkiye used by the Group's subsidiaries in Türkiye. USD amounts presented in the asset accounts are translated into TL with the official TL exchange rate of USD buying on December 31, 2024, USD 1,00 (full) = TL 35,2803 (December 31, 2023; USD 1,00 (full) = TL 29,4382) whereas USD amounts in the liability accounts are translated into TL with the official TL exchange rate of USD selling on December 31, 2024, USD 1,00 (full) = TL 35,3438 (December 31, 2023; USD 1,00 (full) = TL 29,4913). Furthermore, USD amounts in the income statement are translated into TL, at the average TL exchange rate for USD buying for the period is USD 1,00 (full) = TL 32,7984 (January 1 – December 31, 2023; USD 1,00 (full) = TL 23,7776).

Exchange Rates 2024 2023
Average USD/TL 32,7984 23,7776
End of Period USD/TL (purchases) 35,2803 29,4382
End of Period USD/TL (sales) 35,3438 29,4913

The assets and liabilities of subsidiaries and joint ventures operating in foreign countries are translated at the rate of exchange ruling at the balance sheet date and the income statements of foreign subsidiaries and joint ventures are translated at average exchange rates. Differences that occur in the usage of closing and average exchange rates are followed under currency translation differences classified under equity.

FY 2025 Guidance

2024 was a year marked by a persistent high inflation, combined with the spill-over from the conflict in the Middle East. Yet, our actions and relative improvement in market dynamics enabled gradual volume recovery in our key markets, Türkiye and Pakistan, particularly in the last quarter of the year.

Cycling a difficult operating environment in 2024, we will remain focused on what we can control in 2025, staying true to our purpose of creating sustainable value. To that effect, we will focus on driving volume growth by prioritizing affordability for consumers, delivering worldclass execution with our customers and an overall commitment to operational excellence.

Following the announcement of our 2025 volume guidance, we now offer a more detailed guidance on NSR/uc and EBIT margin, both on a reported basis and excluding TAS 29 adjustments. Additionally, we have incorporated Bangladesh into our 2025 volume expectations, with a limited impact on the previously provided volume guidance. Thus, we continue to uphold our previous volume guidance. This additional information offers further clarity on the financial outlook and demonstrates our ongoing commitment to transparent communication with our stakeholders.

Our company's expectations for 2025 are as follows on a reported basis:

Sales Volume:

Mid-single-digit volume growth on a consolidated basis

  • Low to mid-single-digit growth in Türkiye
  • Mid to high-single-digit growth in international operations

With inflation accounting, we expect to deliver mid-single-digit NSR/uc growth with flat EBIT margin.

Without the impact of inflation accounting, FX neutral NSR/uc to grow by low twenties with revenue increases in local currencies balancing cost inflation and price affordability to drive volume growth with slight EBIT margin pressure.

Consolidated Income Statement CCI

TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented

Audited
January 1 - December 31 October 1 – December 31
(TL million) 2024 2023 Change (%) 2024 2023 Change (%)
Sales Volume (UC millions) 1,501 1,535 -2.2% 271 252 7.3%
Revenue 137,683 145,884 -5.6% 22,138 24,174 -8.4%
Cost of Sales -89,093 -98,182 -9.3% -15,287 -16,922 -9.7%
Gross Profit from Operations 48,590 47,702 1.9% 6,851 7,252 -5.5%
Distribution,
Selling
and
Marketing
Expenses
-22,759 -20,986 8.5% -4,854 -4,616 5.2%
General and Administrative Expenses -7,464 -6,171 21.0% -1,943 -1,639 18.5%
Other Operating Income 3,065 3,900 -21.4% 715 752 -4.9%
Other Operating Expense -2,546 -3,547 -28.2% -745 -885 -15.9%
Profit/(Loss) from Operations 18,885 20,899 -9.6% 24 863 -97.2%
Gain/(Loss) From Investing Activities -75 -38 95.6% 151 -2 n.m.
Gain/(Loss) from Associates -5 -24 80.3% -1 -1 53.9%
Profit/(Loss)
Before
Financial
Income/(Expense)
18,806 20,836 -9.7% 175 860 -79.7%
Financial Income 4,057 9,709 -58.2% 702 1,923 -63.5%
Financial Expenses -12,805 -15,770 -18.8% -2,729 -3,705 -26.3%
Monetary Gain /(Loss) 9,884 22,700 -56.5% 1,533 5,990 -74.4%
Profit/(Loss) Before Tax 19,942 37,475 -46.8% -319 5,069 n.m.
Deferred Tax Income/(Expense) -1,322 -1,920 -31.1% -717 1,348 n.m.
Current Period Tax Expense -3,728 -5,004 -25.5% 689 -82 n.m.
Net Income/(Loss) Before Minority 14,891 30,551 -51.3% -348 6,335 n.m.
Minority Interest -78 -838 -90.7% -4 -48 -92.7%
Net Income 14,813 29,713 -50.1% -351 6,286 n.m.
EBITDA 25,347 26,171 -3.2% 1,780 2,295 -22.4%

Türkiye Income Statement

TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented

Audited

January 1 - December 31 October 1 – December 31
(TL million) 2024 2023 Change (%) 2024 2023 Change (%)
Sales Volume (UC millions) 568 567 0.1% 104 88 18.4%
Revenue 62,391 67,450 -7.5% 11,183 11,776 -5.0%
Cost of Sales -39,213 -46,432 -15.5% -8,186 -8,127 0.7%
Gross Profit from Operations 23,178 21,017 10.3% 2,997 3,649 -17.9%
Distribution,
Selling
and
Marketing
Expenses
-13,345 -12,045 10.8% -2,656 -2,406 10.4%
General and Administrative Expenses -5,122 -4,375 17.1% -1,295 -1,243 4.2%
Other Operating Income 10,937 24,733 -55.8% 550 11,690 -95.3%
Other Operating Expense -1,251 -10,400 -88.0% -360 -488 -26.2%
Profit/(Loss) from Operations 14,398 18,931 -23.9% -764 11,201 n.m.
Gain/(Loss) From Investing Activities 33 -145 n.m. 123 -47 n.m.
Profit/(Loss)
Before
Financial
Income/(Expense)
14,430 18,786 -23.2% -640 11,154 n.m.
Financial Income 3,234 6,078 -46.8% 545 1,719 -68.3%
Financial Expenses -14,534 -24,990 -41.8% -2,794 -5,202 -46.3%
Monetary Gain /(Loss) 9,884 22,700 -56.5% 1,533 5,990 -74.4%
Profit/(Loss) Before Tax 13,014 22,574 -42.4% -1,357 13,662 n.m.
Deferred Tax Income/(Expense) -450 856 n.m. -600 1,507 n.m.
Current Period Tax Expense -886 -1,069 -17.1% 809 368 119.7%
Net Income/(Loss) Before Minority 11,677 22,361 -47.8% -1,148 15,538 n.m.
Minority Interest 0 -316 n.m. 0 -131 n.m.
Net Income 11,677 22,046 -47.0% -1,148 15,406 n.m.
EBITDA 17,355 21,641 -19.8% 12 11,927 -99.9%

International Income Statement

TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented

Audited
January 1 - December 31 October 1 – December 31
(TL million) 2024 2023 Change (%) 2024 2023 Change (%)
Sales Volume (UC millions) 934 968 -3.6% 166 164 1.4%
Revenue 75,498 78,537 -3.9% 10,965 12,435 -11.8%
Cost of Sales -50,082 -51,763 -3.2% -7,272 -8,804 -17.4%
Gross Profit from Operations 25,417 26,773 -5.1% 3,692 3,631 -1.7%
Distribution,
Selling
and
Marketing
Expenses
-9,415 -8,941 5.3% -2,199 -2,210 -0.5%
General and Administrative Expenses -3,520 -2,916 20.7% -718 -639 12.3%
Other Operating Income 1,510 8,952 -83.1% 486 58 739.2%
Other Operating Expense -1,295 -1,645 -21.3% -384 -397 -3.3%
Profit/(Loss) from Operations 12,697 22,223 -42.9% 878 442 98.7%
Gain/(Loss) From Investing Activities -201 106 n.m. -66 45 n.m.
Gain/(Loss) from Associates -5 -24 80.3% -1 -1 53.9%
Profit/(Loss)
Before
Financial
Income/(Expense)
12,491 22,305 -44.0% 812 486 67.0%
Financial Income 889 3,718 -76.1% 157 224 -29.9%
Financial Expenses -2,731 -4,459 -38.8% -612 -529 15.7%
Profit/(Loss) Before Tax 10,648 21,564 -50.6% 357 181 97.1%
Deferred Tax Income/(Expense) 41 -168 n.m. -2 105 n.m.
Current Period Tax Expense -2,395 -2,852 -16.0% -79 -133 -40.8%
Net Income/(Loss) Before Minority 8,295 18,545 -55.3% 277 154 80.0%
Minority Interest -78 -532 -85.3% -4 74 n.m.
Net Income 8,217 18,012 -54.4% 273 227 20.1%
EBITDA 16,460 25,143 -34.5% 1,771 1,233 43.6%

CCI Consolidated Balance Sheet

(TL million) Audited Audited
December 31, 2024 December 31, 2023
Current Assets 60,757 69,669
Cash and Cash Equivalents 23,254 31,409
Investments in Securities 96 543
Trade Receivables 12,929 12,726
Other Receivables 590 174
Derivative Financial Instruments 37 204
Inventories 15,381 18,744
Prepaid Expenses 3,672 2,695
Tax Related Current Assets 1,977 917
Other Current Assets 2,820 2,258
Non-Current Assets 87,570 89,376
Other Receivables 184 195
Property, Plant and Equipment 54,256 50,871
Goodwill 5,517 6,706
Intangible Assets 24,190 27,865
Right of Use Asset 719 783
Prepaid Expenses 1,644 1,757
Deferred Tax Asset 1,061 838
Derivative Financial Instruments 0 48
Other Non-Current Assets 0 311
Total Assets 148,327 159,045
Current Liabilities 52,988 59,929
Short-term Borrowings 15,151 12,320
Current Portion of Long-term Borrowings 6,254 13,760
Bank borrowings 6,012 13,477
Finance lease payables 242 283
Trade Payables 25,618 26,849
Due to related parties 7,276 11,104
Other trade payables to third parties 18,342 15,745
Payables Related to Employee Benefits 510 522
Other Payables 3,443 3,600
Due to related parties 241 334
Other payables to third parties 3,202 3,267
Derivative Financial Instruments 3 402
Deferred Income 421 297
Provision for Corporate Tax 548 590
Current Provisions 821 1,395
Other Current Liabilities 218 194
Non-Current Liabilities 33,686 34,211
Long-term Borrowings 27,114 26,727
Financial lease payables 625 670
Trade Payables 4 7
Provision for Employee Benefits 886 1,057
Deferred Tax Liability 5,058 5,681
Derivative Financial Instruments 0 4
Deferred Income 0 64
Equity of the Parent 53,704 56,722
Minority Interest 7,949 8,184
Total Liabilities 148,327 159,045

TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented

CCI Consolidated Cash Flow

TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented

(TL million) Audited
Period End
Cash Flow from Operating Activities
IBT Adjusted for Non-cash items 19,822 28,833
Change in Tax Assets and Liabilities -4,767 -4,602
Employee Term. Benefits, Vacation Pay, Management Bonus
Payment
-254 -314
Change in other current and non-current assets and liabilities 3,674 -5,307
Change in Operating Assets & Liabilities -1,729 -500
Net Cash Provided by Operating Activities 16,747 18,109
Purchase of Property, Plant & Equipment -12,255 -8,525
Other Net Cash Provided by/ (Used in) Investing Activities 102 478
Cash inflow/outflow from acquisition of subsidiary -817 -4,336
Net Cash Used in Investing Activities -12,970 -12,383
Change in ST & LT Loans 3,721 3,826
Interest paid -8,197 -5,064
Interest received 1,811 1,428
Dividends paid (including non-controlling interest) -2,475 -1,588
Cash flow hedge reserve -737 -97
Change in finance lease payables -328 -371
Other -4,277 -4,129
Net Cash Provided by / (Used in) Financing Activities -10,482 -5,996
Currency Translation Differences 72 119
Monetary gain / loss on cash and cash equivalents -1,523 -1,767
Net Change in Cash & Cash Equivalents -8,156 -1,918
Cash & Cash equivalents at the beginning of the period 31,409 33,327
Cash & Cash Equivalents at the end of the period 23,254 31,409
Free Cash Flow -2,222 5,577
Investor Relations Contacts: Media Contacts:
Burak Berki Burçun İmir
Investor Relations Manager Chief Corporate Affairs and Sustainability Officer
Tel: +90 216 528 3304 Tel: +90 216 528 4209
E-mail: [email protected] E-mail: [email protected]
Tuğçe Tarhan Ayşegül Şenalp
Investor Relations Executive
Tel: +90 216 528 4119 Group Head of Communications
E-mail: [email protected] Tel: +90 532 611 5572
Melih Turlin E-mail: [email protected]
Investor Relations Analyst
Tel: +90 216 528 4465
E-mail: [email protected]

CCI is a multinational beverage company which operates in Türkiye, Pakistan, Kazakhstan, Iraq, Uzbekistan, Bangladesh, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan, and Syria. CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company and Monster Energy Beverage Corporation along with the production of fruit juice concentrate via its affiliate Anadolu Etap İçecek (Anadolu Etap Penkon Gıda ve İçecek Ürünleri Sanayi ve Ticaret Anonim Şirket).

CCI employs more than 10,000 people, has a total of 33 bottling plants, and 3 fruit processing plants in 12 countries, offering a wide range of beverages to a population base of 600 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks, iced teas and coffee.

CCI's shares are traded on the Borsa Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS".

Reuters: CCOLA.IS Bloomberg: CCOLA.TI

Special Note Regarding Forward-Looking Statements

17 This document contains forward-looking statements including, but not limited to, statements regarding Coca-Cola İçecek's (CCI) plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements can generally be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "target," "believe" or other words of similar meaning. These forward-looking statements reflect the current views and assumptions of management and are inherently subject to significant business, economic and other risks and uncertainties. Although management believes the expectations reflected in the forward-looking statements are reasonable, at this time, you should not place undue reliance on such forward-looking statements. Important factors that could cause actual results to differ materially from CCI's expectations include, without limitation: changes in CCI's relationship with The Coca-Cola Company and its exercise of its rights under our bottler's agreements; CCI's ability to maintain and improve its competitive position in its markets; CCI's ability to obtain raw materials and packaging materials at reasonable prices; changes in CCI's relationship with its significant shareholders; the level of demand for its products in its markets; fluctuations in the value of the Turkish Lira and currencies in CCI's other markets; the level of inflation in Türkiye and CCI's other markets; other changes in the political or economic environment in Türkiye or CCI's other markets; adverse weather conditions during the summer months; changes in the level of tourism in Türkiye; CCI's ability to successfully implement its strategy; and other factors. Should any of these risks and uncertainties materialize or should any of management's underlying assumptions prove to be incorrect, CCI's actual results from operations or financial conditions could differ materially from those described herein as anticipated, believed, estimated, or expected. Forward-looking statements speak only as of the date of this press release and CCI has no obligation to update those statements to reflect changes that may occur after that date.

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