Half Year 2024 Coca-Cola Europacific Partners PLC Earnings Call

Hello and thank you for standing by and welcome to today's Coca Cola Euro-Pacific Partners HERF1 2024 Results Conference Call.

Operator: Holer, Europe Pacific Partners, Hath won 2024 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session.

Speaker Change: At this time, all participants are in a listen-only mode.

Speaker Change: After the speaker's remarks, there will be a question and answer session.

Operator: To ask a question during this session, you will need to press star, one, and one on your telephone. I must advise you that this conference call is being recorded today.

Speaker Change: To ask a question during this session, you will need to press star 1 and 1 on your telephone.

Speaker Change: I must advise you that this conference call is being recorded today. I would now like to hand the conference over to Vice President of Investor Relations and Corporate Strategy, Sarah Willett. Please go ahead, Sarah.

Sarah Willett: I would like to hand the conference over to Vice-President of Investor Relations and Corporate Strategy, Sarah Willett. Please go ahead, Sarah. Thank you all for joining us today. I'm here with Damian Gammell, RCO, and Ed Walker, RCAFA.

Sarah Willett: Thank you all for joining us today. I'm here with Damian Gammell, our CEO , and Ed Walker, our CFO . Before we begin with our opening remarks, a reminder of our cautionary statements.

Sarah Willett: Before we begin with our opening remarks, remind us of our cautionary statements. This call will contain four little management comments and other statements reflecting our outlook. These comments should be considered in conjunction with the cautionary language contained in today's release, as well as the detailed cautionary statements found in reports filed to the UK, U.S. Dutch and Spanish authorities. The copy of this information is available on our website at www.potolaep.com.

Speaker Change: This call will contain forward-looking management comments and other statements reflecting our outlook. These comments should be considered in conjunction with the cautionary language contained in today's release as well as the detailed cautionary statements found in reports filed to the UK, US, Dutch and Spanish authorities.

Speaker Change: A copy of this information is available on our website at www.coca-colaep.com

Sarah Willett: For further remarks made by Damian and Ed, we will then turn the call over to your questions. Unless otherwise stated, metrics presented today will be on a comparable and effective mutual basis throughout. They will also be presented on an adjusted comparable basis, thus reflecting the results of CCP and our Australia Pacific and Southeast Asia business unit, APS. As is the Coca-Cola Philippines transaction had occurred at the beginning of last year, rather than February when the acquisition completed.

Speaker Change: Prepared remarks were made by Damian and Ed. We will then turn the call over to your questions. Unless otherwise stated, metrics presented today will be on a comparable and FX-neutral basis throughout.

Speaker Change: They will also be presented on an adjusted comparable basis.

Speaker Change: Thus reflecting the results of CCP and our Australia, Pacific and Southeast Asia Business Unit, APS,

Speaker Change: as if the Coca Cola Philippines transaction had occurred at the beginning of last year rather than in February when the acquisition completed. Following the call, a full transcript will be made available as soon as possible on our website. I will now turn the call over to our CEO , Damian.

Sarah Willett: Following the call, a full transcript will be made available as soon as possible on our website.

Damian Gammell: I will now turn the call over to our CEO, Damian. Thank you, Sarah. Many thanks to everyone joining us today. Before I begin, I would particularly like to take this opportunity to thank all of my great colleagues at CCP for their ongoing hard work and dedication to our customers and to our business. I'd also like to take the opportunity to thank Nick and wish him all the best, and of course, to welcome Ed into his new and very well-deserved role.

Damian Gammell: Thank you Sarah, and many thanks to everyone joining us today. Before I begin, I would particularly like to take this opportunity to thank all of my great colleagues at CCP for their ongoing hard work and dedication to our customers and to our business. I'd also like to take this opportunity to thank Nick and wish him all the best and, of course, to welcome Ed into his new and very well-deserved role. At CCEP, we have a clear strategy which we continue to focus on and execute very well.

Damian: Thank you Sarah and many thanks to everyone joining us today. Before I begin I would particularly like to take this opportunity to thank all of my great colleagues at CCP for their ongoing hard work and dedication to our customers and to our business.

Damian: I'd also like to take the opportunity to thank Nick and wish him all the best, and of course to welcome Ed into his new and very well-deserved role. Before we get into the detail of our half-year results, I just wanted to take a moment to stand back and reflect.

Damian Gammell: Before we get into the detail of our half-year results, I just wanted to take a moment to stand back and reflect. At CCP, we have a clear strategy, which we continue to focus on and execute very well. We have an unwavering commitment to stakeholder value creation. Indeed, our TSOR speaks for itself. And importantly, our retail customers continue to share in their success. Since 2017, we've created more value for them than any of our peers. We are now a bigger and a more diverse business, providing the opportunity to leverage best practice and talent across all of our markets.

Damian: At CCEP, we have a clear strategy which we continue to focus on and execute very well. We have an unwavering commitment to stakeholder value creation. Indeed, our TSO speaks for itself.

Damian Gammell: We have an unwavering commitment to stakeholder value creation. Indeed, our TSO speaks for itself. We are now at Bigger and a more diverse business, providing the opportunity to leverage best practice and talent across all of our markets. So now to our first half.

Damian: And importantly, our retail customers continue to share in our success. Since 2017, we've created more value for them than any of our peers.

Speaker Change: We are now at Bigger.

Speaker Change: and a more diverse business, providing the opportunity to leverage best practice and talent across all of our markets.

Damian Gammell: Importantly, we continue to take decisions for the long term, as demonstrated through our geographic diversification, our portfolio choices, and our investment strategy, which I'll touch more on later.

Speaker Change: Importantly, we continue to take decisions for the long term, as demonstrated through our geographic diversification, our portfolio choices, our investment strategy, which I'll touch more on later.

Damian Gammell: So now to our first half, I'm very pleased with our financial performance, achieving solid top and bottom line growth and strong free cash flow. The great performance of our APS business unit helps offset software volumes in Europe, driven by strategic listings and some adverse weather. It demonstrates how our diversity makes us stronger. More Rebus Business with about a third of our volumes now delivered by our APS business unit. We grew share ahead of the market and, importantly, continued to create significant value for our customers.

Damian Gammell: I'm very pleased with our financial performance, achieving solid top and bottom line growth and strong free cash flow. The great performance of our APS business unit helped offset software volumes in Europe, driven by strategic delistings and Some Adverse Weather. This demonstrates how our diversity makes us a stronger, more robust business with about a third of our volumes now delivered by our APS business unit. We grew our share ahead of the market, and importantly, continue to create significant value for our customers. Today, we reaffirm our full-year guidance, which is in line with our mid-term objectives, and looking ahead, we feel we are very well placed.

Speaker Change: So now to our first half. I'm very pleased with our financial performance, achieving solid top and bottom line growth and strong free cash flow.

Speaker Change: The great performance of our APS business unit helped offset software volumes in Europe , driven by strategic delistings.

Speaker Change: and Some Adverse Weather. This demonstrates how our diversity makes us stronger.

Speaker Change: more robust business with about a third of our volumes now delivered by our APS business unit.

Speaker Change: We grew share ahead of the market.

Speaker Change: and importantly continue to create significant value for our customers.

Damian Gammell: Today, we reaffirm our full-year guidance, which is in line with our midterm objectives. Looking ahead, we feel we are very well placed. We continue to invest for growth on a strong commercial plans in place for the rest of the year and beyond to engage our customers and our consumers. We remain focused on driving profitable revenue growth and growing category value over the long-term for our customers. This, alongside our focus on productivity and free cash flow.

Speaker Change: Today, we reaffirm our full year guidance, which is in line with our mid-term objectives, and looking ahead, we feel we are very well placed.

Damian Gammell: We continue to invest in growth and have strong commercial plans in place for the rest of the year and beyond to engage our customers and our consumers. We remain focused on driving profitable revenue growth and growing category value over the long term for our customers. This, alongside our focus on productivity and free cash flow, combined with our first half interim dividend, demonstrates the strength of our business and our continued ability to create value for all our stakeholders. Now, turning to our key performance highlights.

Speaker Change: We continue to invest for growth and have strong commercial plans in place for the rest of the year and beyond to engage our customers and our consumers.

Speaker Change: We remain focused on driving profitable revenue growth and growing category value over the long term for our customers, this alongside our focus on productivity and free cash flow.

Damian Gammell: Combined with our first half in-term dividend, this demonstrates the strength of our business and our continued ability to create value for all our stakeholders.

Speaker Change: Combined with our first half interim dividend, this demonstrates the strength of our business and our continued ability to create value for all our stakeholders.

Damian Gammell: Now, turning to our key performance highlights. As I said just now, we delivered a solid top-line performance. Our volume growth reflects good and underlying demand across our developed markets and double-digit growth in Southeast Asia driven by the Philippines. It also reflects strategic choices we have made in our portfolio in Europe and the adverse weather I talked to earlier, especially in June. Execution of our revenue and margin growth management initiatives, along with our dynamic price and promotion strategies, drove solid revenue per unit case growth. We enjoy a broad pack offering, which enables us to balance affordability and criminalization.

Damian Gammell: As I said just now, we delivered solid top-line performance. Our volume growth reflects good underlying demand across our developed markets and double-digit growth in Southeast Asia driven by the Philippines. It also reflects strategic choices we've made in our portfolio in Europe and the adverse weather I talked about earlier, especially in June.

Speaker Change: Now, turning to our key performance highlights.

Speaker Change: As I said just now, we deliver the solid top-line performance. Our volume growth reflects good underlying demand across our developed markets and double-digit growth in Southeast Asia driven by the Philippines.

Speaker Change: It also reflects strategic choices we've made in our portfolio in Europe and the adverse weather I talked to earlier, especially in June .

Damian Gammell: Execution of our revenue and margin growth management initiatives, along with our dynamic price and promotion strategies drove solid revenue per unit case growth. We enjoy a broad pack offering which enables us to balance affordability and premiumization. So we continue to invest accordingly to prioritize relevance and affordability for all our consumers, whilst remaining focused on winning with our customers every day.

Speaker Change: Execution of our revenue and margin growth management initiatives along with our dynamic price and promotion strategies drove solid revenue per unit case growth. We enjoy a broad pack offering which enables us to balance affordability and premiumization.

Damian Gammell: So we continue to invest accordingly to prioritize relevance and affordability for all our consumers, whilst remaining focused on winning with our customers every day. Now to the any RTD category, it remains resilient, continuing to grow in value in Europe and APS, and we gain value share both in-store and online, supported by great activation and execution. Our strong top-line performance, together with our continued focus on efficiency, drove solid operating profit growth of 9 percent, with operating profit margins excluding the Philippines now back to 2019 levels—a great achievement given the wider backdrop.

Speaker Change: So we continue to invest accordingly to prioritize relevance and affordability for all our consumers, whilst remaining focused on winning with our customers every day.

Damian Gammell: It remains resilient, and continues to grow in value in Europe and APS, and we gain value share both in-store and online, supported by great activation and execution. Our strong top-line performance, together with our continued focus on efficiency, drove solid operating profit growth of 9%, with operating profit margins, excluding the Philippines, now back to 2019 levels. A great achievement given the wider backdrop. We generated solid free cash flow, supporting the return to our target leverage range of two and a half to three times by the end of this year, providing even more flexibility as we look forward.

Speaker Change: Now to the NARTD category. It remains resilient.

Speaker Change: continue to grow in value in Europe and APS and we gain value share both in store and online supported by great activation and execution.

Speaker Change: Our strong top-line performance together with our continued focus on efficiency drove solid operating profit growth of 9% with operating profit margins excluding the Philippines now back to 2019 levels. A great achievement given the wider backdrop.

Damian Gammell: We generated solid free cash flow, supporting the return to our target leverage range of two and a half to three times by the end of this year, providing even more flexibility as we look forward. And as proven successful integrators, we seamlessly completed the Philippines integration.

Speaker Change: We generated solid free cash flow, supporting the return to our target leverage range of two and a half to three times by the end of this year, providing even more flexibility as we look forward.

Damian Gammell: And as proven successful integrators, we seamlessly completed the Philippines integration. At CCEP, we remain focused on great people, great brands, and great execution, all done sustainably. So I will touch on each of these areas as we take a brief look back at the first half.

Speaker Change: And as proven successful integrators, we seamlessly completed the Philippines integration.

Damian Gammell: At CCEP, we remain focused on great people, great brands, great execution, all done sustainably. So I will touch in each of these areas as we take a brief look back at the first half. Starting with great people, whose well-being and safety continues to be our number one priority at CCEP. We are committed to building an even more inclusive and diverse culture, so we celebrated a number of key events across our business, including Pride and International Women's Day, and we supported a Special Olympics with our colleagues from the Coca-Cola Company. Our commitment to our people continued to be recognized externally in 2024 by the top employers in instituting Europe.

Speaker Change: At CCP we remain focused on great people, great brands, great execution, all done sustainably. So I will touch on each of these areas as we take a brief look back at the first half.

Damian Gammell: Starting with great people whose well-being and safety continues to be our number one priority at CCEP, we are committed to building an even more inclusive and diverse culture. So we celebrated a number of key events across our business, including Pride and International Women's Day, and we supported the Special Olympics with our colleagues from the Coca-Cola Company. Our commitment to our people continued to be recognized externally in 2024 by the Top Employers Institute in Europe, and moving further east, over 9,000 talented Philippine colleagues are now firmly part of the CCP family, alongside expanding our reach to a further 1 million customers.

Speaker Change: Starting with great people whose well-being and safety continues to be our number one priority at CCEP.

Speaker Change: We are committed to building an even more inclusive and diverse culture. So we celebrated a number of key events across our business, including Pride and International Women's Day, and we supported the Special Olympics with our colleagues from the Coca Cola Company.

Speaker Change: Our commitment to our people continued to be recognized externally in 2024 by the Top Employers Institute in Europe .

Damian Gammell: I'm moving further east over 9,000 talented Philippine colleagues, and now firmly part of the CCEP family. Alongside expanding our reach to a further 1,000,000,000. We are extremely privileged to make move and sell some of the world's most loved brands. We continue to invest and innovate to make them even better and appeal to even more consumers. In fact, in Europe, around 75% of households purchased from our NA or TD portfolio. Coca-Cola trademark volumes perform well, up 1.7%. Coca-Cola Zero Sugar continue to achieve good share and volume growth across our key markets. We delivered fantastic activation with euros and joined forces with Marvel and Australia with limited edition superhero cans.

Speaker Change: And moving further east, over 9,000 talented Philippine colleagues are now firmly part of the CCP family, alongside expanding our reach to a further 1 million customers.

Damian Gammell: We are extremely privileged to make, move, and sell some of the world's most loved brands. We continue to invest in and innovate to make them even better and appeal to even more consumers. In fact, in Europe, around 75% of households purchased from our NARTD portfolio.

Speaker Change: We are extremely privileged to make, move and sell some of the world's most loved brands.

Speaker Change: We continue to invest and innovate to make them even better and appeal to even more consumers. In fact, in Europe , around 75% of households purchased from our NARTD portfolio.

Damian Gammell: Coca-Cola trademark volumes performed well, up 1.7%. Coca-Cola Zero Sugar continued to achieve good share and volume growth across our key markets. We delivered fantastic activation with the Euros and joined forces with Marvel in Australia with limited-edition superhero cans. Coca-Cola original tastes also performed well, led by growth in the Philippines and supported by the launch of our lemon flavor extension in Europe, now available in both regular and zero variants.

Speaker Change: Coca Cola trademark volumes perform well, up 1.7%.

Speaker Change: Coca Cola Zero Sugar continues to achieve good share and volume growth across our key markets.

Speaker Change: We delivered fantastic activation with the Euros and joined forces with Marvel in Australia with limited-edition superhero cans.

Damian Gammell: Coca-Cola original tastes also perform well, led by growth in the Philippines and supported by the launch of our lemon flavor extension in Europe, now available in both regular and zero variants. Sprite volumes perform well, up 5.9% in growth across Europe and APS, with double-digit growth in the Philippines driven by execution, reformulation, and refreshed marketing. Our sports volumes grew 4.8%, despite cycling strong growth last year, led by parade and supported by the launch of parade mango and great euro's activation. Aquarius also grew, reflecting continued favorable trends in this category. Monster elk performance, driving overall energy volume of 7.5% on top of an impressive 50% growth last year.

Speaker Change: Coca Cola original tastes also perform well, led by growth in the Philippines and supported by the launch of our lemon flavor extension in Europe , now available in both regular and zero variants.

Damian Gammell: Sprite volumes performed well, up 5.9% in growth across Europe and APS, with double-digit growth in the Philippines driven by execution, reformulation, and refreshed marketing. Our sports volumes grew 4.8% despite cycling strong growth last year, led by Parade and supported by the launch of Parade Mango and Great Euros Activation. Aquarius also grew, reflecting continued favorable trends in this category.

Speaker Change: Sprite volumes perform well, up 5.9% in growth across Europe and APS, with double-digit growth in the Philippines driven by execution, reformulation, and refreshed marketing.

Speaker Change: Our sports volumes grew 4.8% despite cycling strong growth last year, led by Parade and supported by the launch of Parade Mango and Great Euros Activation.

Speaker Change: Aquarius also grew, reflecting continued favorable trends in this category.

Damian Gammell: Montserrat Park, driving overall energy volume up 7.5% on top of an impressive 15% growth last year. Fantastic innovation continues to drive recruitment and distribution, building on the launch of Monster Green Zero, the launch of Rainstorm, and the continued flavor extensions across field terrain.

Speaker Change: Monster Outperform.

Speaker Change: driving overall energy volume of 7.5% on top of an impressive 15% growth last year.

Damian Gammell: Fantastic innovation continues to drive recruitment and distribution, building on the launch of Monster Green Zero, the launch of Range Storm, and the continued flavor extensions across Delta range. And finally, in ARTD, as we diversify our business to address different needs states, and following encouraging results of Jack Daniels and Coca-Cola, the number one ARTD value brand in GB. We are building on the excitement with the launch of Absolute and Sprite in Europe, already off to a good start with an encouraging rate of sale.

Speaker Change: Fantastic innovation continues to drive recruitment and distribution.

Speaker Change: building on the launch of Monster Green Zero, the launch of Rainstorm, and the continued flavor extensions across filter range.

Damian Gammell: And finally, in ARTD, as we diversify our business to address different needs and following the encouraging results of Jack Daniels and Coca-Cola, the number one ARTD value brand in GB, we are building on the excitement with the launch of Absolute and Sprite in Europe, already off to a good start with an encouraging rate of sale. Great execution will always be a key priority for us at CCP as we strive to make it even easier for our customers to do business with us and share in our success. We continue to create value for our category, adding 600 million euros of value to our retail customers in the first half. Activation, both in-store and online, is key.

Speaker Change: And finally, in ARTD, as we diversify our business to address different need states,

Speaker Change: following the encouraging results of Jack Daniels and Coca Cola, the number one ARTD value brand in GB, we are building on the excitement with the launch of Absolute and Sprite in Europe , already off to a good start with an encouraging rate of sale.

Damian Gammell: Great execution will always be a key priority for us at CCEP, as we strive to make it even easier for our customers to do business with us and share in our success. We continue to create value for our category, adding 600 million euros of value to our retail customers in the first half. Activation, both in-store and online, is key. We continue to invest in our digital capabilities to drive more targeted activation points in the market. Through a world-class key account management capabilities, we continue to increase distribution, building incremental displays and increasing our share of cold drinks space with more cooler placements.

Speaker Change: Great execution will always be a key priority for us at TCP as we strive to make it even easier for our customers to do business with us and share in their success.

Speaker Change: We continue to create value for our category, adding 600 million euros of value to our retail customers in the first half.

Speaker Change: Activation, both in-store and online, is key. We continue to invest in our digital capabilities to drive more targeted activation points in the market.

Damian Gammell: We continue to invest in our digital capabilities to drive more targeted activation points in the market. Both help our brands reach more households and improve our retail and away-from-home share of visible imagery metrics, as you will see here. Which brings me on to our other sustainability highlights, for which we continue to be recognized externally, including retaining our inclusion on the CDP's A-list for climate and maintaining our MSCI AAA ESG rating. Additionally, we continue to invest in sustainability-focused technology through our CCEP Ventures arm.

Speaker Change: Through our world-class key account management capabilities, we continue to increase distribution, building incremental displays, and increasing our share of cold drink space with more cooler placements.

Damian Gammell: Both help our brands reach more households and improve our retail and away from home share of visible imagery.

Speaker Change: Both help our brands reach more households and improve our retail and away-from-home share of visible imagery metrics, as you will see here.

Damian Gammell: Metrics, as you will see here.

Damian Gammell: We also continue to invest in supply chain. One example in Germany, we invested 40 million euros in a new, returnable glass line. Great for our customers while supporting our sustainability agenda.

Speaker Change: We also continue to invest in supply chain. One example in Germany we invested 40 million euros in a new returnable glass line Great for our customers while supporting our sustainability agenda

Damian Gammell: Which brings me on to our other sustainability highlights, for which we continue to be recognized externally, including retaining our inclusion on the CDP's A-list for climate. Unmaintaining our MSCI AAA ESG rating. We continue to invest in sustainability-focused technology through our CCEP Ventures arm. We recently created a sustainability partnership with Air Hive, which supports the development of technology to capture a thousand tons of CO2 annually. This can then be used in our carbonated drinks, while aligning with our net zero emission targets.

Speaker Change: Which brings me on to our other sustainability highlights.

Speaker Change: for which we continue to be recognized externally, including retaining our inclusion on the CDP's A-list for climate and maintaining our MSCI AAA ESG rating.

Speaker Change: We continue to invest in sustainability-focused technology through our CCEP Ventures Arm.

Damian Gammell: We recently created a sustainability partnership with Air Hive, which supports the development of technology to capture 1,000 tons of CO2 annually. This can then be used in our carbonated drinks while aligning with our net zero emission target. And to support sustainability in everyday decision-making, we recently launched our own Sustainability Academy in partnership with the AXA Climate School.

Speaker Change: We recently created a sustainability partnership with Air Hive, which supports the development of technology to capture 1,000 tons of CO2 annually. This can then be used in our carbonated drinks while aligning with our net zero emission targets.

Damian Gammell: And to support sustainability in everyday decision-making, we recently launched our own Sustainability Academy in partnership with the Access Climate School.

Speaker Change: And to support sustainability in everyday decision-making, we recently launched our own Sustainability Academy in partnership with the AXA Climate School.

Ed Walker: I'd now like to hand over to Ed to talk in more detail to the financials.

Ed: I'd now like to hand over to Ed to talk in more details to the financials. Ed? Thank you Damian and thank you all for joining us today. Let me start by taking you to our financial summary.

Ed Walker: Ed, thank you, Damian, and thank you all for joining us today. Let me start by taking you to our financial summary. We delivered total revenue of 10.1 billion euros, an increase of 3.5% in the half. Our cost of sales per unit case increased to 1.5%. This is cycling a high single-digit cost of sales per unit case growth in the first half last year, and also includes the mixed benefit, driven by the strong growth in the Philippines, which has a lower cost of sales per unit case, as you know. We delivered an operating profit of 1.3 billion euros, up 9%.

Damian Gammell: We delivered total revenue of €10.1 billion, an increase of 3.5% in the half. Our cost of sales per unit case increased two and a half percent. This reflects a high single-digit cost-of-sales-per-unit case growth in the first half of last year and also includes mixed benefits driven by the strong growth in the Philippines, which has a lower cost-of-sales-per-unit case, as you know. This reflects our solid top-line performance, the delivery of the first year of our next efficiency program, and our continued focus on strong cost management.

Ed: We delivered total revenue of 10.1 billion euros, an increase of 3.5% in the half.

Ed: Our cost-of-sales-per-unit case increased 2.5%. This is cycling a high single-digit cost-of-sales-per-unit case growth in the first half last year, and also includes the mixed benefit driven by the strong growth in the Philippines, which has a lower cost-of-sales-per-unit case, as you know.

Ed: We delivered an operating profit of 1.3 billion euros, up 9%. This reflects our solid top-line performance, the delivery of the first year of our next efficiency program, and our continued focus on strong cost management.

Ed Walker: This reflects our solid top-line performance, the delivery of the first year of our next efficiency program, and our continued focus on strong cost management. This has led to an operating margin expansion, operating profit margin expansion, of more than 50 basis points. And as Damian referred to earlier, gets our operating margin back to 2019 Free Philippines levels, which we're very pleased with. We delivered comparable diluted earnings for share of 1.97 euro in the half, up 7% on a comparable and FX neutral basis. This is not an adjusted measure, so does not assume that the Philippines transaction had occurred at the beginning of last year, but in February this year when the acquisition completed.

Ed: This has led to an operating margin expansion, operating profit margin expansion, of more than 50 basis points and as Damian referred to earlier, gets our operating margin back to 2019 pre-Philippines levels, which we're very pleased with.

Damian Gammell: We delivered comparable diluted earnings per share of €1.97 in the half, up 7% on a comparable and FX-neutral basis. The growth in EPS is driven by our solid operating profit growth, in part offset by Aboitus' non-controlling interest of €17 million, a higher interest charge driven by the Philippines transaction, and a higher effective tax, all of which were highlighted earlier this year within our full year guidance. Comparable free cash flow generation continues to be a core priority, and we delivered an impressive €539 million in the first half.

Speaker Change: We delivered comparable diluted earnings per share of €1.97 in the half, up 7% on a comparable and FX neutral basis.

Speaker Change: This is not an adjusted measure, so does not assume that the Philippines transaction had occurred at the beginning of last year, but in February this year when the acquisition completed.

Ed Walker: The growth in EPS is driven by our solid operating profit growth, in part set by a boycester's non-controlling interest of 17 million euros, a higher interest charge driven by the Philippines transaction, and a higher effective tax rate, all of which were highlighted earlier this year within our folio guidance. Comparable free cash flow generation continues to be a core priority, and we delivered an impressive 539 million euros in the first half. This was after investing various key projects, including new can lines in GB and Australia, a new PC line in Papua New Guinea, and a new RGB line in Germany.

Speaker Change: The growth in EPS is driven by our solid operating profit growth, in part offset by Aboitis' non-controlling interest of €17 million.

Speaker Change: a higher interest charge given by the Philippines transaction and a higher effective tax rate, all of which were highlighted earlier this year within our four-year guidance.

Speaker Change: Comparable free cash flow generation continues to be a core priority and we delivered an impressive 539 million euros in the first half.

Damian Gammell: This was after investing in various key projects, including new CAN lines in GB in Australia, a new PET line in Papua New Guinea, and a new RGB line in Germany. We stepped up our cooler placements also, as Damian referred to earlier. And finally, on shareholder returns, we paid a first half interim dividend per share of €0.74, which we declared back in April and then paid in May. As a reminder, this was calculated as 40% of the full year. 2023 Dividend

Speaker Change: This was after investing in various key projects including new CAN lines in GB in Australia, a new PET line in Papua New Guinea, and a new RGB line in Germany.

Ed Walker: We stepped up our cooler placements also, as Damian referred to earlier, and we continue to invest in our digital journey, including our move from legacy SAP systems to S4HANA. We remain on track to deliver a comparable free cash flow of around 1.7 billion euros for the year, as per our guidance.

Speaker Change: We stepped up our cooler placements also as Damian referred to earlier, and we continue to invest in our digital journey including our move from legacy SAP systems to S4 HANA.

Speaker Change: We remain on track to deliver comparable free cash flow of around 1.7 billion euros for the year as per our guidance.

Ed Walker: And finally, on shareholder returns, we paid a first half interim dividend per share of 74 euro cents, which we declared back in April and then paid in May. As a reminder, this was calculated as 40% of the full year 2020-23 dividend.

Speaker Change: And finally on shareholder returns, we paid a first half interim dividend per share of €0.74, which we declared back in April and then paid in May. As a reminder, this was calculated as 40% of the full year 2023 dividend.

Ed Walker: Now to our revenue highlights. We've delivered a solid top-line performance. Revenue per case grew 2.9 percent, reflecting positive headline pricing, promotional optimization, and brand mix, partly offset by geographic mix. This geographical mix was driven by the strong growth in the Philippines, which is as a lower revenue per unit case, as we've discussed before. We continue to benefit by mixing; we took in the second half of last year in GB and Germany and successfully executed pricing across our other key markets. Australia Pacific revenue per unit case grew in line with Europe. Volumes, volumes were up 0.6 percent versus last year.

Damian Gammell: Now to our revenue highlights. We delivered a solid top-line performance. Revenue per case grew 2.9%, reflecting positive headline pricing, promotional optimization, and brand mix, partly offset by geographic mix. This geographical mix was driven by the strong growth in the Philippines, which is at a lower revenue per unit case, as we've discussed before. Australia-Pacific revenue per unit case grew in line with Europe.

Speaker Change: Now to our revenue highlights.

Speaker Change: We delivered a solid top-line performance. Revenue per case grew 2.9%, reflecting positive headline pricing, promotional optimization and brand mix, partly offset by geographic mix.

Speaker Change: This geographical mix was driven by the strong growth in the Philippines, which is at a lower revenue per unit case as we've discussed before.

Speaker Change: We continue to benefit from the thing we took in the second half of last year in GV in Germany and successfully executed pricing across our other key markets. Australia Pacific revenue per unit case grew in line with Europe .

Damian Gammell: Volumes. Volumes were up 0.6% versus last year. As Damian touched on earlier, our volumes reflect strategic choices we have made in our portfolio and adverse weather in Europe, especially in June. As you'll recall, we've made a number of portfolio choices, including our transition out of Capri Sun in Europe and out of bulk water across a number of markets. These are the right strategic decisions as we continue to be more selective on where we want to play for the long term and to ensure we continue to grow our business both profitably and sustainably.

Speaker Change: Volumes. Volumes were up 0.6% versus last year. As Damian touched on earlier, our volumes reflect strategic choices we have made in our portfolio and adverse weather in Europe , especially in June .

Ed Walker: As Damian touched on earlier, our volumes reflect strategic choices we have made in our portfolio and adverse weather in Europe, especially in June. As you'll recall, we've made a number of portfolio choices, including our transition out of Capricen in Europe and out of bulk water across the number of markets. These are the right strategic decisions as we continue to be more choiceful on where we want to play for the long term and to ensure we continue to grow our business both profitably and sustainably. These exits account for around 1 percent of volume in the first half across both Europe and APS.

Damian: As you'll recall, we've made a number of portfolio choices, including our transition out of Capri Sun in Europe and out of bulk water across a number of markets.

Speaker Change: These are the right strategic decisions as we continue to be more choiceful on where we want to play for the long term and to ensure we continue to grow our business both profitably and sustainably.

Speaker Change: These exits account for around 1% of volume in the first half across both Europe and APS.

Ed Walker: In Europe, these strategic exits and the adverse weather, especially in June, impacted both home and away-from-home channels. The exits aside, we believe that the adverse weather, whilst not an exact science, did drive the majority of the remaining volume decline. Underline consumer spending did hold up reasonably well, and we saw volume growth across a number of our brands like sports and energy, as Damian talked to earlier. We continue to focus on driving long-term value for the category and for our customers. Our retail share helped up well, improving across the half, and we grew share in away from home despite lower footfall across the channel.

Damian Gammell: In Europe, these strategic exits and the adverse weather, especially in June, impacted both home and away from home channels. The exits aside, we believe that the adverse weather, whilst not an exact science, did drive the majority of the remaining volume decline.

Speaker Change: In Europe , these strategic exits and the adverse weather, especially in June , impacted both home and away-from-home channels.

Speaker Change: The exits aside, we believe that the adverse weather, whilst not an exact science, did drive the majority of the remaining volume decline.

Damian Gammell: Underlying consumer spending did hold up reasonably well, and we saw volume growth across a number of our brands, like sports and energy, as Damian talked about earlier. We continue to focus on driving long-term value for the category and for our customers. Our retail share held up well, improving across the half, and we grew share in away from home despite lower footfall across the channel. Looking at our APS markets, we saw volumes grow by 7.5% in the first half, reflecting solid momentum in Australia and New Zealand, double-digit growth in the Philippines, and a solid performance from Papua New Guinea. In Indonesia, following an encouraging first quarter, we have seen more mixed demand reflecting the geopolitical situation. Damian will touch more on this shortly, alongside the Philippine

Speaker Change: Underlying consumer spending did hold up reasonably well and we saw volume growth across a number of our brands like sports and energy as Damian talked to earlier.

Speaker Change: We continue to focus on driving long-term value for the category and for our customers. Our retail share held up well improving across the half and we grew sharing away from home despite lower footfall across the channel.

Ed Walker: Looking at our APS markets, we saw volumes grow by 7.5 percent in the first half, reflecting solid momentum in Australia and New Zealand, double-digit growth in the Philippines, and a solid performance from Papua New Guinea. From a brand perspective, we delivered solid growth in Co-Zero and Panther, and double-digit growth in energy. In Indonesia, following an encouraging first quarter, we have seen more mixed demand reflecting the geopolitical situation. We do, however, remain confident in our transformation plan and the long-term opportunity in the market. Damian will touch more on this shortly alongside the Philippines.

Damian: Looking at our APS markets, we saw volumes grow by 7.5% in the first half, reflecting solid momentum in Australia and New Zealand, double-digit growth in the Philippines, and a solid performance from Papua New Guinea.

Damian: From a brand perspective, we delivered solid growth in Coke Zero and Fanta, and double-digit growth in energy.

Damian: In Indonesia, following an encouraging first quarter, we have seen more mixed demand reflecting the geopolitical situation. We do, however, remain confident in our transformation plan and the long-term opportunity in the market.

Damian: Damian will touch more on this shortly alongside the Philippines.

Damian Gammell: Thanks, Ed. So let me just start with the Philippines, and as we have said before, a great strategic move and now very much part of the CCP family. We had a strong first half, the living double-digit volume growth. Underline market demand remains strong, growing high single digit, with a large, young and growing population. Our great execution delivered solid body share gain, now at an impressive 74% sparking share on 47% NA or TD share. And I have to say, the more I see the business, the more and more excited I've become. We see lots of opportunities, but long and short term, which naturally will be led by our co-trademark.

Damian: Thanks Ed, so let me just start with the Philippines and as we have said before a great strategic move and now very much part of the CCP family.

Damian Gammell: We had a strong first half, delivering double-digit volume growth. Our great execution delivered solid value share gains, now at an impressive 74% sparkling share and 47% NARTD share. And I have to say, the more I see the business, the more and more excited I've become. We see lots of opportunities, both long and short term, which will naturally be led by our Coke trademark. But we also see opportunities in low and no sugar in the energy category, where we've recently launched the more affordable predator offering.

Damian: We had a strong first half, delivering double-digit volume growth. Underlying market demand remained strong, growing high single-digit, with a large, young and growing population.

Speaker Change: Our great execution delivered solid value share gain, now at an impressive 74% sparkling share and 47% NARTD share. And I have to say, the more I see the business, the more and more excited I've become.

Speaker Change: We see lots of opportunities, both long and short term, which naturally will be led by our Coke trademark. But we also see opportunities in low and no sugar, in the energy category, where we've recently launched the more affordable Predator offering.

Damian Gammell: But we also see opportunities in low and no sugar in the energy category, where we've recently launched the more affordable Predator offering. And in expanding our presence in ARTD with the launch of Peach Lemondole and Jack Daniels and Coca-Cola Zero. Our strong focus on capital allocation and our long-term mindset will ensure we invest in this exciting business to support the market's long-term growth expectation. So given the strong start this year and the positive outlook, we are accelerating our CAPEX plan.

Speaker Change: and in expanding our presence in ARTD with the launch of Peach Lemon Dough and Jack Daniels and Coca Cola Zero.

Speaker Change: Our strong focus on capital allocation and our long-term mindset will ensure we invest in this exciting business to support the market's long-term growth expectations.

Damian Gammell: So given the strong start this year and the positive outlook, we are accelerating our CapEx plan. Many of you would have received the invitation to our Capital Markets Day in May next year, where the leadership and the local teams, and I look forward to showcasing our Southeast Asia business. And now on to the second biggest market, Indonesia. Also really exciting. Like many other Western brands in the country, our first half was impacted by the geopolitical situation in the Middle East. However, this is not across all regions in the country.

Speaker Change: So, given the strong start this year and the positive outlook, we are accelerating our CapEx plan.

Damian Gammell: Many of you would have received the invitation for our capital market stay for the next year, where the leadership and the local teams and I look forward to showcasing our Southeast Asia businesses.

Speaker Change: Many of you would have received the invitation for our Capital Markets Day for May next year, where the leadership and the local teams and I look forward to showcasing our Southeast Asia businesses.

Damian Gammell: And now on to the second biggest market in Indonesia, also really exciting. Like many other Western brands in the country, our first half was impacted by the geopolitical situation in the Middle East. However, this is not across all regions in the country. In fact, unaffected areas are delivering encouraging volume and transaction growth. It is important, therefore, to focus on what we can control and influence in this market, being part of our long-term transformation journey. Our three-price pack channel strategy has landed well in the market. We continue to build sparking relevance and build on our ready-to-drink tea offering with flavor extensions like Fanta grape and fresh tea lemongrass.

Speaker Change: And now on to the second biggest market, Indonesia.

Speaker Change: Also really exciting, like many other Western brands in the country, our first half was impacted by the geopolitical situation in the Middle East.

Damian Gammell: In fact, unaffected areas are delivering encouraging volume and transaction growth. It is important, therefore, to focus on what we can control and influence in this market as part of our long-term transformation journey. Our three-price packed channel strategy has landed well in the market. We continue to build sparkling relevance and build on our ready-to-drink tea offering with flavor extensions like Fanta Grape and Fresh Tea Lemongrass. We are accelerating our zero mix, which is seeing strong growth, especially in the modern trade, and expanding to 500 universities.

Speaker Change: However, this is not across all regions in the country. In fact, unaffected areas are delivering encouraging volume and transaction growth.

Speaker Change: It is important, therefore, to focus on what we can control and influence in this market, being part of our long-term transformation journey.

Speaker Change: Our three-price packed channel strategy has landed well in the market.

Speaker Change: We continue to build sparkling relevance and build on our ready-to-drink tea offering with flavor extensions like Fanta Grape and Fresh Tea Lemongrass.

Damian Gammell: We are accelerating our zero mix, which is seeing strong growth, especially in the modern trade. And we have a strong targeted activation program on the way, focused on connecting with the young and growing consumer base, extending to 500 universities a year. We are taking the right decisions to re-engineer both our cost-base and accelerate our route to market transition to be fit for the longer term. Always investing in our great talent in a business recently recognized as one of the best companies to work for in Asia. On sustainability, we are owning our circularly journey from day one through the right partnerships and investments.

Speaker Change: We are accelerating our zero mix, which is seeing strong growth, especially in the modern trade. And we have a strong, targeted activation program underway, focused on connecting with the young and growing consumer base, extending to 500 universities a year.

Speaker Change: We are taking the right decisions to re-engineer both our cost base and accelerate our route-to-market trends to be fit for the longer term.

Speaker Change: Always investing in our great talent in a business recently recognized as one of the best companies to work for in Asia.

Damian Gammell: On sustainability, we are owning our circularity journey from day one through the right partnerships and investments. We are on track to introduce returnable glass in the second half of this year, and we have partnered with recycling facilities to support our plans to achieve 100% packaging collection in 2025, which will be well ahead of our developed market. So, a lot of excitement ahead for the rest of this year and beyond. And I'll just touch on some of the revenue opportunities for this year.

Speaker Change: On sustainability, we are owning our circularity journey from day one through the right partnerships and investments.

Damian Gammell: We are on track to introduce returnable glass in the second half of this year. And we have partnered with recycling facilities to support our plans to achieve 100% packaging collection in 2025, which will be well ahead of our developed markets. So a lot of excitement ahead for the rest of this year and beyond.

Speaker Change: We are on track to introduce returnable glass in the second half of this year, and we have partnered with recycling facilities to support our plans to achieve 100% packaging collection in 2025, which will be well ahead of our developed markets.

Speaker Change: So, a lot of excitement ahead for the rest of this year and beyond.

Damian Gammell: And I'll just touch now on some of the revenue opportunities for this year. We have great brands, which are consumers low, and on the back of ongoing investment and innovation, product and packaging, our category and brands continue to support a solid growth platform for all our customers. It is essential now more than ever that we continue to balance criminalization for those that seek it, and with more affordable offerings for those that need it. One great example is in Spain, where we activated a popular and affordable price point on the iconic two-liter pack in the home channel to drive frequency and household penetration.

Damian Gammell: We have great brands, which our consumers love, and on the back of ongoing investment and innovation, product and packaging, our category and brands continue to support a solid growth platform for all our customers. It is essential now more than ever that we continue to balance. One great example is in Spain, where we activated a popular and affordable price point on the iconic 2-liter pack-in-the-home channel to drive frequency and household penetration. And in the same stores, we continue to offer more premium glass packaging and multi-pack cans at a higher revenue per unit case.

Speaker Change: And I'll just touch now on some of the revenue opportunities for this year. We have great brands, which our consumers love, and on the back of ongoing investment and innovation, product and packaging, our category and brands continue to support a solid growth platform for all our customers.

Speaker Change: It is essential now more than ever that we continue to balance premiumization for those that seek it and with more affordable offerings for those that need it.

Speaker Change: One great example is in Spain, where we activated a popular and affordable price point on the iconic 2-liter pack-in-the-home channel to drive frequency and household penetration. And in the same stores, we continue to offer a more premium glass packaging and multi-pack cans at a higher revenue per unit case.

Damian Gammell: And in the same stores, we continue to offer a more premium glass packaging and multi-packed cans at a higher revenue per unit case. We will continue to invest to boost rain space and visibility across our portfolio to strong in-store execution and connecting our consumers with key counter-events, including music, Halloween, and Christmas. And for those that have been or are planning to visit Paris for the Olympics, you'll see our fantastic in-market execution across retail and away-from-home outlets. We have some exciting innovation plans for the co-portfolio, building on the lemon-flavored extension to launch this year with further innovations planned, so continue to watch this space.

Damian Gammell: We will continue to invest to boost range, space, and visibility across our portfolio through strong in-store execution and connecting our consumers with key calendar events including music, Halloween, and Christmas. And for those that have been or are planning to visit Paris for the Olympics, you'll see our fantastic in-market execution across retail and away from home outlets. We have some exciting innovation planned for the co-portfolio, building on the Lemon Flavor Extension launch this year, with further innovations planned. So, continue to watch this space.

Speaker Change: We will continue to invest to boost range, space and visibility across our portfolio through strong in-store execution and connecting our consumers with key calendar events including music, Halloween and Christmas.

Speaker Change: And for those that have been or are planning to visit Paris for the Olympics, you'll see our fantastic in-market execution across retail and away from home outlets.

Speaker Change: We have some exciting innovation planned for the co-portfolio, building on the Lemon Flavor Extension launch this year with further innovations planned, so continue to watch this space.

Damian Gammell: And energy will continue to benefit from the wider launch of the well-received Monster Green Zero Sugar and the launch of new and exciting flavor extensions and rainstorms. So now on to the full year 2024, where we are reaffirming our guidance. In short, very little has changed.

Damian Gammell: And energy will continue to benefit from the wider launch of the well-received Monster Green Zero Sugar and the launch of Munich's exciting flavor extensions and Rainstorm.

Speaker Change: And energy will continue to benefit from the wider launch of the well-received Monster Green Zero Sugar and the launch of new and exciting flavor extensions and rainstorm.

Damian Gammell: So now on to the full year 2024, where we are reaffirming our guidance. In short, very little has changed. Given our solid year-to-date performance, we are very pleased to be reaffirming our full year guidance, which is aligned with our midterm objectives. Please note that these full year growth rates are provided on an adjusted, comparable, and effective news for basis. We expect revenue growth of around 4%. For calls of sales per unit case, we had indicated a range of 3 to 4% growth earlier in the year. We are now guiding to the bottom end of this range, so around 3%.

Speaker Change: So now on to the full year 2024, where we are reaffirming our guidance.

Damian Gammell: Given our solid year-to-date performance, we are very pleased to be reaffirming our full-year guidance, which is aligned with our midterm objectives. We expect revenue growth of around 4%. With our continued focus on OPEX, which includes savings of around 60 to 70 million euros linked to our latest efficiency program, we will look to deliver comparable operating profit growth of around 7%. We continue to expect our full-year effective tax rate to be approximately 25%, up from 24% last year, reflecting differences in the mix of taxable profits across our markets and known tax rate increases. And finally, we expect to deliver comparable free cash flow of around 1.7 billion after investing 1 billion euros in CapEx to support that long-term growth, examples of which Ed touched on earlier.

Speaker Change: In short, very little has changed. Given our solid year-to-date performance, we are very pleased to be reaffirming our full year guidance, which is aligned with our midterm objectives.

Speaker Change: Please note that these full-year growth rates are provided on an adjusted, comparable and FX-neutral basis.

Speaker Change: We expect revenue growth of around 4%.

Speaker Change: For cost of sales per unit case, we had indicated a range of 3-4% growth earlier in the year. We are now guiding to the bottom end of this range, so around 3%.

Damian Gammell: We now anticipate our commodity inflation to be flat versus our previous low single digit growth rate, 90% of which is now hedged. With our continued focus on OPEX, which includes savings of around 60 to 70 million euros linked to our latest efficiency program, we will look to deliver comparable operating profit growth of around 7%. We continue to expect our full year effective tax rate to be approximately 25%, up from 24% last year, reflecting differences in the mix of taxable profits across our markets and known tax rate increases. And finally, we expect to deliver a comparable free cash flow of around 1.7 billion after investing 1 billion euros in COPEX to support that long-term growth, examples of which Ed touched on earlier.

Speaker Change: We now anticipate our commodity inflation to be flat versus our previous low single-digit growth rate, 90% of which is now hedged.

Speaker Change: With our continued focus on OPEX, which includes savings of around 60 to 70 million euros linked to our latest efficiency program, we will look to deliver comparable operating profit growth of around 7%.

Speaker Change: We continue to expect our full-year effective tax rate to be approximately 25 percent, up from 24 percent last year, reflecting differences in the mix of taxable profits across our markets and known tax rate increases.

Ed: And finally, we expect to deliver comparable free cash flow of around 1.7 billion after investing 1 billion euros in CapEx to support that long-term growth, examples of which Ed touched on earlier.

Damian Gammell: So, a quick recap of our key messages before we move to the close. We are really pleased with our first half financial performance. We are reaffirming a full year guidance, which is in line with those midterm objectives I spoke to earlier, and we believe we are well-placed to achieve this. And finally, to our ongoing stakeholder value creation story, we have got opportunities everywhere. Top line, bottom line, from our great colleagues to tell us every day to join for the brand and stay for the people and for all our stakeholders. We have the capacity to invest in a long-term, sustainable data and insight-led future, but of course, we will continue to do this in the right way.

Damian Gammell: A quick recap of our key messages before we move to the close. And finally, to our ongoing stakeholder value creation story. So, lots to choose from.

Speaker Change: Thank you.

Speaker Change: A quick recap of our key messages before we move to the close. We are really pleased with our first half financial performance. We are reaffirming a full year guidance, which is in line with those midterm objectives I spoke to earlier. And we believe we are well placed to achieve this.

Speaker Change: And finally, to our ongoing stakeholder value creation story.

Speaker Change: We have got opportunities everywhere. Top line, bottom line, from our great colleagues to tell us every day to join for the brand and stay for the people and for all our stakeholders.

Speaker Change: We have the capacity to invest in a long-term, sustainable,

Speaker Change: data and insight-led future, but of course we'll continue to do this in the right way. Our consistent and disciplined capital allocation framework is always front and center. We will return to our target leverage range later this year, one year earlier than planned, providing even more flexibility as we look forward.

Damian Gammell: Our consistent and disciplined capital allocation framework is always front and center. We will return to our target leverage range later this year, one year earlier than planned, providing even more flexibility as we look forward. So lots of shoes for.

Damian Gammell: To close, I would like to thank our customers, our brand partners, and our great people, whose hard work and commitment mean we are able to continue to go further together. Thank you very much. Ed and I will now be happy to take your questions, and I'll hand over to you, Operator. Thank you. We will now begin the questions.

Damian Gammell: To close, I would like to thank our customers, our brand partners, and our great people whose hard work and commitment, when we are able to continue to go further together. Thank you very much.

Speaker Change: So lots to choose for. To close, I would like to thank our customers, our brand partners, and our great people whose hard work and commitment mean we are able to continue to go further together. Thank you very much. Ed and I will now be happy to take your questions and I'll hand over to you operator.

Operator: Ed and I will now be happy to take your questions, and I'll hand over to you, Operator. Thank you. We will now begin the question and answer session.

Speaker Change: Thank you. We will now begin the question and answer session. As a reminder, we kindly request only one question per analyst. If you would like to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced.

Operator: As a reminder, we kindly request only one question per ranilist. If you would like to ask a question, please press star one and one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star one and one again. Once again, please press star, one, and one if you wish to ask a question. Please stand by while we compile the Q&A queue. This will only take a few moments.

Operator: If you wish to cancel your request, please press star 1 and 1 again. Once again, please press star 1 and 1 if you wish to ask a question. Please stand by while we compile the Q&A queue. This will only take a few moments. Our first question comes from the line of Bonnie Herzog from Goldman Sachs.

Speaker Change: If you wish to cancel your request, please press star 1 and 1 again. Once again, please press star 1 and 1 if you wish to ask a question. Please stand by while we compile the Q&A queue. This will only take a few moments.

Bonnie Herzog: Our first question comes from the line of Bonnie Herzog from Goldman Sachs. Hi everyone. Hope you're well.

Speaker Change: Our first question comes from the line of Bonnie Herzog from Goldman Sachs.

Bonnie Herzog: Hi everyone. I hope you're well.

Bonnie Herzog: I guess I had a question on your volumes in the quarter, hoping to get a little more color and really trying to get a sense of how they trended relative to your internal expectations. I know Damian, you mentioned whether was one of the main impacts on volume pressures, especially in Europe, but any other callus that maybe surprised you. I guess from your perspective, also if you could provide us with how volumes trended, you know, months and months in the quarter and any color on July and August so far, and then, sorry, finally, but just curious to hear if transactions outpaced volume in the quarter.

Bonnie Herzog: Hi everyone, hope you're well. I guess I had a question on your your volumes in the quarter, hoping to get a little more color and you know really

Damian Gammell: I guess I had a question on your volumes in the quarter, hoping to get a little more color and, you know, really trying to get a sense of how they trended relative to your internal expectations. I know, Damian, you mentioned that weather was one of the main impacts on volume pressures, especially in Europe. But, you know, any other call-ups that maybe surprised you, you know, from your perspective? And also, if you could provide us with how volumes trended, you know, month to month in the quarter and any color on July and August so far.

Bonnie Herzog: Trying to get a sense of how they trended relative to your internal expectations. I know Damian, you mentioned, you know, weather was one of the main...

Speaker Change: impacts on volume pressures, especially in Europe , but you know, any other call us that maybe surprised you?

Speaker Change: You know, I guess from your perspective and also if you could provide us with how volumes trended, you know, month to month in the quarter and any color on July and August so far.

Speaker Change: and then sorry finally but just curious to hear if transactions outpace volume in the quarter and if those transactions sort of accelerated sequentially. Thanks for all that.

Bonnie Herzog: And if those transactions sort of accelerated sequentially, thanks for all that.

Damian Gammell: Hi, Bonnie. Thank you. Yeah, so maybe I'll just start with the second part of that. So we are pleased that transactions perform better than volume. We saw that in Europe and across all of our markets. So we are seeing transactions continue to hold up stronger than volume did. Yeah, clearly, I mean, it was a weaker volume quarter and then we would have liked in Europe. I haven't seen anything, you know, in it, other than, you know, we're gaining share. I think all of our activations landed really well. I was lucky enough to be at the Euros, and the great activation across Germany across all of our markets has been recently in France.

Bonnie Herzog: Hi Bonnie, thank you.

Speaker Change: Yeah, so maybe I'll just start with the second part of that. So we are pleased that transactions perform better than volume. We saw that in Europe and across all of our markets. So we are seeing transactions continue to hold up stronger than volume did.

Speaker Change: Yeah, clearly, I mean, it was a weaker volume quarter than we would have liked in Europe . I haven't seen anything, you know, in it other than, you know, we're gaining share. I think all of our...

Speaker Change: Activations landed really well. I was lucky enough to be at the Euros and a great activation across Germany, across all of our markets. I've been recently in France.

Damian Gammell: So it's certainly not an executional issue. It's just an offtake issue. When we look at offtake, I would say June and July were slower than we would like, but we have seen it improve. And certainly, you know, we've got a lot of plans in place for the remainder of the year in Europe but across all of our markets to drive volume and revenue. As you've seen, we've got great revenue per case realization. So, you know, the one delta in the quarter obviously was volume.

Damian Gammell: So certainly not an executionally issue. It's just an offtake issue. When we look at offtake, you know, I would say June and July were slower than we would like. We have seen it improve. And certainly, you know, we've got a lot of plans in place for the remainder of the year in Europe, but across all of our markets to drive volume and revenue. As you've seen, we've got great revenue per case realization. So, you know, the one delta in the quarter obviously was volume. And as I said, I don't see anything beyond, you know, some adverse weather, which really dampened our away-from-home business.

Speaker Change: So it's certainly not an executional issue. It's just an offtake issue. When we look at offtake, you know, I would say June and July were slower than we would like. We have seen it improve.

Speaker Change: And certainly, you know, we've got a lot of plans in place for the remainder of the year in Europe , but across all of our markets to

Speaker Change: Dry Volume and Revenue

Speaker Change: As you've seen, we've got great revenue per case realisation, so the one delta in the quarter obviously was volume, and as I said, I don't see anything...

Damian Gammell: And as I said, I don't see anything beyond, you know, some adverse weather which really dampened our away from home business. But retail performed better. So we did see our retail business continue to hold up. So when you look through it, there's nothing on a specific brand or pack to call out.

Speaker Change: beyond, you know, some adverse weather which really dampened our away from home business. Retail performed better.

Damian Gammell: Retail performed better. So we did see our retail business continue to hold up. So when you look through it, there's nothing on a specific brand or pack to call out. It's really kind of across the category and not just for us. So we gained share in the software category, which I think is a good outcome. And as I mentioned, a retail business held up well. And yeah, and you just saw less people out and about. No way from home. So footfall was down, particularly in June. We saw that continue a little bit into July, and then it started to improve.

Speaker Change: So we did see our retail business continue to hold up. So when you look through it, there's nothing on a specific brand or pack.

Speaker Change: to call out. It's really kind of across the category and not just for us.

Damian Gammell: It's really kind of across the category and not just for us. So we gained share in the software category, which I think is a good outcome. And, as I mentioned, our retail business held up well. Yeah, and you just saw fewer people out and about and away from home.

Speaker Change: So we gained share in the software category, which I think is a good outcome, and as I mentioned, our retail business held up well. Yeah, and you just saw less people out and about and away from home, so footfall was down.

Damian Gammell: So footfall was down, particularly in June. We saw that continue a little bit into July, and then it started to improve. And we see August looking a bit better as well, so I think that gives us confidence for the rest of the year. On top of that, you know, I think our diversification strategy has played a big part. So while we did have a slightly weaker European volume outlook, our businesses and APS continue to perform really well. And I think that will continue to the end of the year. All right, thank you for that.

Speaker Change: particularly in June . We saw that continue a little bit into July and then it started to improve.

Damian Gammell: And we see August looking a bit better as well. So I think that gives us confidence for the rest of the year.

Speaker Change: and we see August looking a bit better as well so I think that gives us confidence for the rest of the year. On top of that you know I think our diversification strategy you know has played a big part so while we did have a slightly weaker European volume outlook

Damian Gammell: On top of that, you know, I think our diversification strategy, you know, has played a big part. So, while we did have a slightly weaker European volume outlook, you know, our businesses in ATS continue to perform really well. And I think that will continue to the end of the year. Alright, thank you for that.

Speaker Change: You know, our businesses and APS continue to perform really well, and I think that will continue to the end of the year.

Speaker Change: Alright, thank you for that.

Damian Gammell: Thank you.

Simon Hales: Our next question for today comes from the line of Simon Hales from City.

Speaker Change: Thank you.

Operator: Our next question for today comes from the line of Simon Hales from Citi.

Speaker Change: Our next question...

Speaker Change: For today comes from the line of Simon Hales from City.

Simon Hales: Thank you.

Simon Hales: Thank you. Hi Damian, Ed, and Sarah.

Simon Hales: Hi, Damian, Ed, and Sarah. Damian, I wonder if you could just talk a little bit more about the health of the consumer more broadly across your developed markets. In particular, you mentioned, and you prepared remarks, perhaps the need to continue to balance affordability and premiumization. How are you thinking about the promotional environment generally heading into the second half of the year? Your peer CCH was calling out this morning, perhaps some signs of a more price-sensitive consumer in some European markets. I just sort of wonder what you're seeing. Are you seeing that in some areas? If so, where, etc.

Damian Gammell: Damian, I wonder if you could just talk a little bit more about the health of the consumer more broadly across your developed markets. In particular, you mentioned in your prepared remarks the need to continue to balance affordability and premiumization. How are you thinking about the promotional environment generally heading into the second half of the year? Your peer, CCH, was calling out this morning perhaps some signs of a more price-sensitive consumer in some European markets. I just sort of wonder what you're seeing. Are you seeing that in some areas? If so, where should I go?

Simon Hayles: Thank you. Hi Damian, Ed and Sarah.

Simon Hayles: Damian, I wonder if you could just talk a little bit more about the health of the consumer more broadly across your developed markets.

Speaker Change: In particular, you mentioned...

Simon Hales: in your prepared remarks, perhaps the need to continue to balance affordability and premiumisation. How are you thinking about the promotional environment generally heading into the second half of the year? Your peer, CCH, was calling out this morning perhaps some signs of a more price-sensitive consumer in some European markets. I just sort of wonder what you're seeing. Are you seeing that in some areas? If so, where, etc?

Damian Gammell: I would say we haven't seen a dramatic change in that space. I think last year we talked about it, and I think we adjusted our real pricing and our promotional strategy to reflect that some of our consumers were needing more affordability. That's kind of been in place for us now, at least for the last 18, maybe even 24 months. It hasn't deteriorated, and we don't see that in the second half.

Damian Gammell: Hi, thanks, Simon. I would say we haven't seen a dramatic change in that space. I think last year we talked about it, and I think we adjusted a real pricing and a promotional strategy to reflect that some of our consumers were needing more affordability. That's kind of being in place for us now, at least for the last eight, maybe even 24 months. It hasn't deteriorated, and we don't see that in the second half. So I think we're well funded from a promo strategy. I call that some of the examples like in Spain, but if you go across all of our markets from the UK right across New Zealand, I think we've done a good job offering value for consumers who are looking for it.

Damian Gammell: Hi, thanks Simon.

Speaker Change: Hi, thanks Simon. I would say we haven't seen a dramatic change in that space. I think last year we talked about it and I think we adjusted our real pricing and our promotional strategy to reflect

Speaker Change: that some of our consumers were needing more affordability. That's kind of been in place for us now, at least for the last 18, maybe even 24 months. It hasn't deteriorated.

Damian Gammell: So I think we're well-funded from a promotion strategy. I call that some examples like in Spain, but if you go across all of our markets, from the UK right across New Zealand, I think we've done a good job offering value for consumers who are looking for it. But we haven't lost that ability to drive premium NSR per case and profit for us and our customers through those, you know, small PT packs, multi-pack cans, and glass. So, yeah, it's still an element of our strategy. But to answer your question, Simon, I don't see it getting worse.

Speaker Change: and we don't see that in the second half so I think we're well funded from a promo strategy.

Speaker Change: I call that some of the examples like in Spain, but if you go across all of our markets from the UK right across New Zealand, I think we've done a good job offering value for consumers who are looking for it, but we haven't lost that ability to drive premium.

Damian Gammell: What we haven't lost that ability to drive premium NSO or per case and profit for us now customers through those small PT packs, multi pack cans and glass. It's still an element of our strategy, but that's your question. Simon, I don't see it getting worse. I think as we look at Europe, potentially with lower interest rates, Ed talked to some of the commodity pressures easing. That's not only going to benefit us, but will probably benefit the more macro consumer spend environment. So I'd say we don't see any more promotional intensity required. I think it's really about executing what we already have in place, and we see that working from a share perspective.

Speaker Change: NSR per case and profit for us and our customers through those, you know, small PT packs, multi-pack cans, and glass. So, yeah, it's still an element of our strategy, but to answer your question, Simon, I don't see it getting worse, I think, as we look at Europe .

Damian Gammell: I think as we look at Europe, potentially with lower interest rates, Ed talked about some of the commodity pressures easing. You know, that's not only going to benefit us, but it'll probably benefit the more macro consumer spend environment. So, you know, I'd say we don't see any more promotional intensity required. I think it's really about executing what we already have in place. And we see that working from a share perspective. We added over a million households in Europe, so we're definitely getting more people to participate in our brands.

Ed: potentially with lower interest rates. Ed talked to some of the commodity pressures easing. You know, that's not only going to benefit us, but it'll probably benefit the more macro consumer spend environment.

Speaker Change: So, you know, I'd say we don't see any more promotional intensity required. I think it's really about executing what we already have in place. And we see that working from a shared perspective.

Damian Gammell: We added over a million households in Europe, so we're definitely getting more people to participate in our brands. And I think that will continue probably into 25. So, as we look at 25, I see a similar environment, maybe some more potential for a mixed benefit as potentially consumers go out a bit more and eat out a bit more. So I'd expect in the medium term, the away from home channel to do slightly better than it's done. And I think that's going to be a big benefit as well.

Speaker Change: We added over a million households in Europe , so we're definitely getting more people to participate in our brands. And I think that will continue probably into 2025. So as we look at 2025, I see a similar environment, maybe some more potential for a mixed benefit.

Damian Gammell: And I think that will continue probably into 2025. So as we look at 2025, I see a similar environment, maybe some more potential for a mixed benefit, as potentially consumers go out a bit more and eat out a bit more. So I'd expect, in the medium term, the away from home channel to do slightly better than it has done, and I think that's going to be a big benefit as well.

Speaker Change: potentially consumers go out a bit more and eat out a bit more so I'd expect in the medium term the away from home channel to do slightly better than it's done and I think that's going to be a big benefit as well.

Simon Hales: Great.

Sanjit Ulia: Our next question for today comes from the line of Sanjit Ulia from UBS. Oh, hi, both. A couple from me, please. Just coming back to the Europe market share trends. I think Ed talked about growing share in the away-from-home channel. Can you just talk a little bit about what share trends you're seeing in the home channel? I think the new from data, things have stopped and they're all late to just look to get you taken that.

Operator: Our next question for today comes from the line of Sanjeet Aujla from UBS.

Speaker Change: Thank you.

Speaker Change: Our next question for today comes from the line of Sanjeet Aujla from UBS.

Sanjeet Aujla: Hi both. A couple from me, please.

Sanjeet Aujla: Oh, hi both. A couple from me, please. Firstly, just coming back to the Europe market share trends, I think Ed

Sanjeet Aujla: talked about growing share in the away from home channel. Can you just talk a little bit about what share trends you're seeing in the home channel? I think per Nielsen data things have softened there of late so just love to get your take on that. And my follow-up question is just really on how you're seeing the COGS outlook shape up for 2025 with the level of hedges you have in place today. Thanks.

Sanjit Ulia: And my follow-up question is just really on how you seem the coax outlook shape up for 2025 with a level of hedges you have in place today. Thanks.

Sanjit Ulia: Thanks, Sanjeet. I see the direction for one question for a caller has gotten really well today. No surprise there.

Damian Gammell: Firstly, just coming back to the European market share trends, I think Ed talked about growing share in the Away From Home channel. Can you just talk a little bit about what share trends you're seeing in the Home channel? I think for Nielsen data, things have softened there of late, so I'd just love to get your take on that. And my follow-up question is just really about how you see the COGS outlook shaping up for 2025 with the level of hedges you have in place today. Thanks.

Damian Gammell: So I'll switch on Sharon, and I'll let Ed talk a little bit to the hedging. So we have gained a lot of sharing away from home, particularly in Europe. We're pleased with that. And we're also gaining volume share in retail and value, and our volume share is slightly ahead of value. And I think that reflects what I taught the Simon about. In terms of, for a while now, we have been supporting some of those more affordability strategies, and that's driven volume share ahead of value, which versus unusual. Typically, if you go back over the years, it was value ahead of volume, but in this environment, we're pleased that we're recruiting consumers and households, so that will remain a focus.

Speaker Change: No surprise there. So I'll touch on share and then I'll let Ed talk a little bit to the hedging. So we have gained a lot of sharing away from home, particularly in Europe . We're pleased with that. And we're also gaining volume share in retail.

Damian Gammell: Thanks, Sanjeet. I see the direction for one question per caller has gone down really well today. No surprise there. So I'll touch on sharing, and then I'll let Ed talk a little bit about hedging. So we have gained a lot of experience away from home, particularly in Europe. We're pleased with that. And we're also gaining volume share in retail and value. Our volume share is slightly ahead of value, and I think that reflects what I talked to Simon about in terms of, for a while now, we have been supporting some of those more affordability strategies, and that's driven volume share ahead of value, which for us is unusual.

Speaker Change: and VALUE.

Ed: Our volume share is slightly ahead of value and I think that reflects what I talked to Simon about in terms of

Ed: For a while now we have been supporting

Ed: and some of those.

Ed: more affordability strategies and that's driven volume share ahead of value.

Damian Gammell: Typically, if you go back over the years, it was value ahead of volume, but in this environment, we're pleased that we're recruiting consumers and households, so that will remain a focus. On a consolidated level, good share gains, strong and away from home, and share gains in retail, mainly driven on the volume side and sparkling. Pretty pleased with that, and I'll hand over to Ed to talk a little bit about commodities and hedging. Yes, thank you. So, I mean, for this year on Costa.

Ed: which for us is unusual. Typically, if you go back over the years, it was value ahead of volume, but in this environment, we're pleased that we're recruiting consumers and households, so that will remain a focus. So on a consolidated level, good share gains, strong and away from home.

Damian Gammell: So, on a consolidated level, you know, good share gains strong and away from home and share gains in retail mainly driven on the volume side and sparkling. So pretty pleased with that.

Ed: share gains in retail mainly driven on the volume side and sparkling. So pretty pleased with that and I'll hand over to Ed to talk a little bit to the commodities and hedging.

Ed Walker: And I'll hand over to Ed to talk a little bit to the commodities and hedging. Yes, thank you.

Ed: Yes, thank you. So, I mean, for this year on cost of goods, to start with, we're pleased with the fact that we're now guiding to 3% per case. And we're also pleased that there's more stability in this line versus what we've seen in the last few years. And we're in a great place at the moment with 90% coverage.

Ed Walker: So, I mean, for this year on cost of goods to start with, you know, we're pleased with the fact we're now guiding to 3% per case. And we're also pleased that there was more stability in this line versus what we've seen in the last few years. And we're in a great place at the moment with 90% coverage.

Ed: Yes, thank you. So I mean, for this year on cost of goods to start with, you know, we're pleased with the fact we're now guiding to 3% per case. And we're also pleased that there's more stability in this line versus what we've seen in the last few years. And we're in a great place at the moment with 90% coverage. And of course, that's been driven by

Ed: And of course, that's been driven by strong commodity management, great cost control within our supply chain, and the benefit of a number of the transformation initiatives that we've talked about in the past. We're not giving guidance on 25 at this stage, as it's a bit too early. But we do hope that this more stable environment continues into next year. And today, we're already 40% hedged on the key commodities for next year. So, more to come, I think, in Q3 and towards the end of the year and what we see for 25.

Ed Walker: And of course, that's been driven by strong commodity management, great cost control within our supply chain, and the benefit of a number of the transformation initiatives that we've talked about in the past.

Ed: strong commodity management, great cost control within our supply chain, and the benefit of a number of the transformation initiatives that we've talked about in the past.

Ed Walker: We're not giving guidance on 25 at this stage. This is a bit too early, but we do hope that this more stable environment continues into next year. And today, we're already 40% hedged on the key commodities for next year. So, more to come, I think, in Q3 towards the end of the year and what we see for 25.

Ed: We're not giving guidance on 25 at this stage as it's a bit too early, but we do hope that this more stable environment continues into next year.

Ed: And today we're already 40% hedged on the key commodities for next year. So more to come, I think, in Q3 and towards the end of the year and what we see for 2025.

Ed Walker: Great. Thank you.

Speaker Change: Great, thank you.

Lauren Lieberman: Our next question for today comes from the line of Lauren Lieberman from Barclays. Great. Thanks. Good morning. So Danie mentioned the last question you just asked about home channel performance. So when I just look at what was cited in the release. Home channel volumes were down pretty comparably with away from home. And so I just wanted to talk about maybe how weather is or is not impacting home channel performance. And maybe what you're seeing, because, like I said, you mentioned the Nielsen data share performance hasn't looked great for a while. And so I just wanted to push a little bit on the degree to which the channels that are measured.

Operator: Our next question for today comes from the line of Lauren Lieberman from Barclays.

Speaker Change: Thank you.

Speaker Change: Our next question for today comes from the line of Lauren Lieberman from Barclays.

Lauren Lieberman: Great, thanks. Good morning.

Lauren Lieberman: Great. Thanks. Good morning. So, Tina, I know you mentioned the last question you just asked about home channel performance. So, when I just look at what was cited in the release,

Speaker Change: home channel volumes were down pretty comparably with away from home. And so I just wanted to talk about maybe how

Damian Gammell: So, Tina, I know you mentioned the last question you just asked about home channel performance. So when I just look at what was cited in the release, home channel volumes were down pretty comparably with away from home. And so I just wanted to talk about maybe how it is or is not impacting home channel performance and maybe what you're seeing, because like Sanjeet mentioned, the Nielsen data share performance hasn't looked great for a while, and so I just wanted to push a little bit on the degree to which the channels that are measured, you know, you're looking at differently, right?

Speaker Change: Whether is or is not impacting home channel performance and maybe what

Speaker Change: The Nielsen data share performance hasn't looked great for a while, so I just wanted to push a little bit on the degree to which the channels that are measured

Lauren Lieberman: You know, you're looking at differently, right? There's sort of execution you want to build up, whether it's coolers and things you want to do in store. But what is measured and is in the Nielsen, the shares haven't looked great. And so I was just wondering if you could comment more specifically on plans and the degree to which that's problematic. Thanks.

Damian Gammell: There's sort of execution you want to build up, whether it's coolers and things you want to do in store, but what is measured and is in Nielsen, the shares haven't looked great, and so I was just wondering if you could, you know, comment more specifically on the plans and the degree to which that's problematic. Thanks.

Speaker Change: You know, you're looking at it differently, right? There's sort of execution you want to build up, whether it's coolers and things you want to do in store, but what is measured and is in the Nielsen, the shares haven't looked great. And so I was just wondering if you could, you know, comment more specifically on plans and the degree to which that's problematic. Thanks.

Lauren Lieberman: Thanks, Lauren. So, I think first to your share comment, I mean, back to what I talked to with Sanjeet. I mean, I think, you know, when we look at our share performance in a way from home and in retail, you know, across all of our markets, you know, we see us particularly wrong volume share, which we're pleased with, and our value shares holding up well. Hopefully, you know our volumes in a way from home and versus home. And I think that's also looking at the strong comes, right? So you're up away from home. We were down over 4%, and what we were cycling, you know, volume of plus 4 and home, we're down 1.9.

Damian Gammell: Thanks, Lauren. So, first, on your share comment, I mean, back to what I talked about with Sanjeet, I mean, I think, you know, when we look at our share performance from home and in retail, across all of our markets, we see us particularly growing volume share, which we're pleased with, and our value share is holding up well. I don't see that as being a challenge.

Lauren Lieberman: Thanks, Lauren.

Speaker Change: I think first to your share comment, I mean, back to what I talked to with Sanjeet, I mean, I think

Speaker Change: You know, when we look at our share performance in away from home and in retail, you know, across all of our markets, you know, we see us particularly growing volume share, which we're pleased with, and our value share is holding up well.

Damian Gammell: I think what I see really is back to what you touched on, which is, slightly lower volumes in a way from home versus home. And I think that's also looking at the strong comps, right? So Europe away from home, we were down over 4%, but we were cycling, you know, volume of plus four, and home, we were down 1.9. So, you know, still a decline in volume, but clearly, you know, doing better than our away from home business.

Speaker Change: So I don't see that being a challenge. I think what what I see really is back to what you touched on, which is slightly fewer volumes in a way from home versus home, and I think that's

Speaker Change: Also looking at the strong comps, right? So, Europe away from home, we were down over 4%.

Speaker Change: and but we were cycling you know volume of plus four and home we were down 1.9 so

Damian Gammell: So, you know, still a decline in volume, but, but clearly, you know, doing better than our away-from-home business. And then when we look at our price makes, obviously we see, you know, a better revenue picture. When I break that down, I mean it's more in northern Europe in particular where we see that away from home. I want to look at it, and we speak to our customers. You know, we've had some great wins in that space of Wayne, UK. For example, it's really a football challenge. And so we're seeing less people out and about, and that's a function of some of the things we talked about earlier.

Speaker Change: You know, still a decline in volume, but clearly, you know, doing better than our away-from-home business. And then when we look at our price mix, obviously we see, you know, a better revenue picture.

Damian Gammell: And then when we look at our price mix, obviously, we see a better revenue picture. But when I break that down, I mean, it's more in Northern Europe, in particular, where we see that away from home. And when I look at it, and we speak to our customers, you know, we've had some great wins in that space somewhere in the UK, for example, it's really a footfall challenge. And so we're seeing, you know, fewer people out and about.

Speaker Change: When I break that down, I mean, it's more in Northern Europe , in particular, where we see that away from home, and when I look at it and we speak to our customers.

Speaker Change: You know, we've had some great wins in that space somewhere in the UK, for example, it's really a footfall challenge.

Speaker Change: And so we're seeing, you know, less people out and about and that's a function of some of the things we talked about earlier.

Damian Gammell: And that's a function of some of the things we talked about earlier. Our retail business is performing better. And I think that's on the back of people eating and drinking more at home. Some great activation on the back of the Euros and Olympics. So, yeah, we see the share position slightly differently than you're laying out, but I'm sure we can reconcile that together. It doesn't take away from the fact that, you know, we anticipate a stronger second half in volume and revenue in Europe, as I called it earlier. We're pleased with how August has started.

Damian Gammell: Our retail business is performing stronger. And I think that's on the back of people are eating and drinking more home. Some great activation on the back of Euros and Olympics. So, yeah, we see the share positions slightly different than you're laying out, but I'm sure we can reconcile that together. It doesn't take away from the fact that, you know, we anticipate a stronger second half in volume and revenue in Europe. As I called it earlier, you know, we're pleased with how August has started. You know, we obviously saw some friends coming out of Q1 that allowed us to put in some incremental activity in the second half of the year, predominantly around innovation and flavor innovation.

Speaker Change: Our retail business is performing stronger and I think that's on the back of people are eating and drinking more at home.

Speaker Change: Some great activation on the back of Euros and Olympics.

Speaker Change: Yeah, we see the share positions slightly different than you're laying out, but I'm sure we can reconcile that together. It doesn't take away from the fact that, you know, we anticipate a stronger second half.

Speaker Change: in volume and revenue in Europe as I called it earlier you know we're pleased with how August

Damian Gammell: You know, we obviously saw some trends coming out of Q1 that allowed us to put in some incremental activity in the second half of the year, predominantly around innovation and flavor innovation. Our execution has got better. So as things turn, we are seeing the benefit of those cooler placements earlier in the year. And clearly, all that relates just to Europe, Lauren. So, I mean, there's a different dynamic going on in the Philippines, Australia, and New Zealand. So hopefully, that answers your question. Thanks so much.

Speaker Change: has started.

Speaker Change: You know, we obviously saw some trends coming out of Q1.

Speaker Change: That allowed us to put in some incremental activity in the second half of the year, predominantly around innovation and flavor innovation.

Damian Gammell: Our execution has got better. So, as things turn, we are seeing the benefit of those cooler placements earlier in the year. And clearly all that relates just to Europe, Lauren.

Speaker Change: Our execution has got better so as things turn we are seeing the benefit of those cooler placements.

Damian Gammell: So, I mean, there's a different dynamic going on in the Philippines, Australia, New Zealand. So, hopefully that answers your question.

Speaker Change: earlier in the year. And clearly all that relates just to Europe , Lauren, so I mean there's a different dynamic going on in the Philippines, Australia, New Zealand. So hopefully that answers your question.

Matthew Ford: Great. Thanks so much.

Matthew Ford: Thank you.

Speaker Change: Great, thanks so much.

Robert Ottenstein: Our next question for today comes from the line of Matthew Ford from BNP Paribas. Hi, Damien. Hi, Ed. My question is just on the leverage you mentioned that you're now firmly back within your target range by the end of the year.

Operator: Great, thanks so much. Thank you. Our next question for today comes from the line of Matthew Ford from BNP Paribas.

Matthew Ford: Thank you, Matthew. Maybe I'll take that one.

Speaker Change: Thank you.

Speaker Change: Our next question for today comes from the line of Matthew Ford from BNP Paribas.

Matthew Ford: Hi Damian, hi Ed. My question is just on the leverage. You mentioned that you're now firmly back within your target range by the end of the year.

Robert Ottenstein: How do you think about capital allocation from here, you know, when you think about prioritising NNA versus perhaps share buybacks, you know, what do you think would you look forward to 2025?

Matthew Ford: How do you think about capital allocation from here, you know? When you think about prioritizing M&A versus perhaps share buybacks, you know, what do you think? Would you look forward to 2025? Thank you.

Damian Gammell: Thank you. Thank you, Matthew. Maybe I'll take that one.

Ed: So, yeah, we're delighted that we're going to be back within our leverage range, two and a half to three by the end of the year. And that's built on the very strong pre-cash flow of 1.7 billion this year. And the fact that we're doing it a year early after, you know, when you look back and after the acquisitions of Amatil and the Philippines. We routinely look at our capital allocation.

Ed Walker: So, yeah, we're delighted that we're going to be back within our leverage range, two and a half to three by the end of the year. And that's built on the very strong pre-casual 1.7 billion this year. And the fact that we're doing it a year early after, you know, when you look back and after the acquisitions of amateur and the Philippines.

Speaker Change: Thank you, Matthew. Maybe I'll take that one. So yeah, we're delighted that we're going to be back within our leverage range, two and a half to three by the end of the year. And that's built on the very strong free cash flow of 1.7 billion this year. And the fact that we're doing it a year early after, you know, when you look back and after the acquisitions of Amatil and the Philippines, we routinely look at our capital allocation. And so we'll be doing that, you know, over the next couple of months. But it's a little bit too early at this stage to say what the plans will be going forward. But obviously, we're delighted about the flexibility that this now offers us going towards the end of the year.

Ed Walker: We routinely look at our capital allocation. And so we'll be doing that, you know, over the next couple of months, but it's a little bit too early at this stage to say what the plans will be going forward. But obviously we're delighted about the flexibility that this now offers as going towards the end of the year.

Ed: And so we'll be doing that, you know, over the next couple of months. But it's a little bit too early at this stage to say what the plans will be going forward. But obviously, we're delighted about the flexibility that this now offers us going towards the end of the year.

Damian Gammell: Yeah, and just to Bill and Ed's point, I think we're going to continue that relentless focus on free cash flow into '25. That will give us a lot more options, and that's something we'll talk to towards the end of the year. And obviously, we'll spend a bit more time on a capital market today in May. Thank you both.

Damian Gammell: Yeah, and just to Bill and Ed's point, I think, you know, we're gonna continue that relentless focus on free cash flow into 25. And that will give us a lot more options. And you know, that's something we'll talk about towards the end of the year. And obviously, we'll spend a bit more time on at a capital markets day in May.

Speaker Change: yeah and just to Bill and Ed's point I think you know we're going to

Speaker Change: continue that relentless focus on free cash flow into 25 and that will give us a lot more options and you know that's something we'll talk to towards the end of the year and obviously we'll spend a bit more time on in a capital markets day in May

Speaker Change: Thank you both.

Robert Ottenstein: Thank you. Our next question for today comes from the line of Robert Ottenstein from Evercore ISI. Great, first a quick follow-up and then my main question.

Operator: Our next question for today comes from the line of Robert Ottenstein from Evercore ISI.

Speaker Change: Thank you.

Speaker Change: Our next question for today comes from the line of Robert Ottenstein from Evercore ISI.

Robert Ottenstein: Great. First, a quick follow-up and then my main question.

Damian Gammell: So, just as a follow-up, just, you know, love to get a sense of how Rainstorm is doing, kind of initial reactions in the context, obviously, of Celsius moving into Europe. And then, longer term, love to get your thoughts, Damian, on what the Carlsberg-Britvick transaction means to you. You know, they obviously build it up in terms of tremendous synergies. But do you see any changes over time in the competitive dynamics in GB because of that? And also, are there opportunities for you, perhaps, to pick up additional countries as, you know, alignments change with the different suppliers?

Robert Ottenstein: So just as a follow-up, just, you know, love to get a sense of how Range Storm is doing kind of initial takes in the context, obviously, of Celsius moving into Europe. And then, longer term, love to get your thoughts, Damian, on what, you know, the Karlsburg Britvic transaction means to you. You know, they obviously build it up in terms of tremendous synergies. You know, do you see any changes over time in the competitive dynamics in GB because of that? And also, are there opportunities for you, perhaps, to pick up additional countries as, you know, alignments change with the different suppliers.

Robert Ottenstein: Great. First, a quick follow-up and then my main question. So just as a follow-up, just, you know, love to get a sense of how Rainstorm is doing, kind of initial takes in the context, obviously, of Celsius moving into Europe . And then longer term, love to get your thoughts, Damian.

Robert Ottenstein: on what...

Damian: You know, the Carlsberg-Britvick transaction means to you, you know, they obviously build it up in terms of tremendous synergies.

Speaker Change: Do you see any changes over time in the competitive dynamics?

Speaker Change: and GB because of that, and also are there opportunities for you perhaps to pick up additional countries as alignments change with the different suppliers. Thank you.

Robert Ottenstein: Thank you.

Damian Gammell: Hi Robert. Thank you. So we just, we've just really launched Range Storm in Europe. I'd say the launch has gone better than we expected. So good trial, good rotation on Shell, good response from our customers. And so we're very, very pleased. Obviously, you know, it's early days. So we'll probably be able to give a bit more cover towards the end of the year, but actually I had a review this morning about it and. Yeah, I was pleasantly surprised that it started stronger than we expected, and it's got good response from, you know, our customers, our teams, and obviously the consumer.

Damian Gammell: Hi Robert. Thank you. So we've just really launched Rainstorm in Europe. I'd say the launch has gone better than we expected. So, good trial, good rotation on shelves, and good response from our customers. So, we're very, very pleased. Obviously, you know, it's early days, so we'll probably be able to give a bit more color towards the end of the year, but actually, I had a review this morning about it, and, yeah, I was pleasantly surprised that it started stronger than we expected, and it got a good response from, you know, our customers, our teams, and obviously, the consumer.

Damian Gammell: Hi Robert. Thank you.

Speaker Change: Hi Robert, thank you. So we've just really launched Rainstorm in Europe . I'd say the launch has gone better than we expected.

Speaker Change: So, good trial, good rotation on shelves, good response from our customers.

Speaker Change: So we're very very pleased. Obviously you know it's early days so we'll probably be able to give a bit more color towards the end of the year but actually I had a review this morning about it and

Speaker Change: Yeah, I was pleasantly surprised that it started stronger than we expected, and it's got good response from...

Damian Gammell: So, more to come in the rainstorm, and I think it just plays to a category in which we see growth for CCP over a number of years on the back of that level of innovation and the fact that we've got a share between 20 and 25% in such a fast-growing category. So, that's exciting.

Damian Gammell: So, more to come on range storm. And I think it just plays to a category in which we see growth for CCP over a number of years on the back of that level of innovation and the fact that we've got to share between 20 and 25% in such a fast growing category. So that's exciting.

Speaker Change: You know, our customers, our teams, and obviously the consumer. So more to come in Rainstorm, and I think it just plays to a category in which we see growth for CCP.

Speaker Change: Over a number of years on the back of that level of innovation and the fact that we've got to share between 20% and 25% in such a fast-growing category. So that's exciting. Carlsberg.

Damian Gammell: And Karlsburg. Yeah, I mean, I suppose it's encouraging for us, but, you know, viewers see the soft drink any or to the category so attractive to deploy so much capital. So I think that reinforces we feel we're playing into right categories at the right time. And, you know, Britvik have been a great competitor for a number of years in the UK and one that we've respected. So I'd imagine they'll make changes. You know, we've looked at their, you know, communications as well. And, you know, in the near term, you know, we expect a strong competitor.

Damian Gammell: Yeah, I mean, it's encouraging for us that, you know, brewers see the soft drink, any RTD category, as so attractive to deploy so much capital. So I think that reinforces our feeling that we're playing in the right categories at the right time. And, you know, Britvica being a great competitor for a number of years in the UK, and one that we've respected.

Speaker Change: yeah I mean I suppose it's encouraging for us that you know brewers see the soft drink NA RTD category so attractive

Speaker Change: to deploy so much capital, so I think that reinforces...

Speaker Change: We feel we're playing in the right categories at the right time and You know Britvica being a great competitor and for a number of years in the UK And one that we've respected so I'd imagine they'll make changes, and you know we've looked at their

Damian Gammell: So I'd imagine they'll make changes. You know, we've looked at their, you know, communications as well. And, in the near term, we expect a strong competitor. And I think that's good for the category.

Speaker Change: communications as well. In the near term, we expect a strong competitor and I think that's good for the category.

Damian Gammell: And I think that's good for the category. It's good for us.

Damian Gammell: It's good for us, you know, and we'll adapt accordingly. And obviously, we've got some ideas in that space, but I won't be sharing them on a call like this, as you can imagine. And interesting, your point on M&A, certainly a question that we'll, you know, look at with Atlanta going forward when we get some more clarity. As Ed pointed out, we certainly have the financial power to do more M&A, and we certainly have the ambition, and if we can add more markets, that makes sense, we'll do so.

Damian Gammell: And, you know, and we'll adapt accordingly, and obviously we've got some ideas, and that's based, but I won't be sharing them on a call like this, as you can appreciate. And interesting your point, and MNA certainly a question that we'll, you know, look at with a glance at going forward when we get some more clarity. And as Ed pointed out, we certainly have the financial power to do more M&A. And we certainly have the ambition. And if we can add more markets, that makes sense. You know, we'll do so. I don't expect out to be a near-term conversation.

Speaker Change: It's good for us, you know, and we'll adapt accordingly, and obviously...

Speaker Change: We've got some ideas in that space, but I won't be sharing them on a call like this, as you can appreciate. Interesting, your point on M&A, certainly a question that we'll look at with Atlanta going forward when we get some more clarity. As Ed pointed out, we certainly have...

Speaker Change: The financial...

Ed: Power to do more M&A We certainly have the ambition and if we can add more markets that make sense, you know, we'll do so I don't expect that to be a near-term

Damian Gammell: I don't expect that to be a near-term conversation. I think it'll probably be a couple of years out, just based on what's happening in that space. But more to come on that. But certainly an interesting move to see a big brewer come to a market like GB and something that will, I think, help grow the category. We look at it with interest. Thanks, Robert.

Damian Gammell: I think it will probably be a couple of years out, you know, just based on what's happening in that space. But more to come on that, but certainly interesting move to see a big brewer come to a market like GB and something that will, I think, help, you know, help grow the category. And, you know, we look at it with interest.

Ed: conversation I think it will probably be a couple of years out you know just based on on what's happening in that space but more to come on that but certainly an interesting move to see a big brewer

Ed: Come to a market like GB and something that will I think help, you know, help grow the category and, you know, we look at it with interest. Thanks, Robert.

Damian Gammell: Thanks, Robert.

Edward Mundy: Thank you.

Edward Mundy: Our next question for today comes from the line of Edward Mundy from Jeffries. So, just one question on your medium-term framework. I mean, Damian, you mentioned the more you see the Philippines, the more excited you become, and without sort of stealing your thunder for the custom markets next week. How do you think about your medium term framework of 4%, which was set before you'd bought the Philippines and the Philippines is growing quite nicely at double digits and it's close to 10% I think of your business.

Operator: Our next question for today comes from the line of Edward Mundy from Jeffreys.

Robert Ottenstein: Thank you.

Speaker Change: Our next question for today comes from the line of Edward Mundy from Jeffreys.

Edward Mundy: Afternoon, Damian, Ed, Sarah. So just one question on your medium-term framework. I mean, Damian, you mentioned the more you see the Philippines, the more excited you become. And without sort of stealing your thunder for the capital markets event next week, how do you think about your medium-term framework of 4%, which was set before you bought the Philippines? And the Philippines is growing quite nicely at double digits, and it's close to 10%, I think, of your business. Hi Ed. Thank you.

Speaker Change: Afternoon Damian and Sarah.

Edward Mundy: So, just one question on your medium-term framework. I mean, Damian, you mentioned the more you see the Philippines, the more excited you become, and without sort of...

Edward Mundy: How do you think about your medium term framework of 4% which was set before you bought the Philippines and the Philippines is growing quite nicely at double digits and it's close to 10% I think of your business?

Damian Gammell: Hi Ed, thank you. Yeah, I mean, you're correct. When we gave that mid-term guidance, we hadn't factored in the Philippines. We're still factoring that in. You know, we're still learning about that market. Really happy with its performance this year. Ed and I will be traveling to that part of the world shortly. I will give us a chance with Gareth and the team to look at the 25 26 plans, and I think that will give us a better understanding of the mid-term opportunity, which I think is immense in that market. And then that will probably feed nicely into be able to kind of have that conversation with you in our capital markets, they may.

Damian Gammell: Yeah, I mean, you're correct. When we gave that midterm guidance, we hadn't factored in the Philippines. We're still factoring that in. We're still learning about that market, really happy with its performance this year. Ed and I will be traveling to that part of the world shortly.

Damian: Hi, Ed. Thank you.

Ed: Yeah, I mean, we've...

Speaker Change: You're correct. When we gave that midterm guidance, we hadn't factored in the Philippines. We're still factoring that in. We're still learning about that market. Really happy with its performance this year. Ed and I will be traveling to that part of the world shortly.

Damian Gammell: That'll give us a chance with Gareth and the team to look at the 2025-2026 plans. And I think that will, you know, give us a better understanding of the midterm opportunity, which I think is immense in that market. And then that will probably feed nicely into being able to kind of have that conversation with you on our Capital Markets Day in May. And so I think that will give us over a year of running that business, and we'll get a good view of the midterm.

Speaker Change: That'll give us a chance with Gareth and the team to look at, you know, the 25-26 plans.

Speaker Change: And I think that will, you know, give us a better understanding of the midterm opportunity, which I think is immense in that market. And then that will probably feed nicely in to be able to kind of have that conversation with you in our Capital Markets Day in May.

Damian Gammell: So I think that will give us over a year of running that business; we'll get a good view on the mid-term, and I think then we'll come back and talk about how our mid-term guidance looks against that 4%. But clearly, you know, that's supporting a higher top line growth when we just look at it both stand alone and on an integrated basis. So more to come on that question, Ed, but probably something will, you know, formalize with our board and then bring it to the capital market today. But definitely on the good side of the conversation, let's put it that way.

Speaker Change: So I think that will give us over a year of running that business. We'll get a good view on the midterm and I think then we'll come back and talk about how our midterm guidance looks against that 4%. But clearly, you know, that's supporting a higher top-line growth.

Damian Gammell: And I think then we'll come back and talk about how our midterm guidance looks against that 4%. But clearly, you know, that's supporting higher top-line growth when we just look at it both standalone and on an integrated basis. So, more to come on that question, Ed, but probably something we'll, you know, formalize with our board and then bring it to capital markets day. But definitely on the good side of the conversation, let's put it that way.

Speaker Change: when we just look at it both standalone and on an integrated basis. So more to come on that question, Ed, but probably something we'll...

Speaker Change: you know formalize with our board and then bring it to the capital markets day but definitely on the good side of the conversation let's put it that way

Edward Mundy: Okay, thank you.

Charlie Hicks: Thank you.

Charlie Hicks: Our last question for today comes from the line of Charlie Hicks from Redburn, Atlanta. Hi, David, Ed. Hope you're both well. I've got one on the Philippines, Steve, then I follow up on London listing. But on the Philippines, volumes up double digit is obviously very strong. Are you able to be any more specific on what double digit means and maybe your early, early thoughts on how Predator landed and then just still on the Philippines. I think there's some flooding at the start of Q3, and was there any impact the business there as you start H2 and then just London listing.

Operator: Our last question for today comes from the line of Charlie Higgs from Redburn, Atlantic.

Ed: Thank you.

Speaker Change: Our last question for today comes from the line of Charlie Higgs from Redburn Atlantic.

Charlie Higgs: Hi Damian and Ed, hope you're both well. I've got one on the Philippines and then a follow-up on London listing. But on the Philippines, volumes are up, double-digit is obviously very strong. Are you able to be any more specific on what double-digit means and maybe your early thoughts on how Predator landed?

Charlie Higgs: Hi Damian, Ed, hope you're both well. I've got one on the Philippines, then a follow-up on London listing, but on the Philippines...

Charlie Higgs: Volume's up. Double-digit is obviously very strong. Are you able to be any more specific on what double-digit means and maybe your early thoughts on how...

Damian Gammell: And then just still on the Philippines, I think there was some flooding at the start of Q3. And was there any impact on business there as you start H2? And then just the London listing, is there any update you can give there given the implementation came in on the 29th of July? Thank you.

Speaker Change: Creditor landed.

Speaker Change: And then just still on the Philippines, I think there was some flooding at the start of Q3.

Speaker Change: And was there any impact to the business there as you start H2? And then just London Listing, is there any update you can give there given the implementation came in on the 29th of July ? Thank you.

Charlie Hicks: Is there any update you can give there, given the implementation? Came in on the 29th July. Thank you.

Damian Gammell: Thanks, Charlie. Maybe I'll touch on the listing first. So I'm sure, like you, we're all relieved that we now have some clarity on the rate, on the regime, and the rules. So as you'd appreciate, we're reviewing that with our shareholders. We've our next board meeting in September. And then, you know, after that, we'll look at the next step forward, but it is encouraging to see those finally issued and published. And, you know, we'll obviously communicate on that as we go forward. And on the Philippines, you know, what I've learned speaking to Gareth and the team is that cyclones are quite common, and the business is very resilient.

Damian Gammell: Thanks, Charlie. Maybe I'll touch on the listing first. So, as you'd appreciate, we're reviewing that with our shareholders. We have our next board meeting in September, and then after that, we'll look at the next step forward. But it is encouraging to see those documents finally issued and published, and we'll obviously communicate on that as we go forward.

Speaker Change: Thanks Charlie, maybe I'll touch on the listing first, so I'm sure like you...

Speaker Change: We're all relieved that we now have some clarity on...

Speaker Change: on the on the rate on the regime and the rules so as you'd appreciate were

Speaker Change: Reviewing that with our shareholders. We have our next board meeting in September .

Speaker Change: And then, you know, after that, we'll look at the next step forward, but it is encouraging to see those finally.

Speaker Change: Issued and published and you know we'll obviously communicate on that as we go forward

On the Philippines, what I've learned speaking to Gareth and the team is that cyclones are quite common, and the business is very resilient, so we didn't really see any material impact. When you look at the overall growth, I mean, clearly, there are some very strong fundamentals from a demographic economic perspective. I think we've pointed out in our Q1, we did have some easier comps in the first half of the year in the Philippines, so that definitely contributes to that higher percentage number.

Speaker Change: on the Philippines.

Speaker Change: You know, what I've learned speaking to Gareth and the team is that cyclones are quite common.

Damian Gammell: So we didn't really see any material impact. When you look at the overall growth, I mean, clearly there's some very strong fundamentals from a demographic economic perspective. You know, I think we've called out on our Q1. We did have some, you know, easier camps in the first half of the year in the Philippines. So, you know, that definitely contributes to that higher percentage number. But when you kind of step back, I mean, not high single digit, you know, target that we set ourselves in the Philippines. You know, we feel really good about that, you know, not just based on the year-to-date performance, but on some of those fundamentals.

Speaker Change: and the businesses is very resilient so we didn't really see

Speaker Change: Any material impact. When you look at the overall growth, I mean, clearly, there's some very strong fundamentals from a demographic economic perspective.

Speaker Change: You know, I think we've called out in our Q1, we did have some, you know, easier comps in the first half of the year in the Philippines, so, you know, that definitely contributes to that higher percentage number, but when you kind of step back, I mean, that high single digit, you know, target that we set ourselves in the Philippines.

But when you kind of step back, I mean, that high single-digit target that we set ourselves in the Philippines, we feel really good about that, not just based on the year-to-date performance, but on some of those fundamentals, and more and more as we get to understand the strength of our system there and the benefits of our investment. And I think that gives us a lot of confidence in that market for the mid to long term. Yeah, so exciting, and I think very sustainable.

Speaker Change: You know, we feel really good about that, you know, not just based on the year-to-date performance but on some of those fundamentals.

Damian Gammell: I'm more and more as we, you know, get to understand the strand of our system there and the benefits of our investment. And I think that gives us a lot of confidence in that market for, you know, for the mid to long term. Yeah, so exciting, and I think very sustainable. Thank you.

Speaker Change: And more and more as we get to understand the strength of our system there and the benefits of our investment. And I think that gives us a lot of confidence in that market for the mid to long term. Yeah, so exciting and I think very sustainable.

Damian Gammell: I would now like to hand the conference back over to Damian Gammell for his closing remarks. Damian, please go ahead. Thank you. I just want to really thank everybody again for joining us. As you've heard today, we're really pleased with our half-year performance, delivering a 9% profit growth, given the context of some of the challenges we've pushed on today in Europe. I think demonstrates the skill of our teams, the resilience of our business, and the strength of the categories that we continue to operate within. Given that, Ed and I are very happy that we can reaffirm our guidance today for the full year.

Speaker Change: Great, thank you very much.

Speaker Change: Thank you. I would now like to hand the conference back over to Damian Gammell for his closing remarks. Damian, please go ahead.

Damian Gammell: Thank you, and I just want to really thank everybody again for joining us. As you've heard today, we're really pleased with our half-year performance.

Speaker Change: delivering a 9% profit growth given the context of some of the challenges we've touched on today in Europe I think demonstrates

Damian Gammell: You know, the scale of our teams, the resilience of our business.

Damian Gammell: and the strength of the categories that we continue to operate within. Given that, Ed and I are very happy that we can reaffirm our guidance today for the full year.

Damian Gammell: Clearly, our next conversation will be able to update you on how Q3 performed, but overall we feel really excited about a very strong second half program, both in Europe and across our APS countries.

Ed: Clearly our next conversation will be able to update you on how Q3 performed, but overall we feel really excited about a very strong second half program both in Europe and across our APS countries.

Damian Gammell: And I'd just like to close again by thanking all my colleagues at CCEP for their ongoing commitment to a great business. So thank you and have a great rest of day.

Speaker Change: And I'd just like to close again by thanking all my colleagues at CCP for their ongoing commitment to a great business. So, thank you and have a great rest of the day.

Operator: That concludes our conference for today. Thank you for participating.

Operator: You may now disconnect. Thank you.

Speaker Change: That concludes our conference for today. Thank you for participating. You may now disconnect.

Speaker Change: and the American Pronunciation Guide Presents I'm going to play a short clip of the song, I'm going to play a short clip of the song, I'm going to play a short clip of the song, I'm going to play a short clip of the song, I'm going to play a short clip of the song,

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Operator: I know you're here, but I know you're here.

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