Q4 2024 Coca-Cola Europacific Partners PLC Earnings Call

February 14, 2025

We statements. 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 with the U K U S adoption Spanish authorities.

A copy of this information is available on our website www dot.

Coca Cola <unk> Dot com.

Remarks will be made by Damian that followed by Q&A unless otherwise stated metrics presented today will be on a comparable and FX neutral basis throw out. They would also have represented an adjusted comparable basis best reflection of the results of CCP on Australia Pacific and Southeast Asia business unit Aps as it is.

Hello, and thank you for standing by and welcome to today's call to kind of Europe Ossific partners full year 'twenty 'twenty four results conference call. At this time all participants are in a listen only mode. After the Speakers' remarks, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone.

Credit Philippines transaction had occurred at the beginning of last year rather than in February when the acquisition completed.

Damian: 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.

Damian: Thank you Sarah many thanks to everyone for joining us today.

I must advise you that today's conference call is being recorded.

Damian: I'd like to start off with a recap of our strategy, which continues to deliver our value creation is clear where 2024 being another solid year for CCP.

Speaker Change: I'd now like to hand, the conference over to Vice President of Investor Relations and corporate strategy, sorry with <unk>. Please go ahead Sir.

Damian: Year that saw us further diversify with the addition of a great market in the Philippines.

Speaker Change: Thank you all for joining us.

Speaker Change: Love the day to day I'm here, Damian Gammell, let's see and absolute costs before he became without mentioning remarks reminds Rocco Sri statements. This call will contain forward looking management comments and other statements, reflecting our outlook.

Damian: I'd like to start today by thanking all of my colleagues at <unk> for their ongoing energy hard work and continued commitment to our customer onto our business as always this is underpinned by our strong alone relationships with both the Coca Cola company amongst our other brand partners, we will touch on many of these.

Speaker Change: These comments should be considered in conjunction with the cautionary language.

Speaker Change: In today's release as well as the detailed cautionary statements found in reports filed with the U K U S options financial sources.

Damian: Seems today, all of which contributed to our <unk> of more than 160%.

Speaker Change: This information is available on our website www dot.

Speaker Change: Coca Cola E P dot com.

Damian: So just turning to our key messages.

Ted remarks will be made by Damian that followed by Q&A unless otherwise stated metrics presented today will be on a comparable FX neutral basis throw out.

Damian: We enjoyed a great finish to a solid year with robust top and bottom line growth. We are more geographically diversified with the strong performance of our higher growth Aps markets, helping offset some softer volumes in Europe.

Speaker Change: It would also represent an adjusted comparable basis, that's research and are the results of CCP in Australia Pacific and Southeast Asia business unit Aps, if that's the case.

Damian: Which reflected some strategically listings mixed summer weather, which we've touched on before.

Speaker Change: Philippines transaction.

Speaker Change: At the beginning of last year, rather than in February when the acquisition was completed.

Damian: <unk> demand in our away from home channel.

Damian Gammell: Following the call a full transcript will be made available on our website I will now turn the call as a trustee Damian.

Damian: I'm, particularly happy to grown share ahead of the market.

Damian: And lead on value creation for our customers alongside ongoing productivity gains we drove impressive comparable free cash flow of over $1 8 billion. Looking ahead, we have strong investment in our commercial plans in place to drive growth both in Europe, and Aps and categories that continue to grow we are therefore confident.

Damian Gammell: Thank you Sarah and many thanks to everyone for joining us today.

Damian Gammell: I'd like to start off with a recap of our strategy, which continues to deliver our value creation is clear with 2024 being another solid year for CCP.

Damian Gammell: A year that saw us further diversify with the addition of a great market in the Philippines.

Damian: That we will deliver on our midterm growth objectives, our full year 25 guidance combined with the resumption of our share box also announce today, demonstrating our ability to deliver continued shareholder value.

Damian Gammell: I'd like to start today by thanking all of my colleagues at <unk> for their ongoing energy hard work and continued commitment to our customer and to our business as always this is underpinned by our strong aligned relationships with both the Coca Cola company amongst or another.

Damian: Now to some of the key performance highlights we delivered a great top line performance, reflecting underlying volume growth with transactions ahead of volume and solid gains in revenue per unit case.

Damian Gammell: Our other brand partners, we will touch on many of these themes today, all of which contributed to our <unk> of more than 160%.

Damian: This was driven by revenue margin growth management initiatives.

Damian Gammell: So just turning to our key messages.

Our continued focus on our pricing and promotion strategies.

Damian Gammell: We enjoyed a great finish to a solid year with robust top and bottom line growth.

Damian: The NAO RTD category grew in volume and value in both Europe and Aps, we grew our value share by 40 basis points in the home channel, while also making gains in away from home and critically online.

Damian Gammell: We are more geographically diversified with the strong performance of our higher growth Aps markets, helping offset some softer volumes in Europe.

Damian Gammell: Which reflected some strategically listings mixed some of weather, which we've touched on before and softer demand in our away from home channel I am, particularly happy to grown share ahead of the market.

Damian: And the advantage survey our customers with our customers' CCP was registered again as a top tier supplier or.

Damian: Our strong topline performance together with the delivery of our efficiency programs drove a solid operating profit growth of 8% with operating margin expansion in both Europe and Aps.

Damian Gammell: And lead on value creation for our customers alongside ongoing productivity gains we drove impressive comparable free cash flow of over $1 8 billion.

Damian: Diluted earnings per share growth of six 5% on a comparable and FX neutral basis.

Damian Gammell: Looking ahead, we have strong investment in our commercial plans in place to drive growth both in Europe, and Aps and categories that continue to grow we are therefore confident that we will deliver on our mid term growth objectives. Our full year 25 guidance combined with the resumption of our share box also announced today demonstrating our ability to deliver can.

Damian: Again, we generated impressive comparable free cash flow of $1 8 billion.

Damian: After investing over $1 billion across our business in the areas of capacity technology.

Damian: <unk> technology and digital.

Damian: And also supporting the <unk> return to our target leverage range.

Damian Gammell: <unk> shareholder value.

Damian: We delivered healthy dividend growth and up today announced a new $1 billion share buyback program.

Damian Gammell: Now to some of the key performance highlights we delivered a great top line performance, reflecting underlying volume growth with transactions ahead of volume and solid gains in revenue per unit case.

Damian: As ever CCP, we remain focused on great people, great brands, great execution, all done sustainably I'll now share a few brief highlights on these topics for last year.

Damian Gammell: This was driven by revenue margin management initiatives.

Damian Gammell: Our continued focus on our pricing and promotion strategies.

Damian: As ever starting with our people we continue to build the capabilities of our teams.

Damian Gammell: The RTD category grew in volume and value in both Europe and Aps, we grew our value share by 40 basis points in the home channel, while also making gains in away from home and critically online.

And for example, our partnership with the London Business School has all skilled over 500 over executive leaders, we continue to be recognized internally and externally. We saw record scores in our engagement survey, placing CCP amongst the best of its peers is a great place to work.

Damian Gammell: And the advantage survey our customers with our customers' CCP was registered again as a top tier supplier.

And recently the top employers Institute recognized CCP as a top employer employer across many of our markets.

Our strong topline performance together with the delivery of our efficiency programs drove a solid operating profit growth of 8% with operating margin expansion in both Europe and Aps.

Damian: And finally committed to building, an even more inclusive and diverse culture.

Damian Gammell: And diluted earnings per share growth of six 5% on a comparable and FX neutral basis.

Damian: We welcomed another 9000 colleagues to CCP with the seamless integration of the Philippines business.

Damian Gammell: Again, we generated impressive comparable free cash flow of $1 8 billion.

Damian: On our brands, we are extremely privileged to make move and sell the world's most loved brands in which we continue to invest to make them, even better and to appeal to even more consumers.

Damian Gammell: After investing over $1 billion across our business in the areas of capacity technology.

Damian Gammell: Technology and digital.

Damian Gammell: And also supporting the early return to our target leverage range.

Damian: Category highlights are included in today's release overall, it's fantastic that in Europe. For example, Coca Cola trademark remains the biggest FMC brand with monster the third fastest growing.

Damian Gammell: We delivered healthy dividend growth and have today announced a new $1 billion share buyback program.

Damian Gammell: As ever CCP, we remain focused on great people, great brands, great execution, all done sustainably allow share a few brief highlights on these topics for last year.

Damian: We delivered innovation across the board through packaging flavor extensions special collaborations and a lot more on a bit later I'll share with you some of the brand plans in place for 2025.

Damian Gammell: As ever starting with our people we continue to build the capabilities of our teams.

Damian: As a butler great execution is always a key priority for us at CCP.

Damian Gammell: For example, our partnership with the London Business School.

Damian: We continue to create leading value for our category, adding well over 1 billion euros of value to our retail customers.

Damian Gammell: Skilled over 500 of our executive leaders, we continue to be recognized internally and externally we saw record scores in our engagement survey, placing CCP amongst the best of its peers is a great place to work.

Damian: Activation, both in store and online as key last year as you know was a standout with the summers iconix sporting events, namely the Olympic and Paralympic games in Paris, the euros in Germany, and the Americas Cope in Barcelona, providing us with a powerful platform. We also increased our share of cold drink space.

Damian Gammell: And recently the top employers Institute recognized CCP as a tougher player employer across many of our markets.

Damian Gammell: And finally committed to building, an even more inclusive and diverse culture.

Damian: Even more cooler placements.

Damian: All helping our brands reached more households, and to improve our share across our categories.

Damian Gammell: We welcomed another 9000 colleagues for CCP.

Damian Gammell: With the seamless integration of the Philippines business.

Damian: Our customers and consumers rightly expect our products, we made to the highest quality and safety standards in that context, we recently had a small issue with some products manufactured in Belgium late last year.

Damian Gammell: On our brands, we are extremely privileged to make move and sell the world's most loved brands in which we continue to invest to make them, even better and to appeal to even more consumers.

Damian: This was deeply unfortunate nature, but we are pleased that this was quickly resolved and does not lead to appropriate learnings have been incorporated into our product safety and quality procedures with new protocols put in place.

Damian Gammell: Category highlights are included in today's release overall, it's fantastic that in Europe. For example, Coca Cola trademark remains the biggest FMC brand with monster the third fastest growing.

Damian: Now onto our sustainability highlights for which we continue to be recognized externally, including retaining our inclusion on Cdp's a list for climate now for the ninth year and maintaining our MSCI AAA ESG rating.

Damian Gammell: We delivered innovation across the board through packaging flavor extensions special collaborations and a lot more on a bit later I'll share with you some of the brand plans in place for 2025.

Damian Gammell: As a butler great execution is always a key priority for us at CCP.

Damian: We're also recently included in sustained analytics ESG top rated companies for 2025, which rated CCP number one in the food and beverage category.

Damian Gammell: We continue to create leading value for our category, adding well over 1 billion euros of value to our retail customers.

Damian: And we continue to invest in sustainability focused technology through our ventures arm across ingredients manufacturing and packaging to support our decarbonization journey.

Damian Gammell: Activation, both in store and online as key last year as you know was a standout with the summers iconic sporting events, namely the Olympic and Paralympic games in Paris the <unk>.

Damian: For example, our lower using AI to develop a low carbon sugar crop with higher yields unimproved drought resistance. Just one example of how this sustainability journey makes CCP a better business.

Damian Gammell: <unk> in Germany, and the Americas Cup in Barcelona, providing us with a powerful platform. We also increased our share of cold drink space with even more cooler placements.

Damian Gammell: All helping our brands to reach more households, and to improve our share across our categories.

Ed: Before I hand over to Ed.

Speaker Change: Just like to call it the Philippines.

Damian Gammell: Our customers and consumers rightly expect our products, we made to the highest quality and safety standards in that context, we recently had a small issue with some products manufactured in Belgium late last year.

Ed: Which will soon reach its first birthday and the CCP family.

And what a year it was having delivered double digit volume growth.

Ed: Underlying market demand in the Philippines was strong.

Damian Gammell: This was deeply unfortunate nature, but we are pleased that this was quickly resolved and does not lead to appropriate learnings being incorporated into a product safety and quality procedures with new protocols put in place.

Ed: Which with great execution drove nearly 300 basis points of value share gains to a record high.

Ed: At an impressive 75% sparkling and 50% <unk> share.

Damian Gammell: Now onto our sustainability highlights for which we continue to be recognized externally, including retaining our inclusion on Cdp's a list for climate now for the ninth year and maintaining our MSCI AAA ESG rating.

Ed: This translate into very healthy operating margin expansion of around 200 basis points.

Ed: I've said it before but the more time I spend in the market.

Ed: More excited I become about the addition of the Philippines into the CCP firmly we see lots of opportunities both long and short term, which naturally will be led by Coke trademark. We also see opportunities in other areas such as low or no sugar energy on our recently launched RTD brands.

Damian Gammell: We're also recently included in sustained analytics ESG top rated companies for 2025, which rated CCP number one in the food and beverage category.

Damian Gammell: And we continue to invest in sustainability focused technology to our ventures arm across ingredients.

Ed: Our strong focus on capital allocation on a long term mindset will ensure we will invest in this exciting business.

Damian Gammell: Factoring in packaging to support our decarbonization journey.

Ed: To support and lead the markets long term growth expectation.

Damian Gammell: For example, at a lower using AI to develop a low carbon sugar crop with higher yields unimproved drought resistance. Just one example of how this sustainability journey make CCP a better business.

Ed: So given the positive outlook, we are accelerating some of our capex plans in that market.

Ed: I know many of you are coming to our capital markets event in the Philippines in May.

The leadership local teams and I look forward to showcasing this market, we will also be bringing Indonesia to Manila.

Speaker Change: Before I hand over to Ed I would just like to call it the Philippines.

Speaker Change: Which will soon reach its first birthday and the CCP family.

Ed: So on Indonesia, whereas clearly the Philippines had a standout year, our Indonesia volume similar to many of our western brands were significantly affected by geopolitical events.

Speaker Change: And what a year it was having delivered double digit volume growth.

Speaker Change: Underlying market demand in the Philippines was strong.

Speaker Change: With great execution drove nearly 300 basis points of value share gains to a record high.

Ed: We did however, see encouraging sparkling growth unless effective parts of the country and the transformation of our route to market has progressed well. So we will ensure Indonesia continues to be fit for the future.

Speaker Change: At an impressive 75% sparkling and 50% <unk> share.

Ed: I wanted not to not only recognize the fantastic efforts made by our Indonesian business in this challenging environment, but also to reiterate that CCP. We continue to believe in an exciting long term opportunity in this market.

Speaker Change: This translated into very healthy operating margin expansion of around 200 basis points.

Speaker Change: I've said it before but the more time I spend in the market. The more excited I become about the addition of the Philippines into the CCP firmly we see lots of opportunities both long and short term, which naturally will be led by Coke trademark we all see opportunities in other areas such as low and no sugar energy on.

Ed: Given the context.

Ed: Business performance is naturally behind plan, leading to a noncash impairment charge and a full year 24 results.

Ed will touch more on this shortly so now I would like to hand over to Ed to take you through our financials in some more detail Ed. Thank you Damian and thank you all for joining us today, so firstly to our financial summary.

Speaker Change: Our recently launched <unk> RTD brands.

Speaker Change: Our strong focus on capital allocation and a long term mindset will ensure we will invest in this exciting business.

Speaker Change: To support and lead the markets long term growth expectation.

Ed: We delivered revenue for the year of $20 7 billion euros and increase of three 5% and in line with our guidance.

Speaker Change: So given the positive outlook, we are accelerating some of our capex plans in that market.

Speaker Change: I know many of you are coming to our capital markets event in the Philippines in May where the leadership local teams and I look forward to showcasing this market. We will also be bringing Indonesia to Manila.

Ed: While comparable volumes were flat for the year underlying volumes were up <unk>, 7% when we take into account the effect of strategic existing principally Capri Sun in Europe.

Ed: As Damien mentioned earlier, we also felt the impact of adverse weather in Europe, particularly during Q2, and Q3, which contributed to softer volumes, particularly in the away from home channel.

Speaker Change: So on Indonesia, where clearly the Philippines had a stellar year, our Indonesian volumes similar to many other western brands were significantly affected by geopolitical events.

Speaker Change: We did however, see encouraging sparkling growth and less effective parts of the country and the transformation of our route to market has progressed well. So we will ensure Indonesia continues to be fit for the future.

Speaker Change: Volumes in Europe were down two 4% or one 4% on an underlying basis volumes in Aps were up four 9% driven by the Philippines were also reflecting impressive growth in the Pacific Islands, and Papua New Guinea.

Speaker Change: I wanted to not to not only recognize the fantastic efforts made by our Indonesian business in this challenging environment, but also to reiterate that CCP. We continue to believe in an exciting long term opportunity in this market.

Speaker Change: We delivered strong revenue per case growth of two 7%, reflecting positive headline pricing and promotional optimization with a focus on consumer price relevance all built on data and insights.

Speaker Change: However, given the context.

Speaker Change: Business performance is naturally behind plan, leading to a noncash impairment charge in our full year 'twenty for results.

Speaker Change: We had favorable brand mix, which was partly offset by geographic mix driven by the strong growth in the Philippines, which is coming from a lower revenue per unit case.

Speaker Change: Ed will touch more on this shortly so now I'd like to hand over to Ed to take you through our financials in some more detail Ed. Thank you Damian and thank you all for joining us today, so firstly to our financial summary.

Speaker Change: Cost of sales per unit case increased two 6% in line with guidance cycling high single digit growth in 'twenty three.

Speaker Change: This reflects our increased revenue per unit case, driving higher concentrate costs through our incidence pricing model and inflation in manufacturing offset by the mix impact from the stronger growth in the Philippines, which has a lower cost of sales per unit.

Ed: We delivered revenue for the year of $20 7 billion euros and increase of three 5% and in line with our guidance.

Ed: Comparable volumes were flat for the year underlying volumes were up <unk>, 7% and we take into account the effect of strategic existing principally Capri Sun in Europe.

Speaker Change: A breakdown of this is all provided in the appendix to the presentation.

Speaker Change: Opex as a percentage of revenue was 22, 5% and improvements of 50 basis points.

Speaker Change: And all of these elements combined drove operating profit for the year of $2 7 billion up 8% on an operating margin of 12, 9% an expansion of around 50 basis points.

Ed: Volumes in Europe were down two 4% or one 4% on an underlying basis volumes in Aps were up four 9% driven by the Philippines, but also reflecting impressive growth in the Pacific Islands, and Papua New Guinea.

Speaker Change: On a reported basis operating profit declined by just under 9%, reflecting higher business transformation costs to support our growth and productivity programs and the 175 million noncash impairment charge relating to the carrying value of Indonesian business units, which Damian referred to.

Ed: We delivered strong revenue per case growth of two 7%, reflecting positive headline pricing and promotional optimization with a focus on consumer price relevance all built on data and insights.

Julia.

Julia: We delivered diluted earnings per share of three year is 95.

Ed: We had favorable brand mix, which was partly offset by geographic mix driven by the strong growth in the Philippines, which is coming from a lower revenue per unit case.

Speaker Change: Up six 5% on a comparable on Forex neutral basis, and this was driven by our operating profit growth in part offset by the higher Noncontrolling interest on interest charges, both driven by the Philippines and by a higher effective tax rate in line with guidance.

Ed: Cost of sales per unit case increased two 6% in line with guidance cycling high single digit growth in 'twenty three.

Ed: This reflects our increased revenue per unit case, driving higher concentrate costs to our incidence pricing model and inflation in manufacturing offset by the mix impact from the stronger growth in the Philippines, which has a lower cost of sales per unit.

Julia: Comparable free cash flow generation continues to be a core priority for us.

Julia: They bring an impressive $1 8 billion.

Julia: And our return on invested capital increased by 50 basis points to 10, 8% driven by the increase in profit after tax and our continued focus on capital allocation.

Ed: A breakdown of this is all provided in the appendix to the presentation.

Ed: Opex as a percentage of revenue was 22, 5% and improvements of 50 basis points.

Julia: And finally on shareholder returns, we paid a total dividend per share of one year of 97.

Ed: And all of these elements combined drove operating profit for the year of $2 7 billion up 8% on an operating margin of 12, 9% an expansion of around 50 basis points.

Julia: Just over 7% for the year.

Julia: Now on to efficiency and productivity, where we have a proven track record of delivery as a reminder, our current program aims to deliver between $350 and 400 million euros of efficiencies by 2028.

Damian Gammell: On a reported basis operating profit declined by just under 9%, reflecting higher business transformation costs to support our growth and productivity programs and the 175 million noncash impairment charge relating to the carrying value of Indonesian business units, which Damian referred to earlier.

Julia: In its first year, we've delivered around $80 million earlier than planned and ahead of our original guidance of 60 to 70 million euros.

Julia: Half of this came from supply chain initiatives in Europe, and Australia, alongside further leveraging of our digital and shared service capabilities in Bulgaria.

Ed: Yes.

Ed: We delivered diluted earnings per share of three year is 95.

Julia: Looking ahead to 'twenty five while we still expect to see inflationary pressures on the business, particularly in labor, we're confident of continuing to drive further efficiencies in line with our plans.

Ed: Six 5% on a comparable on Forex neutral basis, and this was driven by our operating profit growth in part offset by the higher Noncontrolling interest on interest charges, both driven by the Philippines.

Julia: One example relates to the further optimization of our German network needing to the closure of the Cologne sites and the consolidation of warehousing facilities, which also generates carbon benefits.

Ed: By a higher effective tax rate in line with guidance.

Ed: Comparable free cash flow generation continues to be a core priority for us.

Julia: And as previously referenced all the benefits of these programs on the cash restructuring cost to deliver them are included within our guidance.

Ed: Bring an impressive $1 8 billion Urs.

Ed: Our return on invested capital increased by 50 basis points to 10, 8% driven by the increase in profit after tax and our continued focus on capital allocation.

Julia: Turning now to free cash flow as I said, a core priority for us.

Julia: The $1 8 billion of comparable free cash flow generated to translate into a very healthy free cash flow conversion to net profit and this bridge lays out the key components, including ongoing cash restructuring costs as I mentioned earlier.

Ed: And finally on shareholder returns, we paid a total dividend per share of one year of 97.

Just over 7% for the year.

Ed: Now on to efficiency and productivity, where we have a proven track record of delivery as a reminder, our current program aims to deliver between 350 and 400 million euros of efficiencies by 2028.

Julia: Recognizing the importance of targeted investments, we spend around $1 1 billion on capex on supply chain digital and technology as well as more culturing equipments.

Ed: In its first year, we've delivered around $80 million earlier than planned and ahead of our original guidance of 60 to 70 million euros around half of this came from supply chain initiatives in Europe, and Australia alongside further leveraging of our digital and shared service capabilities in Bulgaria.

Julia: Examples include new can lines in GB in Australia, and new PT line in Papua New Guinea, and the <unk> line in Germany. We're also entering the build phase of our new unified SAP architecture, having successfully completed the design phase.

Julia: And finally as you know driving working capital benefits remains a core focus for us. So I'm really pleased that we delivered yet another year of benefits, taking the cumulative amounts to more than $1 5 billion since 2017.

Ed: Looking ahead to 'twenty five while we still expect to see inflationary pressures on the business, particularly in labor, we're confident of continuing to drive further efficiencies in line with our plans.

Ed: One example relates to the further optimization of our German network needing to the closure of the Cologne sites and the consolidation of warehousing facilities, which also generates carbon benefits.

Julia: And Thats impressive free cash flow generation has driven sustained deleveraging over time.

Julia: This enabled us to return to our target leverage range of two and a half to three times EBITDA one year ahead of plan.

Ed: And as previously referenced all the benefits of these programs and the cash restructuring cost to deliver them are included within our guidance.

Julia: Which brings me onto our capital allocation framework, which is unchanged.

Julia: We remain focused on ensuring we maintain a strong and flexible balance sheet operating within our leverage range and with a strong investment grade rating.

Ed: Turning now to free cash flow as I said, a core priority for us that.

Ed: The $1 8 billion of comparable free cash flow generated to translate into a very healthy free cash flow conversion to net profit in this bridge lays out the key components, including ongoing cash restructuring costs as I mentioned earlier.

Julia: We continue to benefit from a balanced debt maturity profile with an attractive total weighted average cost of net debt expected to remain around 2%.

Ed: Recognizing the importance of targeted investments, we spend around $1 1 billion on capex on supply chain digital and technology as well as more culturing equipment.

Julia: We touched already on Capex and restructuring spend with our guidance on capital investment unchanged 425, which implies well over 1 billion euros of spend to support our growth plans of.

Ed: <unk> include new can lines in GB in Australia, and new PT line in Papua New Guinea, and the <unk> line in Germany. We're also entering the build phase of our new unified SAP architecture, having successfully completed the design phase.

Julia: Of course, we remain alert to value accretive M&A should the opportunity arise and finally as Damian referenced early earlier, we are committed to delivering shareholder returns. These comprise our annual dividend payout ratio of around 50% and as of today, a new share buyback program of 1 billion euros to be executed.

Ed: And finally as you know driving working capital benefits remains a core focus for us. So I'm really pleased that we delivered yet another year of benefits, taking the cumulative amounts to more than $1 5 billion since 2017.

Julia: It over the next 12 months.

Julia: Before I move on to our guidance for 25 I wanted to share a few comments on two well trailed portfolio changes that will increase our alignment with the Coca Cola company and unlock further growth opportunities.

Ed: And that's impressive free cash flow generation has driven sustained deleveraging over time <unk>.

Ed: This enabled us to return to our target leverage range of two and a half to three times EBITDA one year ahead of plan.

Julia: The first is the transition from <unk> to fuze tea.

Julia: Following successful Rollouts in Europe, Iberia is the last market to change to this better on both the platform and the growing category.

Ed: Which brings me onto our capital allocation framework, which is unchanged.

Ed: We remain focused on ensuring we maintain a strong and flexible balance sheet operating within our leverage range and with a strong investment grade rating.

Julia: As you would expect this has been well planned distribution is going well with both home and away from customers supported by great marketing.

Ed: We continue to benefit from a balanced debt maturity profile with an attractive total weighted average cost of net debt expected to resume around 2%.

Julia: And the second relates to the end of our partnership with ordinary global spirits running until the end of June in Australia on the end of December in New Zealand.

Ed: We touched already on Capex and restructuring spend with our guidance on capital investment unchanged 425, which implies well over 1 billion euros of spend to support our growth plans of.

Julia: This paves the way for the start of the multiyear transition to launching OTT offerings as we've seen in Europe in the Philippines, and Australia now extended to the Coca Cola Company recently acquired popular voltage debates Bilson brand.

Ed: Of course, we remain alert to value accretive M&A should the opportunity arise and finally as Damian referenced early earlier, we are committed to delivering shareholder returns. These comprise our annual dividend payout ratio of around 50% and as of today, a new share buyback program of 1 billion euros to be executed.

Julia: Just to note that both of these exciting changes are reflected in our full year 25 guidance.

Julia: A brief reminder of our midterm objectives. These are unchanged and we remain confident in that delivery as Sami mentioned earlier, which then brings me onto our full year 25 guidance, reflecting our current view of the market conditions and it is aligned with these midterm objectives.

Ed: It over the next 12 months.

Ed: Before I move on to our guidance for 25 I wanted to share a few comments on two well trailed portfolio changes that will increase our alignment with the Coca Cola company and unlock further growth opportunities.

Julia: Touching briefly on some areas by exception.

Julia: We expect revenue growth of approximately 4% and to be more balanced between volume and revenue per case compared to last year.

Ed: The first is the transition from NES data fuze tea.

Ed: Following successful Rollouts in Europe, Iberia is the last market to change to this better on both the platform and the growing tea category.

Julia: From a phasing perspective, I would call out that in Q1, we will annualize the impact of the copies on strategic de listing and Easter. This year will fall in Q2 versus Q1, and we have two less selling days in Q1 versus last year.

Ed: As you would expect this has been well planned distribution is going well with both home and away from customers supported by great marketing.

Julia: On cost of sales, we expect this to grow by around 2% as I mentioned earlier, our concentrate cost tied to our revenue per unit case growth.

Ed: And the second relates to the end of our partnership with ordinary global spirits running until the end of June and in Australia on the end of December in New Zealand.

Julia: And we anticipate broadly flat commodity inflation on which we are approximately 80% hedged for full year 'twenty five.

Ed: This paves the way for the start of the multiyear transition to launching OTT offerings as we've seen in Europe in the Philippines, and Australia now extended to the Coca Cola Company recently acquired popular both debates Bilson brand.

Julia: We do continue to see inflationary pressures in labor within the manufacturing, partly offset by a combined effort some efficiency.

Julia: We have the throughput tax impacts from the GB soft drink excise tax changes announced late last year with the offset within revenue and.

Ed: Just to note that both of these exciting changes are reflected in our full year 25 guidance.

Julia: And finally, the mix benefit of higher anticipated volume growth in the Philippines given.

Ed: A brief reminder of our midterm objectives. These are unchanged and we remain confident in the delivery and same you'd mentioned earlier, which then brings me onto our full year 25 guidance, reflecting our current view of the market conditions and is aligned with these midterm objectives.

Julia: Lower cost of sales per unit case.

Julia: Our effective tax rate for the year is expected to be around 26% up from 25% last year, reflecting differences in the mix of taxable profits across our markets and our current assessment of uncertain tax positions.

Ed: Touching briefly on some areas by exception.

Ed: We expect revenue growth of approximately 4% and to be more balanced between volume and revenue per case compared to last year.

Julia: We expect to generate at least $1 7 billion of comparable free cash flow and our new $1 billion share buyback program will commence imminently to be executed over the next 12 months through to February 'twenty six.

Ed: Phasing perspective, I would call out that in Q1, we will annualize the impact of the Capri Sun strategic de listing and Easter. This year will fall in Q2 versus Q1, and we have two less selling days in Q1 versus last year.

We broadly expect any accretion this year flowing through from 10 of 12 months of the share buyback to be offset by the anticipated higher effective tax rates and the growth in noncontrolling interests, given the positive outlook in the Philippines.

Ed: On cost of sales, we expect this to grow by around 2% as I mentioned earlier, our concentrate cost tied to our revenue per unit case growth.

Damian: And now back to Damian.

Ed: And we anticipate broadly flat commodity inflation on which we are approximately 80% hedged for full year 'twenty five.

Damian: Thanks, Ed.

Damian: No.

Damian: Just turning to what we talked about earlier. So we are confident in our ability to deliver approximately 4% revenue growth in 2025 and beyond.

Ed: We do continue to see inflationary pressures in labor within the manufacturing, partly offset by our combined efforts on efficiency.

Ed: We have the throughput tax impacts from the GB soft drink excise tax changes announced late last year with the offset within revenue and.

Damian: This will be driven by these four levers balanced between healthy underlying volume and revenue per unit case growth.

Ed: And finally, the mix benefit of higher anticipated volume growth in the Philippines given.

Damian: Before I share. Some examples of what gives me confidence for this year I did want to call out.

Damian: So we exited 2024 with a good December and this has continued into January.

Ed: Lower cost of sales per unit case.

Ed: Our effective tax rate for the year is expected to be around 26% up from 25% last year, reflecting differences in the mix of taxable profits across our markets and our current assessment of uncertain tax positions.

Damian: So on a portfolio there is a lot to be excited about across our great brands and as always consumer led and consumer focus.

Damian: For Coke original tasting zero sugar, New flavors continue with the addition of line and later in the year watch out for new fruit Eyecatching graphics across our <unk>.

Ed: We expect to generate at least $1 7 billion of comparable free cash flow and our new $1 billion share buyback program will commence imminently to be executed over the next 12 months through February 26.

Damian: The new diet Coke campaign. This is my taste fronted by our new brand Ambassador Jamie Dornan is gaining momentum and for fanta enough way to choice of flavor extensions, including Tutti, Frutti and energy and monster as well as new additions to the juice range. We're excited about the new collaboration with London.

Ed: We broadly expect any accretion this year flowing through from 10 of 12 months of the share buyback to be offset by the anticipated higher effective tax rates and the growth in noncontrolling interests, given the positive outlook in the Philippines.

Damian: On the Mclaren F. One team.

Speaker Change: We continue to expand our portfolio to capture new opportunities in areas, such as sports and RTD as Ed referenced in sports I was really excited to hear about the young Spanish Star and Pyrite Fund <unk> has entered into a multiyear deal as a team peridot lead which will resonate well with our consumers.

Damian Gammell: And now back to Damian.

Damian Gammell: Thanks, Ed.

Ed: No.

Ed: Just turning to what we talked about earlier. So we are confident in our ability to deliver approximately 4% revenue growth in 2025 and beyond.

Speaker Change: Build affinity and drive preference for this terrific friends.

Ed: This will be driven by these four levers balance between healthy underlying volume and revenue per unit case growth.

Speaker Change: On an RTD, we are continuing to build our presence in this growing segment with the launch of Bacardi, and Coca Cola and adding new flavors to existing ranges like absolute on sprite watermelon.

Ed: Before I share. Some examples of what gives me confidence for this year I did want to call out that.

Ed: We exited 2024 with a good December and this has continued into January.

Speaker Change: Now to our customers our customer relationships are always front and center on what a great retail foundation to be the number one absolute revenue growth creator.

Ed: So on our portfolio there is a lot to be excited about across our great brands and as always consumer led and consumer focused.

Speaker Change: Full year 'twenty five pricing is largely in place, including GB in Germany.

Ed: For Coke original tasting zero sugar, new flavors continue with the addition of lime and later in the year watch out for new fruit Eyecatching graphics across our <unk>.

Speaker Change: Executed later last year with OTA negotiations well advanced we continue to leverage our best in class revenue and margin growth management tools and capabilities across our broad product offering as you see here.

Ed: The new diet Coke campaign. This is my taste fronted by our new brand Ambassador Jamie Dornan is gaining momentum and for fanta enough way to choice of flavor extensions, including Tutti, Frutti and energy and monster as well as new additions to the juice range. We're excited about the new collaboration with London.

Speaker Change: And to highlight a few recent customer wins.

Speaker Change: Including <unk> multi brand restaurant franchise upper in Spain subway in GB and Jerry's Gorilla 110, plus restaurant chain in the Philippines.

Ed: Mclaren F one team.

Speaker Change: As I touched on earlier, we are fanatical about end market execution and activation whether in store online or in outlet.

Ed: We continue to expand our portfolio to capture new opportunities in areas, such as sports and RTD as Ed referenced in sports.

Speaker Change: All to drive distribution of our great brands on visibility every day.

Ed: Really excited to hear about the young Spanish Empire iPhone linear mile has entered into a multiyear deal as a team parrot athlete, which will resonate well with our consumers build affinity and drive preference for this terrific friends.

Speaker Change: We love, creating an engaging displays, especially around key holiday events, all well planned across the calendar year.

Speaker Change: All driven by the largest sales force in FMC G. Nearly 9000 total.

Ed: On an RTD, we are continuing to build our presence in this growing segment with the launch of Bacardi, and Coca Cola and adding new flavors to existing ranges like absolute and sprite watermelon.

Speaker Change: Powered by technology, enabling more contact with more customers.

Speaker Change: We're investing in more coolers this year aiming to add over 100000 across our coke trademark and monster.

Ed: Now to our customers our customer relationships are always front and center on what a great retail foundation to beat our number one absolute revenue growth creator.

Speaker Change: We continue to accelerate our digital capabilities.

Speaker Change: Like adding even better functionality to our <unk> portal <unk> dot com to make life easier for our customers. We believe there are few EEP to be platforms in Europe, delivering annual revenue of nearly $2 5 billion euros in the <unk> space.

Ed: Full year 'twenty five pricing is largely in place, including GB in Germany.

Ed: Executed later last year with auto negotiations well advance we continue to leverage our best in class revenue and margin growth management tools and capabilities across our broad product offering as you see here.

Speaker Change: And we're also improving our forecasting accuracy with machine learning and AI in Germany. For example, 80% of our Skus no longer require any human intervention. This has driven best in class forecasting accuracy, and a 2% improvement year on year.

Ed: To highlight a few recent customer wins.

Ed: Including <unk> multi brand restaurant franchise upper in Spain <unk>.

Ed: In GB and Jerry's Gorilla 110, plus restaurant chain in the Philippines.

Better forecasting means more cases delivered to our customers on time and in full.

Ed: As I touched on earlier, we are fanatical about end market execution and activation whether in store online or an outlet all to drive distribution of our great brands on visibility every day.

Speaker Change: Geographically, our diversification across 31 markets with leading market positions makes us stronger.

Speaker Change: This is evidenced by our performance last year.

Ed: We love, creating an engaging displays, especially around key holiday events, all well planned across the coming year.

Speaker Change: Going forward, we ultimately recognize the volume and revenue growth in Europe is critical for CCP across sparkling energy and those are any RTD. We are however excited by the balance of exposures. We now have the higher growth markets, where we continue to build our capabilities and more.

Ed: All driven by the largest sales force in FMC G. Nearly 9000 total.

Ed: Powered by technology, enabling more contact with more customers.

Ed: We're investing in more coolers this year aiming to add over 100000 across our coke trademark and monster.

Speaker Change: My mind. These include not only the Philippines, and Indonesia, but also Papua New Guinea under Pacific Islands. They.

Ed: We continue to accelerate our digital capabilities.

Speaker Change: They represent half of our markets, which of which having grown revenue last year by around 10% clearly demonstrate their power as an organic topline accelerator for CCP.

Ed: Like adding even better functionality to our b to B portal <unk> dot com to make life easier for our customers. We believe there are few EEP to be platforms in Europe, delivering annual revenue of nearly $2 5 billion euros in the <unk> space.

Speaker Change: And so to conclude we are very well placed for 2025 and beyond.

Speaker Change: We are confident we have the right strategy dawn sustainably to deliver on our mid term growth objectives.

Ed: And we're also improving our forecasting accuracy with machine learning and AI in Germany. For example, 80% of our Skus no longer require any human intervention. This has driven best in class forecasting accuracy, and a 2% improvement year on year.

Speaker Change: Our full year 25 guidance combined with the resumption of share buybacks demonstrates the strength of our business and our ability to deliver continued shareholder value.

Speaker Change: We look forward to sharing more on our exciting future at our capital markets event in Manila.

Ed: And better forecasting means more cases delivered to our customers on time and in full.

Speaker Change: In may.

Speaker Change: So thank you very much Ed and I would now be very happy to take your questions and I'll hand, the call back over to you operator.

Ed: Geographically, our diversification across 31 markets with leading market positions makes us stronger.

Thank you we will now begin our question and answer session.

Ed: This is evidenced by our performance last year.

Speaker Change: A reminder, we kindly request only one question Pandemics. If you would like to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to come to your request. Please press star one again.

Ed: Going forward, we ultimately recognize the volume and revenue growth in Europe is critical for CCP across sparkling energy and those are any RTD.

Speaker Change: Please standby, while we compile the Q&A roster this with any type of fleet maintenance.

Ed: We are however excited by the balance of exposures, we now have the higher growth markets, where we continue to build our capabilities in.

Speaker Change: We will now take our first question please standby.

Ed: In my mind. These include not only the Philippines, and Indonesia, but also Papua New Guinea under Pacific Islands.

Speaker Change: And the first question comes from Mitch Collett from Deutsche Bank. Please go ahead. Your line is now open.

Ed: They represent half of our markets, which of which having grown revenue last year by around 10% clearly demonstrate their power as an organic topline accelerator for CCP.

Mitch Collett: Hi, Jamie and Hi, Ed Hi, Sarah.

Speaker Change: My question is very quick one.

Speaker Change: Can you give some color on why you've chosen to increase the free cash flow guide is that all driven by operating profit or are there other lines within cash flow that are helping you to have a higher level of free cash flow going forward. Thank you.

Ed: And so to conclude we are very well placed for 2025 and beyond.

Ed: We are confident we have the right strategy don't sustainably to deliver on our mid term growth objectives.

Speaker Change: Thanks, Mitch yes, so we've increased the guidance to at least one seven.

Ed: Our full year 25 guidance combined with the resumption of share buybacks demonstrates the strength of our business and our ability to deliver continued shareholder value.

Speaker Change: Obviously, we did $1 8 billion in 2024, which we're very pleased about.

Ed: We look forward to sharing more on our exciting future at a couple of markets Eventid Manila.

Speaker Change: So it's really just the increased confidence that we have.

Ed: In may.

Speaker Change: In the business and the ability for the business to generate operating profit growth and value and then us to convert that into into free cash flow.

Ed: So thank you very much Ed and I would now be very happy to take your questions and I'll hand, the call back over to you operator.

Speaker Change: Thank you we will now begin our question and answer session.

Speaker Change: All keeping some flexibility within that because as we said in the in the prepared remarks, we have over 1 billion euros of Capex investment plans and we are keen to invest to unlock that growth across our markets. So yes, we're pleased to be seeing at least $1 7 billion for 2025.

Speaker Change: Please standby, while we compile the Q&A roster. This will only take a few maintenance.

Speaker Change: We will now take our first question please standby.

Speaker Change: Very clear thank you.

Speaker Change: Thank you.

Speaker Change: Now take our next question.

Speaker Change: And the first question comes from Mitch Collett from Deutsche Bank. Please go ahead. Your line is now open.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Matthew <unk> from BNP Paribas. Please go ahead. Your line is now open.

Speaker Change: Hi, Jamie and Hi, Ed Hi, Sarah.

Speaker Change: My question is very quick one.

Speaker Change: Thanks.

Speaker Change: Afternoon, Dave.

Speaker Change: My question is just on I suppose.

Speaker Change: Philippines, Indonesia.

Speaker Change: If there's sort of two at one rate, but all the Philippines.

Speaker Change: Get a sense of how how you finished the year.

Speaker Change: You talked about solid trading in Q4.

Speaker Change: Thanks, Mitch yes, so we've increased the guidance to at least one seven.

Speaker Change: We expect overall about trends improving across all continuing to perform well in Q1, but just get a sense of how Philippines is going and what your expectations are for the year and then and then just.

Speaker Change: Obviously, we did $1 8 billion in 2024, which we're very pleased about.

Speaker Change: On Indonesia.

Speaker Change: So it's really just the increased confidence that we have.

Speaker Change: Clearly still.

Speaker Change: A difficult market to operate in just just.

Speaker Change: In the business and the ability for the business to generate operating profit growth and value and then us to convert that into into free cash flow.

Speaker Change: Just be great to get an update on the <unk> situation, what youll see if you've seen any kind of improvement in the last.

Speaker Change: Thanks.

Speaker Change: All keeping some flexibility within that because as we said in the in the prepared remarks, we have over 1 billion euros of Capex investment plans.

Speaker Change: Yeah, Thanks, Mike maybe I'll start with Indonesia, So it's fair to say our businesses stabilize very well there in light of some of those geopolitical challenges.

Speaker Change: We're keen to invest to unlock that growth across our markets. So yes, we're pleased to be seeing at least $1 7 billion for 2025.

Speaker Change: As you know, it's a big big country.

Speaker Change: <unk>, which is one of the reasons, we remain very excited about it for the long term.

Speaker Change: What is interesting interesting I just got back from a trip down there is there are certain areas more impacted than others, where we see less of an impact we see our brands growing.

Speaker Change: Very clear thank you.

Speaker Change: Thank you we will now take our next question. Please.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Matthew <unk> from BNP Paribas Exane. Please go ahead. Your line is now open.

Speaker Change: High single digits to mid teens, so I think that gives us confidence.

Speaker Change: That the changes we've made bold in terms of route to market our pricing strategies on the marketing.

Speaker Change: Thanks.

Speaker Change: Afternoon.

Speaker Change: Damian.

Speaker Change: My question is just on I suppose on Philippines, Indonesia.

Push with the Coca Cola company are working.

Speaker Change: Obviously, we will continue to keep a close eye on the situation.

Speaker Change: Sort of two at one rate, but all the Philippines, just one of them.

Speaker Change: Get a sense of how how you finished the year you talked about solid trading in Q4.

Speaker Change: And as it improves over time, which it will I think the changes that we've been able to make in the last year will really pay off particularly our route to market change some of the restructuring we've done.

Speaker Change: And I'm, particularly excited as we move into Ramadan we've.

Speaker Change: Got a great campaign around sprite, so definitely more to come in Indonesia.

Speaker Change: On Indonesia.

Speaker Change: Clearly still.

Speaker Change: I mentioned in my prepared remarks, a big callout to our team there challenging when you have got some of those macro elements out of your control, but I think they've continued to focus on the long term as we have and that will pay out in Indonesia for the I'm sure on the Philippines.

Speaker Change: A difficult market to operate in just just be great to get an update on our boycotting situation, what youll see if you've seen any kind of improvement in the last week.

Speaker Change: Thanks.

Speaker Change: Yeah, Thanks, Mike maybe I'll start with Indonesia, So it's fair to say our businesses.

Speaker Change: Yes, great year last year.

Speaker Change: Stabilized very well there in light of some of those geopolitical challenges.

Speaker Change: Great finish to the year. So Christmas is a really big occasion in the Philippines on our teams locally really made the most of it.

Speaker Change: It's a big big country.

Speaker Change: Which is one of the reasons, we remain very excited about it for the long term.

Speaker Change: Record volumes that continues into 2025.

Speaker Change: I just.

Speaker Change: Called out that we'd see the Philippines.

Speaker Change: <unk>.

Speaker Change: Your line with our midterm guidance, so high single digit growth.

Speaker Change: We've talked many times that one of our priorities is margin expansion, we're seeing that coming through some of the capital that we're deploying is unlocking that yes.

Speaker Change: High single digits to mid teens, so I think that gives us confidence.

Speaker Change: That the changes we've made bold in terms of route to market our pricing strategies on the marketing.

Speaker Change: Another great start to the year in the Philippines.

Speaker Change: Push with the Coca Cola company are working.

Speaker Change: Looking forward to another.

Speaker Change: Another very very strong year from from that business. Thank.

Speaker Change: Obviously, we will continue to keep a close eye on the situation.

Speaker Change: Thank you Matthew.

Speaker Change: Thank you.

Speaker Change: We will now take our next question.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Eric <unk> from Morgan Stanley. Please go ahead. Your line is now open.

Speaker Change: And I'm, particularly excited as we move into Ramadan we've.

Eric <unk>: Good morning, good afternoon, Thanks for taking my call taking my question.

Speaker Change: Got a great campaign around sprite, so definitely more to come in Indonesia.

Speaker Change: Hoping you could give some color on what youre seeing in energy.

Eric <unk>: Six and change percent growth you called.

Speaker Change: You called solid or strong.

Speaker Change: But it certainly has slowed down from what we've seen over the past few years.

Speaker Change: Any color on energy.

Speaker Change: Yes, great year last year.

Great finish to the year. So Christmas is a really big occasion in the Philippines on our teams locally really made the most of it record volumes that continues into 2025.

Speaker Change: As 2024 unfolded in your expectations.

Speaker Change: For 2020.

Speaker Change: Yeah. Thank you Eric.

Speaker Change: I mean relatively speaking energy was still a standout category. If you look at growth across most of our markets last year.

Speaker Change: I just.

Speaker Change: Called out that we'd see the Philippines.

Speaker Change: In line with our midterm guidance, so high single digit growth.

Speaker Change: And I see it.

Speaker Change: Continuing to play that lead on a percentage level or slightly down.

Speaker Change: We've talked many times that one of our priorities is margin expansion, we're seeing that coming through some of the capital that we're deploying is unlocking.

Speaker Change: A couple of things I'd call out we are looking at.

Speaker Change: Expanding energy into.

Speaker Change: Yes.

Speaker Change: Newer markets, So Indonesia, Philippines.

Speaker Change: Another great start to the year in the Philippines.

Speaker Change: Looking forward to another.

Speaker Change: Cooks to earlier on the pipeline of innovation coming from Monster. So it continues to be a very exciting innovative category for us.

Speaker Change: Another very very strong year from from that business. Thank.

Speaker Change: Thank you Matthew.

Speaker Change: Thank you.

Speaker Change: I see it returning back to that more high single digit growth.

Speaker Change: We will now take our next question.

Speaker Change: Please standby.

Speaker Change: So I don't see anything in the category that points to that being a sustained slowdown in fact, I think it's getting more competitive.

Speaker Change: And the next question comes from Eric <unk> from Morgan Stanley. Please go ahead. Your line is now open.

Eric: Good morning, good afternoon, Thanks for taking my call taking my question.

Speaker Change: So we see a lot of people investing in the category, which will generate growth clearly that puts an emphasis on those being at the top of our game with the Monster company, which we are so great pipeline of innovation, particularly in Western Europe.

Eric: Hoping you could give some color on what youre seeing in energy.

Eric: Six and change percent growth you called.

Eric: You called solid or strong.

Speaker Change: Gaining share launching it into some of our more emerging markets, where I think it will it will play a role long term.

Eric: But it certainly has slowed down from what we've seen over the past few years.

Eric: Any color on energy.

Speaker Change: That gives me confidence that we'll continue to see energy, leading our growth against our midterm guidance.

Eric: As 2024 unfolded in your expectation.

Eric: For 2020.

Eric: Yeah. Thank you Eric.

Speaker Change: Thank you Greg we will now go to our next question.

Speaker Change: I mean relatively speaking energy was still a standout category. If you look at growth across most of our markets last year.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Lauren Lieberman from Barclays. Please go ahead. Your line is now open.

Eric: And I see it.

Eric: Continuing to play that lead on a percentage level or slightly down.

Lauren Lieberman: Great. Thanks, Hi, everybody.

Lauren Lieberman: And I know in the release you flagged some away from home weakness in Europe, and so I'd just like to talk a little bit more about plans to help support that channel. This year, particularly in light of what remains a pretty stretched consumer backdrop and you've had a lot of other beverage companies broadly talking about the challenges in that outlet that set of outlets.

Eric: A couple of things I'd call out we are looking at.

Eric: Expanding energy into.

Eric: Newer markets, So Indonesia, Philippines.

Eric: Cooks to earlier on the pipeline of innovation coming from Monster. So it continues to be a very exciting innovative category for us.

Lauren Lieberman: Yeah. Thanks, Lauren so.

Eric: I see it returning back to that more high single digit growth.

Lauren Lieberman: Probably call out a couple of areas.

Eric: So I don't see anything in the category that points to that being a sustained slowdown in fact, I think it's getting more competitive.

Lauren Lieberman: I think one the brand innovation that we showed earlier.

Lauren Lieberman: I think we will definitely play into that channel in terms of bringing excitement to the consumer to our customers. So we.

Eric: So we see a lot of people investing in the category, which will generate growth clearly that puts an emphasis on those being at the top of our game with the Monster company, which we are so great pipeline of innovation, particularly in Western Europe.

<unk> got some specific programs, particularly on coke trademark that I won't talk to in detail for obvious reasons coming into the summer, but I think once they hit the market Youll see very much targeted against the consumer in the away from home segment. So we really want to support the consumer.

Eric: Gaining share launching it into some of our more emerging markets, where I think it will it will play a role long term.

Lauren Lieberman: Pricing has moderated in that channel. So we think relevance price relevance is in good shape.

Eric: That gives me confidence that we'll continue to see energy, leading our growth against our midterm guidance.

Lauren Lieberman: I referenced as well in the prepared remarks, we will be stepping up our cooler investments.

Speaker Change: Thank you Greg we will now go to our next question.

Lauren Lieberman: That is a key support to the away from home channel as well.

Speaker Change: Please standby.

Lauren Lieberman: And.

Speaker Change: And the next question comes from Lauren Lieberman from Barclays. Please go ahead. Your line is now open.

Lauren Lieberman: A lot of our.

Lauren Lieberman: Digital led campaigns will be focusing on helping our customers drive incidence in store drives traffic.

Lauren Lieberman: Great. Thanks, Hi, everybody.

Lauren Lieberman: I know in the release you flagged some away from home weakness in Europe, and so I'd just like to talk a little bit more about plans to help support that channel. This year, particularly in light of what remains a pretty stretched consumer backdrop, and you've had a lot of other beverage companies broadly talking about the challenges in that outlet.

Lauren Lieberman: And then finally, we're also winning a lot of new business in the away from home area. I think that also supports our growth ambition in that channel.

Lauren Lieberman: So I do see 2025 being a better year.

Lauren Lieberman: In away from home, particularly in Europe.

Lauren Lieberman: And I think the steps we've taken will support up and then obviously we're looking at.

Lauren Lieberman: Outlets.

Damian Gammell: Yeah. Thanks, Lauren so.

Lauren Lieberman: I'd probably call out a couple of areas.

Lauren Lieberman: Forward to our summer and that will definitely unlock growth. So yes, they would be the four pillars that I would talk to lora.

Lauren Lieberman: I think one the brand innovation that we showed a bit earlier.

Lauren Lieberman: I think we will definitely play into that channel in terms of bringing excitement to the consumer to our customers. So we.

Okay. Thanks, so much.

Lauren Lieberman: Thank you.

Lauren Lieberman: We'll now take our next question.

Lauren Lieberman: <unk> got some specific programs, particularly on coke trademark that I won't talk to in detail for obvious reasons coming into the summer, but I think once they hit the market Youll see very much targeted against the consumer in the away from home segment. So we really want to support the consumer.

Lauren Lieberman: Please standby.

Speaker Change: The next question comes from Edward Mundy from Jefferies. Please go ahead. Your line is now open.

Edward Mundy: Afternoon, Dave and Adam.

Dave: Uh huh.

Speaker Change: Just coming back to the the volume piece within Western Europe, you managed to generate about 8% EBIT growth.

Lauren Lieberman: Pricing has moderated in that channel. So we think relevance price relevance is in good shape.

Speaker Change: In 2020, despite European volume was down two and a half nearly two and a half and I know you don't guide for volumes, but if you were to get a sense to volume growth in Europe would there not be quite favorable implications for EBIT given some of the operating leverage that would kick off and I'm just trying to square that circle.

Lauren Lieberman: I referenced as well in the prepared remarks, we will be stepping up our cooler investments that is a key support to the away from home channel as well.

Lauren Lieberman: And.

Speaker Change: With regards to your 7% EBIT growth and your sort of highest free cash flow guidance as well.

Lauren Lieberman: A lot of our.

Lauren Lieberman: Digital led campaigns will be focusing on helping our customers drive incidence in store drives traffic.

Speaker Change: Yes, so thanks Ed.

Speaker Change: Well I think the first thing to say is that.

Lauren Lieberman: And then finally, we're also winning a lot of new business in the away from home area. I think that also supports our growth ambition in that channel.

Speaker Change: It's still very early in the year.

Speaker Change: And we.

Speaker Change: We're here in February and so as we look forward, we want to give guidance that we are confidence in delivery for the year.

Lauren Lieberman: So I do see 2025 being a better year.

Speaker Change: You are absolutely right for percentage above the three 5% from a revenue perspective.

Lauren Lieberman: In away from home, particularly in Europe.

Lauren Lieberman: And I think the steps we've taken will support that and then obviously we're looking at.

Speaker Change: That we did in 2024, but when we look at the mix of that revenue for 2005, we think more of it will come from volume as we mentioned earlier and less from revenue per case, and obviously as you look through the P&L that has less of a accretive effect because we obviously need.

Lauren Lieberman: Forward to our summer and that will definitely unlock growth. So yes, they would be the four pillars that I would talk to lora.

Lauren Lieberman: Okay. Okay. Thanks, so much.

Lauren Lieberman: Thank you.

We will now take our next question.

Speaker Change: Most of that extra volume as you go through the P&L. So that's the reason why we're maintaining the 7% guidance approximately 7% guidance for the year.

Lauren Lieberman: Please standby.

Speaker Change: The next question comes from Edward Mundy from Jefferies. Please go ahead. Your line is now open.

Edward Mundy: Afternoon, Dave and Adam.

Speaker Change: And the same goes for all free cash flow, we want to maintain some flexibility as we go through the year and as we talked about earlier, we have lots of opportunity to invest cash to unlock growth for the future.

Speaker Change: Uh huh.

Just coming back to the volume piece within Western Europe, you managed to generate about 8% EBIT growth.

Speaker Change: In 2020, despite European volume was down two and a half nearly two and a half and I know you don't guide for volumes, but if you were to get a sense to volume growth in Europe would that not be quite favorable implications for EBIT given some of the operating leverage that would kick off and I'm just trying to square that circle.

Just maybe to build on Ed's comments.

Speaker Change: I mean as you would expect.

Speaker Change: But with low volume if I speak to my supply chain colleagues well.

Speaker Change: That's the most excited is more volume going through our plants and getting that leverage that Ed talked to so you will see a more purposeful focus on quality volume in western Europe and 25.

Speaker Change: With regards to your 7% EBIT question on your sort of higher free cash flow guidance as well.

Speaker Change: Yes, so thanks Ed.

Speaker Change: Switching back to what I mentioned to Lauren that starts with and away from home investment levels.

Speaker Change: Well I think the first thing to say is that.

Speaker Change: It's still very early in the year.

Speaker Change: That are very very strong I think a lot of the marketing innovation that youre seeing from the Coca Cola company and from Monster will help us support our volume growth. If you look at last year I mean, it was a bit bumpy bold in terms of some of the macros, but also delist like cap rate. So the underlying volume performance is clearly stronger than it looks on a reported level.

Speaker Change: And.

Speaker Change: We're here in February and so as we look forward, we want to give guidance that we're confidence in delivery for the year.

Speaker Change: You are absolutely right for percentage above the three 5% from a revenue perspective.

Speaker Change: That we did in 2024, but when we look at the mix of that revenue for 25, we think more of it will come from volume as we mentioned earlier and less from revenue per case, and obviously as you look through the P&L not that has less of a accretive effect because we obviously need that.

Speaker Change: And that also gives us confidence going into 'twenty five.

Speaker Change: As I called out we did finish the year strongly in January started well so yes.

Speaker Change: As we go through the year, we'll keep all of you fully updated on how we're seeing volume progress, particularly in Europe.

Speaker Change: Most of that extra volume as you go through the P&L. So that's the reason why we're maintaining the 7% guidance approximately 7% guidance for the year.

Speaker Change: Okay.

Speaker Change: Jamie just to.

Speaker Change: Follow up.

Speaker Change: 2020 fold was a year of a lot of support that it didn't fully materialize from a volume standpoint, because there's a washout summer and it feels like 2025, even with a lot more innovation than you normally would have to sort of lap the supporting some of it given that you didn't have the benefit from the summer of sports. It does set up for 225 volumes, it's quite favorable.

Speaker Change: Just maybe to build on Ed's comments.

Speaker Change: I mean, as you would expect as above or below volume if I speak to my supply chain colleagues.

Speaker Change: <unk>.

Speaker Change: Yes, I mean, we were planning, 25% and 23, so I mean, we would obviously higher expectations in 'twenty for that on the back of great assets.

Speaker Change: That we would have strong volume growth and 24 that didn't quite materialize as we would've liked.

Speaker Change: Switching back to what I mentioned to Lauren that starts with and away from home investment levels.

Speaker Change: That did give us the catalyst to make sure that 25 from a campaign and cycling those assets.

Speaker Change: That are very very strong I think a lot of the marketing innovation that youre seeing from the Coca Cola company on for months or will help us support our volume growth. If you look at last year I mean, it was a bit bumpy both in terms of some of the macros, but also dealers like cap rate. So the underlying volume performance is clearly stronger than it looks on a reported level.

Speaker Change: That work started in 'twenty, three and Youre seeing some of that coming through both in terms of diet Coke, particularly in GB.

Speaker Change: Some of the fund the innovation, that's hitting the market great Summer campaign to kind of talk about for coke, but that will all become clear pretty.

Speaker Change: Pretty soon.

Speaker Change: On innovation across our other brands. So it's probably yes, it's probably one of the most exciting marketing.

Speaker Change: And that also gives us confidence going into 'twenty five.

Speaker Change: As I called out we did finish the year strongly in January started well so.

Speaker Change: Product calendars that we've had for a while.

Speaker Change: And I think thats exactly what we need to stimulate that growth year.

Speaker Change: As ever as we go through the year, we will keep all of you fully.

Speaker Change: Particular.

Speaker Change: Great. Thank you.

Speaker Change: Data on how we are seeing volume progress, particularly in Europe.

Speaker Change: Thank you.

Speaker Change: We'll now take our next question please standby.

Speaker Change: And Jamie just to follow up I mean.

Speaker Change: And the next question comes from Sanjay <unk> from UBS. Please go ahead. Your line is now open.

Speaker Change: <unk> thousand 20 <unk>.

Speaker Change: Here are a lot of support that it didn't fully materialize from a volume standpoint, because its a washout summer.

Speaker Change: Hi, Damian.

Speaker Change: It feels like 2025 years.

Speaker Change: My question is really around the pricing and promo strategy in Europe. So I think you called out maybe some adjustments have been made in the away from home channel.

Speaker Change: More innovation than you normally would have to sort of lap the supporting some of it given that you didn't have the benefit from the summer of sports.

Speaker Change: But how are you thinking about the home channel. It is the mantra to price in line with CPI, Despite a more favorable input cost environment.

Speaker Change: The setup for 2025 volumes, it's quite favorable.

Speaker Change: Yes, I mean, we were planning, 25% and 23, so I mean, we would obviously higher expectations in 'twenty for that on the back of great assets that.

Speaker Change: Any context, there would be helpful.

Speaker Change: Yes, Angie, yes, broadly youre spot on I think we have.

Speaker Change: But we would have strong volume growth in 2004 that didn't quite materialize as we would've liked.

Speaker Change: A very good discipline on I suppose harvest.

Speaker Change: That did give us the catalyst to make sure that 25 from a kind of campaign and cycling those assets.

Speaker Change: <unk> taken what we believe are really good relevant price moves every year, we'll continue to do that broadly in line with CPI as you said.

Speaker Change: Now that work started in 2003 and Youre seeing some of that coming through both in terms of diet Coke, particularly in GB.

Speaker Change: Beyond that we have an amazing amount of.

Speaker Change: Find the innovation, that's hitting the market great summer campaign to the kind of talk about for Coke, but that will all become clear pretty soon.

Speaker Change: Investment deployed in our P&L in promotions, if you look at the amount and the number of the quantum that's significant so every percent that we can make that work harder really adds both of the P&L to the topline growth. So I suppose on top of that CPI. We continue to use a lot of data analytics work.

Speaker Change: Yes, and innovation across our other brands. So it's probably yes, it's probably one of the most exciting marketing product.

Speaker Change: Calendars that we've had for a while.

Speaker Change: And I think thats exactly what we need to stimulate that growth year in particular.

Speaker Change: And in market testing to try and make sure that we're finding the most relevant price points, particularly on promotion. That's also very true for Australia, and New Zealand.

Speaker Change: Great. Thank you.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: So yes CPI.

Speaker Change: And the next question comes from Sanjay <unk> from UBS. Please go ahead. Your line is now open.

Speaker Change: And then a more efficient and productive use of that promotional funding will be the two key elements for us in 'twenty five and on the second one continuing to build up multiple of data and analytics to allow us to make better decisions, but also a bit faster.

Speaker Change: Hi, Damian.

Speaker Change: My question is really around the pricing and promo strategy in Europe. So I think you called out maybe some adjustments have been made in the away from home channel.

Speaker Change: But how are you thinking about the home channel at Sea is the mantra to price in line with CPI. Despite.

Speaker Change: So you will see some changes in some of our promo strategies in our key markets.

Speaker Change: In terms of multi packs.

Speaker Change: More favorable input cost environment.

Speaker Change: We also believe that there is still premium amortization.

Speaker Change: Any context, there would be helpful.

Speaker Change: Yes, Angie, yes, broadly youre spot on I think we have.

Speaker Change: In our markets and I think that you saw on the slide earlier email divest to use.

Speaker Change: We've deployed across our retail landscape gives us a chance to make sure. We also capture some of those training up opportunity some of those personalization mini cans.

Speaker Change: A very good discipline on I suppose harvest.

Speaker Change: Of taking what we believe are really good relevant price moves every year, we'll continue to do that broadly in line with CPI as you said.

So I think as we've definitely play to a more.

Speaker Change: Beyond that we have an amazing amount of.

Speaker Change: I suppose price sensitive consumer in some markets. We have also retained our premium amortization.

Speaker Change: Investment deployed in our P&L on promotions, if you look at the amount and the number of the quantum it's significant so every percent that we can make that work harder really adds both of the P&L to the topline growth. So I suppose on top of that CPI. We continue to use a lot of data analytics work and.

Speaker Change: And people will still pay for that so I think it's important to do bolt right. So that's kind of how we're thinking about it.

Speaker Change: In summary.

Speaker Change: Youre spot on CPI is probably a good benchmark to think about our pricing.

Speaker Change: And just to clarify your point on changing the promo strategy or multipack stays that reallocating or stepping up promo to support that particular pack no. It's all reallocating I mean, we.

Speaker Change: And in market testing to try and make sure that we're finding the most relevant price points, particularly on promotion. That's also very through for Australia, and New Zealand.

Speaker Change: Yes CPI.

Speaker Change: We have.

Speaker Change: And then a more efficient.

Speaker Change: A lot of a lot of investment deployed already so it's not about more investment it's about continuing to invest smarter.

Speaker Change: The views of that promotional funding will be the two key elements for us in 'twenty five and on the second one continuing to build up multiple of data and analytics to allow us to make better decisions, but also a bit faster.

Speaker Change: Testing testing new ideas to see what resonates with the shopper.

Speaker Change: Yes, so it's more efficiency I would say.

Speaker Change: Rather than a step up.

Speaker Change: So you will see some changes in some of our promo strategies in our key markets.

Speaker Change: Got it thank you.

Speaker Change: Thank you we will now take our next question.

Speaker Change: In terms of multi packs.

Speaker Change: Please standby.

Speaker Change: Okay.

Speaker Change: We also believe that there's still premium amortization.

Speaker Change: And the next question comes from Bryan Spillane from Bank of America. Please go ahead. Your line is now open.

Speaker Change: In our markets and I think you saw on the slide earlier the amount the best to use.

Bryan Spillane: Hey, good morning or afternoon, everyone.

Speaker Change: We've deployed across our retail landscape gives us a chance to make sure. We also capture some of those trading up opportunity some of those personalization mini cans.

Bryan Spillane: Can you hear me, yes fiber.

Speaker Change: Great sorry about that.

Speaker Change: So I think as we've definitely play to a more.

Bryan Spillane: Daniel.

Speaker Change: I suppose price sensitive consumer in some markets. We've also retained a premium amortization.

Bryan Spillane: Maybe you just did.

Bryan Spillane: Kind of a bigger picture question.

Bryan Spillane: At the time that since you've taken over as CEO.

Speaker Change: And people will still pay for that so I think it's important to do bolt right. So that's kind of how we're thinking about it.

Bryan Spillane:

Bryan Spillane: The enterprise value of the business is basically doubled.

Speaker Change: In summary.

Speaker Change: Youre spot on CPI is probably a good benchmark to think about our pricing.

Bryan Spillane: And also the free cash flow.

Bryan Spillane: We doubled as well.

Speaker Change: And just to clarify your point on changing the promo strategy or multi pack size that reallocating or stepping up.

Bryan Spillane: No.

Bryan Spillane: Over the course of the last.

Bryan Spillane: I guess three months or so.

Speaker Change: To support that particular pack no it's all reallocating.

Bryan Spillane: The potential for the business that <unk> been introduced to.

Speaker Change: We have.

Speaker Change: A lot of a lot of investment deployed already so it's not about more investment it's about continuing to invest smarter.

Bryan Spillane: A lot of maybe investors that you wouldn't have been introduced.

Bryan Spillane: Actually Sarah that's probably done the bulk of that work but.

Speaker Change: Testing testing new ideas to see what resonates with the shopper.

Bryan Spillane: So can you just kind of give us some perspective on.

Speaker Change: Yes, so it's more efficiency I would say.

Bryan Spillane: Like what it would take to double again.

Speaker Change: Rather than a step up.

Bryan Spillane: Over the next eight years, how much of it was acquisition how much of it was operational just trying to get people a perspective on how this business can actually compound returns.

Speaker Change: Got it thank you.

Speaker Change: Thank you we will now take our next question.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Bryan Spillane from Bank of America. Please go ahead. Your line is now open.

Brian: But it's a big picture question, Brian Thank you.

Bryan Spillane: Hey, good morning or afternoon, everyone.

Brian: Just to confirm Sarah does most of the hard work when it comes to meeting new investors, but we are.

Bryan Spillane: Can you hear me, yes fiber.

Brian: We are getting an opportunity to tell the CCP story to two.

Bryan Spillane: Great sorry about that.

Bryan Spillane: Daniel.

Brian: More newer.

Bryan Spillane: Maybe just.

Brian: Investors on the back of the FTSE conversation so that's been great.

Bryan Spillane: Kind of a bigger picture question.

Bryan Spillane: At the time that that since you've taken over as CEO.

Brian: Yes.

Brian: Clearly we are excited about where we've got with CCP and if you look at our value creation a lot of it is organic right. So I think we've done some really good M&A.

Bryan Spillane:

Bryan Spillane: The enterprise value and the business has basically doubled.

Bryan Spillane: And also the free cash flow.

Brian: But ultimately what underpins this business has strong growth.

Bryan Spillane: We doubled as well.

Bryan Spillane: No.

Speaker Change: Organically and our markets and if I was too.

Bryan Spillane: Over the course of the last.

Speaker Change: It's probably a boring answer, but it's kind of a red line through probably a lot of what we've talked about today I think sustained quality volume and revenue growth is the key to building the business again, I think we get good leverage on our P&L.

Bryan Spillane: I guess three months or so.

Bryan Spillane: The potential for the bookings that <unk> been introduced to.

Bryan Spillane: A lot of maybe investors that you wouldn't have been introduced to.

Speaker Change: We've got enough capital, we've got great talent so.

Bryan Spillane: Actually Sarah Thats, probably done the bulk of that work but.

Speaker Change: Really when I think about the next eight years.

Bryan Spillane: So could you just kind of give us some perspective on.

Speaker Change: Quality topline growth volume and revenue.

Bryan Spillane: Like what it would take to double again.

Speaker Change: With volume obviously being.

Speaker Change: The priority in 'twenty five.

Speaker Change: And then.

Speaker Change: I think the innovation pipeline from the Coca Cola Company I didn't think eight years ago, we'd be in AOA, RTD, who knows how big that's going to be for us we've seen a big it could be in Australia.

Brian: But it's a big picture question, Brian Thank you.

Speaker Change: Just to confirm Sarah does most of the hard work when it comes to meeting new investors, but we are.

Speaker Change: I think the energy category continues to deliver honestly, we've got categories that I feel we have not got the most value out of one in sports and Powerade, there's more to go and fuze tea.

Speaker Change: We are getting an opportunity to tell the CCP story to two.

Speaker Change: More newer.

Speaker Change: So when I look at doubling the business would really be around that space. If there is M&A that is accretive and we can drive value for the Coke company and we'd definitely be interested.

Speaker Change: Investors on the back of the FTSE conversations so that's been great.

Speaker Change: Yes.

Speaker Change: Clearly, we're excited about where we've got with CCP.

Speaker Change: But it's probably going to be a more organic story going forward.

Speaker Change: Look at our value creation, a lot of its organic right. So I think we've done some really good M&A.

Speaker Change: A lot of M&A, it's gone really well I have to say it's also good to focus on getting the most of what you've already bought and Thats really what were doing in 2012 and 26.

Speaker Change: But ultimately what underpins this business has strong growth.

Speaker Change: Organically and in our markets and if I was too.

Danny: Thanks, Danny and barring the great answer excellent.

Speaker Change: It's probably.

Speaker Change: Barring answer, but it's kind of a red line through probably a lot of what we've talked about today.

Speaker Change: Yes.

Speaker Change: Thank you.

Speaker Change: Sustained quality volume and revenue growth is the key to building the business again, I think we get good leverage on our P&L.

Speaker Change: We will now take our next question please standby.

Speaker Change: And the next question comes from Charlie Higgs from Redburn.

Speaker Change: We've got enough capital, we've got great talent, so really when I think about the next eight years.

Speaker Change: Please go ahead. Your line is now open.

Charlie Higgs: Yes, Hi, Damien.

Speaker Change: Well a good question the balance sheets, and the net debt EBITDA, which I think has come down very nicely to two point some times compounded EBITDA and you've obviously announced a $1 billion buyback. This morning, but I think on my numbers even with that.

Speaker Change: Quality topline growth.

Speaker Change: <unk> and revenue with.

Speaker Change: With volume obviously being.

Speaker Change: The priority in 'twenty five.

Speaker Change: And then.

Speaker Change: The innovation pipeline from the Coca Cola Company I didn't think eight years ago, we'd be in AOA, RTD, who knows how big that's going to be for us we've seen a big it could be in Australia.

Charlie Higgs: Leverage might fall a little bit in 2020, so can be interesting.

Speaker Change: Tell us through about how you're thinking about capital allocation over the coming years I know you've got some not weighted capital expenditure, but are you, leaving some dry powder, maybe some M&A it doesn't sound like from the last answer.

Speaker Change: I think the energy category continues to to deliver honestly, we've got categories that I feel we have not got the most value out of one is sports and Powerade.

Speaker Change: More to go and fuze tea.

Charlie Higgs: So just how you think about the balance sheet over the coming years. Thank you.

Speaker Change: So when I look at building the business would really be around that space. If there is M&A that is accretive.

Speaker Change: Thanks, Charlie asked good questions.

Speaker Change: We're delighted that we're not backing that leverage range of $2 73, and one year Ronnie and of course, we.

Speaker Change: We can drive value for the Coke company, and we would definitely be interested.

Speaker Change: But it's probably going to be a more organic story going forward.

Speaker Change: Quad, the Philippines and that period of time as well.

Speaker Change: I Love M&A, it's gone really well I have to say it's also good to focus on getting the most of what you've already bought and Thats really what were doing in 2020 six.

Speaker Change: So as we as we look forward I mean, we want to stay within that two five to three range.

Speaker Change: We are leaving ourselves a little bit of flexibility that's to allow for more cash investment in the business should the growth opportunities be that.

Danny: Thanks, Danny and borrowing to great answer excellent.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Thank you.

Speaker Change: We will now take our next question please standby.

Speaker Change: But it's also to allow for variation in business results over time and potentially for some M&A. So we don't want to Overcommit now.

Speaker Change: And the next question comes from Charlie Higgs from Redburn. Please go ahead. Your line is now open.

Charlie Higgs: Yes, Hi, Damien.

Speaker Change: <unk> changed our guidance in those expectations later, so we're leaving ourselves a little bit of flexibility, but we see ourselves.

Speaker Change: Well a good question on the balance sheets, and the net debt EBITDA, which I think has come down very nicely to two point, sometimes compounded EBITDA and you've obviously announced a 1 billion buyback. This morning, but I think on my numbers even with that.

Speaker Change: <unk> to operate within that two five to three times range.

Speaker Change: And just just to add to that I mean, I think we've.

Speaker Change: We're really happy that we could announce a share buyback 12 months.

Speaker Change: Leverage might fall a little bit in 2025, so can be interesting.

Charlie Higgs: Clearly to your point Charlie into Ed's comments.

Leave some powder for M&A.

Speaker Change: Tell us through about how you're thinking about capital allocation over the coming years I know you've got some outweighed.

Charlie Higgs: And particularly with our cash flow guidance that we've given today so.

Speaker Change: Capital expenditure, but are you, leaving some dry powder, maybe some M&A it doesn't sound like from the last answer you.

Charlie Higgs: We've demonstrated we can create value, particularly for the Coke company and our shareholders.

Charlie Higgs: If there are opportunities for sure where we're interested.

Speaker Change: So just how you think about the balance sheet over the coming years. Thank you.

Charlie Higgs: I suppose like we've talked about before.

Speaker Change: Thanks, Charlie asked good questions.

Any RTD and soft drinks seems to be a business that lots of people are attracted to get into so.

Speaker Change: We're delighted that we're not backing that leverage range of $2 73, and one year Ronnie.

Charlie Higgs: Finding bottling assets that are coming up is always going to be a priority.

Speaker Change: Of course.

Speaker Change: Quad, the Philippines and that period of time as well.

Charlie Higgs: Getting a bit more challenging but.

Speaker Change: So as we as we look forward I mean, we want to stay within that two five to three range.

Charlie Higgs: But we have the powder and we have the flexibility and I think thats, what we will continue to focus on.

Speaker Change: We are leaving ourselves a little bit of flexibility that's.

Speaker Change: Okay. Thanks, Dan Thanks, guys.

Charlie Higgs: Thank you.

Speaker Change: To allow for more.

Charlie Higgs: Now go to our next question please.

Speaker Change: Cash investment in the business should the growth opportunities be that.

Charlie Higgs: Please standby.

Speaker Change: And the next question comes from Robert <unk> from Evercore ISI. Please go ahead. Your line is now right.

Speaker Change: But it's also to allow for variation in business results over time and potentially for some M&A. So we don't want to Overcommit now.

Robert: Great. Thank you, Mike and thank you very much so Damian one of the great I think successes.

Speaker Change: A need to change guidance in those expectations later, so we're leaving ourselves a little bit of flexibility, but we see ourselves.

Speaker Change: For the Coca Cola system overall.

Speaker Change: Overall of which you guys play a very key role as has been the greater.

Speaker Change: Continuing to operate within that two five to three times range.

Speaker Change: Coordination.

Speaker Change: And just just to add that I mean, I think we've.

Speaker Change: Between the bottlers and Atlanta.

Speaker Change: We're really happy that we could announce a share buyback 12 months.

Speaker Change: And the agility the coordination on marketing planning.

Speaker Change: Clearly to your point Charlie into Ed's comments.

Speaker Change: Obviously incidents and wondering if you could kind of maybe.

Speaker Change: Leave some powder for M&A, and particularly with our cash flow guidance that we've given today so.

Speaker Change: Give us a little bit of sense.

Speaker Change: What sort of initiatives.

Speaker Change: We've demonstrated we can create value, particularly for the Coke company and our shareholders.

Speaker Change: That the global system is doing sort of initiatives that Atlanta has been talking to you about.

Speaker Change: There are opportunities for sure where we're interested.

Speaker Change: I suppose like we've talked about before.

Speaker Change: As it relates to your business both in 2025.

Speaker Change: RTD and soft drinks seems to be a business that lots of people are attracted to get into so.

Speaker Change: And beyond so we get a little bit of sense of kind of the bigger picture and how you are participating in those initiatives coming out of Atlanta. Thank you.

Speaker Change: Finding bottling assets that are coming up there's always going to be a priority.

Speaker Change: It's probably.

Speaker Change: Getting a bit more challenging.

Speaker Change: But we have the powder and we have the flexibility and I think thats, what we will continue to focus on.

Speaker Change: Thank you Robert.

Speaker Change: Yes, so for sure we are benefiting from the new well.

Speaker Change: Okay. Thanks, Dan Thanks, guys.

Speaker Change: Thank you.

Speaker Change: <unk> new marketing.

Speaker Change: We'll now go to our next question please.

Speaker Change: Approach from a no loan the company.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Robert <unk> from Evercore ISI. Please go ahead. Your line is now live.

Speaker Change: I think thats thats driving.

Speaker Change: Higher quality of engagement with our consumers.

Robert: Great. Thank you, Mike and thank you very much so Damian one of the great I think successes.

Speaker Change: It is more productive and efficient so we benefit from that efficiency in terms of marketing spend and allows us to connect with more consumers. So I think the way manalo and the Coke company.

Speaker Change: For the Coca Cola system overall.

Speaker Change: Overall, which you guys play a very key role as has been the greater.

Speaker Change: All the marketing structure is definitely helping us.

Speaker Change: Coordination.

Speaker Change: Secondly, we're benefiting on the portfolio.

Speaker Change: Between the bottlers and Atlanta.

Speaker Change: So if you look at our plans very aligned in terms of sparkling flavor growth Coke light diet Coke.

Speaker Change: And the agility the coordination on marketing planning.

Speaker Change: Obviously incidents and wondering if you could kind of maybe.

Speaker Change: We're clearly learning from markets like Australia, the U S around sports and power rate and how that becomes a mainstream category.

Speaker Change: Give us a little bit of sense.

Speaker Change: What sort of initiatives.

Speaker Change: We're curious about innovations as well that the company is we've looked at a lot of innovation out of North America, but globally. So we get great access very quickly to portfolio innovation and then we kind of have a good conversation about how relevant that is for our consumers here or in Asia, or Australia, New Zealand.

Speaker Change: That the global system is doing sort of initiatives that Atlanta has been talking to you about.

Speaker Change: As it relates to your business both in 2025.

Speaker Change: And beyond so we get a little bit of sense of kind of the bigger picture and how you are participating in those initiatives coming out of Atlanta. Thank you.

Speaker Change: A good example of that is <unk> RTD Bacardi and Coke great looking pack. So we definitely benefit on their investments the quality of output from the new model.

Speaker Change: Thank you Robert.

Speaker Change: Yes, so for sure we are benefiting from the new well.

Speaker Change: The portfolio.

Speaker Change: And then an area that is getting better and I would say, we're still probably at the beginning is really more around data insights and leveraging better.

Speaker Change: <unk> new marketing.

Speaker Change: Approach from a no loan the company.

Speaker Change: I think that's that's driving.

Speaker Change: Higher quality of engagement with our consumers.

Speaker Change: That bridge between consumer customer and shopper.

Speaker Change: <unk> been working on that obviously AI unlocks another tool to get into the quicker and to get more output. So thats, probably an evolving area that I'm excited about over the next couple of years.

Speaker Change: <unk> the.

Speaker Change: Marketing structure is definitely helping us.

Speaker Change: Yes, but overall very aligned.

Speaker Change: Secondly, we're benefiting on the portfolio.

Speaker Change: I think we've talked about it before Robert I think the <unk>.

Speaker Change: So if you look at our plans very aligned in terms of sparkling flavor growth.

Speaker Change: <unk> model on the incidents just continues to drive the right behavior in the system.

Speaker Change: Coke light diet Coke.

Speaker Change: I see that everyday and decision, making and it gives me a lot of confidence.

Speaker Change: We're clearly learning from markets like Australia, and the U S around sports and power rate and how that becomes a mainstream category.

Speaker Change: And I suppose we all have great marketing I mean, thats why we love this business.

Speaker Change: When you see some of the product innovation or the quality of media copy or the online activation coming out of Atlanta.

Speaker Change: We're curious about innovations as well that the company we've looked at a lot of innovation out in North America, but globally. So we get great access very quickly to portfolio innovation and then we kind of have a good conversation about how relevant that is for our consumers here or in Asia, or Australia, New Zealand.

Speaker Change: It's just going to continue to support our topline growth objectives.

Speaker Change: So a lot happening.

Speaker Change: Great. Thank you.

Speaker Change: Thank you.

Speaker Change: We'll now go to our next question please standby.

Speaker Change: A good example of that is <unk> RTD.

Philip: And the next question comes from Philip <unk> from J P. Morgan. Please go ahead. Your line is now open.

Speaker Change: Rd and Coke.

Speaker Change: Great looking pack, so we definitely benefit on their investments the quality of output from the new model.

Speaker Change: Hi, good afternoon. Thanks, so much for taking my question I just had one on the Philippine stays in your prepared remarks, you spoke about accelerating your capex plans in that market and I just wanted to understand better.

Speaker Change: The portfolio.

Speaker Change: And in an area that is getting better and I would say, we're still probably at the beginning is really more around data insights and leveraging better.

Speaker Change: What gave you the conviction to make that decision to accelerate the capex plans and if you could also share more color on what that accelerate investment will entail as well. Thank you.

Speaker Change: That bridge between consumer customer and shopper.

Speaker Change: Been working on that obviously AI unlocks another tool to get into the quicker and to get more output. So thats, probably an evolving area that I'm excited about over the next couple of years.

Hi, Philip.

So really it's all of those extra cases that the Philippine team.

Speaker Change: Tigers because they call themselves have delivered.

Speaker Change: But overall very aligned.

Speaker Change: Well ahead of our expectation in year, one so some of it's quite a.

Robert: I think we've talked about it before Robert I think that.

Robert: Financial model on the incidents just continues to drive the right behavior in the system.

A linear investment behind extra volume.

Speaker Change: So we've pulled forward a couple of lines in our five year plan.

Robert: I see that everyday and decision, making and that's what gives me a lot of confidence.

Speaker Change: They were in there were just bringing them forward, it's not a step up in our overall capex guidance as Ed talked to so that remains intact. So it's from within that guidance and 25 of around circa 5%.

Speaker Change: And I suppose we all have great marketing I mean, thats why we love this business.

Speaker Change: When you see some of the product innovation or the quality of media copy or the online activation coming out of Atlanta, It's just going to continue to support our topline growth objectives.

Speaker Change: We're also looking at in line with our other markets more cooler placements on the back of more volume and then also we will start to invest a bit more in technology and systems.

Speaker Change: So a lot happening.

Speaker Change: Great. Thank you.

Speaker Change: Thank you we will.

Speaker Change: Now go to our next question please standby.

Clearly that's going to be an area in such a high growth business that we feel is really important.

Speaker Change: And the next question comes from Philip <unk> from J P. Morgan. Please go ahead. Your line is now open.

Speaker Change: And then some of its fundamental which is.

Speaker Change: Bottles and cases, so a lot of that volume growth is coming from our refillable glass business.

Speaker Change: And that just requires a bit more capex to keep our lines running it makes it we've got on the stock so.

Speaker Change: From a capex deployment.

Speaker Change: All good all good reasons.

Speaker Change: An exciting and as I said, the catalyst is really an over delivery of volume.

Speaker Change: Yes, Hi, Philip.

Speaker Change: So really it's all of those extra cases that the Philippine team.

Speaker Change: Last year, and that's flowing through into 'twenty five beyond design.

Speaker Change: Is there anything else.

Speaker Change: And also some of that capital will unlock some of those mix opportunities.

Speaker Change: <unk> they call themselves have delivered.

Speaker Change: Well ahead of our expectation in year, one so some of it's quite a.

Speaker Change: Very RGB focused market, but we see lots of opportunities in <unk>.

Speaker Change: A linear investment behind extra volume. So we've pulled forward a couple of lines in our kind of five year plan.

Speaker Change: In cans and PT and so that investment is what is going to unlock some of those mix opportunities.

Speaker Change: So we're very excited about that and we're always happy to spend money on things that are not that level of growth.

Speaker Change: They were in there were just bringing them forward.

Speaker Change: A step up in our overall capex guidance as Ed talked to so that remains intact.

Speaker Change: Great. Thanks very much.

Speaker Change: We will now take our last question.

Speaker Change: It's from within that guidance and 25 of around circa 5%.

Speaker Change: And then last question comes from Richard with again from Kepler. Please go ahead. Your line is now open.

Speaker Change: We're also looking at in line with our other markets more cooler placements on the back of more volume and then also we will start to invest a bit more in technology and systems.

Speaker Change: Thanks, Good afternoon, Dania and et cetera.

Speaker Change: Just one question on going back to the energy drinks.

Speaker Change: Category. Two part question first of all can you talk a bit about the competitive situation in the indicate degree I think red Bull.

Speaker Change: Clearly that's going to be an area in such a high growth business that we feel is really important.

Speaker Change: Some of its fundamental which is <unk>.

Speaker Change: Produce a bit more flavors lots here. So so what's the competitive situation and the second point is is the cost of growth.

Speaker Change: Bottles and cases, so a lot of that volume growth is coming from our refillable glass business.

Speaker Change: And that just requires a bit more capex to keep our lines running it makes it we've got on the stock so.

Speaker Change: Increasing.

Speaker Change: In that category.

Speaker Change: From a capex deployment.

Speaker Change: Yes, so it's a.

Speaker Change: As you would expect given its.

Speaker Change: All good all good reasons.

Speaker Change: Consistently probably the fastest growing segment within the RTD.

Speaker Change: An exciting and as I said, the catalyst is really an over delivery of them.

Speaker Change: That brings in a lot of competition.

Speaker Change: Volume.

Speaker Change: Last year, and that's flowing through into 'twenty five and beyond.

Speaker Change: Not just from big players like Red Bull, but youll see a lot more local innovation coming into the category different price tiers. So it is evolving.

Speaker Change: Is there anything else.

Speaker Change: And also some of that capital will unlock some of those mix opportunities.

Speaker Change: Very RGB focused market, but we see lots of opportunities in <unk>.

Speaker Change: Every year on the back of that high growth.

Speaker Change: In cans, and PT, and so that investment as well as going to unlock some of those mix opportunities.

Speaker Change: That competition really pushes us to be on the top of our game with monster.

Speaker Change: So we're very excited about that and we're always happy to spend money on things that are not that level of growth.

Speaker Change: Youre correct Red Bull have gone back into some flavor innovation.

Speaker Change: We also have probably enjoyed more growth in that space over the last number of years.

Speaker Change: Great. Thanks very much.

Speaker Change: Thank you we will now take our last question.

Speaker Change: And we've continued to do so on the back of some of the juice bearings for monster. So.

Speaker Change: And then last question comes from Richard with again from Kepler. Please go ahead. Your line is now open.

Speaker Change: Overall healthy competitive category driving high single digit growth over time.

Richard: Thanks, Good afternoon, Dania and et cetera.

Speaker Change: Our aim is to grow and take share in that category.

Richard: Just one question on going back to the energy drinks.

Speaker Change: Lena.

Richard: Category. Two part question first of all can you talk a bit about the competitive situation in the indicate degree I think red Bull.

Speaker Change: And it will probably remain one of the most competitive.

Speaker Change: Categories, it's not driving an increased cost of growth in fact.

Richard: Produce a bit more flavor. It's lost here. So so what's the competitive situation and the second point is is the cost of growth.

Speaker Change: As we grow as Ed talked about it as an area that we get better leverage on our fixed asset base. So.

Speaker Change: In some ways over time, our margins will improve and energy as well so.

Richard: Increasing.

Richard: In that category.

Richard: Yes.

Speaker Change: Theres not a significant higher cost of growth.

Richard: <unk>.

Richard: As you would expect given its consistently.

Speaker Change: Yes, we don't expect that but I do expect it to remain nice and competitive.

Richard: Consistently probably the fastest growing segment within the RTD.

Richard: That brings in a lot of competition.

Richard: Not just from big players like Red Bull, but youll see a lot more local innovation coming into the category different price tiers. So it is evolving.

Thanks Lee.

Speaker Change: I would now like to hand, the conference back over to Damian Gammell today's closing remarks Damien. Please go ahead.

Damian Gammell: Thank you.

Richard: Every year on the back of that high growth.

Damian Gammell: So firstly again, a big thank you for everybody taking time out this morning, and this afternoon to join us.

Richard: Competition really pushes us to be on the top of our game with monster.

As we've closed out 2024 was a great end to a very solid year at TCP.

Speaker Change: Youre correct Red Bull have gone back into some flavor innovation.

Damian Gammell: Today, we're very pleased to announce our 1 billion share buyback that will start on Monday.

Speaker Change: We also have probably enjoyed more growth in that space over the last number of years.

Speaker Change: And we've continued to do so on the back of some of the juice bearings for monster. So.

Damian Gammell: As you've heard from both myself and Ed today, we're super excited about the investments and in particular commercial plans to drive that quality growth for 2025 and beyond.

Speaker Change: Overall healthy competitive category driving high single digit growth over time.

Speaker Change: Our aim is to grow and take share in that category.

Damian Gammell: And we look forward to.

Damian Gammell: You joining us on the ground in Manila in May where we can showcase.

Speaker Change: Linda.

Speaker Change: And it will probably remain one of the most competitive.

The growth and success of our Philippines business and will also showcase the changes, we're making in Indonesia to ensure the long term success and health of that business.

Speaker Change: Categories, it's not driving an increased cost of growth.

Speaker Change: <unk>.

Speaker Change: As we grow as Ed talked about it as an area that we get better leverage on our fixed asset base. So.

Damian Gammell: We will also give you obviously an update on how we see our European business as we head into the summer so.

Speaker Change: In some ways over time, our margins will improve and energy as well so.

Damian Gammell: <unk> Manila and again, thank you for joining us.

Speaker Change: Theres not a significant higher cost of growth.

Speaker Change: Yes, we don't expect that but I do expect it to remain nice and competitive.

Speaker Change: Thanks Lee.

Speaker Change: I would now like to hand, the conference back over to Damian Gammell today's closing remarks Damien. Please go ahead.

Speaker Change: Thank you.

Speaker Change: So firstly again, a big thank you for everybody taking time out this morning, and this afternoon to join us.

As we've closed out 2024 was a great end to a very solid year at TCP.

Speaker Change: We're very pleased to announce our $1 billion share buyback that will start on Monday.

Speaker Change: As you've heard from both myself and Ed today, we're super excited about the investments and in particular commercial plans to drive that quality growth for 2025 and beyond.

Speaker Change: And we look forward to.

Speaker Change: Joining us on the ground in Manila in May where we can showcase.

Speaker Change: On the growth and success of our Philippines business and will also showcase the changes, we're making in Indonesia to ensure the long term success and health of that business and we'll also give you obviously an update on how we see our European business as we head into the summer so.

Speaker Change: Manila and again, thank you for joining us.

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

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Speaker Change: Thank you all for joining us on the love the day to day on his Damian Gammell, IC and <unk> <unk> CFO before we begin with our opening remarks, I remind you of our cautionary statements. This call will contain forward looking management comments and other states.

Speaker Change: With that outlook.

Speaker Change: These comments should be considered in conjunction with the cautionary language contained in today's release as well as the detailed cautionary statements and reports filed with the UK U S Dutch and Spanish authorities.

Speaker Change: This information is available on our website www dot.

Speaker Change: Coca Cola EP Dot com.

Damian Gammell: Mark will be made by Damian that followed by Q&A unless otherwise stated metrics presented today will be on a comparable FX neutral basis.

Damian Gammell: They will also be presented an adjusted comparable basis, reflecting the results of CCP in Australia Pacific and Southeast Asia business unit Aps as this credit Philippines transaction had occurred at the beginning of last year rather than in February when the acquisition completed.

Speaker Change: Following the call transcript will be made available on our website I will now turn the call over to USDA Damian.

Damian Gammell: Thank you Sarah and many thanks to everyone for joining us today.

Damian Gammell: I would like to start off with a recap of our strategy, which continues to deliver our value creation is clear with 2024 being another solid year for CCP.

Damian Gammell: Year that saw us further diversify with the addition of a great market in the Philippines.

Damian Gammell: I'd like to start today by thanking all of my colleagues at CCP for ongoing energy hard work and continued commitment to our customer and to our business as always this is underpinned by <unk>.

Damian Gammell: Our strong aligned relationships with both the Coca Cola company amongst others.

Damian Gammell: And our other brand partners.

Damian Gammell: We will touch on many of these themes today, all of which contributed to our <unk> of more than 160%.

Damian Gammell: So just turning to our key messages.

Damian Gammell: We enjoyed a great finish to a solid year with robust top and bottom line growth. We are more geographically diversified with the strong performance of our higher growth Aps markets, helping offset some softer volumes in Europe.

Damian Gammell: <unk> reflected some strategically listings mixed summer weather, which we've touched on before.

Damian Gammell: Softer demand in our away from home channel I am, particularly happy to grown share ahead of the market.

Damian Gammell: And lead on value creation for our customers alongside ongoing productivity gains we drove impressive comparable free cash flow of over $1 8 billion.

Damian Gammell: Our full year 25 guidance combined with the resumption of our share box also announce today, demonstrating our ability to deliver continued shareholder value.

Damian Gammell: This was driven by revenue margin growth management initiatives.

Damian Gammell: And our continued focus on our pricing and promotion strategies.

Damian Gammell: The NAO RTD category grew in volume and value in both Europe and APAC, we grew our value share by 40 basis points in the home channel, while also making gains in away from home and critically online.

Damian Gammell: And the advantage survey our customers with our customers' CCP was registered again as a top tier supplier.

Damian Gammell: Our strong topline performance together with the delivery of our efficiency programs drove a solid operating profit growth of 8% with operating margin expansion in both Europe and Aps.

Damian Gammell: And diluted earnings per share growth of six 5% on a comparable and FX neutral basis.

Damian Gammell: Again, we generated impressive comparable free cash flow of $1 8 billion.

Damian Gammell: After investing over $1 billion across our business in the areas of capacity technology.

Damian Gammell: <unk> technology and digital.

Damian Gammell: And also supporting the air to return to our target leverage range.

Damian Gammell: We delivered healthy dividend growth and up today announced a new $1 billion share buyback program.

Damian Gammell: As ever CCP, we remain focused on great people, great brands, great execution, all done sustainably I'll now share a few brief highlights on these topics for last year.

Damian Gammell: As ever starting with our people we continue to build the capabilities of our teams.

Damian Gammell: And for example, our partnership with the London Business School has all skilled over 500 of our executive leaders, we continue to be recognized internally and externally. We saw record scores in our engagement survey, placing CCP amongst the best of its peers is a great place to work.

Damian Gammell: And recently the top employers Institute recognized CCP as a tougher player employer across many of our markets.

Damian Gammell: And finally committed to building, an even more inclusive and diverse culture.

Damian Gammell: We welcomed another 9000 colleagues to CCP with the seamless integration of the Philippines business.

Speaker Change: As a butler great execution is always a key priority for us at TCP.

Speaker Change: We continue to create leading value for our category, adding well over 1 billion euros of value to our retail customers.

Speaker Change: Activation, both in store and online as key last year as you know was a standout with the summers iconix sporting events, namely the Olympic and Paralympic games in Paris, the euros in Germany, and the Americas Cup in Barcelona, providing us with a powerful platform. We also increased our share of cold drink space.

Speaker Change: Even more cooler placements.

Speaker Change: All helping our brands reached more households, and to improve our share across our categories.

Speaker Change: Our customers and consumers right, we expect our products, we made to the highest quality and safety standards in that context, we recently had a small issue with some products manufactured in Belgium late last year.

Speaker Change: This was deeply unfortunate nature, but we are pleased that this was quickly resolved and does not lead to appropriate learnings have been incorporated into our product safety and quality procedures with new protocols put in place.

Speaker Change: Now onto our sustainability highlights for which we continue to be recognized externally, including retaining our inclusion on Cdp's a list for climate now for the ninth year in maintaining our MSCI AAA ESG rating.

We're also recently included in sustained analytics ESG top rated companies for 2025, which rated CCP number one in the food and beverage category.

Speaker Change: And we continue to invest in sustainability focused technology to our ventures arm across ingredients.

Speaker Change: Factoring in packaging to support our decarbonization journey.

Speaker Change: For example have a lower using AI to develop a low carbon sugar crop with higher yields unimproved drought resistance. Just one example of how this sustainability journey makes CCP a better business.

Ed: Before I hand over to Ed I'd.

Edward Mundy: Just like to call it the Philippines.

Speaker Change: Which will soon reach its first birthday in the CCP family.

Speaker Change: And what a year it was having delivered double digit volume growth.

Speaker Change: Underlying market demand in the Philippines was strong.

Speaker Change: Which with great execution drove nearly 300 basis points of value share gains to a record high.

Speaker Change: At an impressive 75% sparkling and 50% <unk> share.

This translate into very healthy operating margin expansion of around 200 basis points.

Speaker Change: I've said it before but the more time I spend in the market.

Speaker Change: More excited I become about the addition of the Philippines into the CCP firmly we see lots of opportunities below on short term, which naturally will be led by coke trademark we all see opportunities in other areas such as low or no sugar energy on our recently launched <unk> RTD brands.

Speaker Change: Our strong focus on capital allocation on a long term mindset will ensure we will invest in this exciting business.

Speaker Change: To support and lead the markets long term growth expectation.

So given the positive outlook, we are accelerating some of our capex plans in that market.

Speaker Change: So on Indonesia, whereas clearly the Philippines had a standout year, our Indonesian volumes similar to many other western brands were significantly affected by geopolitical events.

Speaker Change: We did however, see encouraging sparkling growth unless effective parts of the country and the transformation of our route to market has progressed well. So we will ensure Indonesia continues to be fit for the future.

Speaker Change: I wanted to not to not only recognize the fantastic efforts made by our Indonesian business in this challenging environment.

Speaker Change: Also to reiterate that CCP, we continue to believe in an exciting long term opportunity in this market.

Speaker Change: However, given the context.

Speaker Change: Business performance is naturally behind plan, leading to a noncash impairment charge and a full year 24 results.

Speaker Change: Ed will touch more on this shortly so now I would like to hand over to Ed to take you through our financials in some more detail.

Edward Mundy: Thank you Damian and thank you all for joining us today, so firstly to our financial summary.

Edward Mundy: So we delivered revenue for the year of $20 7 billion euros and increase of three 5% and in line with our guidance.

Edward Mundy: While comparable volumes were flat for the year underlying volumes were up <unk>, 7% when we take into account the effect of strategic existing principally Capri Sun in Europe.

Edward Mundy: As Damien mentioned earlier, we also felt the impact of adverse weather in Europe, particularly during Q2, and Q3, which contributed to softer volumes, particularly in the away from home channel.

Speaker Change: Volumes in Europe were down two 4% or one 4% on an underlying basis volumes in Aps were up four 9% driven by the Philippines, but also reflecting impressive growth in the Pacific Islands impact New Guinea.

Speaker Change: We had favorable brand mix, which was partly offset by geographic mix driven by the strong growth in the Philippines, which is coming from a lower revenue per unit case.

Speaker Change: Cost of sales per unit case increased two 6% in line with guidance cycling high single digit growth in 'twenty three.

Speaker Change: This reflects our increased revenue per unit case, driving higher concentrate costs through our incidence pricing model and inflationary manufacturing offset by the mix impact from the stronger growth in the Philippines, which has a lower cost of sales per unit.

Speaker Change: A breakdown of this is all provided in the appendix to the presentation.

Speaker Change: Opex as a percentage of revenue was 22, 5% and improvements of 50 basis points.

Speaker Change: And all of these elements combined drove operating profit for the year of $2 7 billion up 8% on an operating margin of 12, 9% an expansion of around 50 basis points.

Speaker Change: Earlier.

Speaker Change: We delivered diluted earnings per share of three year is 95.

Speaker Change: Comparable free cash flow generation continues to be a core priority for us.

Speaker Change: They bring an impressive $1 8 billion.

Speaker Change: And our return on invested capital increased by 50 basis points to 10, 8% driven by the increase in profit after tax and our continued focus on capital allocation.

Speaker Change: And finally on shareholder returns, we paid a total dividend per share of one year of 97.

Speaker Change: Just over 7% for the year.

Speaker Change: Now on to efficiency and productivity, where we have a proven track record of delivery as a reminder, our current program aims to deliver between 350 and 400 million euros of efficiencies by 2028.

Speaker Change: In its first year, we've delivered around $80 million earlier than planned and ahead of our original guidance of 60 to 70 million euros.

Half of this came from supply chain initiatives in Europe, and Australia, alongside further leveraging of our digital and shared service capabilities in Bulgaria.

Speaker Change: Looking ahead to 2005, while we still expect to see inflationary pressures on the business, particularly in labor, we're confident of continuing to drive further efficiencies in line with our plans.

Speaker Change: One example relates to the further optimization of our German network needing to the closure of the Cologne sites and the consolidation of warehousing facilities, which also generates carbon benefits.

Speaker Change: And as previously referenced all the benefits of these programs and the cash restructuring costs to deliver them are included within our guidance.

Speaker Change: Turning now to free cash flow as I said, a core priority for us.

Speaker Change: One 8 billion of comparable free cash flow generated to translate into a very healthy free cash flow conversion to net profit and this bridge lays out the key components, including ongoing cash restructuring costs as I mentioned earlier.

Speaker Change: Recognizing the importance of targeted investments, we spend around $1 1 billion on capex on supply chain digital and technology as well as more culturing equipment.

Speaker Change: Examples include new can lines in GB in Australia, and new PT line in Papua New Guinea, and the <unk> line in Germany. We're also entering the bill phase of our new unified SAP architecture, having successfully completed the design phase.

Speaker Change: And finally as you know driving working capital benefits remains a core focus for us. So I'm really pleased that we delivered yet another year of benefits, taking the cumulative amounts to more than one 5 billion since 2017.

Speaker Change: And that's impressive free cash flow generation has driven sustained deleveraging over time.

Speaker Change: This enabled us to return to our target leverage range of two and a half to three times EBITDA one year ahead of plan.

Speaker Change: Which brings me onto our capital allocation framework, which is unchanged we remain.

Speaker Change: <unk> focused on ensuring we maintain a strong and flexible balance sheet operating within our leverage range and with a strong investment grade rating.

We continue to benefit from a balanced debt maturity profile with an attractive total weighted average cost of net debt I expect it to remain around 2%.

Speaker Change: We've touched already on Capex and restructuring spend with our guidance on capital investment unchanged, 425, which implies well over 1 billion euros of spend to support our growth plans.

Speaker Change: Of course, we remain alert to value accretive M&A should the opportunity arise and finally as Damian referenced early earlier, we are committed to delivering shareholder returns. These comprise our annual dividend payout ratio of around 50% and as of today, a new share buyback program of 1 billion euros to be executed.

Speaker Change: It over the next 12 months.

Speaker Change: Before I move onto our guidance for 25 I wanted to share a few comments on two well trailed portfolio changes that will increase our alignment with the Coca Cola company and unlock further growth opportunities.

Speaker Change: The first is the transition from <unk> to fuze tea.

Speaker Change: Following successful Rollouts in Europe, Iberia is the last market change to this better on both the platform and the growing tea category.

Speaker Change: As you would expect this has been well planned distribution is going well with both home and away from customers supported by great marketing.

Speaker Change: And the second relates to the end of our partnership with extraordinary global spirits running until the end of June in Australia on the end of December and New Zealand.

Speaker Change: This paves the way for the start of the multiyear transition to launching OTT offerings as we've seen in Europe in the Philippines, and Australia now extended to the Coca Cola Company's recently acquired popular both debates Bilson brand.

Speaker Change: Just to note that both of these exciting changes are reflected in our full year 25 guidance.

Speaker Change: A brief reminder of our midterm objectives. These are unchanged and we remain confident in the delivery and same you'd mentioned earlier.

Which then brings me onto our full year 'twenty five guidance, reflecting our current view of the market conditions and is aligned with these midterm objectives.

Speaker Change: Touching briefly on some areas by exception.

We expect revenue growth of approximately 4% and to be more balanced between volume and revenue per case compared to the last year.

Speaker Change: From a phasing perspective, I would call out in Q1, we will annualize the impact of the cafe, some strategic de listing and Easter. This year will fall in Q2 versus Q1, and we have two less selling days in Q1 versus last year.

Speaker Change: On cost of sales, we expect this to grow by around 2%.

Speaker Change: As I mentioned earlier, our concentrate costs are tied to our revenue per unit case growth and.

Speaker Change: And we anticipate broadly flat commodity inflation on which we are approximately 80% hedged for full year 'twenty five.

We do continue to see inflationary pressures in labor within the manufacturing, partly offset by our combined efforts on efficiency we can.

Speaker Change: Have the throughput tax impacts from the GB soft drink excise tax changes announced late last year with the offset within revenue.

Speaker Change: And finally, the mix benefit of higher anticipated volume growth in the Philippines given.

Speaker Change: Lower cost of sales per unit case.

Speaker Change: Our effective tax rate for the year is expected to be around 26% up from 25% last year, reflecting differences in the mix of taxable profits across our markets and our current assessment of uncertain tax positions.

Speaker Change: We expect to generate at least $1 7 billion of comparable free cash flow and a new $1 billion share buyback program will commence imminently to be executed over the next 12 months through to February 'twenty six.

Speaker Change: We broadly expect any accretion this year flowing through from 10 of 12 months of the share buyback to be offset by the anticipated higher effective tax rates and the growth in noncontrolling interest given the positive outlook in the Philippines.

Damian Gammell: And now back to Damian.

Damian Gammell: Thanks, Ed.

Speaker Change: No.

Speaker Change: Just turning to what we talked about earlier. So we are confident in our ability to deliver approximately 4% revenue growth in 2025 and beyond.

Speaker Change: This will be driven by these four levers balanced between healthy underlying volume and revenue per unit case growth.

Speaker Change: Before I share. Some examples of what gives me confidence for this year I did want to call out that.

Speaker Change: We exited 2024 with a good December and that this has continued into January.

Speaker Change: So on our portfolio there is a lot to be excited about across our great brands and as always consumer led and consumer focused for cocoa original tasting zero sugar New flavors continue with the addition of lime and later in the year, we'll watch out for new fruit eyecatching graphics across our packs.

Speaker Change: The new dye Coke campaign. This is my taste fronted by our new brand Ambassador Jamie Dornan is gaining momentum and for fanta and not wait a choice of flavor extensions, including tutti, Frutti and energy and monster as well as new additions to the juice range. We're excited about the new collaboration with London <unk>.

Speaker Change: F. One team now.

Speaker Change: We continue to expand our portfolio to capture new opportunities in areas, such as sports and the RTD as Ed referenced in sports I was really excited to hear about the yields punished our pyrite fun linear model has entered into a multi year deal as a team <unk> at lead which will resonate well with our consumers.

Speaker Change: Build affinity and drive preference for this terrific friends.

Speaker Change: Now to our customers our customer relationships are always front and center.

Speaker Change: What a great retail foundation to be the number one absolute revenue growth creator.

Speaker Change: Full year 'twenty five pricing is largely in place, including GB in Germany.

Speaker Change: Executed later last year with auto negotiations well advance we continue to leverage our best in class revenue and margin growth management tools and capabilities across our broad product offering as you see here.

Speaker Change: And to highlight a few recent customer wins.

Speaker Change: Including else, our multi brand restaurant franchise upper in Spain.

Speaker Change: <unk> in GB and Jerry's grilled 110, plus restaurant chain in the Philippines.

Speaker Change: As I touched on earlier, we are fanatical about in market execution and activation whether in store online or in outlet.

Speaker Change: All to drive distribution of our great brands on visibility every day.

Speaker Change: We love, creating an engaging displays, especially around key holiday events, all well planned across the calendar year.

Speaker Change: All driven by the largest sales force in FMC G. Nearly 9000 total.

Speaker Change: Powered by technology, enabling more contact with more customers.

Speaker Change: We are investing in more coolers this year aiming to add over 100000 across our coke trademark and monster.

Speaker Change: We continue to accelerate our digital capabilities.

Like adding even better functionality to our <unk> portal <unk> dot com to make life easier for our customers. We believe there are few EEP to be platforms in Europe, delivering annual revenue of nearly $2 5 billion euros in the <unk> space.

Speaker Change: And better forecasting means more cases delivered to our customers on time and in full.

Speaker Change: Geographically, our diversification across 31 markets with leading market positions makes us stronger.

Speaker Change: This is evidenced by our performance last year.

Speaker Change: Going forward, we ultimately recognize that volume and revenue growth in Europe is critical for CCP across sparkling energy and those are any RTD.

Speaker Change: We are however excited by the balance of exposure, we now have the higher growth markets, where we continue to build our capabilities.

Speaker Change: In my mind. These include not only the Philippines, and Indonesia, but also Papua New Guinea under Pacific Islands.

They represent half of our markets, which of which having grown revenue last year by around 10% clearly demonstrate their power as an organic topline accelerator for CCP.

Speaker Change: And so to conclude we are very well placed for 2025 and beyond.

Speaker Change: We are confident we have the right strategy don't sustainably to deliver on our mid term growth objectives.

Speaker Change: Our full year 25 guidance combined with the resumption of share buybacks demonstrates the strength of our business and our ability to deliver continued shareholder value.

We look forward to sharing more on our exciting future at our capital markets event in Manila.

Speaker Change: In may.

Speaker Change: So thank you very much Ed and I would now be very happy to take your questions and I'll hand, the call back over to you operator.

Speaker Change: Thank you we will now begin our question and answer session.

Speaker Change: Please standby, while we compile the Q&A roster. This will only take a few maintenance.

Speaker Change: We will now take our first question please standby.

Speaker Change: And the first question comes from Mitch Collett from Deutsche Bank. Please go ahead. Your line is now open.

Speaker Change: Hi, Tech Hi, Ed Hi, Sarah.

Speaker Change: My question is very quick one.

Damian Gammell: Thanks, Mitch yes, so we've increased the guidance to at least one seven.

Damian Gammell: Billion, obviously, we did $1 8 billion in 2024, which were very.

Damian Gammell: Bob.

Damian Gammell: So it's really just the increased confidence that we have.

Damian Gammell: In the business and the ability for that business to generate operating profit growth and value and then us to convert that into into free cash flow.

Damian Gammell: Keeping some flexibility within that because as we said in the in the prepared remarks, we have over 1 billion euros of Capex investment plans.

Damian Gammell: We're keen to invest to unlock that growth across our markets. So yes, we're pleased to be seeing at least $1 7 billion for 2025.

Damian Gammell: Very clear thank you.

Damian Gammell: Thank you we will.

Damian Gammell: I'll now take our next question.

Damian Gammell: Please standby.

Speaker Change: And the next question comes from Matthew <unk> from BNP Paribas Exane. Please go ahead. Your line is now open.

Damian Gammell: Thanks.

Damian Gammell: Afternoon.

Speaker Change: My question is just on I suppose on Philippines, Indonesia.

So it sort of tier one rig all the Philippines.

Speaker Change: Get a sense of how you finished the year you talked about solid trading in Q4.

Speaker Change: On Indonesia.

Speaker Change: Clearly still.

Speaker Change: A difficult market to operate in just just be great to get an update on the boycotting situation, but what youre seeing if you've seen any kind of improvement in the last weeks and months.

Speaker Change: Yes, Thanks, Mike maybe I'll start with Indonesia, So it's fair to say our businesses stabilize very well there in light of some of those geopolitical challenges.

Speaker Change: As you know, it's a big big country.

Speaker Change: Which is one of the reasons, we remain very excited about it for the long term.

Speaker Change: What is interesting interesting.

Speaker Change: Got back from a trip down there is there are certain areas more impacted than others, where we see less of an impact we see our brands growing.

Speaker Change: High single digit to mid teens, so I think that gives us confidence that.

That the changes we've made both in terms of route to market, our pricing strategies and the marketing.

Speaker Change: Push with the Coca Cola company are working.

Speaker Change: Obviously, we'll continue to keep a close eye on the situation.

Speaker Change: And I'm, particularly excited as we move into Ramadan we've.

Speaker Change: Got a great campaign around sprite, so definitely more to come on Indonesia.

Speaker Change: As I mentioned in my prepared remarks, a big callout to our team there challenging when you have got some of those macro elements out of your control, but I think they've continued to focus on the long term as we have and that will pay out in Indonesia for the.

Speaker Change: Sure on the Philippines.

Speaker Change: Yes, great year last year.

Speaker Change: Great finish to the year. So Christmas is a really big occasion in the Philippines on our teams locally really made the most of it record volumes that continues into 2025.

Speaker Change: Yes, I'd just.

Speaker Change: Called out that we'd see the Philippines.

Speaker Change: In line with our midterm guidance, so high single digit growth.

Speaker Change: We've talked many times that one of our priorities is margin expansion, we're seeing that coming through some of the capital that we're deploying is unlocking.

Speaker Change: Yes.

Speaker Change: Another great start to the year in the Philippines.

Speaker Change: Looking forward to another.

Speaker Change: Another very very strong year from from that business. Thank.

Speaker Change: Thank you Matthew.

Speaker Change: Thank you.

We will now take our next question.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Eric <unk> from Morgan Stanley. Please go ahead. Your line is now open.

Eric: Good morning, good afternoon, Thanks for taking my call taking my question.

Speaker Change: Hoping you could give some color on what youre seeing in energy.

Speaker Change: Six and change percent growth you called.

Speaker Change: You called solid or strong.

Speaker Change: But it certainly has slowed down from what we've seen over the past few years.

Speaker Change: Any color on energy.

Speaker Change: Got it.

Speaker Change: As 2024 unfolded in your expectations.

Speaker Change: For 2020.

Speaker Change: Yeah. Thank you Eric.

Speaker Change: I mean relatively speaking energy was still a standout category. If you look at growth across most of our markets last year.

Speaker Change: And I see it.

Speaker Change: Continuing to play that lead on a percentage level or slightly down.

Speaker Change: A couple of things I'd call out we are looking at.

Speaker Change: Expanding energy.

Speaker Change: Newer markets, So Indonesia, Philippines.

Speaker Change: It took to earlier on the pipeline of innovation coming from Monster. So it continues to be a very exciting innovative category for us.

Speaker Change: I see it returning back to that more high single digit growth.

Speaker Change: So I don't see anything in the category that points to that being a sustained slowdown in fact, I think it's getting more competitive.

Speaker Change: Gaining share launching it into some of our more emerging markets, where I think it will it will play a role long term.

Speaker Change: That gives me confidence that we'll continue to see energy, leading our growth against our midterm guidance.

Speaker Change: Thank you Greg we will now go to our next question.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Lauren Lieberman from Barclays. Please go ahead. Your line is now open.

Lauren Lieberman: Great. Thanks, Hi, everybody.

Lauren Lieberman: And I know in the release you flagged some away from home weakness in Europe, and so I'd just like to talk a little bit more about plans to help support that channel. This year, particularly in light of what remains a pretty stretched consumer backdrop, and you've had a lot of other beverage companies broadly talking about.

Lauren Lieberman: The challenges in that outlet that set of outlets.

Lauren Lieberman: Yeah. Thanks, Lauren so.

Lauren Lieberman: Sure.

Lauren Lieberman: I'd probably call out a couple of areas.

Lauren Lieberman: I think one the brand innovation that we showed earlier.

Lauren Lieberman: I think we will definitely play into that channel in terms of bringing excitement to the consumer and to our customers. So we.

Lauren Lieberman: Our pricing has moderated in that channel. So we think relevance price relevance is in good shape.

Lauren Lieberman: I referenced as well in the prepared remarks, we will be stepping up our cooler investments that is a key support to the away from home channel as well.

Lauren Lieberman: And.

A lot of our ditch.

Lauren Lieberman: Digital led campaigns will be focusing on helping our customers drive incidence in store drives traffic.

Lauren Lieberman: And then finally, we're also winning a lot of new business in the away from home area. I think that also supports our growth ambition in that channel.

Lauren Lieberman: So I do see 2025 being a better year.

Lauren Lieberman: In away from home, particularly in Europe.

Lauren Lieberman: And I think the steps we've taken will support up and then obviously we're looking at.

Lauren Lieberman: Forward to our summer and that will definitely unlock growth. So yes, they would be the four pillars that I would talk to lora.

Speaker Change: Okay. Thanks, so much.

Lauren Lieberman: Thank you.

Speaker Change: We'll now take our next question.

Speaker Change: Please standby.

Speaker Change: The next question comes from Edward Mundy from Jefferies. Please go ahead. Your line is now open.

Speaker Change: Afternoon, Damon etcetera.

Edward Mundy: Just coming back to the the volume piece within Western Europe, you managed to generate about 8% EBIT growth in 2020, Despite European volume was down two and a half nearly two and a half and I know you don't guide for volumes, but if you were to get a sensitive volume growth in Europe would there not be quite favorable implications for EBIT given some of the operating leverage that we kicked off.

Speaker Change: And I'm, just trying to square that circle.

Speaker Change: With regards to your 7% EBIT growth and your sort of highest free cash flow guidance as well.

Speaker Change: Yes, so thanks Ed.

Well I think the first thing to say is that.

Speaker Change: It's still very early in the year.

Speaker Change: And.

Speaker Change: We're here in February and so as we look forward, we want to give guidance that we're confident in delivery for the year.

Speaker Change: Youre, absolutely right for percentage above the three 5% from a revenue perspective.

Speaker Change: That we did in 2024, but when we look at the mix of that revenue for 2005, we think more of it will come from volume as we mentioned area and less from revenue per case, and obviously as you look through the P&L not that has less of a accretive effect because we obviously need.

Speaker Change: Cost of that extra volume as you go through the P&L. So that's the reason why we're maintaining the 7% guidance approximately 7% guidance for the year.

Speaker Change: And the same goes for all free cash flow, we want to maintain some flexibility as we go through the year and as we talked about the idea we have lots of opportunity to invest cash to unlock growth for the future.

Speaker Change: And just maybe to build on Ed's comments.

Speaker Change: I mean as you would expect is above or below volume as I speak to my supply chain colleagues well.

Speaker Change: Switching back to what I mentioned to Lauren that starts with and away from home investment levels.

Speaker Change: That are very very strong I think a lot of the marketing innovation that youre seeing from the Coca Cola company on for months or will help us support our volume growth. If you look at last year I mean, it was a bit bumpy bold in terms of some of the macros, but also delist like cap rate. So the underlying volume performance is clearly stronger than it looks on a reported level.

Speaker Change: And that also gives us confidence going into 'twenty five.

Speaker Change: As I called out we did finish the year strongly in January started well so.

As ever as we go through the year, we will keep all of you fully.

Speaker Change: Data on how we're seeing volume progress, particularly in Europe.

Speaker Change: And Jamie just to follow up I mean.

Speaker Change: <unk> thousand 20 fold.

Speaker Change: There are a lot of support that it didn't fully materialize from a volume standpoint, because there is a washout summer.

Speaker Change: It feels like 2025 years.

Speaker Change: More innovation than you normally would have to sort of lap the supporting some of it given that you didn't have the benefit from the summer of sports.

Speaker Change: The setup for 225 volumes, it's quite favorable.

Speaker Change: Yes, I mean, we were planning, 25% and 23, so I mean, we would obviously higher expectations in 'twenty for that on the back of great assets that.

Speaker Change: That we would have strong volume growth in 2004 that didn't quite materialize as we would've liked.

Speaker Change: That did give us the catalyst to make sure that 25 from a kind of campaign on cycling those assets.

Speaker Change: And that work started in 'twenty, three and Youre seeing some of that coming through both in terms of diet Coke, particularly in GB.

Speaker Change: Some of the innovation, that's hitting the market great similar campaigns on a kind of talk about for coke, but that will all become clear pretty.

Speaker Change: Pretty soon.

Speaker Change: On innovation across our other brands. So it's probably yes, it's probably one of the most exciting marketing.

Speaker Change: Product calendar that we've had for a while.

Speaker Change: And I think thats exactly what we need to stimulate that growth year in particular.

Speaker Change: Great. Thank you.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: And the next question comes from Sandeep <unk> from UBS. Please go ahead. Your line is now open.

Hi, David.

Speaker Change: My question is really around the pricing and promo strategy in Europe. So I think you called out maybe some adjustments have been made in the away from home channel.

Speaker Change: But how are you thinking about the home channel is the mantra to price in line with CPI. Despite.

Speaker Change: A more favorable input cost environment any.

Speaker Change: Any context, there would be helpful.

Speaker Change: Yes, Angie, yes, broadly youre spot on I think we have.

Speaker Change: A very good discipline on I suppose harvest.

Speaker Change: <unk> taken what we believe are really good relevant price moves every year, we'll continue to do that broadly in line with CPI as you said.

Speaker Change: Beyond that we have an amazing amount of.

Speaker Change: Investment deployed in our P&L on promotions, if you look at the amount and the number of the quantum it's significant.

Speaker Change: So every percent that we can make that work harder really adds both of the P&L to the topline growth. So I suppose on top of that CPI. We continue to use a lot of data analytics work.

Speaker Change: And in market testing to try and make sure that we're finding the most relevant price points, particularly on promotion. That's also very through for Australia, and New Zealand.

Speaker Change: So yes CPI.

Speaker Change: So you will see some changes in some of our promo strategies in our key markets.

Speaker Change: In terms of multi packs.

Speaker Change: We also believe that there's still premium amortization.

Speaker Change: In our markets and I think you saw on the slide earlier the amount the best to use.

Speaker Change: We've deployed across our retail landscape gives us a chance to make sure. We also capture some of those training up opportunity some of those personalization mini cans.

Speaker Change: So I think as we've definitely play to a more.

Speaker Change: I suppose price sensitive consumer in some markets. We've also retained a premium amortization.

Speaker Change: People will still pay for that so I think it's important to do bolt right. So that's kind of how we're thinking about it.

Speaker Change: In summary.

Speaker Change: You are spot on CPI is probably a good benchmark to think about our pricing.

Speaker Change: And just to clarify your point on changing the promo strategy or multiplex assays that reallocating or stepping up.

Speaker Change: To support that particular pack no. It's all reallocating I mean, we've.

Speaker Change: We have.

Speaker Change: A lot of a lot of investment deployed already so it's not about more investment it's about continuing to invest smarter.

Testing testing new ideas to see what resonates with the shopper.

Speaker Change: Yes, so it's more efficiency I would say.

Speaker Change: Rather than a step up.

Speaker Change: Got it thank you.

Speaker Change: Thank you we will now take our next question.

Speaker Change: Please standby.

Speaker Change: And the next question comes from Bryan Spillane from Bank of America. Please go ahead. Your line is now open.

Hey.

Speaker Change: Morning or afternoon, everyone.

Speaker Change: Can you hear me yes.

Speaker Change: Great sorry about that.

Speaker Change: Damian.

Speaker Change: Maybe you can just.

Speaker Change: Kind of a bigger picture question.

Speaker Change: At the time that since you've taken over as CEO.

Speaker Change:

The enterprise value of the business is basically doubled.

Speaker Change: And also the free cash flow.

Speaker Change: We doubled as well.

Speaker Change: No.

Speaker Change: Over the course of the last.

Speaker Change: I guess three months or so.

Speaker Change: The potential for <unk>.

Speaker Change: And that puts you been introduced to.

Speaker Change: A lot of maybe investors that you wouldn't have been introduced to.

Speaker Change: Actually Sarah that's probably done the bulk of that work but.

Speaker Change: So could you just kind of give us some perspective on.

Speaker Change: Like what it would take to double again.

Speaker Change: Over the next eight years, how much of it was acquisition how much of it was operational I'm just trying to get people a perspective on how this business can actually compound returns.

Brian: But it's a big picture question, Brian Thank you.

Speaker Change: Just to confirm Sarah does most of the hard work when it comes to meeting new investors, but we are.

Speaker Change: We are getting an opportunity to sell the CCP story to two.

Speaker Change: More newer.

Speaker Change: Investors on the back of the FTSE conversation so that's been great.

Speaker Change: Yes.

Speaker Change: Clearly, we're excited about where we've got with CCP and if you look at our value creation a lot of it is organic right. So I think we've done some really good M&A.

Speaker Change: But ultimately what underpins this business has strong growth.

Speaker Change: Organically and our markets and if I was too.

Speaker Change: <unk> got enough capital, we've got great talent so.

Speaker Change: Really when I think about the next eight years.

Speaker Change: Quality topline growth volume and revenue.

Speaker Change: With volume obviously being.

Speaker Change: Priority in 'twenty five.

Speaker Change: And then.

Speaker Change: I think the energy category continues to to deliver honestly, we've got categories that I feel we have not got the most value out of one in sports and Powerade Theres more to go and fuze tea.

Speaker Change: But it's probably going to be a more organic story going forward.

Speaker Change: I Love M&A, it's gone really well I have to say it's also good to focus on getting the most of what you've already bought and Thats really what were doing in 2012 and 26.

Speaker Change: Thanks, Damien borrowing to great answer excellent.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change #100: And the next question comes from Charlie Higgs from Redburn. Please go ahead. Your line is now open.

Charlie Higgs: Yes, Hi, Damien.

Charlie Higgs: Well a good question the balance sheets, and the net debt EBITDA, which I think has come down very nicely to two point some times compounded EBITDA and you've obviously announced a $1 billion buyback. This morning, but I think on my numbers even with that.

Charlie Higgs: Leverage might fall a little bit in 2020, so can be interesting.

Speaker Change #101: Tell us through about how you're thinking about capital allocation over the coming years I know you've got some up weighted capital expenditure, but are you, leaving some dry powder, maybe some M&A it doesn't sound like from the last answer you were suggesting.

Charlie Higgs: So just how you think about the balance sheet over the coming years. Thank you.

Charlie Higgs: Thanks, Charlie Yes, good question.

Charlie Higgs: We're delighted that we're not backing that leverage range of $2 73, and one year Ronnie.

Charlie Higgs: Of course.

Charlie Higgs: Acquired the Philippines, and that period of time as well.

Charlie Higgs: So as we as we look forward I mean, we want to stay within that two five to three range.

Charlie Higgs: We are leaving ourselves a little bit of flexibility that's to allow for more cash investment in the business should the growth opportunities be that.

Charlie Higgs: But it's also to allow for variation in business results over time and potentially for some M&A. So we don't want to Overcommit now.

Charlie Higgs: <unk> changed our guidance in those expectations latest that we're leaving ourselves a little bit of flexibility, but we see ourselves.

Charlie Higgs: Continuing to operate within that two five to three times range.

Charlie Higgs: And just just to add to that I mean, I think we've.

Charlie Higgs: We're really happy that we could announce a share buyback 12 months clearly to your point Charlie into Ed's comments.

Charlie Higgs: Those leave some powder for M&A.

Charlie Higgs: And particularly with our cash flow guidance that we've given today so.

Charlie Higgs: We've demonstrated we can create value, particularly for the Coke company and our shareholders.

Charlie Higgs: If there are opportunities for sure where we're interested.

Charlie Higgs: I suppose like we've talked about before.

Charlie Higgs: Any RTD and soft drinks seems to be a business that lots of people are attracted to get into so.

Charlie Higgs: Finding bottling assets that are coming up there is always going to be a priority.

Charlie Higgs: Probably.

Charlie Higgs: Getting a bit more challenging.

Charlie Higgs: But we have the powder and we have the flexibility.

Charlie Higgs: That's what we will continue to focus on.

Charlie Higgs: Okay. Thanks, Dan Thanks, guys.

Charlie Higgs: Thank you.

Charlie Higgs: We'll now go to our next question.

Charlie Higgs: Please standby.

Speaker Change #102: And the next question comes from Robert <unk> from Evercore ISI. Please go ahead. Your line is now right.

Damian Gammell: Great. Thank you, Mike and thank you very much so damian one of the great.

Speaker Change #102: I think successes.

Damian Gammell: For the Coca Cola system overall.

Damian Gammell: Overall, which you guys play a very key role as has been the greater.

Damian Gammell: Coordination.

Damian Gammell: Between the bottlers and Atlanta.

Damian Gammell: And the agility the coordination on marketing planning.

Damian Gammell: Obviously incidents and wondering if you could kind of maybe.

Damian Gammell: Give us a little bit of sense.

Damian Gammell: What sort of initiatives.

Damian Gammell: That the global system is doing sort of initiatives that Atlanta has been talking to you about.

As it relates to your business both in 2025.

Damian Gammell: And beyond should we get a little bit of sense of kind of the bigger picture and how you are participating in those initiatives coming out of Atlanta. Thank you.

Damian Gammell: Thank you Robert.

Damian Gammell: Yes, so for sure we are benefiting from the new well.

Speaker Change #103: <unk> new marketing.

Damian Gammell: Approach from a no loan the company.

Speaker Change #103: I think that's that's driving.

Damian Gammell: Higher quality of engagement with our consumers.

Damian Gammell: Its more productive and efficient so we benefit from that efficiency in terms of marketing spend and allows us to connect with more consumers. So I think the way manalo and the Coke company have.

Damian Gammell: All the marketing structure is definitely helping us.

Damian Gammell: Secondly, we're benefiting on the portfolio.

Damian Gammell: So if you look at our plans very aligned in terms of sparkling flavor growth Coke light diet Coke.

Damian Gammell: We're clearly learning from markets like Australia, and the U S around sports and power rate and how that becomes a mainstream category.

Speaker Change #104: We're curious about innovations as well that the company is we've looked at a lot of innovation out of North America, but globally. So we get great access very quickly to portfolio innovation and then we kind of have a good conversation about how relevant that is for our consumers here or in Asia, or Australia, New Zealand.

Damian Gammell: A good example of that is <unk> RTD Bacardi and Coke.

Damian Gammell: Great looking pack, so we definitely benefit on their investments the quality of output from the new model.

Damian Gammell: The portfolio.

Damian Gammell: In an area that is getting better and I would say, we're still probably at the beginning is really more around data insights and leveraging better.

Damian Gammell: That bridge between consumer customer and shopper and we've been working on that obviously AI unlocks another tool to get into the quicker and to get more output. So thats, probably an evolving area that I'm excited about over the next couple of years.

Damian Gammell: Yes, but overall very aligned.

Speaker Change #105: Think we've talked about it before Robert I think the financial model on the incidents just continues to drive the right behavior in the system.

Speaker Change #105: I see that everyday and decision, making and that's what gives me a lot of confidence.

Speaker Change #106: And I suppose we all have great marketing I mean, thats why we love this business.

Speaker Change #106: When you see some of the product innovation or the quality of media copy or the online activation coming out of Atlanta.

Speaker Change #106: It's just going to continue to support our topline growth objectives.

Speaker Change #106: So a lot happening.

Great. Thank you.

Speaker Change #106: Thank you.

Speaker Change #106: Now go to our next question please standby.

Speaker Change #107: And the next question comes from Philip <unk> from J P. Morgan. Please go ahead. Your line is now open.

Speaker Change #108: Hi, good afternoon. Thanks, so much for taking my question I just had one on the Philippine stays in your prepared remarks, you spoke about accelerating your capex plans in that market and I just wanted to understand better what gave you the conviction to make that decision to accelerate the capex plans and if you could also share more color on what that accelerate investment will entail.

Speaker Change #107: Well thank you.

Speaker Change #107: Yeah, Hi, Philip.

Speaker Change #107: So really it's all of those extra cases that the Philippine team.

Speaker Change #107: The Tigers because they call themselves have delivered.

Speaker Change #107: Well ahead of our expectation in year, one so some of it's quite a.

Speaker Change #107: A linear investment behind extra volume. So we've pulled forward a couple of lines in our kind of five year plan.

Speaker Change #107: They were in there were just bringing them forward.

Speaker Change #107: Not a step up in our overall capex guidance as Ed talked to so that remains intact. So it's from within that guidance and 25 of around circa 5%.

Speaker Change #107: We're also looking at in line with our other markets more cooler placements on the back of more volume.

Speaker Change #107: And then also we will start to invest a bit more in technology and systems.

Speaker Change #107: Clearly that's going to be an area in such a high growth business that we feel is really important.

Speaker Change #107: And then some of its fundamental which is <unk>.

Speaker Change #107: Bottles and cases, so a lot of that volume growth is coming from our refillable glass business.

Speaker Change #107: And that just requires a bit more capex to keep our lines running it makes it we've got on the stock so.

Speaker Change #107: From a capex deployment.

Speaker Change #107: All good all good reasons.

Speaker Change #107: An exciting and as I said, the catalyst is really an over delivery on.

Speaker Change #107: Volume.

Speaker Change #107: Last year, and that's flowing through into 'twenty five and beyond.

Speaker Change #107: Is there anything else.

Speaker Change #107: And also some of that capital will unlock some of those mix opportunities.

Speaker Change #107: Very RGB focused market, but we see lots of opportunities in <unk>.

Speaker Change #107: In cans and PT and so that investment is what is going to unlock some of those mix opportunities.

Speaker Change #107: So we're very excited about that and we're always happy to spend money on things that are not that level of growth.

Speaker Change #107: Great. Thanks, so much.

Speaker Change #107: Thank you we will now take our last question.

Speaker Change #109: And then last question comes from Richard with again from Kepler. Please go ahead. Your line is now open.

Richard: Thanks, Good afternoon, Dania and et cetera.

Speaker Change #109: Just one question on going back to the energy drinks.

Category. Two part question first of all can you talk a bit about the competitive situation in the indicate degree I think red Bull.

Speaker Change #109: Produce a bit more flavors lots here. So so what's the competitive situation and the second point is the cost of growth.

Speaker Change #109: Increasing.

Speaker Change #109: In that category.

Speaker Change #109: Yes.

Speaker Change #109: Yeah.

Speaker Change #109: As you would expect given its consistently.

Speaker Change #109: Consistently probably the fastest growing segment within the RTD.

Speaker Change #109: That brings in a lot of competition.

Speaker Change #109: Not just from big players like Red Bull, but youll see a lot more local innovation coming into the category different price tiers. So it is evolving.

Speaker Change #109: Every year on the back of that high growth.

Competition really pushes us to be on the top of our game with monster.

Speaker Change #109: Youre correct Red Bull have gone back into some flavor innovation.

Speaker Change #109: We also have probably enjoyed more growth in that space over the last number of years.

Speaker Change #109: And we've continued to do so on the back of some of the juice bearings for monster. So.

Speaker Change #109: Overall healthy competitive category driving high single digit growth over time.

Speaker Change #109: Our aim is to grow and take share in that category.

Speaker Change #109: Lena.

Speaker Change #109: And it will probably remain one of the most competitive.

Speaker Change #109: Categories, it's not driving an increased cost of growth.

Speaker Change #109: <unk>.

Speaker Change #111: As we grow as Ed talked about it as an area that we get better leverage on our fixed asset base. So.

Speaker Change #111: In some ways over time, our margins will improve and energy as well so.

Speaker Change #111: Theres not a significant higher cost of growth.

Speaker Change #111: Yes, we don't expect that but I do expect it to remain nice and competitive.

Speaker Change #112: Thanks Lee.

Speaker Change #112: I would now like to hand, the conference back over to Damian Gammell today's closing remarks Damien. Please go ahead.

Damian Gammell: Thank you.

Damian Gammell: So firstly again, a big thank you for everybody taking time out this morning, and this afternoon to join us.

Damian Gammell: Yes, as we've closed out 2024 was a great end to a very solid year at TCP.

Damian Gammell: We're very pleased to announce our $1 billion share buyback that will start on Monday.

Damian Gammell: As you've heard from both myself and Ed today, we're super excited about the investments and in particular commercial plans to drive that quality growth for 2025 and beyond.

Damian Gammell: And we look forward to.

Damian Gammell: Joining us on the ground in Manila in May where we can showcase.

Damian Gammell: On the growth and success of our Philippines business and will also showcase the changes, we're making in Indonesia to ensure the long term success and health of that business and we'll also give you obviously an update on how we see our European business as we head into the summer so.

Damian Gammell: Manila and again, thank you for joining us.

Q4 2024 Coca-Cola Europacific Partners PLC Earnings Call

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