Despite the challenges of 2023 Coca-Cola İçecek made 6.1 billion TL investment
14.03.2024Coca-Cola İçecek made 6.1 billion TL investment
Karim Yahi, CEO of Coca-Cola İçecek (CCI), stated, "In 2023 we continued our investments intensively without compromising our investment ahead of demand strategy. In 2023, as CCI, we made a total of 6.1 billion TL investment" and underlined that the investments will continue in 2024. Karim Yahi commented on the recent acquisition of Coca-Cola Bangladesh Beverages Limited as "a significant milestone that enables us to serve a population of 600 million".
March 14, 2024, Istanbul - Coca-Cola İçecek (CCI) released its financial results for 2023. CCI reported that despite a 2.6% decrease in consolidated sales volume in 2023 compared to the previous year, it was committed to quality growth by investing a total of 6.1 billion TL in their operating geographies. CCI's net sales revenue for 2023 increased by 8.4% on an organic basis and net profit increased by 48.3%. CCI's year-end operating profit (EBIT) increased by 26.2% to 14.5 billion TL.
In the Turkish market, net sales revenue growth was 25.7% in 2023, while net sales revenue per unit case increased by 32.4%. In international markets, where inflation accounting is not mandatory, net sales revenue growth was 59.3%, while net sales revenue per unit case increased by 61.2% in TL terms. On an FX-adjusted basis, the net sales revenue increased by 21.0%.
Effective portfolio utilization in a challenging economy brings growth
Commenting on the year-end 2023 financial results, Karim Yahi, CEO of CCI, said, "In 2023, we faced many challenges in our operations due to natural disasters, economic challenges and political unrest in the regions we operate. These challenges also impacted consumers' appetite for spending and, collectively, reflected on our business. As a result, our sales volume declined by 2.6% on a consolidated basis, lower than our estimations in the beginning of the year. This weakness was offset by our quality growth management strategy, including dynamic pricing and promotion optimization as well as effective portfolio utilization actions."
6.1 billion TL investment without compromising on investment ahead of demand strategy Stating that despite the sales volume softness, CCI did not give up on the strategy of investment ahead of demand and continued their investments intensively, Karim Yahi said, "In 2023, our total investment expenditure, 33% of which was for Türkiye operations, reached TL 6.1 billion. The ratio of capital expenditure to sales was noted at 6.1% in 2023. Our investments will continue in 2024, particularly with two new plants in Shymkent, Kazakhstan and Samarkand, Uzbekistan. In 2024, we will also conduct the groundbreaking of our Ismayilli plant in Azerbaijan, the Baghdad plant in Iraq and the Namangan plant in Uzbekistan. With the strength of our business model and our focus on quality growth algorithm, we continue to create value in the countries we operate."
With Bangladesh acquisition, we serve a population of 600 million Karim Yahi stated that they have recently completed the acquisition of Coca-Cola Bangladesh Beverages Limited, which they have been working on throughout 2023: "The acquisition of Coca-Cola Bangladesh Beverages Limited is a significant milestone for us. In Türkiye, we have become the 3rd largest bottler in The Coca-Cola System, reaching 600 million people spanning from Çorlu to the border of China. We serve approximately 1.2 million sales points, with our 31 bottling and 3 fruit processing plants, and over 10 thousand employees. Bangladesh has a bright future ahead and we are looking forward to creating growth and value by deploying our capabilities.”
About Coca-Cola İçecek: CCI is a multinational beverage company which operates in Türkiye, Pakistan, Kazakhstan, Iraq, Uzbekistan, Bangladesh, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan, and Syria. CCI produces, distributes and sells sparkling and still beverages of The Coca-Cola Company and Monster Energy Beverage Corporation along with the production of fruit juice concentrate via its affiliate Anadolu Etap İçecek (Anadolu Etap Penkon Gıda ve İçecek Ürünleri Sanayi ve Ticaret Anonim Şirket).
CCI employs more than 10,000 people, has a total of 31 bottling and 3 fruit processing plants in 12 countries, offering a wide range of beverages to a population base of 600 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks, iced teas and coffee.
CCI's shares are traded on the Borsa Istanbul Stock Exchange (BIST) under the symbol "CCOLA.IS".
