Strategic priorities

To deliver our vision we focus on four strategic priorities.

Distaster relief operation in Hungary

Community trust

Building trust within our communities

We believe that our business can only be as healthy and strong as the communities in which we operate. In the long run, healthy, sustainable businesses require thriving communities.

Trust is the foundation of our relationships with shareholders, customers, consumers, employees, institutions and business partners, and we build trust through responsible, sustainable management of our business.

For more than a decade, we have worked to embed corporate responsibility and sustainability into all of our business processes and decisions. We identified the environmental and social issues that are most material to our business, consulted with key stakeholders and developed ambitious strategies and commitments to create value for all stakeholders and minimise negative impacts. We have also consistently set ambitious long-term targets and reported against them, holding ourselves accountable to delivering on our commitments.

Cafe and cooler branding in Bosnia

Consumer relevance

Offering our consumers the right products for all occasions

For Coca‑Cola HBC, consumer relevance means meeting and exceeding consumer expectations by offering the right products, in the right packs, through the right channels for the right occasion. These products must be consistently fresh, in premium condition, and presented cold when that is appropriate.

Man purchasing Coca-Cola from a kiosk

Customer preference

Delivering the products and services our customers expect

Building successful relationships with our customers is fundamental to our success. We work hard to ensure our people are constantly focused on customer needs and satisfaction. We aim to exceed expectations in terms of delivery and execution to be the best supplier, and work as partners in creating value to achieve the best relationship.

 

Coca-Cola HBC distrubution centre in Romania

Cost leadership

Drive profitability on areas we can influence

To drive profitability, our focus remains on those areas we can influence: optimisation of our production and logistics base, our operating cost base and our cash conversion. Careful management of all inputs to our business includes the use of natural resources. Efforts to reduce costs are therefore directly linked to streamlining packaging and reducing our water and energy use.

 

Strategic objectives

All our operations work towards the same objectives. These initiatives are adjusted to respond to local demographics, economies and market characteristics in order to manage risk while driving growth.

Drive volume growth
  1. Expand and deepen route to market
  2. Execute in-store with excellence
  3. Create joint value with customers
  4. Drive the water category, focusing on value

Volume is measured in million cases sold, where one unit case represents 5,678 litres.

 

Focus on value
  1. Capitalise on meals and socialising occasions for sparkling drinks
  2. Increase share of single-serve packs, driving transactions
  3. Improve performance in hotels, restaurants and cafes (HoReCal)
  4. Grow in the energy category
  5. Drive pricing strategies

Net sales revenue (NSR) comprises revenues from Coca‑Cola HBC's primary activities. We report this on an FX-neutral basis.

Net sales revenue generated per case sold is calculated on an FX-neutral basis.

Improve efficiency
  1. Continue production infrastructure and logistics optimisation
  2. Capitalise on contiguous territory and Emerging markets opportunities
  3. Use shared services to gain process efficiency
  4. Drive packaging harmonisation and innovation (light-weighting)

OpEx (operating expenses) as a percentage of net sales revenue is calculated by dividing comparable operating expenses by total net sales revenue.

Comparable EBIT margin refers to profit before tax excluding finance income or cost and share of results of equity method investments adjusted for certain non-recurring items divided by net sales revenue.

Invest in the business
  1. Invest in revenue-generating assets and innovative technology
  2. Acquire water and juice brands in existing territory
  3. Maintain negative working capital balance sheet position

Working capital is operating current assets minus operating current liabilities, excluding financing and investment activities.

Capital expenditure (CapEx) as a percentage of net sales revenue.

Return on invested capital (ROIC) is net operating profit after tax divided by capital employed in the business.