Q2 2024 Coca-Cola Bottlers Japan Holdings Inc Earnings Call Transcript
Key Points
- Coca-Cola Bottlers Japan Holdings Inc (CCOJY) reported a significant increase in business income by JPY4 billion compared to the previous year.
- The company achieved a 1.8% year-over-year sales revenue increase, driven by volume growth and improved wholesale revenue per case.
- Transformation initiatives delivered cost savings of JPY2.1 billion in the first half, with an annual goal of JPY6 billion in cost savings on track.
- The successful renewal of Ayataka tea resulted in more than 20% year-over-year volume growth for the brand in the second quarter.
- The company maintained a strong market share, with total channel value share growing by 0.3 points from last year.
- Despite overall positive performance, the company faces high hurdles in the second half, particularly in maintaining strong momentum in the third quarter.
- Sales volume in supermarkets declined, mainly in large PET bottles, due to significant impacts from price revisions.
- Other costs rose by JPY3 billion compared to the previous year, driven by higher sales equipment costs and IT-related expenses.
- The impact of commodity market fluctuations, foreign exchange rates, and utility costs remains uncertain.
- The company needs to carefully manage the impact of price revisions planned for October, which could affect volume and channel mix.
(interpreted) Good afternoon. This is Gomi, Head of Investor Relations for Coca-Cola Bottlers Japan Holdings. Thank you for joining us today for the second quarter 2024 earnings presentation for Analysts and Investors. Today, we have President, Calin Dragan; CFO, Bjorn Ulgenes; and then Coca-Cola Japan CMO, Su Choi.
We are also joined by Executive Officer and President of the Retail Company, Alex Gonzalez; Executive Officer and President of the Food Service Company, Chief Business Strategy Officer, Maki Kado; Executive Officer and Chief Supply Chain Officer, Andrew Ferrett; and Executive Officer and Chief Human Resources Officer, Yuki Higashi.
Following prepared remarks, we will be happy to take your questions. Simultaneous interpretation in both Japanese and English is being provided for both today's call and the Q&A. Before we begin, let me remind you that today's presentation contains forward-looking statements and should be considered together with cautionary statements contained in our presentation.
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