Q3 2024 Coca-Cola Bottlers Japan Holdings Inc Earnings Call Transcript
Key Points
- Coca-Cola Bottlers Japan Holdings Inc (CCOJY) reported a significant increase in third-quarter cumulative business income, reaching JPY14.7 billion, which is 2.5 times greater than the previous year and surpasses initial forecasts.
- The company has raised its full-year earnings forecast, expecting a business income of JPY11.5 billion, which is 5.7 times higher than the previous year.
- Revenue for the cumulative third quarter rose by 1.9%, driven by higher sales volumes and effective cost management.
- The company successfully implemented a comprehensive shareholder return program, including an updated dividend policy with plans for dividend increases.
- Coca-Cola Bottlers Japan Holdings Inc (CCOJY) has made significant progress in supply chain initiatives, including the introduction of a new aseptic production line and collaboration with partners to build a sustainable supply chain infrastructure.
- Despite the positive financial performance, the company faces challenges from inflation and rising costs, which could impact future pricing strategies.
- The impact of adverse weather conditions, such as heavy rain and typhoons, affected channel and package mix, posing a risk to sales volume.
- Price revisions have led to a decline in sales volume in certain channels, such as supermarkets, where volume decreased by 3%.
- The company is experiencing a negative channel mix impact as consumers shift towards discount channels due to cost-saving behaviors.
- There is uncertainty regarding the long-term impact of recent price revisions on demand and profitability, as it is still early to evaluate the full effects.
Good afternoon. This is Gomi, Head of Investor Relations for Coca-Cola Bottlers Japan Holdings. Thank you for joining us today for the fourth -- third-quarter 2024 earnings presentation for analysts and investors.
Today, we have President, Calin Dragan; CFO; Bjorn Ulgenes; and Coca-Cola Japan CMO, Su Choi. We are also joined by Executive Officer and President of the Retail Company, Alex Gonzalez; Executive Officer, President of the Food Service Company and Chief Business Strategy Officer, Maki Kado; Executive Officer, Chief Supply Chain Officer and Chief Sustainability Officer; Andrew Ferrett; and Executive Officer and Chief Human Resource Officer, Yuki Higashi.
Following prepared remarks, we will be happy to take 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
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