可口可樂 (KO) 2024 Q2 法說會逐字稿

As time, I'd like to welcome everyone to the Coca-Cola company's second quarter 2024 earnings results conference call. Today's call is being recorded. (Operator Instructions) I would now like to introduce Ms. Robyn Halpern, Vice President and Head of Investor Relations. Miss Halpern. You may now begin.

接下來，我歡迎大家參加可口可樂公司 2024 年第二季財報電話會議。今天的通話正在錄音。 （操作員須知） 現在我想介紹一下副總裁兼投資人關係主管 Robyn Halpern 女士。哈爾彭小姐。你現在可以開始了。

Good morning, and thank you for joining us I'm here with James Quincey, our Chairman and Chief Executive Officer, and Dan Murphy, our President and Chief Financial Officer. We've posted schedules under financial information in the Investors section of our company website reconcile certain non-GAAP financial measures that may be referred to this morning to results.

早安，感謝您加入我們，我和我們的董事長兼首席執行官詹姆斯·昆西 (James Quincey) 以及我們的總裁兼首席財務官丹·墨菲 (Dan Murphy) 一起。我們已在公司網站投資者部分的財務資訊下發布了時間表，以協調今天上午可能會參考的某些非公認會計原則財務指標。

As reported under generally accepted accounting principles. You can also find schedules in the same section of our website that provide an analysis of our gross and operating margins. This call may contain forward-looking statements, including statements concerning long-term earnings objectives, which should be considered in conjunction with cautionary statements contained in our earnings release and in the company's periodic SEC reports. Following prepared remarks, we will take your questions. Please limit yourself to one question re-enter the queue to ask follow-ups. I will now turn the call over to James.

根據公認會計原則報告。您還可以在我們網站的同一部分找到時間表，其中提供了我們的毛利率和營業利潤率的分析。本次電話會議可能包含前瞻性陳述，包括有關長期盈利目標的陳述，這些陳述應與我們的盈利發布和公司定期 SEC 報告中包含的警示性陳述結合起來考慮。在準備好的發言之後，我們將回答您的問題。請限制自己提出一個問題，然後重新進入隊列詢問後續問題。我現在將把電話轉給詹姆斯。

Thanks, Robin, and good morning, everyone. After a good start of the year, we continued our momentum in the second quarter, in a world with a wide spectrum of market dynamics. Our all-weather strategy is working. We're winning in the marketplace by leveraging our scale and continuing to foster a growth mindset, given our strong year-to-date results, we are raising both our top line and our bottom line guidance today.

謝謝羅賓，大家早安。在經歷了今年的良好開局之後，我們在第二季度繼續保持良好的勢頭，在一個市場動態廣泛的世界中。我們的全天候策略正在發揮作用。鑑於我們今年迄今為止的強勁業績，我們透過利用我們的規模並繼續培養成長心態來贏得市場，我們今天提高了我們的頂線和底線指引。

This morning, I'll start by discussing the current operating environment and reviewing our second quarter performance, then I'll explain how we're enhancing our capabilities to drive more effective and efficient operations, including leveraging digital and enabled innovations to ultimately contribute to our earnings growth.

今天早上，我將首先討論當前的營運環境並回顧我們第二季的業績，然後我將解釋我們如何增強我們的能力以推動更有效和高效的運營，包括利用數位化和賦能創新最終為我們的獲利成長。

Finally, John will discuss our financial results of the raise 2024 guidance. In the second quarter, we grew volume, generated strong organic revenue growth and expanded margins while continuing to invest in our business. We also gained value share. This culminated in 7% comparable earnings per share growth despite the 10% currency headwinds and 2% headwinds from bottler re-franchising.

最後，約翰將討論我們 2024 年加薪指引的財務結果。第二季度，我們在繼續投資於我們的業務的同時，銷售成長，實現了強勁的有機收入成長並擴大了利潤。我們還獲得了價值份額。儘管存在 10% 的貨幣阻力和裝瓶商再特許經營帶來的 2% 的阻力，但每股可比收益仍實現了 7% 的成長。

Overall, our industry remains attractive and is expanding. We believe we're well positioned to capture the vast opportunities available to us, but we're continuing to navigate many varying market dynamics locally to deliver our Global objectives.

總體而言，我們的行業仍然具有吸引力並且正在擴張。我們相信，我們處於有利地位，可以抓住我們所擁有的巨大機遇，但我們將繼續駕馭當地許多不同的市場動態，以實現我們的全球目標。

In Asia Pacific, we had strong performance across most of our footprint in Asiana and South Pacific. The refranchising of the Philippines is off to a good start. In the Philippines we grew volume by double digits and drove strong value share gains by increasing focus on affordable packages, including accessible price points and refillable offerings.

在亞太地區，我們在韓亞和南太平洋地區的大部分業務都表現強勁。菲律賓的重新特許權已經有了一個好的開始。在菲律賓，我們的銷售量實現了兩位數的成長，並透過更專注於實惠的套餐（包括平易近人的價格點和可再填充的產品）推動了強勁的價值份額成長。

Growth across Asiana and South Pacific was driven by strong end-to-end execution across our sparkling portfolio. Our business in India recovered nicely from a slower start to the year, driven by Sprite and Fanta as well as strong local brands such Thumbs up Maaza and strong end-to-end execution across our growth flywheel will lead to double digit volume growth. In China Consumer confidence remains subdued. We continue to focus on our core business and invest behind profitable long-term growth.

韓亞航空和南太平洋地區的成長得益於我們出色的投資組合強大的端到端執行力。在雪碧和芬達以及Thumbs up Maaza 等強大的本土品牌的推動下，我們在印度的業務從今年較慢的開局中恢復過來，並且我們的增長飛輪強大的端到端執行力將帶來兩位數的銷量成長。在中國，消費者信心依然低迷。我們繼續專注於我們的核心業務，並投資於可獲利的長期成長。

Lastly, in Japan and South Korea, we generated volume growth during the quarter on one value share. We successfully relaunched Ayataka a much loved local tea brand in Japan, and we're also benefiting from stronger execution in e-commerce channels.

最後，在日本和韓國，本季我們在一個價值份額上實現了銷售成長。我們成功地重新推出了深受喜愛的日本本土茶品牌 Ayataka，我們也受益於電子商務管道的更強大執行力。

In India, the external environment remains mixed. In Europe, we saw pressure in our away-from-home business due to some reduced foot traffic and adverse weather in Western Europe. To capture value we're investing in several highly anticipated activations, including music festivals, the EURO 2024 football championship and of course, the Paris Olympics.

印度的外部環境依然複雜。在歐洲，由於西歐人流量減少和惡劣天氣，我們的外出業務面臨壓力。為了獲得價值，我們正在投資多項備受期待的活動，包括音樂節、2024 年歐洲足球錦標賽，當然還有巴黎奧運。

We're increasing our focus on brands with strong momentum across our total beverage portfolio, including Fuze Tea, Powerade and our promising sparkling innovations such as Coke lemon and reformulated Sprite. In Eurasia and Middle East, geopolitical tensions and economic uncertainty continued to impact our business. We're working closely with our local partners to navigate these headwinds while investing for the long term.

我們正在增加對整個飲料組合中勢頭強勁的品牌的關注，包括 Fuze Tea、Powerade 以及我們前景光明的創新氣泡飲料，例如可口可樂檸檬和重新配製的雪碧。在歐亞大陸和中東，地緣政治緊張局勢和經濟不確定性繼續影響我們的業務。我們正在與當地合作夥伴密切合作，在進行長期投資的同時應對這些不利因素。

In Africa, despite multiple currency devaluations, strong integrated execution led to robust performance across our markets. For example, in Nigeria, our system quickly responded to the intense inflationary environment by focusing on affordable packages, including accessible price points of refillable offerings and increasing outlet coverage to win both volume and value share.

在非洲，儘管貨幣多次貶值，但強大的綜合執行力使我們的市場表現強勁。例如，在奈及利亞，我們的系統透過專注於經濟實惠的套餐（包括可再填充產品的可負擔價格點）和擴大銷售點覆蓋範圍以贏得數量和價值份額來快速應對嚴重的通貨膨脹環境。

Across Africa, we grew volume in mid-single digits and similarly one, both volume and value share. In North America, we generated robust top line and bottom line growth and one value share. Our volume decline was driven by softness in away-from-home channels. To offset this, we're partnering with foodservice customers to market food and drink combo meals to drive traffic and beverage incidents. Excluding mainstream packaged water at home, volumes held up well.

在整個非洲，我們的銷量實現了中個位數的成長，銷量和價值份額也實現了類似的成長。在北美，我們實現了強勁的營收和利潤成長以及一份價值份額。我們的銷售下降是由於客場管道疲軟所致。為了抵​​消這一影響，我們正在與餐飲服務客戶合作，行銷食品和飲料組合餐，以減少交通和飲料事故。不包括國內主流包裝水，銷售量維持良好。

Fairlife and trademark Coke finished number one and number two as the at-home retail sales growth leaders for the industry during the quarter. Our juice business also had a strong quarter and recent innovations, including Sprite chill and Topo Chico supporters are off to a solid start.

Fairlife 和商標可口可樂在本季成為該行業家庭零售銷售成長的領先者，分別排名第一和第二。我們的果汁業務也有一個強勁的季度和最近的創新，包括 Sprite chill 和 Topo Chico 支持者，有了一個很好的開始。

In Latin America volume momentum continued led by strength in Mexico and Brazil. Growth was driven across our entire total beverage portfolio. Coca-cola Zero Sugar had a standout quarter with over 20% volume growth. And we're continuing to take integrated execution to the next level by increasing investments behind cold drink equipment to win share of visible inventory and create additional consumer demand.

在拉丁美洲，墨西哥和巴西的銷售量持續保持強勁勢頭。我們整個飲料產品組合的成長都得到了推動。可口可樂零糖季度表現出色，銷售成長超過 20%。我們將繼續透過增加冷飲設備投資來將綜合執行提升到新的水平，以贏得可見庫存份額並創造額外的消費者需求。

Finally, in Global Ventures, despite pressures in key markets such as United Kingdom and China, we generated organic revenue growth and expanded margins. Customers driving loyalty through targeted promotions like [free] drop and innocent gained value share in Europe.

最後，在 Global Ventures 中，儘管英國和中國等關鍵市場面臨壓力，我們仍實現了有機收入成長並擴大了利潤率。透過[免費]下降和無辜等有針對性的促銷活動來提高忠誠度的客戶在歐洲獲得了價值份額。

Putting it all together, despite an ever-changing external environment, our business remains very resilient. The power of our portfolio, amplified by our system's unique capabilities is a clear advantage. While we're delivering on our near-term commitments, we're also building capabilities and innovating across our flywheel to become a more agile and effective and efficient organization.

總而言之，儘管外部環境不斷變化，我們的業務仍然非常有彈性。我們的產品組合的力量透過我們系統的獨特功能而放大，這是一個明顯的優勢。在我們履行近期承諾的同時，我們也在飛輪上進行能力建設和創新，以成為一個更敏捷、有效和高效的組織。

Starting with marketing and innovations. Last year, we stood up studio X, which is our digital and organizational ecosystem that integrates marketing capabilities and connects them to our global network structure. We're producing tailored content at scale and with speed and are able to measure impact in real time. We're also refining our innovation process to prioritize bigger and bolder bets, and we're removing barriers to deliver a more holistic approach towards the time to launch. I think the best way.

從行銷和創新開始。去年，我們成立了 studio X，這是我們的數位和組織生態系統，整合了行銷能力並將其連接到我們的全球網路結構。我們正在大規模、快速地製作客製化內容，並且能夠即時衡量影響力。我們也正在完善我們的創新流程，以優先考慮更大、更大膽的賭注，並且我們正在消除障礙，以便在推出時提供更全面的方法。我認為最好的方法。

We know that innovation that grow in the 2nd year have a much greater, multiyear success and deliver far greater impact. So we focused on sustaining investment. I have consistently improves second-year performance success rates in each of the past four years. Continued innovation successes include Sprite and Fanta reformulations, Fuze Tea in Europe, and they made zero sugar in North America among many others.

我們知道，第二年成長的創新會取得更大的、多年的成功，並產生更大的影響。因此，我們專注於持續投資。在過去的四年裡，我每年都在不斷提高第二年的表現成功率。持續的創新成功包括雪碧和芬達的重新配方、歐洲的Fuze Tea，以及他們在北美生產的零糖等等。

As a result of these combined initiatives, we have greatly improved our ability to rapidly produce and deliver marketing content, integrate activations with timely innovations and scale successes to drive the greatest impact.

透過這些綜合舉措，我們大大提高了快速製作和交付行銷內容、將激活與及時創新相結合以及擴大成功以產生最大影響的能力。

One example from the second quarter, Coca-Cola's partnership with Marvel, which featured nearly 40 different limited edition, flexible graphics and QR codes now packaging to connect consumers with unique augmented reality experiences. We're collaborating closely with Marvel Studios and the Walt Disney company and tapped into the best in class animation and activation to quickly scale to over 50 markets.

第二季的一個例子是可口可樂與漫威的合作，推出了近 40 種不同的限量版、靈活的圖形和二維碼，現在包裝可以將消費者與獨特的擴增實境體驗聯繫起來。我們與漫威影業和華特迪士尼公司密切合作，利用一流的動畫和活化技術，迅速擴展到 50 多個市場。

As a result of this and other growth initiatives. Trademark Coca-Cola grew volume and volume and value share during the quarter. Our marketing and innovation transformation journey contributed to trademark Coke, winning creative Brand of the Year for the first time ever at the Cannes Lions in June, we won 18 different awards that came live beyond marketing innovation with flexing our muscle in revenue growth management and integrated execution to sustain competitive advantage.

由於這項舉措和其他成長舉措。商標可口可樂在本季的銷售、銷售和價值份額均有所成長。我們的行銷和創新轉型之旅為可口可樂商標做出了貢獻，在6 月的坎城國際創意節上首次贏得了年度創意品牌，我們贏得了18 個不同的獎項，這些獎項超越了行銷創新，展示了我們在營收成長管理和整合方面的實力。

Even in markets with very well-developed capabilities, there's potential to be even better. For example, Mexico as one of the markets at the forefront of revenue growth management and has the highest cold drink equipment density in the world. During the quarter, we drove affordability with refillables and premiumization with single-serve transactions per system also added over 80,000 coolers year to date.

即使在能力非常發達的市場，也有可能變得更好。例如，墨西哥作為收入成長管理最前線的市場之一，擁有全球最高的冷飲設備密度。在本季度，我們透過可再填充和每個系統單次服務交易的高端化來提高可承受性，今年迄今還增加了 80,000 多個冷卻器。

Through these and similar initiatives, we grew volume mid-single digits during the quarter, continuing the momentum for the past few quarters. Each day, consumers enjoy approximately 2.2 billion servings of our products, translating into about 800 billion servings annually. This kind of scale gives us unique insights into the consumer, which helps us to better tailor offerings.

透過這些和類似的舉措，我們在本季度實現了中個位數的銷售成長，延續了過去幾季的勢頭。消費者每天享用約 22 億份我們的產品，相當於每年約 8,000 億份。這種規模為我們提供了對消費者的獨特見解，這有助於我們更好地客製化產品。

Emerging technologies, including those enhanced by II have the potential to create value for retailers and consumers. For example, we're piloting an AI-based price pack channel optimization tool across several markets that evaluates opportunities to better tailor solutions to drive incremental volume and revenue. Early results show that tools helps improve both our offerings and speed to market. Our system is also piloting an AI-driven initiative to push personalized messages to retailers with suggested items based on previous orders and market data.

新興技術，包括 II 增強的技術，有潛力為零售商和消費者創造價值。例如，我們正在多個市場試點基於人工智慧的價格包通路優化工具，該工具評估更好地客製化解決方案的機會，以推動銷售和收入的增量。早期結果表明，這些工具有助於改善我們的產品和上市速度。我們的系統也正在試行一項由人工智慧驅動的計劃，向零售商推送個人化訊息，並根據先前的訂單和市場數據推薦商品。

Initial pilots indicate that retailers who received the messages are over 30% more likely to purchase recommended SKUs, which resulted in incremental sales for our retailers. And the system were just scratching the surface of what's possible. And we're taking steps to seize opportunities down the road.

初步試點表明，收到訊息的零售商購買推薦 SKU 的可能性提高了 30% 以上，這為我們的零售商帶來了銷售額的增量。該系統還只是觸及了可能性的表面。我們正在採取措施抓住未來的機會。

To sum it all up, while we recognize there's still much work to be done to capture the vast opportunities available. We're encouraged by our year-to-date results and efforts to improve every aspect of how we do business.

總而言之，儘管我們意識到要抓住巨大的機會仍有許多工作要做。我們對今年迄今為止的成果以及為改善業務各個方面所做的努力感到鼓舞。

As we look forward to the second half of the year, the external backdrop remains uncertain, including some signs of pressure in various consumer segments across developed markets. However, thanks to the power of our portfolio and the unwavering dedication of our system employees, we are confident we will deliver on our updated 2024 guidance and longer-term commitments.

展望下半年，外部環境仍存在不確定性，包括已開發市場各消費領域都面臨壓力的跡象。然而，由於我們產品組合的力量和系統員工堅定不移的奉獻精神，我們有信心兌現更新的 2024 年指導方針和長期承諾。

With that, I'll turn the call over to John.

這樣，我就把電話轉給約翰。

Thank you, James, and good morning, everyone. In the second quarter, we delivered strong results we grew organic revenues 15%. This consisted of 2% unit case growth. Concentrate sales were ahead of volume by 45 points, driven primarily by timing of concentrate shipments and some disruptions in the global supply chain that we partly expect to reverse next quarter. Our price mix growth of 9% in the quarter was primarily driven by two items, one, approximately 5 points of intense inflationary pricing across a handful of markets to offset significant currency devaluation and to an array of pricing and mix actions across our markets.

謝謝你，詹姆斯，大家早安。第二季度，我們取得了強勁的業績，有機收入成長了 15%。其中包括 2% 的單位案例增長。精礦銷售量領先銷售 45 個百分點，這主要是由於精礦發貨時間以及全球供應鏈中的一些中斷（我們部分預計下季度將出現這種情況）所推動。本季我們的物價組合成長了9%，主要是由兩個因素推動的，一是少數市場上約5 個百分點的劇烈通膨定價，以抵銷貨幣大幅貶值，二是我們市場上的一系列定價和組合行動。

Excluding the impacts from concentrate shipment timing and pricing from markets with intense inflation. Organic revenue growth during the quarter was at the high end of our long-term growth algorithm. Comparable gross margin was up approximately 200 basis points driven by underlying expansion and the benefit from bottler refranchising, partially offset by currency headwinds come from the operating margin expanded approximately 120 basis points.

排除通膨劇烈的市場精礦出貨時間和定價的影響。本季的有機收入成長處於我們長期成長演算法的高端。受基本擴張和裝瓶商再特許經營的推動，可比毛利率上升約 200 個基點，但營業利潤率擴大約 120 個基點，部分被貨幣不利因素所抵消。

Comparable operating margin expansion was less than comparable gross margin expansion due to less benefit from bottle refranchising and greater currency headwinds to comparable operating margin. Putting it all together second quarter comparable EPS of $0.84 was up 7% year over year despite 10% currency headwinds and 2% headwinds from bottle refranchising. Free cash flow was approximately $3.3 billion, down approximately $700 million versus the prior year due to higher tax payments, cycling working capital benefits from the prior year and higher capital expenditures. We continue to take actions to achieve a fit for purpose balances that will best support our growth agenda.

可比營業利潤率擴張低於可比毛利率擴張，因為瓶子再特許經營的收益較少，而且貨幣阻力對可比營業利潤率的影響更大。儘管有 10% 的貨幣阻力和 2% 的瓶子再特許經營阻力，但第二季可比 EPS 仍同比增長 7%，為 0.84 美元。自由現金流約 33 億美元，比前一年減少約 7 億美元，因為納稅額增加、上一年循環流動資本利得以及資本支出增加。我們將繼續採取行動，實現目標平衡，從而最好地支持我們的成長議程。

During the quarter, we raised approximately $4 billion in cash by issuing long-term debt for general corporate purposes. This may include prefunding of upcoming payments related to the IRS tax case and the share life contingent consideration. With respect to our IRS tax case, which we continue to vigorously defend. We're making progress toward next steps, and we expect we will be able to move forward on appeal by the end of the year.

本季度，我們透過發行用於一般企業用途的長期債務籌集了約 40 億美元現金。這可能包括為即將到來的與國稅局稅務案件和股份壽命或有對價相關的付款提供資金。關於我們的國稅局稅務案件，我們將繼續積極辯護。我們正在朝著後續步驟取得進展，預計我們將能夠在今年年底前推進上訴。

Given the continued outperformance of Paradise we recorded a charge of $1.3 billion during the quarter. Our estimated final payment related to this acquisition is $5.3 billion, which will be made in 2025. We are encouraged by fairlife performance and the value it has created for our company. So far this year, we've realized nearly $3 billion in gross proceeds from bottle refranchising and streamlining our equity investments will continue to prioritize higher growth businesses and take passive capital off the table.

鑑於 Paradise 的持續出色表現，我們在本季度記錄了 13 億美元的費用。我們預計與此收購相關的最終付款為 53 億美元，將於 2025 年支付。今年到目前為止，我們已經實現了近 30 億美元的瓶子再特許經營總收益，並簡化了我們的股權投資，將繼續優先考慮高成長業務，並消除被動資本。

Return on invested capital is 24%, up approximately 5 points from three years ago. Our balance sheet is strong, as demonstrated by our net debt leverage of 1.5 times EBITDA, which is well below our targeted range of 2 to 2.5 times, we have ample capacity to pursue our capital allocation agenda, which prioritizes investing to drive further growth, continuing to support our dividend and staying dynamic, agile and opportunistic.

投資資本報酬率為24%，比三年前提高了約5個百分點。我們的資產負債表強勁，我們的淨債務槓桿率為1.5 倍EBITDA，遠低於我們2 至2.5 倍的目標範圍，我們有足夠的能力執行我們的資本配置議程，該議程優先考慮投資以推動進一步成長，繼續支持我們的股息並保持活力、敏捷和機會主義。

As James mentioned, we're proactively managing our portfolio to deliver on our commitments. Our updated 2024 guidance reflects the momentum of our business in the first half of the year and our confidence in our ability to execute on our plans during the second half of this year. We now expect organic revenue growth of 9% to 10% and comparable currency-neutral earnings per share growth of 13% to 15%.

正如詹姆斯所提到的，我們正在積極管理我們的投資組合以兌現我們的承諾。我們更新的 2024 年指引反映了我們上半年的業務勢頭，以及我們對下半年執行計劃的能力的信心。我們目前預期有機收入成長 9% 至 10%，可比貨幣中性每股收益成長 13% 至 15%。

Fossil refranchising is still expected to be a four to five point headwind to comparable net revenues, and we now expect a one to two point headwind to comparable earnings per share. Based on current rates and our hedge positions, we now anticipate an approximate five to six point currency headwind to comparable net revenues and an approximate eight to nine point currency headwind to comparable earnings per share for full year 2024.

預計化石燃料再特許經營仍將對可比淨收入造成四到五個百分點的阻力，我們現在預計可比每股收益將產生一到兩個百分點的阻力。根據當前匯率和我們的對沖頭寸，我們現在預計 2024 年全年可比淨收入將面臨大約 5 到 6 個點的貨幣逆風，而可比每股收益將面臨大約 8 到 9 個點的貨幣逆風。

This increase in currency headwinds is driven by a small number of intensive inflationary markets. While the rest of the currency basket is relatively neutral to our results. All in, we now expect comparable earnings per share growth of 5% to 6% versus $2.69 in 2023. There are some considerations to keep in mind. We expect unit cases and concentrate shipments to be relatively in line with each other for the full year 2024. Please keep in mind, there are two extra days in the fourth quarter. Taking everything into consideration. We expect earnings growth during the remainder of 2024, we'll be weighted towards the fourth quarter.

貨幣逆風的增加是由少數密集的通膨市場所推動的。而其他貨幣籃子對我們的結果相對中性。總而言之，我們現在預計 2023 年的可比每股收益將增長 5% 至 6%，而 2.69 美元。我們預計 2024 年全年的單位箱和精礦出貨量將相對一致。考慮到一切。我們預計 2024 年剩餘時間內獲利將成長，我們將重點放在第四季度。

To summarize, we're encouraged by our track record and the underlying momentum of our business. Our system remains incredibly focused and motivated to drive growth. We're continuing to drive quality top line growth, expand margins, grow comparable earnings per share and improve the return profile of our business. And we're confident we will deliver on our guidance and longer-term objectives.

總而言之，我們的業績記錄和業務的潛在動力令我們感到鼓舞。我們的系統仍然非常專注並積極推動成長。我們將繼續推動高品質的營收成長，擴大利潤率，提高可比較每股收益並改善我們業務的回報狀況。我們有信心能夠實現我們的指導和長期目標。

With that, operator, we are ready to take questions.

接線員，我們準備好回答問題了。

(Operator Instructions)

（操作員說明）

Dara Mohsenian, Morgan Stanley.

達拉莫森尼安，摩根士丹利。

Hey, good morning. It'd be helpful to get an update on North America given questions around consumer spending. Could you just discuss any demand impact you're seeing on your business, any variance in channel performance and how that informs your view going forward? And then also as we transition to a more normalized cost environment. Can you give us any perspective on what's a more sustained price mix run rate going forward in North America? Thanks.

嗨，早安。考慮到有關消費者支出的問題，了解北美的最新情況會很有幫助。您能否討論一下您所看到的對業務的任何需求影響、通路績效的任何差異以及這如何影響您對未來的看法？然後，當我們過渡到更標準化的成本環境時。您能否為我們介紹一下北美地區未來更持續的價格組合運行率？謝謝。

Yes, sure. No problem. Firstly, overall, it would be fair to say that the consumer sentiment is aggregate good is actually pretty strong, pretty resilient within that. There are some soft spots, particularly I think which has been relatively put out there already some softness in away-from-home channels with a little lower traffic. And so some increase in value seeking for combo meals.

是的，當然。沒問題。首先，總體而言，可以公平地說，消費者信心總體良好，實際上相當強勁，並且具有相當的彈性。有一些弱點，特別是我認為在客流量稍低的客流量較低的客流量管道中已經相對存在一些弱點。因此，對組合餐的價值追求增加。

So definitely there's a piece of the lower-income consumers, which are either going out slightly less for when they do go somewhere looking for a greater value through combo meals. And then, of course, in the at-home channels, the business slightly greater focus by those consumers on getting kind of value deals or promo deals.

因此，肯定有一部分低收入消費者，當他們去某個地方透過套餐尋找更大價值時，他們的外出次數會稍微少一點。當然，在家庭通路中，這些消費者更注重獲得超值優惠或促銷優惠。

Having said that, there's just so much consumers of spending on more premium categories or more premium price points and experiences. So that's all aggregating out of other sort of resilience for the average overall consumer.

話雖如此，還是有許多消費者願意花錢購買更優質的品類或更優質的價位和體驗。因此，這一切都是一般消費者的其他彈性的總和。

Within that, I think we've done we've done very well. We've seen strong growth across the portfolio. We saw strong growth in grape Coke trademark in finalizing Topo Chico in children. So and in aggregate, we wee one value share in the core source of our broad-based growth and some hotspots in terms of demand up demand down, but overall resilience of the consumer.

在這方面，我認為我們已經做得很好了。我們看到整個投資組合的強勁成長。在最終確定兒童版 Topo Chico 的過程中，我們看到了葡萄可樂商標的強勁成長。因此，總的來說，我們在廣泛增長的核心來源中看到了一個價值份額，在需求上升和需求下降方面的一些熱點地區，但消費者的整體彈性。

And as you look out, that's the first thing that I think is worth underlining in North America in particular is the nature of the price mix. Remember that our North American business, I typically compared to the other parts of the world, we consolidate a set of vertically integrated businesses and a set of franchise concentrate businesses such that the growth of a channel or a category can produce a mix effect independent of pricing in the marketplace.

正如你所看到的，我認為在北美尤其值得強調的第一件事是價格組合的性質。請記住，我通常將我們的北美業務與世界其他地區進行比較，我們整合了一組垂直整合的業務和一組特許經營集中的業務，這樣渠道或類別的增長可以產生獨立於其他地區的混合效應。

As you look at the 11 points of price mix in the second quarter in North America, it's important to understand that only half of that is actually price. The other half is mix. And so when the juice drinks and fairlife and the juice business grows, Topo Chico grows and the sun is weak, you get a you get a mechanical business mix effect that makes the price mix look like it's gone up, but it hasn't really in the marketplace.

當您查看北美第二季的 11 個價格組合時，重要的是要了解其中只有一半實際上是價格。另一半是混合的。因此，當果汁飲料、fairlife 和果汁業務增長時，Topo Chico 增長，而陽光微弱，你會得到一種機械的業務混合效應，使價格組合看起來上漲，但實際上並沒有上漲。

So think of it as half of it is business mentioned half of it is real pricing in the marketplace, which gets you to a much more logical match to the level of inflation that's selling out going on in the marketplace in general, such that I think in North America and actually overall in general around the world, excluding the high end high, the intensive inflation markers as I mentioned in the comments.

因此，可以將其視為一半是業務提到的一半是市場中的實際定價，這使您可以更符合邏輯地匹配市場上普遍存在的通貨膨脹水平，因此我認為在北美，實際上在全世界範圍內，不包括高端高點，正如我在評論中提到的密集通膨標誌。

We see that inflation is largely coming into the landing zone. Yes, central banks would like to squeeze out another point or so. But generally, we're getting that. And I think that's reflected in our prospects. We still have input costs sort of going up, typically the agricultural loans rather than the metal or commodity-based ones. But in the end, our strategy remains yes, there will be cost inflation. Yes, we'll look to put through, yes, we'll work on productivity. But any pricing we're going to take we're going to have to earn with the marketing in the innovation and the execution. But it is, as I said earlier, approaching that normalization zone.

我們看到通貨膨脹很大程度上正在進入著陸區。是的，央行希望再擠出一點左右。但總的來說，我們得到了這一點。我認為這反映在我們的前景中。我們的投入成本仍在上升，通常是農業貸款，而不是金屬或大宗商品貸款。但最終，我們的策略仍然是，成本將會上漲。是的，我們會努力實現，是的，我們會提高生產力。但我們要採取的任何定價都必須透過創新和執行中的行銷來獲得。但正如我之前所說，它正在接近正常化區域。

Lauren Lieberman, Barclays.

勞倫·利伯曼，巴克萊銀行。

Great. Thanks so much. I'd love to have a similar conversation about Western Europe and because James, you mentioned a bit on also slowness in away-from-home, but the summer sports kind of has already kicked off or June. June was certainly part of it. And so and then the weather has been challenging, but maybe a little surprising to see the softness in the unit case volume in [Namibia]. And let me ask you about just a similar run through as you just did in North America on the dynamics, particularly in Western Europe?

偉大的。非常感謝。我很想就西歐進行類似的對話，因為詹姆斯，你也提到了客場比賽的緩慢，但夏季運動已經在六月開始了。六月當然是其中的一部分。天氣一直充滿挑戰，但看到[納米比亞]單位箱體積的疲軟可能有點令人驚訝。讓我問一下您是否有過類似的經歷，就像您剛剛在北美所做的動態一樣，特別是在西歐？

Thanks.

謝謝。

Yes. So let me let me first just separate Europe from EMEA, which obviously includes the Middle East and Africa. Africa had I had a strong our second quarter volume, good volume growth, building on good volume growth in the first quarter. Our price mix, obviously there's a lot of swings and roundabouts macroeconomically going on in Africa. But actually net-net, the Africa business had a really good quarter winning volume and value share, managing through the inflation and growth on good volume growth and good price growth.

是的。首先，我將歐洲與歐洲、中東和非洲區分開來，其中顯然包括中東和非洲。非洲第二季銷售強勁，銷售成長良好，建立在第一季銷售良好成長的基礎上。我們的價格組合，顯然非洲的宏觀經濟存在著許多波動和迂迴。但實際上，非洲業務的季度表現非常出色，贏得了銷售和價值份額，在良好的銷售成長和良好的價格增長的基礎上管理了通貨膨脹和增長。

The flip side is Middle East. Obviously, the conflict is continuing to affect the business in that part of the world. And so there's some headwinds there and then if it comes to Europe within EMEA or Europe was overall not where we'd like to be. We'd like to see a little more growth coming out of the European business. And really it's a complete mix across the countries in Europe. And there is more pressure on the away-from-home in the west and the east.

另一方面是中東。顯然，衝突正在繼續影響該地區的業務。因此，那裡存在一些阻力，如果涉及歐洲、中東和非洲地區的歐洲，或者歐洲總體上不是我們想要的地方。我們希望看到歐洲業務有更多成長。事實上，這是歐洲國家的完整組合。西部和東部的客場人士面臨更大的壓力。

Yes, some of the sporting programs. I've certainly health, whether it was UA. This has already happened or Olympics, which is imminently going to stop. Some of the sporting has held. But there's been there's been some pressure on the away from home, as I said in the West. And so the immediate consumption packs have been growing slower than ever, that strong strong programs, but not yet enough to offset the weather in some of the countries as the same general effect as the US in terms of the lower-income consumers, speaking of value in doing less away-from-home trip. So big picture, Europe, not too dissimilar from the US, perhaps a little worse weather and a little more sporting events, but in an aggregate sense, very similar.

是的，一些體育項目。我當然很健康，不管是UA。這已經發生了，奧運也即將結束。一些體育運動已經舉行。但正如我在西方所說的那樣，客場作戰也面臨一些壓力。因此，直接消費包的增長速度比以往任何時候都慢，這些強有力的計劃，但還不足以抵消一些國家的天氣影響，就像美國對低收入消費者的總體影響一樣，談到減少外出旅行的價值。整體而言，歐洲與美國並沒有太大不同，也許天氣更糟一些，體育賽事更多一些，但從整體意義上來說，非常相似。

Bryan Spillane from Bank of America.

美國銀行的布萊恩‧斯皮蘭 (Bryan Spillane)。

Hey, thanks, operator. Good morning, everyone. John, just a question for you. Two points maybe related to the concentrate shipments. One is I think we've talked about expecting that the lineup by the end of the year. But I guess can you talk a little bit about what's driving this, how much of it is, you know, the Red Sea and I don't know just it's maybe more difficult to get stuff around versus just kind of the regular, you know, timing differences. And I guess what's underneath this is should we expect a little bit more volatility in the near term, just around unit shipments versus units, just simply because the world's a little bit on unsettled right now. And the second, if you can just give us a perspective on how much margin gross margin benefited from the excess shipments in the quarter?

嘿，謝謝，接線生。大家，早安。約翰，只是問你一個問題。有兩點可能與精礦運輸有關。一是我認為我們已經討論過期望在今年年底之前完成陣容。但我想你能談談是什麼推動了這一點，其中有多少是紅海，我不知道，只是與普通的情況相比，可能更難找到東西，你知道，時間差異。我想，背後的原因是，我們是否應該預期短期內會出現更多的波動，就單位出貨量與單位之間的波動而言，只是因為世界現在有點不穩定。第二，您能否為我們介紹本季超額出貨量使毛利率受益多少？

Thanks.

謝謝。

Okay. Thanks, Bryan. So on the first question, yes, we had number of events during the quarter that that affected the relationship between unit cases and concentrate. You mentioned a couple of them there. I'm just in the Red Sea at Singapore. In last time, we had a some restocking in the wake of the floods in Brazil and in our India operations, we had some some stocking up to anticipate some future demand. So a range of factors, none of them with a to the common thread to them. Our guidance assumes a more normal second half of the year. But as you rightly highlighted, there is likely to be something ahead of us that we have not anticipated.

好的。謝謝，布萊恩。因此，關於第一個問題，是的，我們在本季發生了許多影響單位案例和濃縮物之間關係的事件。你在那裡提到了其中的幾個。我剛剛在紅海的新加坡。上次，我們在巴西洪水過後進行了一些補貨，在我們的印度業務中，我們進行了一些補貨以預測未來的需求。有一系列因素，但沒有一個因素有共同點。我們的指導假設下半年情況會更加正常。但正如您正確強調的那樣，我們前面可能會出現一些我們沒有預料到的事情。

And then, if that were to happen. We'd certainly we certainly advise, but our goal is over the over the longer haul is to continue to have cases and gallons in line. With regards to the to the in the gross margin impact, there's a slight benefit on both some the gross and operating margins related to stocking and but it's in the 10 basis points and and again, reflected in our guidance years to go with that some with that leveling out that we expect.

然後，如果真的發生了。我們當然會建議，但從長遠來看，我們的目標是繼續保持箱子和加侖的數量。關於毛利率的影響，與庫存相關的毛利率和營業利潤率都有輕微的改善，但在 10 個基點內，並且再次反映在我們的指導年份中我們所期望的趨於平穩。

Thanks.

謝謝。

Bonnie Herzog from Goldman Sachs.

來自高盛的邦妮·赫爾佐格。

All right, thank you. Good morning, everyone. I did want to ask a little bit more about your away-from-home business. James which you did touch on. I guess I was hoping to hear how much your business in this channel decelerated in Q2 versus Q1 and what your outlook is for the remainder of the year? And then assuming growth in the channel moderates further, how do we think about the impact this may have on your top line and margins and maybe just touch on any initiatives you've implemented to accelerate growth in this channel moving forward? I think that would be helpful. Thank you.

好吧。大家，早安。我確實想多詢問一些有關您的外出業務的資訊。你確實提到過詹姆斯。我想我希望聽到您在該通路的業務在第二季與第一季相比下降了多少，以及您對今年剩餘時間的展望是什麼？然後假設該管道的成長進一步放緩，我們如何考慮這可能對您的營收和利潤產生的影響，以及您為加速該管道的成長而實施的任何舉措？我認為這會有幫助。謝謝。

Sure Bonnie, I don't think it would be, Tom. I don't think it would be worth saying that the deceleration going on as we come on into the second quarter from the first quarter. And if you just step back a bit and look at what happened. And I think we were already calling out some softness in away-from-home in the back end of last year.

當然，邦妮，我認為不會，湯姆。我認為不值得說，當我們從第一季進入第二季時，減速仍在繼續。如果你退一步看看發生了什麼事。我認為去年年底我們已經在客場表現出了一些疲軟的態度。

So I would I would characterize it more as it's been a slow build from the back half of last year through the first and the second quarter maybe a little more negative than the back half last year. But really it's just it's been a kind of a slow softening, rather anything major and abrupt that is not in like accelerating off a cliff. It's kind of a slow softening that's kind of just running at a software level and when thinking about away from home in the US.

所以我想我會更多地描述它，因為從去年下半年到第一季和第二季度，這是一個緩慢的增長，可能比去年下半年更負面。但實際上，這只是一種緩慢的軟化，而不是任何重大而突然的事情，而不是加速衝下懸崖。這是一種緩慢的軟化，只是在軟體層面上運行，並且是在考慮離開美國的家鄉時。

And then in terms of what we're doing about it, which is obviously the key question is we really got being more focused on how can we make sure what we bring to bear in the away-from-home channels in a sense all the thinking that we have historically done for affordability and price pack architecture in some of the mom-and-pop and at-home channels and make sure working with our partners across the different channels that we can provide that, whether it's the meal combos or whatever format of offering so that there's a laddering of pricing to allow people to stay within the category and the channel. And so those are rolling out as we speak, we would expect to see them making an impact and in the years to go.

然後就我們正在做的事情而言，這顯然是關鍵問題，我們確實更加關注如何確保我們在客場管道中發揮作用，從某種意義上說，所有這些認為我們歷來在一些夫妻店和家庭管道中致力於提供可負擔性和價格包架構，並確保與不同管道的合作夥伴合作，我們可以提供這些服務，無論是套餐還是其他什麼提供的形式，以便有階梯定價，讓人們留在類別和管道內。因此，就在我們發言時，這些內容正在推出，我們預計它們將在未來幾年內產生影響。

Steve Powers, Deutsche Bank.

史蒂夫鮑爾斯，德意志銀行。

Hey, thank you and good morning. Maybe, John, just to so maybe a wrap around is the margin driver conversation and the impact of mix and concentrate timings that are year to date, the underlying margin performance both in the quarter and year to date, I guess as strong as I'm some penciling it out, right. I don't feel like you're expecting a material difference in the underlying margin performance of the business in the back half despite the slower concentrate sales and some of the macro drivers for play that back and confirm that and if there are any material differences, maybe just help us as to what are the drivers.

嘿，謝謝你，早安。也許，約翰，也許總結一下利潤驅動因素的對話以及今年迄今為止的混合和集中時間的影響，本季度和今年迄今為止的基本利潤表現，我想和我一樣強大。對吧。我不認為您預計下半年業務的基本利潤表現會出現重大差異，儘管精礦銷售放緩，並且有一些宏觀驅動因素可以回溯並確認這一點，以及是否存在任何重大差異，也許只是幫助我們了解驅動因素是什麼。

Sure, Steve. Thanks, so on gross margin, just to maybe highlight the big drivers there are underlying performance and a structural changes we have in the quarter, most of which now it is as relates to our refranchising activity and then how does a currency impact.

當然，史蒂夫。謝謝，所以在毛利率方面，只是為了強調潛在的業績和我們在本季度發生的結構性變化的主要驅動因素，其中大部分現在與我們的再特許經營活動以及貨幣的影響有關。

So say, year to date were were reflecting almost 200 basis points of increase. And that's primarily driven by across a structural from an underlying with some some offset on currency. And for the second half of the year, typically that the margin profile in the second half of the year is slightly slightly lower than the first half. But I would I would say the overall trends in the second half of the year will be similar to what we've seen in the first half.

也就是說，今年迄今為止，成長了近 200 個基點。這主要是由潛在的結構性因素所推動的，並對貨幣有一定的抵銷。對於下半年，通常下半年的利潤率略低於上半年。但我想說，下半年的整體趨勢將與上半年相似。

And maybe just to step it down one down to the operating margin line, not similarly, we have had more benefit on the underlying margins in the first half of the year than on structural and then second half of the year, I expect it to be more even. And yet, as we've discussed in prior calls, we sort of reserve the right to stay flexible in the event that we make investment decisions that are linked to what's happening in our many markets around the world. But the overall direction of travel on both the drivers and operating line is our margin profile to be strengthening and to be pretty much in line with some of the previous conversations you've had on this topic.

也許只是為了將其降低到營業利潤線，而不是類似地，我們在今年上半年的基本利潤方面比在結構方面獲得了更多的好處，然後是下半年，我預計它會是更均勻。然而，正如我們在先前的電話會議中所討論的那樣，如果我們做出與全球許多市場正在發生的情況相關的投資決策，我們保留保持靈活性的權利。但司機和營運線的整體發展方向是我們的利潤狀況正在加強，並且與您先前就此主題進行的一些對話非常一致。

Thanks.

謝謝。

Filippo Falorni, Citigroup Inc.

法洛尼 (Filippo Falorni)，花旗集團

Hey, good morning, everyone. I wanted to ask about the Latin America business, it continues to be a very strong driver of your total company growth with a very strong unit case. Volume, still very strong price mix. There was obviously some temporary impacts with the flooding in Brazil. But just curious, A., what is working? Well, I know your bottler relationship have improved significantly over the last couple of years and also just a general sense of how the consumer is behaving in your key markets, Brazil, Mexico and some of the other countries?

嘿，大家早安。我想問拉丁美洲業務，它仍然是你們公司整體成長的強大推動力，擁有非常強大的業務案例。成交量、價格組合仍然非常強勁。巴西的洪水顯然造成了一些暫時的影響。但只是好奇，A.，什麼在起作用？嗯，我知道您與裝瓶商的關係在過去幾年中得到了顯著改善，並且也了解消費者在您的主​​要市場（巴西、墨西哥和其他一些國家）的行為方式？

Thank you.

謝謝。

Sure, yes, it Latin America had another strong result in the quarter mix, you know, sustain the volume momentum, as you mentioned, clearly being driven from Mexico and Brazil. It's a pretty broad-based category. Our success story including not just Coke trademark, but now Coke Zero or 20% volume growth. Obviously, part of this is a long-term capability and momentum building approach with our bottlers in Latin America are really bringing together all of the components of the strategy that we talk about, whether it be the the marketing transformation focused on innovation and the execution of pop up price packaging in the marketplace, particularly in markets like Latin America, making sure we both have premiumization and opportunities, but also critically important affordability options, whether that be with no regular packaging returnable packaging up, but really making sure we have ways of keeping people in the franchise and all executed by the by the bottling system, which has really doubled down, not just on traditional execution and putting more coal doors out there after the digitization of their relationships with the retailer.

當然，是的，如果拉丁美洲在本季度組合中取得了另一個強勁的業績，那麼正如您所提到的，維持銷量勢頭，顯然是由墨西哥和巴西推動的。這是一個非常廣泛的類別。我們的成功故事不僅包括可口可樂商標，還包括現在可口可樂零或 20% 的銷售成長。顯然，其中一部分是我們在拉丁美洲的裝瓶商的長期能力和動力建設方法，真正將我們談論的戰略的所有組成部分結合在一起，無論是專注於創新的營銷轉型還是執行市場上的彈出式價格包裝，特別是在拉丁美洲等市場，確保我們既擁有高端化和機會，又擁有至關重要的可承受性選擇，無論是沒有常規包裝的可回收包裝，但真正確保我們有辦法讓人們留在特許經營權中，並由裝瓶系統執行所有操作，這確實加倍了，而不僅僅是傳統的執行方式，並且在與零售商的關係數位化後，放出了更多的煤炭門。

So I'm really a representation of what is possible when all the elements of the strategy of the system are executed in the marketplace. I think it's worth noting that obviously, yes, strong volume performance of 5%. Please do take in mind and the price mix is heavily affected by the Argentinian high inflation. And two thirds of the price mix is actually due to Argentina. And so that leaves you about roughly six, four of normal inverted commas pricing for the rest of the countries. And nevertheless, a very strong result in Latin America. Very pleasing and looking forward to seeing that continue into the future.

因此，我實際上代表了當系統策略的所有要素都在市場上執行時可能發生的事情。我認為值得注意的是，顯然，是的，5% 的強勁成交量表現。請記住，價格組合受到阿根廷高通膨的嚴重影響。而三分之二的價格組合其實是由阿根廷造成的。因此，對於其他國家來說，剩下大約六到四個正常的引號定價。儘管如此，拉丁美洲取得了非常強勁的成績。非常令人高興並期待看到這種情況在未來繼續下去。

Chris Carey from Wells Fargo Securities.

富國銀行證券公司的克里斯凱裡。

Good morning. I wanted to ask a question on just balance sheet cash flow specifically around fairlife. Clearly it's a positive development that fair life continues to do so well, the liability does, however, continue to grow.

早安.我想問一個關於資產負債表現金流的問題，特別是圍繞著公平生活的問題。顯然，公平生活繼續表現良好是一個積極的發展，但責任卻繼續增長。

John, can you just maybe comment on what you can do to perhaps limit the negative impact from raising additional capital to cover fair life cover the escrow payments and specifically from a from a cash flow perspective in the next 12 to 18 months? And and perhaps just an overall view on how you see net interest expense versus income trending as you have some of these major payments to happen.

約翰，您能否評論一下您可以採取哪些措施來限制籌集額外資金以支付公平生活保障託管付款所帶來的負面影響，特別是從未來 12 到 18 個月的現金流角度來看？也許只是當您需要支付其中一些主要付款時，您如何看待淨利息支出與收入趨勢的整體看法。

Thanks.

謝謝。

Sure, Chris. Thank you befor saying that we're very pleased with the performance of fairlife and the the Anders and his insights with Adam relative to the to the overall construct of the deal we have in place there.

當然，克里斯。感謝您之前說過，我們對 Fairlife 和安德斯夫婦的表現以及他與 Adam 相對於我們在那裡達成的交易的整體結構的見解感到非常滿意。

And with regard to the broader free cash flow conversation, yes, there is the sources sources we have of cash from operations and in the short term, as we continue to refranchise some of our businesses from the proceeds that come in from that.

關於更廣泛的自由現金流對話，是的，我們從營運中獲得了短期現金來源，因為我們繼續利用由此產生的收益對我們的一些業務進行重新特許經營。

During the second quarter, we also went into the debt market and we issue some long-term debt. And so it's really a combination of those three that we are managing very, very closely deal with the end of this year and into 2025 on the outflows that that could be that we see.

第二季度，我們也進入了債務市場，發行了一些長期債務。因此，這實際上是我們正在非常非常密切地管理的這三者的結合，以應對今年年底和 2025 年我們可能看到的資金外流。

Balance sheet remains strong as we go into 2025 with a clear line of sight as to what needs to be taken care of. And yet, as we have discussed on many occasions relative to our overall capital allocation strategy, we will continue to invest in the business as appropriate to support the dividend file. We take care of the fair life acquisition and the tax payment that is it is on the horizon relative to the IRS tax case. So all in all, it's going to be a convenient just saying 18 months to work through. But we feel very confident that the work we've done today it prepares us well to manage through it.

進入 2025 年，資產負債表仍然強勁，我們對需要處理的問題有清晰的認識。然而，正如我們在許多場合討論過的與我們的整體資本配置策略相關的內容，我們將繼續適當投資該業務以支持股息文件。我們負責公平生活收購和與國稅局稅務案件相關的稅款支付。總而言之，簡單來說，18 個月的時間是很方便的。但我們非常有信心，我們今天所做的工作使我們做好了應對這一困難的準備。

Andrea Teixeira from JPMorgan.

摩根大通的安德里亞·特謝拉（Andrea Teixeira）。

Thank you. Good morning. I'm sure James will the price mix in North America, you mentioned about half of the 11 points driven by mix and the other pretty much price pivots to quite driven by innovation. Can you talk about the cadence of what you expect going and moving ahead of Parship done amazingly well on into chain there in terms of the marketing campaigns and marketing in and around packaging and all of that, our GM playbook that you have been booking ahead, is that any additional gains you expect and how we should be thinking, I guess, maybe even not only North America, but also in Brazil and Mexico, how to think of additional gains in there and as well as in India?

謝謝。早安.我相信 James 會了解北美的價格組合，您提到了 11 個點中大約有一半是由組合驅動的，而其他大部分價格則由創新驅動。您能談談您期望 Parship 前進的節奏嗎？以及我們應該如何思考，我想，甚至可能不僅是北美，還有巴西和墨西哥，如何考慮那裡以及印度的額外收益？

Thank you.

謝謝。

Sure. I mean, absolutely, we're going to continue to press ahead with the marketing with the innovation with the price factor with the execution. That's the way we are if to take a reasonable level of pricing, clearly, some of the inflationary effects and some of the mix effects are likely to become more so subdued as we go into the back half of the years. So I'm not expecting, for example, in North America, it half of it is for mix and half of it is from a coal pricing. I think the mix piece will start to trend down over time and in part it does so because it starts cycling itself.

當然。我的意思是，我們絕對會繼續推動行銷、創新、價格因素和執行。這就是我們的情況，如果採取合理的定價水平，顯然，隨著進入下半年，一些通膨效應和一些混合效應可能會變得更加減弱。因此，我並不期望，例如，在北美，一半用於混合，一半來自煤炭定價。我認為隨著時間的推移，混搭作品將開始下降，部分原因是它開始自行循環。

And so I think it is the key for me is to look through the kind of the mix and the inflation effects of thinking about core pricing. And if you do that as a whole company level and look at the second quarter in its totality, again, there is obviously a big piece of it was inflation. You take it out and you're at the four ish percent in core pricing offer 2% volume there. You are right in the sweet spot of the top end of the algorithm that we've been that we've been looking to deliver on. And so I think that does not have that kind of the central role assumption is that kind of a landing zone for these for these effects like inflation and mix and starting to see more of the price mix being the core actions across the strategy, flywheels driving the business.

因此，我認為對我來說關鍵是要審視核心定價的組合類型和通膨效應。如果你從整個公司層級來看第二季的整體情況，那麼顯然其中很大一部分是通貨膨脹。你把它拿出來，你的核心定價是百分之四左右，成交量是百分之二。您正處於我們一直希望實現的演算法頂端的最佳位置。因此，我認為，沒有那種核心角色假設，即通貨膨脹和混合等影響的著陸區，並開始看到更多的價格組合成為整個策略的核心行動，飛輪驅動這門生意。

Kaumil Gajrawala from Jefferies.

來自 Jefferies 的 Kaumil Gajrawala。

You delivered 2% case volume growth and then look across sort of the rest of Staples, we're seeing quite a bit of slowdown in volumes.

你實現了 2% 的箱量成長，然後看看 Staples 的其餘部分，我們發現銷量有相當大的放緩。

I think you're positive everywhere with the exception maybe of North America. Can you maybe just talk a bit more because you're you provided your operating environment views, but also innovation, new sports, sporting events, these types of things. What should we be looking at it over the medium term in terms of volume growth?

我認為除了北美之外，你在任何地方都是積極的。您能否再多談一點，因為您提供了您對營運環境的看法，還有創新、新運動、體育賽事等這些類型的事情。從中期來看，我們該如何看待銷售成長？

Yes. So we as from a strategy perspective, we have taken the approach over the last number of years to not say, even longer, but it's critically important, particularly when times get tougher to trying to keep as many, the consumers in the franchise as possible rather than trying to re-recruit them at some later stage. And therein are focused not just on marketing innovation, but affordability within the price pack architecture.

是的。因此，從策略角度來看，我們在過去幾年中採取了這種方法，不說，甚至更長時間，但這至關重要，特別是當時間變得更加困難時，試圖保留盡可能多的消費者在特許經營中而不是在稍後階段嘗試重新招募他們。其中不僅關注行銷創新，也關注價格包架構中的可負擔性。

Clearly an objective of ours is not to see negative volumes and to make sure we keep people in and use all the elements to do that. And so as you said, we got 2% in the quarter. We've got we've had a run rate that we've talked in the past, and it remains through today that that central long-term growth algorithm, we're looking for a revenue of 46%, and we've set ourselves the ambition of staying in the 5% to 6% range with a balance of volume and price mix for those essentially a way you've split that you're saying two to three in volume and two to three in price come out. We're kind of in that range in the quarter with the 2% volume. So I think in the long run, we will continue to pursue that.

顯然，我們的目標不是看到負數量，而是確保我們留住人員並利用所有要素來做到這一點。正如您所說，我們在本季度獲得了 2% 的收益。我們已經有了我們過去討論過的運行率，並且直到今天，我們仍然以核心長期增長算法為目標，我們正在尋找 46% 的收入，並且我們已經設定了我們自己的雄心是保持在5% 至6% 的範圍內，並在數量和價格組合上保持平衡，對於那些本質上是一種分割方式，即數量為2 至3，價格為2 至3。我們本季的銷量就處於這個範圍內，銷量為 2%。所以我認為從長遠來看，我們將繼續追求這一目標。

I talked earlier this year and that, you know, in the shorter term, it's likely to be slightly more price and slightly less volume, which was kind of exactly what happened in the second quarter. So it would not surprise me. And as we go through the rest of the year, that that remains true that we see slightly less volume than the kind of standard algorithm and slightly more prices as pricing tends towards inflation tends towards the landing zone.

我今年早些時候曾說過，你知道，從短期來看，價格可能會略有上升，但銷量可能會略有下降，這正是第二季度發生的情況。所以我不會感到驚訝。當我們回顧今年剩下的時間時，這仍然是事實，我們看到的交易量略低於標準演算法，而價格則略高，因為定價傾向於通貨膨脹，傾向於著陸區。

And I think that's likely to be true as we go into the as we go through the rest of the summer. Hopefully the weather gets a bit better, but we're likely to see that slightly less volume, slightly more price and probably a repetition of where that volumes coming from in terms of the rest of the year, the Post is largely being the developing economies, Latin America, India, Africa, Southeast Asia, and to some extent, Japan and kind of weighing on it a little because of the parts of North America and Europe, channel and income specific and some of the disruptions from the Middle East.

我認為，當我們進入夏季剩餘時間時，這可能是真的。希望天氣好一點，但我們可能會看到數量略有減少，價格略有增加，並且可能會重複今年剩餘時間的數量，郵政主要是發展中經濟體、拉丁美洲、印度、非洲、東南亞，在某種程度上，還有日本，由於北美和歐洲的部分地區、特定的管道和收入以及來自中東的一些幹擾，這對它造成了一些壓力。

But net-net we think we've got a strong strategy that's playing out and is winning. And we are confident that we can drive that to get that balanced algorithm of growth through the rest of this year for our guidance and into the future.

但我們認為我們已經制定了強有力的戰略，該戰略正在發揮作用並且正在取得勝利。我們相信，我們可以推動這一目標，在今年剩餘時間實現平衡的成長演算法，為我們提供指導和未來。

Robert Ottenstein from Evercore ISI.

Evercore ISI 的羅伯特·奧滕斯坦。

Great. Thank you very much. I'd like to go back to North America, but look at it more on a category basis on for the first half of the year with more emphasis on going to be the second quarter and I get your thoughts on a couple of things. Number one, it looks like for the first time that I can think of sparkling is doing better than energy as a sector. I love to get your thoughts on maybe what the drivers are there. And second, sports drinks, how your new strategy is working, combining Powerade and body armor under one management team? And then third, any other particular things that you're seeing on the category side that are worth noting? Thank you.

偉大的。非常感謝。我想回到北美，但更多地從上半年的類別角度來看待它，更注重第二季度，我了解你們對一些事情的想法。第一，我第一次認為氣泡酒作為一個產業的表現比能源更好。我很想聽聽您對驅動因素的看法。其次，運動飲料，你們的新策略如何運作，將 Powerade 和防彈衣結合在一個管理團隊的領導下？第三，您在類別方面看到的任何其他值得注意的具體事情？謝謝。

Yes, sure so and definitely North America had a good second quarter from the standouts in terms of growth, clearly actually what was interesting is actually if you look at the Nielsen universe and you look at which to trade Marks provided most dollar retail growth in Q2. And the answer is fairlife and Coca-Cola. And so you know it away, you can see that as a sort of microcosm for the overall strategy working, you've got broad ends as the portfolio working and it's being executed in the marketplace and driving really, really substantial growth.

是的，當然是這樣，北美第二季的成長絕對錶現出色，顯然，有趣的是，如果你看看尼爾森的宇宙，看看要交易的馬克提供了第二季大部分美元零售成長。答案是 Fairlife 和可口可樂。所以你知道這一點，你可以看到，作為整體策略運作的縮影，隨著投資組合的運作，你擁有廣泛的目標，並且它正在市場上執行並推動真正、真正的大幅成長。

Good performance by fairlife good performance by overall Coca-Cola with growth, obviously being led by Coca-Cola Zero in the sports categories are getting better. We had some positive volume growth in body armor and Powerade. And we're really starting to see the kind of stabilization with the marketing and the innovation and some pack price work going on there. We're not yet gaining all the share we want to gain. But out, we've stabilized and starting to turn the corner with some of those innovations on zero and [flash IB] and Powerade ourselves a good, a good kind of step forward and turning the corner and clearly looking to do better, I'm not sure there's much more to say, great quarter end low net loss.

fairlife的良好表現可口可樂整體表現良好，有成長，顯然以可口可樂零為首的運動類別也越來越好。我們的防彈衣和 Powerade 銷售出現了一些正面的成長。我們確實開始看到行銷和創新的穩定以及正在進行的一些包裝價格工作。我們還沒有獲得我們想要獲得的所有份額。但是，我們已經穩定下來，並開始透過零和 [flash IB] 和 Powerade 方面的一些創新來扭轉局面，這是一個很好的進步，扭轉了局面，顯然希望做得更好，我'我不確定還有什麼好說的，季末淨虧損很低。

Peter Grom from UBS.

瑞銀集團的彼得‧格羅姆。

Thank you, operator, and good morning. So I guess I just wanted to follow up on Robert's question just specifically on energy drinks, right? I mean, it's one of the few categories where we've seen a pretty notable change here. So do you have any perspective, James, on what may or may be driving the weaker comments in that as you look ahead, would you anticipate maybe some of this pressure to be short-lived or is there something you're seeing that would suggest this weakness can persist through the balance of the year and into maybe '25? Thanks.

謝謝您，接線員，早安。所以我想我只是想跟進羅伯特的問題，特別是關於能量飲料，對嗎？我的意思是，這是我們在這裡看到非常顯著變化的少數類別之一。那麼，詹姆斯，你對什麼可能或可能導致較弱的評論有什麼看法嗎？持續到今年剩下的時間，甚至可能持續到25 年？謝謝。

Sure. I think before you need to kind of break it, break it up a bit. I mean, firstly, look, we've had a great partnership with Monster, tremendous value for Monster for US Coca-Cola and for the bottling partners. And clearly, in the case of the US. There's been what happens in every category when when people create a category and there's one or two brands is people look for the white spaces and start to innovate and start to bring new news to the category. And I think that's what's happening in energy, particularly in the US. And so I think working with Monster that will respond to the evolution of the way the consumers look at the category.

當然。我認為在你需要打破它之前，先把它打破一點。我的意思是，首先，我們與 Monster 建立了良好的合作夥伴關係，Monster 對於美國可口可樂和裝瓶合作夥伴來說具有巨大的價值。顯然，就美國而言。當人們創建一個類別並且有一個或兩個品牌時，每個類別都會發生這種情況，人們會尋找空白並開始創新並開始為該類別帶來新消息。我認為這就是能源領域正在發生的事情，尤其是在美國。因此，我認為與 Monster 的合作將響應消費者看待該類別的方式的演變。

I think it's also important to understand that the energy category, it's one of the categories that respond to an overall consumer need state of being fueled for their lives. And so company point of view, we see that as something where we bring multiple brands to bear against that, the state and each each brand and each category, it needs to play its part in kind of delivering on that. And each one has to do their own work to do it. But I think there's more to be done across the board and including in the Monster Energy portfolio and working with them on that.

我認為了解能源類別也很重要，它是滿足消費者為生活提供燃料的整體需求狀態的類別之一。因此，從公司的角度來看，我們認為，作為一個讓多個品牌來對抗國家、每個品牌和每個類別的事情，它需要發揮自己的作用來實現這一目標。每個人都必須做好自己的工作才能做到這一點。但我認為還有更多工作要做，包括在怪物能源投資組合中，並與他們合作。

And then I think internationally, there's robust growth in the energy category and making good progress around the world in different ways and different forms side, one has to kind of pull apart our energy category and look at it kind of geographically to see that overall, it's still got some good growth and there's different jobs to be done in different parts of the world.

然後我認為，在國際上，能源類別強勁增長，並以不同方式和不同形式在世界各地取得了良好進展，人們必須將我們的能源類別分開，從地理角度來看待它，才能看到總體情況，它仍然有一些良好的增長，並且在世界不同地區有不同的工作要做。

Charlie Higgs, Redburn.

查理希格斯，雷德伯恩。

Hi, James, John, thank you both. Well, I've got a question on Asia Pacific and the performance in Q2, please, where volumes were up 3% and price mix was down 3%. Can you talk a bit more about the volumes up three and specifically how China performed and what you're seeing on the ground there in China in Q2 and then the price mix down three, is that purely just negative geographic mix from India, Philippines source Japan? What was the negative pricing within that? Thank you.

嗨，詹姆斯，約翰，謝謝你們兩個。嗯，我有一個關於亞太地區和第二季度業績的問題，銷量增長了 3%，價格組合下降了 3%。您能否多談談銷量上升三倍，特別是中國的表現以及您在第二季度在中國所看到的情況，然後價格組合下降三倍，這純粹是來自印度、菲律賓來源的負面地理組合日本？其中的負定價是多少？謝謝。

Yes, sure I'll take it in reverse or Charlie that. Yes, the negative pricing is more than driven by the mix effect. So core pricing is positive. If you went operating unit by operating unit. But all over iron price mix is negative because of the way the mathematics of the thing works. But the central answer there is more than just geography mix who is consuming core pricing and taking it at a minus three.

是的，我當然會反過來想，或者查理那樣。是的，負定價不僅僅是由混合效應所驅動的。所以核心定價是正的。如果你逐一經營單位去。但由於數學的運作方式，整個鐵價格組合都是負面的。但核心答案不僅僅是地理組合，他們正在消耗核心定價並採取負三的價格。

And then if I go back to the performance of the different operating units, clearly the big swing in Asia-Pacific is driven by the bounce back of India. You will remember that in the first quarter, India when we had a soft first quarter and the second quarter was very strong. And so that produces obviously a big swing in the result. So India had a good double digit growth of volume in the second quarter.

然後，如果我回到不同營運部門的表現，很明顯，亞太地區的大幅波動是由印度的反彈所推動的。你會記得，在印度第一季度，我們的第一季表現疲軟，但第二季度非常強勁。因此，這顯然會導致結果有很大的波動。因此，印度第二季的銷售量出現了兩位數的良好成長。

We're still very bullish on India still very realistic in terms of it won't be a straight line into the future, but they certainly had a good quarter in the second quarter. We also saw good volume growth across Southeast Asia, including also volume growth across Japan and South Korea, volumes were negative in the China operating unit.

我們仍然非常看好印度，仍然非常現實，因為它不會一帆風順地進入未來，但他們在第二季度的表現確實不錯。我們也看到東南亞地區的銷售量出現良好成長，包括日本和韓國的銷售成長，但中國營運部門的銷售量呈現負成長。

There's two parts to this story. The first is yes, there's a general macro softness as the overall economy works through some of the structural issues around real estate pricing, et cetera, et cetera. Within the things that we control, we have essentially been prioritizing and restructuring where we invest across the category portfolio and focusing more on sparkling and juice drinks and teas and de-prioritizing what is essentially a case pack water where we are not don't make money in China. So the overall volumes were negative in China, but that's entirely driven by the deprioritization of water. And actually, the I think the sparkling volume was slightly positive in China Q4.

這個故事有兩個部分。首先是，隨著整體經濟正在解決圍繞房地產定價等的一些結構性問題，宏觀經濟普遍疲軟。在我們控制的範圍內，我們基本上一直在優先考慮和重組，我們在整個品類組合中進行投資，更多地關注起泡飲料和果汁飲料和茶，並取消對我們不生產的箱裝水的優先考慮。因此，中國的總體水量為負，但這完全是由水的優先地位下降所致。事實上，我認為中國第四季的銷售量略有成長。

Kevin Grundy from BNP Paribas.

法國巴黎銀行的凱文·格倫迪。

Great, thanks. Good morning, everyone. Some questions for John. Please just kind of building on some of the questions early on cash flow, can we get an update, please on timing of potential bottler refranchising?

萬分感謝。大家，早安。有一些問題要問約翰。請以早期有關現金流的一些問題為基礎，我們能否獲得有關潛在裝瓶商重新特許經營時間的最新資訊？

I think it's probably largely a question on CCBA and understanding that market conditions may potentially dictate. But can you help us how you're currently thinking about potential timing there? And then as you're thinking about value creation for shareholders. How much does the EPS solution come into that we hear that from shareholders, sometimes if at all as you're thinking about moving forward with that?

我認為這可能很大程度上是 CCBA 的問題以及對市場狀況可能決定的理解。但您能告訴我們您目前如何考慮那裡的潛在時機嗎？然後當你考慮為股東創造價值時。我們從股東那裡聽到EPS解決方案的影響有多大，有時甚至當你考慮推進這個方案？

Thanks.

謝謝。

So regarding the timing we're we're not giving out dates as to as to when we expect the refranchising process to to finish. We're staying very thoughtful, disciplined and recruiting new partners and the areas that are still outstanding. And so there's good work underway, but no, no imminent decisions, and we'll advise as that work bears fruition. But them I think the overall message is we continue to be very clear internally on the path forward, and we'll expect over the next couple of years to have the bulk of the refranchising.

因此，就時間表而言，我們不會給出預計重新特許經營過程何時完成的日期。我們保持深思熟慮、遵守紀律，並招募新的合作夥伴以及仍然表現出色的領域。因此，良好的工作正在進行中，但不，沒有迫在眉睫的決定，我們會在工作取得成果時提供建議。但我認為整體訊息是我們內部對前進的道路仍然非常明確，我們預計在未來幾年內將進行大部分重新特許經營。

With regard to the the impact on EPS dilution. It says it's a mechanical effect that comes from the broader strategic decisions that we've that we believe are right for the Coca-Cola company. And overtime for the Coca-Cola system. The refranchising work that started back in the midterm teams is demonstrating time and again, that the overall system benefits, when does this step change and overall performance. And with that step change, we benefits over the longer haul.

關於對每股盈餘稀釋的影響。它說這是一種機械效應，來自我們認為適合可口可樂公司的更廣泛的策略決策。還有可口可樂系統的加班。中期團隊開始的重新特許經營工作一次又一次地證明，整個系統受益，這一步和整體績效何時會改變。透過這步驟的改變，我們將從長遠來看受益。

So as you've seen this year, there is a a mechanical impact on the EPS line, but longer term, we think that the the broader, the broader value proposition of the Coca-Cola company is staying very focused on what we do best and having a balance sheet and that's designed to support what we do. Best working in partnership with great offers around the world is the recipe for for us to meet and exceed our long term cross model.

正如您今年所看到的，每股收益線受到了機械影響，但從長遠來看，我們認為可口可樂公司更廣泛、更廣泛的價值主張仍然非常專注於我們最擅長的領域，擁有資產負債表，旨在支持我們的工作。與世界各地的優質合作夥伴進行最佳合作是我們達到並超越長期交叉模式的秘訣。

Robert Moskow from TD Cowen.

TD Cowen 的 Robert Moskow。

Hi. Thanks for the question. Maybe I missed it, but did you make any commentary about your intentions on marketing investment for the year, whether anything's changed since the start of the year? I think you talked about maybe some surgical efforts in certain markets and certain categories. But I assume that there's no there's no signal here that it needs to be incremental investment to improve volume?

你好。謝謝你的提問。也許我錯過了，但您對今年行銷投資的意圖有何評論？我想你可能談到了某些市場和某些類別的一些外科手術努力。但我認為這裡沒有任何訊號顯示需要增量投資來提高產量？

Let me attack the answer to that. But our bias is to lean in and invest where we see opportunities. And to the extent that we continue to invest to see the opportunities we continue to invest. And if we see more opportunity, we'll have ethanol. And the contrary is also true. If we see softness, it doesn't warrant further level of investment, then we will look to pull back having said that there's nothing particularly in the guidance. This trying to tell you is changing radically in one direction or the other.

讓我來攻擊這個問題的答案。但我們的偏見是在我們看到機會的地方進行投資。我們繼續投資是為了看到我們繼續投資的機會。如果我們看到更多機會，我們就會擁有乙醇。反之亦然。如果我們看到經濟疲軟，不保證進一步的投資水平，那麼我們將考慮撤回，並表示指導中沒有什麼特別的內容。這試圖告訴你正在朝著一個方向或另一個方向發生根本性的變化。

Yes, we continue to see the need for marketing pressure it's not a fixed sum that it's not subject to inflation some, but there's nothing in the guidance is trying to tell you something radically different. It's very much we continue to invest and drive top line. And we see the two marching together. Okay. Thanks, Robert. That was that was the last question.

是的，我們繼續看到行銷壓力的必要性，它不是一個固定的金額，它不受通貨膨脹的影響，但指南中沒有任何內容試圖告訴你一些完全不同的事情。我們繼續投資並推動營收成長，這非常重要。我們看到兩人並肩前進。好的。謝謝，羅伯特。這就是最後一個問題。

So to summarize, we're building a culture that emphasizes improving every aspect of how we do business. We have lots of opportunities in front of us. We think we're well positioned to capture these opportunities, and we're confident that we will successfully execute our strategy and create value for our stakeholders. Thank you for your interest, your investment in our company and for joining us this morning. Thank you.

總而言之，我們正在建立一種文化，強調改善我們開展業務的各個方面。我們面前有很多機會。我們認為我們有能力抓住這些機會，並且有信心我們將成功執行我們的策略並為利害關係人創造價值。感謝您對我們公司的興趣、投資以及今天早上加入我們。謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。