Mitchell Collett

Mitchell Collett asked about the drivers behind the acceleration in the 'beyond beer' category and where the company sees future growth opportunities within that segment.

Answer

CEO Michel Doukeris attributed the acceleration to a focused strategy centered on five core global brands, including Cutwater and Nutrl, after a period of portfolio streamlining. He stated that the company is now in 'full execution mode,' with a significant opportunity to roll out these proven brands to more markets globally, capitalizing on consumer demand for convenience and branded propositions.

Mitchell Collett from Deutsche Bank asked for the common driver behind record Q2 volumes in Brazil, Colombia, and South Africa. He also requested clarification on the negative revenue per hectoliter in Europe and whether that pressure would persist.

Answer

CEO Michel Doukeris attributed the record volumes in those markets to the successful execution of the company's replicable growth toolkits, including mega brands and digital platforms. For Europe, he explained the revenue per hectoliter decline was due to a mix of unfavorable weather, faster growth in lower-revenue partner markets, and the phasing of promotions for the 'summer of sports,' expecting a normalization by year-end.

Mitchell Collett asked for color on the decision to increase the free cash flow guidance, questioning if it was driven solely by operating profit or other factors.

Answer

CFO Ed Walker explained the increased guidance to "at least €1.7 billion" reflects heightened confidence in the business's ability to generate and convert operating profit. He noted they are retaining flexibility for over €1 billion in planned CapEx investments to unlock future growth.

Mitchell Collett asked for clarification on the decision to raise the free cash flow guidance, questioning if it was solely driven by operating profit or if other cash flow components were contributing.

Answer

CFO Ed Walker explained the higher guidance to 'at least €1.7 billion' reflects increased confidence in operating profit growth and its conversion to cash. He noted that the company is maintaining flexibility for over €1 billion in CapEx to fund growth initiatives across its markets.