Coca-Cola Bottlers Japan (OTC:CCOJY) reported third-quarter financial results on Friday. The transcript from the company’s third-quarter earnings call has been provided below.
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View the webcast at https://webcast.net-ir.ne.jp/25792610e/index.html?referrer=https%3A%2F%2Fen.ccbj-holdings.com%2F
Summary
Coca-Cola Bottlers Japan reported an increase in business income despite a year-over-year decline in sales volume, attributing success to price revisions and strategic transformation initiatives.
The company is on track to meet its full-year business income target of 35 billion yen, driven by robust commercial activities and cost reduction measures.
Future guidance indicates a focus on profit-driven activities and strategic investments, with plans to enhance profitability through new marketing campaigns and product innovations.
Operational highlights include successful marketing campaigns featuring BTS and new product launches like Coffee Waters, alongside collaborations with popular brands and events.
Management emphasized cost reduction through transformation, optimization of market investments, and efficient capital allocation to support long-term growth targets and shareholder value enhancement.
Full Transcript
Kado
Good evening, this is Kado. Slide 13 provides a review of our marketing activities for the third quarter. To further strengthen our core categories, we looked to boost sales of Coca-Cola by launching the Coca-Cola Summer campaign and running promotions where consumers can win limited edition Coca-Cola summer goods. Additionally, starting in September, we launched a new Coca-Cola Zero campaign featuring BTS, focusing on driving trial of the Coca-Cola Zero series. As part of our new product lineup, we launched Coffee Waters in September, a coffee-flavored beverage that does not contain coffee beans. As a new value proposition decision, new consumers increased by new drinking occasions that cater to diverse lifestyles. Offering a 400 ml bottle with a labelless design exclusively through online channels.
To deliver experiential value to the food market. By evolving and strengthening this industry, we aim to provide greater experiential value to the food service market. In the fourth quarter, we will carry out marketing activities with an even greater focus on our core categories. October, Coca-Cola launched a winter campaign aimed — iconic designs such as Santa Claus. We will launch a Premier League campaign for Coca-Cola. We have entered into a global partnership with the Premier League professional soccer league and will run promotion offering the chance to win limited edition cans and merchandise to boost sales.
In the coffee category, Georgia is running cross-channel promotion campaign in collaboration with popular anime series JoJo’s Bizarre Adventure. We are conducting several large-scale promotions with the goal of maximizing Georgia sales during the fall and winter season. In addition, we will launch a large-style Shokaki jumper promotion spanning our 5C brands. This initiative will drive consumer purchases and accelerate sales growth across the entire category.
OPERATOR
Thank you. You are kindly asked to refrain from asking questions at this time as a separate session will be held later today. Due to interpretation lags, we request that you ask only one question at a time. We will now begin the Q&A session. Operator, please proceed. If you would like to raise questions, please press 7. If you press 7 again, you are going to cancel your question from the queue, so please be careful. Also during the Q&A session, you can press 7 anytime to raise your questions. So if you would like to raise a question, please press 7 and wait for a second. Let us begin the Q&A. I’m going to call the person with a question. Tell your company name and your name before asking a question. The first person with a question, please go ahead.
I will unmute the next person. From SMBC Securities. Please go ahead. Thank you very much. Thank you for your question. Please move on to the next question. We will unmute the next person. I am Igarashi from Daiwa Securities.
Igarashi (Analyst at Daiwa Securities)
I know that you are doing various measures, but it is going to be the largest — what are some other new initiatives that you’re going to do in addition to these initiatives that you have mentioned here?
Andrew
Good evening, this is Andrew. Asking the question — optimize our network. Have accelerated our cross-enterprise efforts to improve, take cost out of our cost system. Furthermore, we are investing in a variety of technologies, digital technologies, to enhance our planning and operations. Trade. Part of your question was — because remember back communicated many times. On top of that, we are also investing. Optimize all of these five years — many have already happened.
Igarashi (Analyst at Daiwa Securities)
Thank you very much. Collaboration with the customer — I’m just wondering what this means because I don’t have a good understanding about what you mean here. Can you explain? Thank you very much for your question.
Andrew
It’s Andrew again. We work closely in collaboration with the commercial teams at a customer — look at how do we drop the frequency of delivery, but at the same time, how do we continue to add value for the customer. Which is a syndicated survey to assess. Number one cross beverage manufacturing — this is a result of our collaboration with customers. Going to negotiation, broader domestic energy — that’s where we’re working. Solutions: how we actually help address.
We do see time, travel, touches — those are the initiatives that we’re working very actively.
Igarashi (Analyst at Daiwa Securities)
September price revisions — will they be able to offset the Middle East impact or not this year? Those are my questions.
OPERATOR
Let’s move on to the next question. Please unmute the next person. On the time, but I would like to go for two more questions. The next person with a question, please go ahead. Thank you for the question. Will you answer the question?
Alexan
As we have repeatedly said, pricing is always in the mix. Also leverage all the different revenue growth.
OPERATOR
Thank you for the question. Could you go to the last person with a question? Okay, thank you very much. Thank you, Morita-san, for your question. We will now conclude the Q&A session. Thank you very much for participating today.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.