Coca-cola Icecek Anonim Sirketi

Ladies and gentlemen, thank you for standing by. I would like to welcome you to the Coca-Cola ETHX conference call and live webcast to present and discuss the second quarter 2026 financial and operational results. We are here with the management team and today's speakers are the CEO, Mr. Karim Yahi, and CFO, Mrs. Cicek Uşaklıgil Özgünes. Before starting, I would like to kindly remind you to review the disclaimer on the webcast presentation. After the call, there will be an opportunity to ask questions. I would now like to turn the call over to Burak Berki, Head of Investor Relations. Sir, the floor is yours. Please go ahead.

Good morning and good afternoon, ladies and gentlemen. Welcome to our second quarter 2026 Results Park webcast. As the operator said, I'm here with our CEO, Ahmet Ertin, and CFO, Çiçek Uşaklıgül Özgüneş. Today's remarks will be accompanied by a slide deck, then we will turn the call to all our questions. Before we begin, please kindly be advised of our cautionary statements. The conference call may contain forward-looking management comments, including projections. These should be considered in conjunction with the quotiental language contained in our earnings release. A copy of our earnings release and financials are available on our website. In addition, in accordance with the decree of the Capital Markets Court, our 2026 financials are reported using TAS 29, financial reporting in hyperinflationary economies. The financial figures in this presentation and all comparative amounts for previous periods have been adjusted according to the changes in general purchasing power of Turkish lira in accordance with PAS 29 and finally expressed in terms of the purchasing power of TR as of June 30, 2026. However, certain items from our finances are also presented without inflation adjustment for information purposes. These honorable figures are clearly identified as such. Following the call, a full transcript will be made available as soon as possible on our website. Now, let me turn the call over to Ahmet Bey.

Thank you, Burak. Daniyal, thank you. So, I mean, this is a term that we were together with Karim, so it is good to remember him as well, so we always keep his name in our mind and heart. Good morning and good afternoon everyone. Thank you for joining CCI's second quarter 2026 results webcast. It's a pleasure to speak with you for the first time. As CEO of CCI, having spent many years with the company, I have had the privilege of witnessing the dedication of our people and the strength of our business across our diverse markets. Our values, strategic priorities and disciplined approach to execution remain firmly in place. We will continue to focus on sustainable, profitable growth, disciplined capital allocation, and creating long-term value for all our stakeholders. Our second quarter performance once again highlighted the resilience of our business model and the benefits of our diversified geographic footprint. Despite continued macroeconomic and geopolitical uncertainty across several of our markets, including the impact of the ongoing regional conflict, we delivered another strong quarter, and the resilient first-half performance. Supported by the balanced contribution of our operations, we continue to deliver on our quality growth algorithm, turning robust volume growth into value creation across the P&L and converting that value into strong cash generation. We delivered a solid second quarter with consolidated phase volume increasing by 9.8% year-on-year to 519 million cases. Strong momentum across our international operations, led by Pakistan and Central Asia, more than offset the subdued volume performance in Turkey. Pakistan delivered an outstanding quarter, while Central Asia sustained its growth momentum. In line with our mixed improvement strategy, the consolidated immediate consumption share improved by 23 basis points from 28% to 20.2%. in second quarter 26. Similarly, our on-premise channel continue to gain transaction with its share in total volume increases to 33.8%. We also continue to increase the penetration of no sugar products within the sparkling category with their share rising by 84 basis points year on year to 3.8%. Further, strengthening our portfolio mix and increasing the share of high margin products. We deliver their 284 basis points expansion in gross margin to 38.2% driven by improvements in both Turkey and our international operations. In Turkey, timely pricing actions, favorable input cost and disciplined cost management supported productivity. Our international operations also deliver 30 margin expansion supported by solid volume growth and continued cost discipline despite a more moderate pricing environment. Below the gross profit line, we continue to deliver strong financial performance, with EBIT margin expanding by 287 basis points to 17.9%, supported by stronger gross profitability, disciplined operating excellence management across both Turkey and our international operations, and to a lesser extent, a softer base in the prior years. This translated into an increase in net profit to TL 8.3 billion, supported by stronger operating profitability and lower net financial expenses. We generated a strong free cash flow of TL 2.3 billion in the first half of the year, or TL 2.5 billion excluding inflation accounting, supported by improved profitability, disciplined capital allocation, and lower financing costs. Finally, while our first-half performance was ahead of expectations, Next slide, please. International operations delivered strong volume growth, led by Pakistan and Central Asia, with positive contributions from all markets. The sparkling category maintained its growth momentum in second quarter 26, delivering a 7.9% increase on top of a 4.9% growth base in the same period last year. Coca-Cola trademark outperformed the category, posting an 11.1% growth in sales volume. The fifth category, including ice teas, NIH drinks and juices, delivered robust growth of 18.5%, primarily driven by PUSTI, whose sales volume increased by 23.9% year-on-year, and remained the key contributor to overall category performance. The energy segment also posted a strong 21.2% year-on-year growth. supported by the continuous solid volume performance of both Monster and Predator along with Predator launch in Pakistan. The water category posted an 18.4% year-on-year increase in second quarter 26 due to low days effect and pre-summer inventory build-up by distributors. Our mix optimization initiatives continue to strengthen portfolio quality, supported by higher immediate consumption. On-premise and knowledgeable mix in line with our commitment to sustainable long-term value creation. Next slide, please. Turkey's sales volume declined by 1.1% year-on-year, 259 million unit cases in second quarter of 2016. bringing the cumulative six-month volume 289 million unit case, broadly flat compared to first six months of last year. Our increasingly diversified portfolio continued to support volume performance during the quarter. While sparking volumes declined by 6.6%, Coca-Cola Zero Sugar grew by 16.9% year-on-year. At the same time, the Sins category expanded by 8.8% year-on-year, led by the continuous strong momentum of 50% of 11% year-on-year, and the Water category increased by 15.1% due to the low days of last year and pre-summer inventory built by distributors. Turkey reported NSR of TL 26 billion in second quarter, down 3.4% year-on-year. Excluding TAS 29, NSR grew by 28% year-on-year, with NSR per unit case reaching to TL 162, up 29.4% year-on-year. Gross profit, EBITDA and EBITDA, margins all improved sharply year-on-year, driven by the utilization of previously secured Secured low-cost raw material inventories, favorable sugar prices, and disciplined cost and operating expense management. Next slide, please. International. International operations delivered a robust 15.4% year-on-year sales volume growth in second quarter of 26, building on a strong 10.6 growth based in the same period last year. Growth was growth-based across markets. with Pakistan emerging as a standout performer during the quarter, while Central Asia continues to deliver strong momentum. All major categories posted double-digit growth. NSR increased by 12.3% to PL 41.2 billion, driven by disciplined revenue growth management initiatives that balance affordability with volume growth along with mix optimization and successful product innovations. EBIT margin expanded by 296 basis point 0 in year in second quarter 26 mainly driven by substantial improvement in gross profit margin while discipline management operating expenses provided additional support next slide please so largest international market Pakistan Sales volume increased by an impressive 17% year-on-year to 122 million unit cases in second quarter 26. Growth was driven by Coca-Cola trademark. Successful product innovations, particularly pomegranate and prediators, as well as the each season, despite a challenging geopolitical environment, outstrengthened competitive market positioning, supported by continued investment in coolers, returnable glass bottles, and outlet expansion remained a key competitive advantage. Kazakhstan delivered 12.7% year-on-year boiling growth, cycling a solid 16.7% growth. Supported by commercial initiatives and innovation launches, growth was broad-based across both sparkling and silk categories. with PUC remaining a key growth driver while the immediate consumption mix continues to improve. Uzbekistan sustained its strong growth trajectory in the second quarter of 26 with sales volume increasing by 21.1% year on year following an exceptional growth of 40.7% in the first quarter. The operating environment remained highly supported benefiting from favorable macroeconomic conditions and multiple demand tailwinds. which continued to underpin healthy consumer demand and business momentum. Commercial initiatives, including product innovations and under-the-cap promotions across both RGD and pet packs also contributed to the strong performance. Market conditions remained broadly unchanged from the first quarter. Operating conditions in Iraq remained challenging with regional geopolitical tensions Oil-rated disruptions and lower tourism continue to weigh on consumer demand. Despite these headwinds, we delivered resilient volume performance, growing sales volume by 1.1% to 37 million liters in the quarter. Our immediate consumption needs reached 77.2% in second quarter 2006. Now I will leave the floor to Cech for the financial review. Thank you.

Thank you, Ahmed, and thank you all for joining us today. Building on the strong momentum from the first quarter, we delivered another solid quarter with robust performance across all key financial metrics. I would like to highlight the quality of the performance. Revenue growth was accompanied by a significant improvement in operating profitability, which also translated strongly into the bottom line, supported by lower net financial expenses. Net sales revenue increased by 5.7% year-on-year to 67.2 billion TL bringing the first half revenue to 123.3 billion TL up 7.9%. When we look at our performance excluding the impact of inflation accounting the underlying strength of our business becomes even more evident. Net sales revenue grew by 40.7% while NSR per unit case increased by 28.1% reflecting our disciplined revenue growth management, effective pricing action, and favorable mix. Consolidated EBIT margin increased by 287 basis points year-on-year to 17.9%. Excluding TIS-29, EBIT margin reached 19.9%, up 299 basis points year-on-year. The expansion was primarily driven by a significant improvement in gross margin. complemented by disciplined operating expense management. As a result, both our Turkey and international operations delivered year-on-year margin extensions. Our bottom-line performance remained strong in the second quarter. Net profit increased by 24.2% year-on-year to 8.3 billion TL, bringing first-half net profit to 13.9 billion TL, up 64.3% versus the same in the past years. Next slide, please. Let me briefly walk you through our per-unit case metrics now, as they provide a clearer view of the underlying business performance. On a per-unit case basis, NSR declined by 3.7% year-on-year in the second quarter. Excluding the impact of inflation accounting, NSR per unit case reached 133.3 TL, up 28.1%, providing a better indication of the underlying revenue trend. In US dollar terms, An SR per unit case reached $2.9, marking the highest second quarter level in the past 10 years. The real progress this quarter is on the cost side. Cost of sales per unit case declined by 8% in the second quarter, reflecting favorable commodity costs, effective hedging, and disciplined cost management. This resulted in a meaningful improvement in gross margin. Together with frugal OPEX management, EBIT per unit case increased by 14.6% and by over 50% excluding inflation accounting. Next slide, please. Moving further down the P&L, the improvement in operating profitability translated into strong bottom line growth. Net profit reached 8.3 billion TL in the second quarter as discussed up 24.2% year on year representing an increase of 1.6 billion TL in absolute terms the biggest contributor was clearly the improvement in operating profitability but there is another element I would like to highlight here which is the financial expense management despite the high interest rate environment across several of our markets lower net financial expenses made a positive contribution to net earnings. This is an area where we have been deliberate looking at liquidity and funding increasingly through a consolidated balance sheet length rather than managing each market in isolation. So the improvement in net income reflects not only stronger operations but also better conversion of operating profit into earnings for our shareholders. Monetary gains remain broadly stable year on year. Excluding TS-29, net profit almost doubled to 8.2 billion in second quarter from 4.4 billion recorded in second quarter of 25. Next slide, please. And this brings me to free cash flow, which remains one of our key priorities. We generated 2.3 billion Turkish liras of free cash flow in the first half. marking a significant improvement compared to negative 4.4 billion TL in the same period last year. This strong performance was primarily driven by improved operating profitability and lower financing costs, supported by a meaningful decline in interest expenses. In addition, the timing of capex spending provided a temporary relief, temporary benefit to free cash flow generation in the first half as well. Excluding TS29 inflation accounting, free cash flow amounted to 2.5 billion TL. The positive free cash flow generation we delivered in the first quarter, despite the usual seasonality of our business, provided a solid foundation for our first half performance. While some CAPEX, as I said, CAPEX signings, as I said, benefited strongly from, they benefited the free cash flow strongly in the first five to six months, it is expected to normalize in the remainder of the year, and the continuation of the regional conflict may put some pressure on working capital. However, the fundamentals of our cash generation still remain strong. We continue to focus on profitable growth, disciplined working capital management, and sustainable cash generation. Next slide, please. In periods of heightened volatility like today, we deliberately take a conservative approach, prioritizing business continuity while preserving financial flexibility. Maintaining visibility over our cost base is therefore a key priority. This was particularly relevant during the quarter as geopolitical tensions in the Gulf region created upward pressure on petrochemical-linked input costs. While we observed price increases across certain categories during the second quarter, We did not have any disruptions or delays in our supply chain. This is the most important thing for us. Our revenue growth management capabilities, together with ongoing supply chain initiatives, provide us with multiple levers to mitigate input cost inflation. In addition, our participation in the Coca-Cola Systems Cross-Enterprise Procurement Group strengthens our purchasing capabilities, while our premiums to secured inventory further cushions the near-term impact of higher input costs. I can confidently say that we benefit from a broad and resilient supplier base across our geography, across the key inputs, anchored by the local sourcing capabilities. And executing with local agility, sustainability of supply is the main thing here. As of July, we have secured a very significant portion of our key commodity requirements for 26, including over 90% of sugar and resin and 80% of aluminum. We have also started selectively building coverage for 27 where we see attractive opportunities while maintaining flexibility. As said, resin and aluminum are among the raw materials most sensitive to rising geopolitical tensions in our region. However, we are carefully capitalizing on attractive pricing windows through disciplined procurement and hedging, supporting long-term cost efficiency and margin stability. Next slide, please. And finally, let me close with the balance sheet. We have always placed strong emphasis on financial disciplines, which continues to stand out as one of our key competitive strengths, particularly in period like today. Our geopolitical tensions are elevated and visibility remains limited. Our balance sheet is one of the main drivers of our resilience. Strong cash generation and disciplined capital allocation have allowed us to maintain leverage below one time, despite continued investment behind growth. As of end of second quarter, our net debt was 640 million U.S. dollars, with our net debt to EBITDA ratio improving 0.7 times from 0.8 times at the end of 2025. Our consolidated financial debt remains well diversified, with 54% denominated in U.S. dollars, 4% in Europe, and the remaining 23% in Turkish lira and or other currencies. While our overall ethics position has remained broadly stable year on year, we have continued to optimize our borrowing structure by increasing exposure to lower interest rate markets. This strategic shift has supported a reduction in total interest expenses. Fortunately, our diversification strategy goes beyond Turkish lira, extending into key operating currencies such as Uzbek Som, Pakistani Rupi, Kazakhstan Tenge, and Azerbaijan Manat, further strengthening the natural hedge within our balance sheet. We continue to maintain a disciplined ethics position. We hedge where appropriate, we match currencies where possible, and we limit structural ethics short position on the balance sheet. We currently have a short ethics position of the net investment hedge at only $78 million and before net investment hedge of $325 million. We consistently monitor our short position by benchmarking it against our international EBITDA, right now it is 0.5 times, ensuring it remains within prudent and manageable levels. The reason is that we repatriate hard currency dividends from international operations and use this to serve our ethics liabilities. The majority of our scheduled debt payments in 26 that you see in the graph here consist of local currency loans or the short-term portion of long-term facilities. Therefore, we do not anticipate any refinancing risk in this context. Now, we will be happy to answer your questions. Dear closure agents, over to you, please.

Thank you very much. So we'll now move to the question and answer section. If you'd like to ask a question, please press star 2 on your phone and wait to be prompted. If you are dialed in with a lap, you can type your question in the box provided or request to ask a voice question. We'll just wait a moment or two for the questions to come in. Our first question comes from Maxim Nekrasov from Citi. Your line is open. Please go ahead.

Yes, good afternoon. Thank you so much for the presentation. I think the most important question and topic I wanted to discuss is the guidance or the lack of any guidance upgrades. So I was wondering if you can help us to reconcile very strong results we saw in the first half and the like of the guidance change both on the volume side and on the margin side. I'm interested in particular, are there any signs in July and August that prevents you from changing the guidance and whether you see some reversal on the volume side and some moderation? And on the margin side, flat EBIT margin guidance for the full year basically implies 4% point decline in the second half of the year. Is this what you are guiding for, or you just prefer to be cautious, but there might be upside risk to your full year margin? Thank you.

Thank you, Maxim. I will try to cover some parts of that, and I will ask Cicek as well to support me. I mean, we try to cover that one during the presentation as well. While first half performance was strong, particularly in our international markets, we remained prudent on the second half. We benefited from a relatively favorable cost environment in the first half, while we expect higher raw material, energy, and distribution costs across our markets going forward. At the same time, pressure on disposable income makes affordability increasingly important, Many, many times we underline that we are operating in a low-perceptive market, so that's something that we have to watch out always. And we want to continue investing in our markets and execution to sustain volume momentum. While the strong first half may provide some upside potential on the margin side, at this stage we do not see it as significant enough to justify a revision to our full-year guidance. Overall, we believe our current guidance appropriately balances the opportunities and risks we see for the remainder of the year. Çiçek, you want to add something on top of that?

Maybe I can elaborate on Maksim's question on July or August. No, actually, we are not seeing anything that would reverse our current trends. It's going in line with our expectations. The volume is still solid, especially in the international markets. The reason we did not change the guidance is not because of that. As I said, as Ahmet also said, we are seeing second quarter just purely from a base effect. perspective, and also because the utilization of the lower-cost inventory and the rest of the year we are facing a higher-cost inventory, these are the main reasons why we are not right now vying for an upgrade. There could be some upside risk, naturally, especially on the volume side, but we didn't see it at the level that would require us to change guidance at this point.

I understood and just to confirm on the volume side so basically you do not see material change compared to the previous momentum on the volume side in July August so far and just to follow up on specific markets right we saw a strong recovery in Pakistan

for example how sustainable is that because the country was quite volatile the performance there was quite volatile in the previous quarters so were you able to sustain that momentum going forward thank you Maksim again I mean I lived in Pakistan six years so I have all the questions with Pakistan always Pakistan I mean is one of the most important market for us that is because the population is 215 official but I've been hearing from the people that it is around 250 one of the lowest per capita it's one of the lowest GDP yet we have a kind of a capacity of 450 million case of a production so that makes Pakistan a critical market for us where our affordability focused approach remains a key competitive advantage Through returnable tax, enhanced cold availability, targeted cooler investments, expanded outlet coverage, and disciplined trade investments, we have further strengthened our market position and consumer penetration. Despite ongoing cost inflation, we have maintained broad consumer access to our brands, supporting both competitiveness and sustainable growth. Looking ahead, we will continue investing in the market to strengthen our position and capture significant long-term growth opportunity. So, I could say that yes, we are in line with our expectation about Pakistan. Anyone wants to add anything, Cicek, about Pakistan? I think that's it.

Understood. Thank you so much, Ahmed and Cicek.

Thank you, thank you.

Thank you so much. Our next question comes from Ece Baysal from Ak Yatrim. Your line is open. Please go ahead.

Thank you very much for the presentation. I would like to congratulate you on your new role. I have also a question regarding your guidance. You have already mentioned about your cautious view for the second half regarding molding growth and margins also highlighting flagging the possible cost pressure or any other uncertainty on the logistics cost but in your assumptions have you taken into consideration any potential increase in the volume share of Pakistan operations because as far as I know Pakistan had a relatively lower margin performance in the last couple of years compared to the other markets in Central Asia so could it be related to also the change in mix of geographical mix of your revenues and secondly in your guidance you were previously highlighting high single digits capex over sales but the first half trajectory is lower than that for the second half should we see a higher capital intensity and regarding the working capital you mentioned about the potential risks on higher working capital management going forward. For what particular market do you assume such uncertainty or upward risk on your working capital requirements? Thank you very much.

Thank you, thank you Ece so much. I mean, I will cover the first part and I will give the second part. by covered by Cicek so Pakistan I mean question is we have seen some kind of opportunities coming from some countries and we have seen some risk coming from some other countries and overall that's why we haven't changed the guidance Pakistan is going well which is in line our expectations more or less we keep the aggressive and competitive that's why I would say yes Pakistan mix could be increased meanwhile I mean this is always having a kind of a diversified portfolio and each and every country have a specific role at the beginning of the year and we guide it like this and we usually share this one with everyone at the beginning of the year so Pakistan is a market that we are looking mainly for profit volume driven markets Because this is the less third capital with the less NSR and the less GDP. So that's why having an expectation that Pakistan is going to increase the volume and getting a kind of increasing the share could be yes. The second part I am giving the word to Cicek.

Ece, on CapEx, yes, we guided for high single-digit CapEx overnight sales revenue for the full year, and in the first half, it is running behind that. And that is the reason, actually, when I was covering the free cash flow, with all the excitement about the high free cash flow despite seasonality, I also mentioned that there is some phasing of the spend of the CapEx. Therefore, we did not give up certain projects. They are still continuing, but just their timings have shifted a bit. Therefore, their spending has shifted a bit as well. So, in the third and fourth quarter, you will see more cash outflow due to this pre-approved, pre-aligned capacity. So, for the full year, our guidance is not changing. Maybe there could be a small, you know, Reduction in debt, but not meaningfully. We are spending, we are buying lines, we are buying coolers, we are expanding our footprint, manufacturing footprint. Therefore, that is still there, so no changes. On working capital, I mean, due to the war, Yes we are extra careful on working capital because as I mentioned when I was covering the commodity part containing the supply chains without any interruption is the main priority obviously and when the war first started we started building up stock both finished goods and raw materials just to make sure that there is no disruption in the operations and that trend is still continuing with a decreasing trend but that is also having some impact on working capital and also particularly in Turkey which you can also see from Turkey's standalone dollar sheet as well the biggest challenge on working capital is in Turkey and it's mostly due to this Icecek Anonim Sirketi Icecek Anonim Sirketi Icecek Anonim Sirketi I would like to beat on the second part so you know that we have a war in between of the region and

all these new lines investments are coming from mainly from Europe so that's why we had some delays and when there is a delay in the line and whatever then there will be a delay in the payment as well so mainly Cicek is right so that delay was mainly because of that one

Thank you for your comments. So for the full year, will the financial leverage ratio of 0.7 times be sustainable?

Yes, we believe it will. I mean, it will definitely be below one time. That's our expectations. Maybe 0.7, 0.8. We do not have a specific target for that. But yes, I mean, there will be positive free cash flow generation throughout the year. and with our much controlled ethics share as well, ethics exposure of the balance sheet, we believe the year-end method to EBITDA ratio will stay again very low.

Thank you. Thank you very much. Our next question comes from from J.T. Morgan. Your line is open. Please go ahead.

Thank you, Amit. Congratulations on your new post and thank you and check for the presentation. I have three questions on operations and also your strategy. I mean, if this is your first earnings presentation, What are your top priority focus areas for the first three months and where do you see the biggest opportunities particularly in the Turkish market? Second, in Turkey is parking category slowing and NCR per unit case is down in the second quarter after very strong first queue. Do you expect this as a temporary setback rather than a market share low? So I try to understand what is happening in the second quarter. from a competition perspective and also pricing perspective and third on margins with Pakistan now growing strongly do you expect any margin dilution in the second half excluding the cold headwinds because of the increasing share of Pakistan and when you say Pakistan is performing in line with expectations I mean what volume growth are you anticipating for the second half thank you

I mean, let me start from the third one. I mean, we know the potential of the pipe stun. That's why somehow we have been always expecting and we are always pushing pipe stun to deliver more volume for the system. And so far we haven't seen any risk in terms of overall our margin. So we are in line with our margin expectation. So year end margin expectation. So Pakistan volume is increasing, but overall that's not going to create a huge impact on our total margin. Cicek, you want to add something?

Yes, I want to add that like, yes, Pakistan is growing. It's relatively lower margin business. But also what else is growing is Central Asia, especially Kazakhstan is still growing, which is the highest profitability market for us. so it is balancing that in that sense so overall we are not yet in in in theory the growth in Pakistan should result in some margin dilution because of the geographic mix but because Kazakhstan it also is fixed down it's also highly profitable is growing double digits that is compensating for the growth in Pakistan from that perspective so overall the uh the the uh The reason that we are maintaining guidance is mostly coming from just the base effect and the raw materials and the invisibility around transportation costs which is impacting the OPEX. But yes, the growth in Pakistan is also coming at an expense of EBIT. Therefore, maybe, you know, the top line could have been more subdued with a higher EBIT margin, but that's not what we are preferring because as Ahmet also previously said, Pakistan's role here is to contribute to growth.

yet I mean Pakistan we have a very experienced team and they really know the value of the business so when there is a kind of a being competitive they are focusing on the other items to manage the overall profitability as well so in terms of OPEX in terms of discounts in terms of spendings they are extremely careful and so far for six months they really perform well in line with our guidance but I mean my key focus area specifically for Turkey let me answer first I mean CCI has a kind of a continuous management strategy so still we are going to focus on growing the core still our core responsibility is quality growth algorithm but specifically within the next three months or next one year I will very much focus on three things for key watch out is the number one is the energy and the raw material cost and the prices and everything providing writing so check already explained what we are planning to do even we already had some of our needs of 27 as well the second one is always the talent so we need talent to lead our business to manage our business and the third one Definitely, specifically is how we are going to embed the digital into our daily business because we want to serve fast. We want to focus on our daily business and trying to get all these data from the system or digitalize. Specifically, Turkey, I would say that, I mean, we are the market leader. Turkey is doing 30-35% of our total business. together with that 35% of our total profit. So as a category leader, as a market leader, we have to grow our business. Our core focus is always increasing the categories. I mean, I could say for the last, I mean, starting from May, June, April, May, June, we didn't decline more than the category. our decline is less than the category still we are trying to do our best and to support the business we are focusing on ic mix and you already realize that ic mix increase versus the last year because every month is increasing and the category is that going to support the overall business like the sales fusty water energy each and every category now showing some positive performance and we keep focusing on to increase our execution quality. So these are more or less the areas that we need to focus on here. And the second question, sparking, slowing, and NSR you see in terms of pricing and market dynamics. More or less, I covered that question as well. I mean, as we were covering at low base versus luxury, you might remember that first half last year by purpose we focus on the volume growth we said we need to bring the base we have to focus on the volume and then I also read your report so it's reported really describing the Turkey very well so we have the benefit of this for the last three quarters and four quarters now it is time to have the real numbers so we already have the 162 TL of an NSR level as far as I remember and we already I mean announced price increase a month before July there was a mark price increase so I don't see a risk in terms of NSR and still we are in line with our guidance so that's all I can say for the moment about Türkiye

Alright, thank you very much, Amit Bey. So, you say, I understand there is no market share loss in the Turkish market, so you don't see extra competition in the Turkish market. That's just like the market itself kind of slowing the sparking category?

Yeah, little in less than the category, yes.

on Pakistan I know you don't want to give any number but after 17% growth in volume in the second quarter is it also reasonable to assume like 10% double digit I mean volume growth in the second half I mean that's what I mean I mean I just I can answer that question I mean there is a market with a

population of 215 officially we have the capacity around 250 million in case so we have the lines we have the people we know what to do we invest for the coolers glass shell and everything yes that's why I mean we are pushing our team to bring more yet also there is a guidance for them that while you are doing it try to be, do everything in a balance. So we are still expecting them to profit, make profit as well. Pakistan is a tough case. I would explain, I mean, it's very important for the region. It is very important for the CCI because of the potential. So I could say that, I'm looking to check that whether I can share all details or not. You mentioned this is my first time I'm going to learn what to say, what not to say

Hangzade maybe I can elaborate a little bit on that like as you know, we don't use country-wise guidance except for Turkey and for Pakistan Pakistan is a challenging market in the sense that it is still very focused on affordability and there are some local players who are playing the game of affordability and right now we are at a level that from an indexation perspective the brand itself our brand with all the brand value is at the right index level therefore The consumer pool is very high, together with our good execution. We expect this to continue, but we cannot really predict if this will turn into a price war at one point. But as Ahmet was saying, we are trying to do a balance, and we will not go all in if there is a price war. So, therefore, it is very difficult to put a number on Pakistan. Certainly, we have certain expectations, and yes, they are looking double digits right now. However, we prefer not to give a certain guidance on Pakistan at this time. All right.

Thank you very much, Amit. Thank you.

Thank you.

Thank you very much. Just a reminder, if you would like to ask a question, please press Start View on your phone and wait to be prompted. If you are dialed in by the web, You can either type your question in the box provided or request to ask a voice question. We'll just wait a moment or two for more questions to come in. Our next question comes from Mehmet from Umlu Eco. Should we expect a stronger price mix in international markets in second half to support the flat to mid single-digit consolidated net sales revenue per unit case guidance?

I mean, you should expect a stronger price mix from all markets. In the first half, the price mix, as Ahmet was also telling, we wanted to support the volumes as well. So in the second half, you will see the price mix balanced across all markets, not only international markets, but also on the Türkiye side.

Thank you so much. Our next question is a text question from Juan Cantos from Covert Asset Management. How much positive impact you've seen from the World Cup? Do you plan for higher net sales revenue per unit case in US dollars in the second half of the year?

I will cover the first one I mean definitely yes we have seen the positive impact of the World Cup so we mentioned this in two ways the first we said that we are heavily investing on the DME so don't miss that kind of a big occasion and meanwhile four of our country joined the World Cup unfortunately all of them eliminated in the first quarter we haven't seen the benefit more and during the presentation we share that almost in all of our countries our ice mix increase so basically this World Cup incentivize our ice mix products the can and all these kind of initiatives that help us a lot second part Cicek you can cover that one in this I mean to support the volumes and to keep the momentum we are looking at you know managing the

implying applying all the revenue growth management tools to deliver a solid top-line and to support the volumes. Therefore in the second half of the years the NSF or UC will be not lower than first up but the growth trend will be slower in certain markets than in the first up because some Price increases will be postponed, maybe postponed, but this will be a very agile decision as we go. looking by how the volume is performing so right now we did not make as you know any changes to our guidance so we are confident that we can deliver our NSR for UC guidance as well but there could be some slowdown in certain markets because of growth coming to support the voltage Thank you so much

Our next question comes from Omer Kara from Parcelor Asset Management. Firstly, Omer, thank you so much for your first question. The CCI team has already answered that. Now, regarding to your second question. Are you taking sugar tax and the last competition authority decision regarding the refrigerator into consideration as a significant risk in terms of market share and price increases?

I mean, for the sugar tax, this is an ongoing policy discussion in Turkey around potential additional health-related fiscal measures, including a possible contribution mechanism linked to the Healthy Living Fund, so We are calling this Healthy Living Funds. However, no final framework has been announced at this stage. So, it is too early to assess any potential financial impact. It is important to note that the non-alcoholic beverage category already carries a significant indirect tax burden, including special consumption tax in addition to VAT. We fully support the public health objective and believe that the most effective approach should be evidence-based, holistic, and developed through broad stakeholder consultation, considering existing taxation, consumer affordability, and overall economic impact. So we continue to monitor the regulatory process closely and engage constructively with relevant stakeholders From an operational perspective, our diversified portfolio, growing low and no sugar offering, package architectures, and revenue growth management capabilities provide us with flexibility to adapt to different regularity and consumer environments. Ultimately, any potential impact will depend on the final scope, tech space, and implementation timeline of the regulation. And competition boards, I mean, yes, we have a kind of a new set of requirements. I mean, I could say with the competition board that I was in Turkey at that time, the first time that we had these kind of requirements. Since then, we have been working in line with this guidance. It has been roughly 12 to 13 years. I think the first time that we have some kind of a requirement was of 2013, if I'm not wrong. We will share the details. But since then, yes, we know how to lead our business in line with the expectation of the authority. And I'm confident that we are going to do the same again.

Thank you very much. Just a final reminder, if you would like to ask a question, please press star 2 on your phone and wait to be prompted. If you are dialed in by the web, you can either type your question in the box provided or request to ask a voice question. Please just wait a moment or two for more questions to come in. I'm not seeing any more questions, so perhaps I can hand it back to the CCI team for the closing remarks.

Thank you all for joining and listening in. Hope to see you next quarter. Thank you.

This concludes the call for today. We are now closing all the lines. Thank you and have a nice day.