Our Strategic Priorities and Risk Assessment
In our geographies which involve remarkably diverse risks and opportunities, we work in line with forward-looking strategies and targets, focused on creating value for both our company and our stakeholders with an integrated perspective. We have identified our strategic priorities as accelerating high-quality growth, becoming the best in the sector in the management of fast-moving consumer goods, earning together with our employees, becoming digitalized for sectoral leadership, and earning together with our stakeholders.
We have continued with our comprehensive work aimed at mitigating the impact of both global challenges and challenges specific to our geographic range of operations by assessing existing and future risks in line with our strategic priorities. We have focused on improvement by quickly adapting to crisis conditions within the framework of our Incident Management and Crisis Resolution (IMCR) program. Additionally, we have taken steps to increase growth and profitability, and to maintain free cash flow. We have actively used internal and external communication channels. We have expeditiously reviewed the risk assessment that we carried out before the Covid-19 pandemic considering the IMCR program. Arranging the severity of risks and the terminology used to focus on correct priorities, we have concentrated on 10 fundamental risks. At the same time, we have reassessed our prioritization analysis as we do every year. The match between the risks we identified and the results of our prioritization analyses confirms that we have taken the correct steps.
Along with these analyses, our risk mitigation measures, strategic collaborations and agile operations that let us respond to changing circumstances quickly have ensured a 19.8% increase in our consolidated
net sales revenue compared to 2019. Having succeeded in keeping the drop in the consolidated sales volume, which was impacted by Covid-19 in 2020, at 1.9% by demonstrating a better-than-expected performance, our sales volume in international operations grew by 2.8%. The main reason for the robust performance in our international operations was that the high share
of the strong sparkling beverages category, while we penetrated the spot consumption channels to a lesser degree. We maintained our leader position in the sparkling beverages market in all countries. In addition, we increased our net income by 27.6% on a yearly basis, generating TL 1.2 billon net income thanks to our strong and flexible balance sheet, cash from generation capability and quality growth algorithm.
Creating Value for Our Customers and Consumers
With the Covid-19 pandemic, we further strengthened our product safety and hygiene practices, which had already been among our priorities to safeguard consumer health. We increased the frequency of cleaning and disinfection work in all our operations, as a result of which the inspections focusing mainly on measures against Covid-19 and food safety, performed virtually by TCCC and the concerned business unit, were completed successfully. All our plants in Turkey were awarded the TSE Covid-19 Safe Production certificate.
Continuing our understanding of winning together with our customers during these challenging times, too, we focused on quick solutions in solidarity with them. We developed communication, operational, financial and commercial strategies for our customers. Increasing our interaction, we continuously shared information, optimized our sales and distribution processes, provided support through payments, discounts, returns and free products, and turned towards special promotions and advertisements aimed at increasing sales via online platforms.
Creating Value for Our Employees
At CCI, we take all precautions to create healthy and safe work conditions
for our employees. We carried out continuous and up-to-date information- sharing with respect to the Covid-19 pandemic, initiated a remote work regime for those employees whose work allowed it, increased the frequency of disinfection at our plants, implemented social distancing rules, and imposed limits on visitor numbers. We supported our employees through constant communication channels to protect their mental health, along with their physical wellbeing.
During this process, we supported our employees’ development through online/digital platforms. We also developed collaborations through digital learning platforms. And at the same time, we continued our CCI Next Talent program online, through which we continued supporting career development for young people.
Within the scope of our efforts directed at diversity and inclusion, we signed the LEAD Network CEO Pledge, promising to increase the ratio of women at the management and senior executive levels by five percent by 2025, playing a leading role in the fast-moving consumer goods sector. Work on gender- based wage inequality was completed in all CCI countries. We also published the CCI Turkey Domestic Violence Policy.
Creating Value for the Community
We cooperated with various NGOs and platforms to support all sections of the community that were impacted by the Covid-19 pandemic. In almost all countries, we supplied CCI products, food and shopping packages to support healthcare workers and those in need. Producing sanitizers at our plants, we donated them to government agencies.
Our indirect economic impact in the countries in which we operate increased 10-fold in Turkey, 7.6-fold in Kyrgyzstan, and 2.7-fold in Pakistan. In Turkey, CCI’s operations create indirect employment for around 30,000 people.
Through the operational perfection projects we developed in 2020, investments we made in digital technology, and our efficiency projects, we prevented greenhouse gases equivalent to 45,000 tons of CO2, which corresponds to the amount of CO2 removed by 3.75 million trees in one year. We saved approximately 104,000 m3 of water and 330 million MJ of energy. We participated in the global “10x20x30” initiative for the prevention of food waste.
An Outlook on the Future
Over the coming years, we will continue to work in line with our vision of “being the best company of the fast-moving consumer goods sector in all countries in which we operate” with a focus on creating sustainable value
for all our stakeholders. Keeping risks and opportunities in view to stay one step ahead of change in customer and consumer preferences and the retail environment, we will focus on agile business models. We will continue our digital investments, which increased this year, without let up, and optimize our operations with innovation efforts.
Focusing on winning together with our stakeholders to reinforce our sectoral leadership, we will carry income growth management and efficiency even further. With the goal of reaching a greater number of customers and consumers, we will extend our scope of operations as in previous years. And by continuing to invest in our employees’ development, we will take further bold steps on the path to becoming the best employer brand.
I would like to thank our employees and our stakeholders who, despite all odds, have formed the fundamental strength behind this successful performance, and I wish you a pleasant read of our first Integrated AnnualReport.
