The 2021 business outlook information provided below includes best estimate forward-looking financial measures, which management uses in measuring performance. The business outlook of the Company is subject to the risks which are stated in the annual report and financial reports.
CCI adapted its business model to new operating environment and is looking beyond pandemic for future growth and value creation for our stakeholders in everything it does.
On top of it, the long-term consequences for the economies, communities, and our business are becoming more pronounced. With all these uncertainties and risks in mind, we made our business plans with a growth mindset, sticking firmly to our quality growth algorithm, maintaining disciplined financial management, and making our frugal mindset the norm going forward.
With our focus on revenue growth management, we expect consolidated fx-neutral net sales revenue growth to be in the high teens.
The strong margin expansion achieved in 2020 was to a certain extent due to one off factors like cutting of DME expenses, but also as a result of more sustainable measures such as leaner SKU portfolio and strict financial management. With growth in volumes, higher net sales revenue per unit case and our frugal mindset, we expect EBITDA margin to be flattish in 2021 vs 2020.
While we believe the worst is behind us, the uncertainty around the path and duration of the pandemic is still there.
We expect to deliver sales volume growth in the range of 4% to 6% on a consolidated basis leveraging the vast potential of our markets and our diverse, balanced portfolio while cycling the 2020 base. The growth in Turkey operations is expected to be low single digits, while the growth expectation for international operations is high single digits.
After cutting all uncommitted capex in 2020 except for digital investments and investment in revenue growth management initiatives and health and safety, we expect capital expenditure to return to its normal pace in 2021, staying at 6-8% of consolidated net sales revenue.
Cycling an exceptionally low net working capital to sales ratio, we expect some moderation to low single digits, yet our commitment to delivering strong FCF continues.
RESOLUTION OF THE BOARD OF DIRECTORS FOR THE ACCEPTANCE OF THE FINANCIAL STATEMENT AND ACTIVITY REPORT RESOLUTION DATE: 24.02.2021
RESOLUTION NO: 9
DECLARATION OF LIABILITY DRAFTED AS PER ARTICLE 9 OF PARTY TWO OF ‘COMMUNIQUE ON THE PRINCIPLES APPLYING TO FINANCIAL REPORTING AT THE CAPITAL MARKET (II-14.1)’ ISSUED BY THE CAPITAL MARKET BOARD
24 Şubat 2021
We declare that the consolidated financial statements and their footnotes, belonging to the January 1 - December 31, 2020 accounting period, which were approved by the Company Board of Directors and Board of Auditors and prepared within the framework of the Turkish Accounting Standards / Turkish Financial Reporting Standards (TAS/TFRS) as per the ‘Communique on the Principles Applying to Financial Reporting at the Capital Market (II-14.1)’ issued by the Capital Market Board (CMB), and which passed independent audit.
a) were reviewed by us,
b) contain, to the best of our knowledge in our capacity, no untruthful remarks on material issues, or deficiencies that may be misleading as at the date of the disclosure,
c) and that, based on the information we possess within the scope of our duties and responsibilities at our Company, the financial statements, which are prepared in accordance with Communique No: II-14.1 by the Capital Market Board provide an honest reflection of the assets, liabilities, financial position and profit/loss of our Company together with those within the scope of consolidation, and that the annual report is an accurate reflection of the development and performance of the operations, as well as the financial position of our Company, including the material risks and uncertainties to which it is exposed.