REG - Coca-Cola EP PLC - Preliminary Unaudited Results Q4 & FY 2023
23/02/2024 07:00
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RNS Number : 1872E Coca-Cola Europacific Partners plc 23 February 2024
COCA-COLA EUROPACIFIC PARTNERS
Preliminary unaudited results for the full year ended 31 December 2023
Solid end to a great year, well placed for FY24 and beyond
FY 2023 Metric( 1 ) As Reported Comparable ( 1 ) Change vs 2022
As Reported Comparable Comparable Fx-Neutral ( 1 )
( 1 )
Total CCEP Volume (M UC)( 2 ) 3,279 3,279 (0.5) % (0.5) %
Revenue (€M) 18,302 18,302 5.5 % 5.5 % 8.0 %
Cost of sales (€M) 11,582 11,576 4.5 % 4.5 % 6.5 %
Operating expenses (€M) 4,488 4,353 6.0 % 6.5 % 8.5 %
Operating profit (€M) 2,339 2,373 12.0 % 11.0 % 13.5 %
Profit after taxes (€M) 1,669 1,701 9.5 % 9.0 % 11.5 %
Diluted EPS (€) 3.63 3.71 10.5 % 9.5 % 12.0 %
Revenue per UC( 2 ) (€) 5.70 8.5 %
Cost of sales per UC( 2 ) (€) 3.61 7.5 %
Comparable Free cash Flow (€M) 1,734
Dividend per share( 3 ) (€) 1.84 Maintained dividend payout ratio of c.50%
Europe Volume (M UC)( 2 ) 2,644 2,644 0.5 % 0.5 %
Revenue (€M) 14,553 14,553 7.5 % 7.5 % 8.5 %
Operating profit (€M) 1,842 1,888 20.5 % 13.0 % 14.0 %
Revenue per UC( 2 ) (€) 5.56 8.0 %
API Volume (M UC) ( 2 ) 635 635 (5.0) % (5.0) %
Revenue (€M) 3,749 3,749 (1.0) % (1.0) % 5.5 %
Operating profit (€M) 497 485 (11.0) % 3.5 % 10.5 %
Revenue per UC( 2 ) (€) 6.30 11.0 %
DAMIAN GAMMELL, CHIEF EXECUTIVE OFFICER, SAID:
"2023 was a great year for CCEP. This is testament to the hard work of our
colleagues to whom we are extremely grateful, alongside our customers and
brand partners. Our focus on leading brands, strong customer relationships and
solid in-market execution served us well. We delivered solid top and
bottom-line growth and generated impressive free cash flow. We drove solid
gains in revenue per unit case through our revenue and margin growth
management, along with our price and promotion strategy across a broad pack
offering. Across our developed markets, transactions outpaced volume and we
grew both share and household penetration. We progressed our long-term
transformation strategy in Indonesia, and today, we completed the exciting
acquisition, with Aboitiz( 4 ), of Coca-Cola Beverages Philippines( 5 ).
"We are well placed for FY24 and beyond. We are stronger and better, more
diverse and robust, and our categories remain resilient despite ongoing
macroeconomic and geopolitical volatility. We have fantastic activation plans,
focusing on the Paris Olympics and the UEFA Euros, to engage customers and
consumers. And we continue to actively manage our pricing and promotional
spend to remain relevant to our consumers, balancing affordability and
premiumisation. Along with our focus on productivity, this will all ultimately
drive our free cash flow.
"We remain confident in the future, continuing to invest for the long-term. A
record dividend in FY23 and our recent inclusion into the Nasdaq 100, combined
with our FY24 guidance, demonstrate the strength of our business and our
ability to deliver continued shareholder value. Supported by strong
relationships with our brand partners, we have the platform and momentum, now
including the Philippines, to go even further together whilst continuing to be
a great partner for our customers and a great place to work for our
colleagues."
___________________________
Note: All footnotes included after the 'About CCEP' section
FY & Q4 HIGHLIGHTS( 1 )
Revenue
FY Reported +5.5%; Fx-neutral +8.0%( 6 )
• Delivered more revenue growth YTD for our retail customers
than any of our FMCG peers in Europe & our NARTD peers in Australia &
New Zealand (NZ)( 7 )
(• ) NARTD value share gains( 7 ) across measured
channels both in-store (+10bps) & online (+90bps), & increased
household penetration in Europe (+70bps)( 8 )
• Transactions ahead of volume growth in Europe, Australia &
NZ
• Comparable volume -0.5%( 9 )
◦ By geography:
▪ Europe +0.5%( 9 ) reflecting solid in-market execution,
resilient consumer demand offset by mixed summer weather
▪ API -5.0%( 9 ) reflecting solid in-market execution driving
continued volume growth in Australia & NZ offset by softer consumer
spending in Indonesia & the strategic SKU portfolio rationalisation
◦ By channel: Away from Home (AFH) -1.5%( 9 ) & Home 0.0%( 9 )
• Strong revenue per unit case +8.5%( 2 , 6 ) (Europe: +8.0%;
API: +11.0%) driven by positive headline price increases & promotional
optimisation alongside favourable mix
Q4 Reported +5.0%; Fx-neutral +7.0%( 6 )
• Comparable volume +1.0%( 9 )
◦ By geography:
▪ Europe +2.0%( 9 ) reflecting solid in-market execution &
cycling disruption last year relating to a customer negotiation
▪ API -3.0%( 9 ) reflecting solid in-market execution driving
underlying volume growth in Australia & NZ offset by softer consumer
spending in Indonesia & the strategic SKU portfolio rationalisation
◦ By channel: AFH -1.0%( 9 ) & Home +3.0%( 9 )
• Strong revenue per unit case +6.0%( 2 , 6 ) (Europe: +5.5%;
API: +8.5%) driven by positive headline price increases & promotional
optimisation alongside favourable mix
Operating profit
FY Reported +12.0%; Fx-neutral +13.5%( 6 )
• Cost of sales per unit case +7.5%( 2 , 6 ) reflecting
increased revenue per unit case driving higher concentrate costs, inflation in
commodities & manufacturing
• Comparable operating profit of €2,373m, +13.5%( 6 )
reflecting strong top-line, our efficiency programmes & continuous efforts
on discretionary spend optimisation
• Comparable diluted EPS of €3.71, +12.0%( 6 ) (reported
+10.5%)
Dividend
• Full year dividend per share of €1.84( 3 ), +9.5% vs 2022,
maintaining annualised total dividend payout ratio of approximately 50%
Joint acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI)
• CCEP confirms it has, together with Aboitiz Equity Ventures
Inc., completed the acquisition of CCBPI from The Coca-Cola Company
• See separate release on Investors section of our website for
more detail including provision of adjusted financial information on a FY
basis for FY23
(https://ir.cocacolaep.com/financial-reports-and-results/financial-releases)
Other
• Comparable free cash flow: generated impressive comparable
free cash flow of €1,734m( 1 10 ) reflecting strong performance &
working capital initiatives (net cashflows from operating activities of
€2,806m)
◦ Supporting return to the top end of our target leverage range (2.5
to 3.0x Net debt: Comparable EBITDA( 1 , 11 )) by the end of 2023, as
previously guided
◦ At the end of 2023, Net debt: Comparable EBITDA( 1 11 ) was 3.0x
(end of FY22: 3.5x). This excludes the acquisition of CCBPI, which is expected
to have a modest impact
• Comparable ROIC( 1 ) increased by 120bps to 10.3% (reported
9.5%) driven by the increase in comparable profit after tax & continued
focus on capital allocation
• Strategic portfolio choices: CCEP will move forward
independently from both Beam Suntory & Capri Sun. See H1 2023 release on
our website for more detail
(https://ir.cocacolaep.com/financial-reports-and-results/financial-releases)
SUSTAINABILITY HIGHLIGHTS
• Retained MSCI AAA rating, inclusion on Carbon Disclosure
Project A List for Climate & on the Bloomberg Gender Equality index
• Received approval from the Science Based Targets initiative
(SBTi) of CCEP's long-term 2040 net zero & 2030 greenhouse gas reduction
targets
• Exceeded target of 50% recycled plastic in our packaging:
closed 2023 at 54.9%( 12 ) (2022: 48.5%)
• Achieved carbon neutral certification for a further six
manufacturing sites (five in Iberia and one in NZ); now a global total of 14
sites
• Partnered with The Coca-Cola Company, other bottlers &
Greycroft, a seed-to-growth venture capital firm, to create a
sustainability-focused venture capital fund
FY24 GUIDANCE( 1 , 13 )
The outlook for FY24 reflects our current assessment of market conditions.
Unless stated otherwise, guidance is on an adjusted( 13 ) comparable &
FX-neutral basis. Guidance is therefore provided on the basis that the
acquisition of CCBPI occurred on 1 Jan 2023.
• Revenue: comparable growth of ~4% in line with our mid-term
strategic objectives
• More balanced between volumes & price/mix than FY23
• Two extra selling days in Q4
• Cost of sales per unit case: comparable growth of 3-4%
• Expect commodity inflation to grow low single-digit
• FY24 hedge coverage at ~80%( 14 )
• Taxes increase driven by Netherlands
• Concentrate directly linked to revenue per unit case through
the incidence pricing model
• Operating profit: comparable growth of ~7% in line with our
mid-term strategic objectives
• Continued focus on optimising discretionary spend &
delivering efficiency programmes
• FY24 supported by first year of next €350-400m efficiency
programme to be delivered by the end of FY28 (cash cost to deliver included
within FCF guidance): expect ~€60-70m to be delivered in FY24
• Other:
• Finance costs: weighted average cost of net debt of ~2%
• Comparable effective tax rate: ~25%
• Comparable free cash flow: ~€1.7bn in line with our mid-term
strategic objectives
• Capital expenditure: ~5% of revenue excluding leases
• Dividend payout ratio: ~50%( 15 ) based on comparable EPS
Fourth-quarter & Full-Year Revenue Performance by Geography( 1 )
Fourth-quarter Full Year
Fx-Neutral Fx-Neutral
€ million % change % change € million % change % change
Great Britain 812 2.0 % 2.0 % 3,235 5.0 % 6.5 %
France( 16 ) 535 6.0 % 6.0 % 2,321 11.0 % 11.0 %
Germany 760 16.5 % 16.5 % 3,018 12.5 % 12.5 %
Iberia( 17 ) 755 9.0 % 9.0 % 3,325 9.5 % 9.5 %
Northern Europe( 18 ) 630 3.0 % 5.0 % 2,654 0.5 % 4.0 %
Total Europe 3,492 7.0 % 7.5 % 14,553 7.5 % 8.5 %
API( 19 ) 1,026 (1.0) % 5.5 % 3,749 (1.0) % 5.5 %
Total CCEP 4,518 5.0 % 7.0 % 18,302 5.5 % 8.0 %
France
• Q4 volume decline reflects poor weather conditions &
cycling strong Q4 World Cup activation.
• Fuze Tea continued to perform well achieving double-digit
volume growth for both Q4 (+29.5%) and FY (+41.0%). Monster, Sprite &
Powerade also outperformed in Q4 & FY.
• Revenue/UC( 20 ) growth driven by headline price increase
implemented in the first quarter.
Germany
• Q4 volume growth reflects cycling disruption last year
relating to a customer negotiation.
• Continued volume growth in Coca-Cola Zero Sugar & Fanta.
Monster, Fuze Tea & Powerade achieved double-digit volume growth for both
Q4 & FY.
• Revenue/UC( 20 ) growth driven by headline price increase
implemented in the third quarter & positive brand mix e.g. FY Monster
volume +34.0%.
Great Britain
• Q4 volume broadly flat.
• Monster realised double-digit volume growth for both Q4 &
FY.
• Revenue/UC( 20 ) growth driven by headline price increase
implemented at the end of the second quarter & positive brand mix e.g. FY
Monster volume +16.5% & successful launch of Jack Daniel's &
Coca-Cola.
Iberia
• Q4 volume growth driven by the AFH channel & resilient
consumer demand.
• Coca-Cola Zero Sugar, Sprite & Monster volumes performed
well. Royal Bliss achieved double-digit volume growth in Q4 (+12.0%),
supported by launch in Portugal.
• Revenue/UC( 20 ) growth driven by headline price increase
implemented in the first quarter & positive mix.
Northern Europe
• Q4 volume growth reflects solid in-market execution &
promotional optimisation.
• Monster, Powerade & Aquarius volumes outperformed for both
Q4 & FY.
• Revenue/UC( 20 ) growth driven by headline price increase
implemented across our markets & positive pack mix led by the recovery of
the AFH channel e.g. FY small glass volume +4.5%.
API
• Q4 volume decline reflects the strategic de-listings within
Australia's bulk water portfolio & softer consumer spending in Indonesia.
• Coca-Cola Zero Sugar, Monster & Powerade volume
outperformed for both Q4 & FY.
• Revenue/UC( 20 ) growth driven by headline price increase
implemented across our markets during the first half & promotional
optimisation in Australia.
___________________________
Note: All values are unaudited and all references to volumes are on a
comparable basis. All changes are versus 2022 equivalent period unless stated
otherwise
Fourth-quarter & Full-Year Volume Performance by Category( 1 , 9 )
Comparable volumes, changes versus equivalent 2022 period.
Fourth-quarter Full Year
% of Total % Change % of Total % Change( 5 )
Sparkling 86.0 % 1.5 % 85.0 % 0.0 %
Coca-Cola(TM) 60.0 % 0.5 % 59.0 % 0.0 %
Flavours, Mixers & Energy 26.0 % 4.0 % 26.0 % 1.0 %
Stills 14.0 % (2.0) % 15.0 % (5.0) %
Hydration 7.0 % (3.5) % 7.5 % (7.0) %
RTD Tea, RTD Coffee, Juices & Other( 21 ) 7.0 % (0.5) % 7.5 % (3.0) %
Total 100.0 % 1.0 % 100.0 % (0.5) %
Coca-Cola(TM)
• Q4 & FY growth across all key markets reflecting
outperformance of Coca-Cola Zero Sugar (Q4:+3.5%; FY:+4.0%) supported by
targeted campaigns & innovation.
• Coca-Cola Zero Sugar gained FY value share( 7 ) of Total Cola
+40bps, led by GB +120bps.
Flavours, Mixers & Energy
• Fanta Q4 +1.0%, reflecting strong consumer demand supported by
flavour extensions.
• Q4 & FY Energy +14.0% led by Monster, continuing to gain
distribution & share through exciting innovation e.g. launch of Monster
Green Zero Sugar.
Hydration
• Q4 Water -9.5%; Q4 Sport +11.5%
• FY Water -13.5% driven by strategic portfolio choices (SKU
rationalisation in Indonesia, the exit of large PET packs in Germany (Vio)
& Iberia (Aquabona), & Mount Franklin bulk packs in Australia).
• FY Sports +9.0% growth in Powerade across all markets( 22 )
driven by continued favourable consumer trends in this category.
RTD Tea, RTD Coffee, Juices & Other( 21 )
• Q4 Juice drinks -6.0%
• Q4 RTD Tea/Coffee +9.0% reflecting continued growth in Fuze
Tea across Europe (+27.5%).
• FY performance reflecting strategic SKU rationalisation in
Indonesia, partially offset by continued growth in Fuze Tea across Europe
(+23.5%).
• Jack Daniel's & Coca-Cola performed well since launch e.g.
now #1 ARTD( 23 ) value brand in GB( 24 )
___________________________
Note: All references to volumes are on a comparable basis. All changes are
versus 2022 equivalent period unless stated otherwise
Conference Call (with presentation)
• 23 February 2024 at 11:30 GMT, 12:30 CEST & 6:30 a.m. EDT;
accessible via www.cocacolaep.com
• Replay & transcript will be available at
www.cocacolaep.com (http://www.cocacolaep.com)
Financial Calendar
• Integrated Report for publication: 15 March 2024
• First-quarter 2024 trading update: 25 April 2024
• Financial calendar available here:
https://ir.cocacolaep.com/financial-calendar/
(https://ir.cocacolaep.com/financial-calendar/)
Contacts
Investor Relations
Sarah
Willett
Awais
Khan
Raj Sidhu
sarah.willett@ccep.com
awais.khan@ccep.com
raj.sidhu@ccep.com
Media Relations
ccep@portland-communications.com
About CCEP
Coca-Cola Europacific Partners is one of the world's leading consumer goods
companies. We make, move and sell some of the world's most loved brands -
serving nearly 600 million consumers and helping over 2 million customers
across 31 countries grow.
We combine the strength and scale of a large, multi-national business with an
expert, local knowledge of the customers we serve and communities we support.
The Company is currently listed on Euronext Amsterdam, NASDAQ (and a
constituent of the Nasdaq 100), London Stock Exchange and on the Spanish Stock
Exchanges, trading under the symbol CCEP.
For more information about CCEP, please visit www.cocacolaep.com & follow
CCEP on LinkedIn @Coca-Cola Europacific
Partners | LinkedIn.
___________________________
1. Refer to 'Note Regarding the Presentation of Alternative
Performance Measures' for further details & to 'Supplementary Financial
Information' for a reconciliation of reported to comparable results; Change
percentages against prior year equivalent period unless stated otherwise
2. A unit case equals approximately 5.678 litres or 24 8-ounce
servings
3. 25 April 2023 declared first half interim dividend of
€0.67 dividend per share, paid 25 May 2023; 1 November 2023 declared second
half interim dividend of €1.17 dividend per share, paid 5 December 2023
4. Aboitiz Equity Ventures Inc.
5. Coca-Cola Beverages Philippines, Inc.
6. Comparable & FX-neutral
7. External data sources: Nielsen & IRI Period FY 23.
Total CCEP excluding Indo
8. Increased households (+70bps) FY for GB & FR, P11 YTD
for Spain, P10 YTD for Germany, Netherlands & Belgium
9. No selling day shift in Q4 or FY23; CCEP reported volume
for Q4 +1.0% & FY23 -0.5%
10. Adjusted for royalty income proceeds (€89m) arising from the
ownership of certain mineral rights in Australia. See note 'Regarding the
Presentation of Alternative Performance Measures' for further details
11. Adjusted for items impacting comparability. Refer to 'Note Regarding
the Presentation of Alternative Performance Measures' for further details
12. Unassured & provisional
13. Financial information adjusted as if the acquisition of CCBPI
occurred at the beginning of the period presented for illustrative purposes
only, it is not intended to estimate or predict future financial performance
or what actual results would have been. Acquisition completed on 23 February
2024. Prepared on a basis consistent with CCEP accounting policies &
include provisional transaction accounting adjustments for the period 1
January to 23 February
14. Includes the Philippines
15. Dividends subject to Board approval
16. Includes France & Monaco
17. Includes Spain, Portugal & Andorra
18. Includes Belgium, Luxembourg, the Netherlands, Norway, Sweden
& Iceland
19. Includes Australia, New Zealand & the Pacific Islands,
Indonesia & Papua New Guinea
20. Revenue per unit case
21. RTD refers to ready to drink; Other includes Alcohol &
Coffee
22. In all listed markets, Powerade not listed in Indonesia
23. ARTD refers to alcohol ready to drink
24. Combined portfolio of Jack Daniel's & Coca-Cola and Jack
Daniel's & Coca-Cola Zero Sugar, external data source Nielsen last 12
weeks ending 27 January 2024
Forward-Looking Statements
This document contains statements, estimates or projections that constitute
"forward-looking statements" concerning the financial condition, performance,
results, guidance and outlook, dividends, consequences of mergers,
acquisitions, joint ventures, and divestitures, including the joint venture
with Aboitiz Equity Ventures Inc. (AEV) and acquisition of Coca-Cola Beverages
Philippines, Inc. (CCBPI), strategy and objectives of Coca-Cola Europacific
Partners plc and its subsidiaries (together CCEP or the Group). Generally, the
words "ambition", "target", "aim", "believe", "expect", "intend", "estimate",
"anticipate", "project", "plan", "seek", "may", "could", "would", "should",
"might", "will", "forecast", "outlook", "guidance", "possible", "potential",
"predict", "objective" and similar expressions identify forward-looking
statements, which generally are not historical in nature.
Forward-looking statements are subject to certain risks that could cause
actual results to differ materially from CCEP's historical experience and
present expectations or projections. As a result, undue reliance should not be
placed on forward-looking statements, which speak only as of the date on which
they are made. These risks include but are not limited to:
1. those set forth in the "Risk Factors" section of CCEP's 2022 Annual Report
on Form 20-F filed with the SEC on 17 March 2023 and as updated and
supplemented with the additional information set forth in the "Principal Risks
and Risk Factors" section of the H1 2023 Half-year Report filed with the SEC
on 2 August 2023;
2. risks and uncertainties relating to the global supply chain and
distribution, including impact from war in Ukraine and increasing geopolitical
tensions and conflicts including in the Middle East and Asia Pacific region,
such as the risk that the business will not be able to guarantee sufficient
supply of raw materials, supplies, finished goods, natural gas and oil and
increased state-sponsored cyber risks;
3. risks and uncertainties relating to the global economy and/or a potential
recession in one or more countries, including risks from elevated inflation,
price increases, price elasticity, disposable income of consumers and
employees, pressure on and from suppliers, increased fraud, and the perception
or manifestation of a global economic downturn;
4. risks and uncertainties relating to potential global energy crisis, with
potential interruptions and shortages in the global energy supply,
specifically the natural gas supply in our territories. Energy shortages at
our sites, our suppliers and customers could cause interruptions to our supply
chain and capability to meet our production and distribution targets;
5. risks and uncertainties relating to potential water use reductions due to
regulations by national and regional authorities leading to a potential
temporary decrease in production volume; and
6. risks and uncertainties relating to the integration and operation of the
joint venture with AEV and acquisition of CCBPI, including the risk that our
integration of CCBPI's business and operations may not be successful or may be
more difficult, time consuming or costly than expected.
Due to these risks, CCEP's actual future financial condition, results of
operations, and business activities, including its results, dividend payments,
capital and leverage ratios, growth, including growth in revenue, cost of
sales per unit case and operating profit, free cash flow, market share, tax
rate, efficiency savings, achievement of sustainability goals, including net
zero emissions and recycling initiatives, capital expenditures, our agreements
relating to and results of the joint venture with AEV and acquisition of
CCBPI, and ability to remain in compliance with existing and future regulatory
compliance, may differ materially from the plans, goals, expectations and
guidance set out in forward-looking statements. These risks may also adversely
affect CCEP's share price. Additional risks that may impact CCEP's future
financial condition and performance are identified in filings with the SEC
which are available on the SEC's website at www.sec.gov. CCEP does not
undertake any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise, except as required under applicable rules, laws and regulations.
Any or all of the forward-looking statements contained in this filing and in
any other of CCEP's public statements may prove to be incorrect.
Note Regarding the Presentation of Alternative Performance Measures
Alternative Performance Measures
We use certain alternative performance measures (non-IFRS performance
measures) to make financial, operating and planning decisions and to evaluate
and report performance. We believe these measures provide useful information
to investors and as such, where clearly identified, we have included certain
alternative performance measures in this document to allow investors to better
analyse our business performance and allow for greater comparability. To do
so, we have excluded items affecting the comparability of period-over-period
financial performance as described below. The alternative performance measures
included herein should be read in conjunction with and do not replace the
directly reconcilable IFRS measures.
The alternative performance measures in this document have been calculated in
a manner consistent with those set forth in CCEP's 2022 Annual Report on Form
20-F filed with the SEC on 17 March 2023, and the title of certain non-IFRS
measures has been updated to better reflect their comparable nature.
For purposes of this document, the following terms are defined:
''As reported'' are results extracted from our unaudited consolidated
financial statements. Refer to pages 17-20.
"Adjusted" includes the results of CCEP as if the CCBPI acquisition had
occurred at the beginning of the period presented, including provisional
acquisition accounting adjustments, accounting policy reclassifications and
the impact of debt financing costs in connection with the acquisition.
"Comparable'' is defined as results excluding items impacting comparability,
which include restructuring charges, income arising from the ownership of
certain mineral rights in Australia, gain on sale of sub-strata and associated
mineral rights in Australia, net impact related to European flooding, gains on
the sale of property, accelerated amortisation charges, expenses related to
legal provisions, impact of a defined benefit plan amendment arising from
legislative changes in respect of the minimum retirement age and acquisition
and integration related costs. Comparable volume is also adjusted for selling
days.
''Adjusted comparable" is defined as adjusted results excluding items
impacting comparability, as described above.
''Fx-neutral'' is defined as period results excluding the impact of foreign
exchange rate changes. Foreign exchange impact is calculated by recasting
current year results at prior year exchange rates.
''Capex'' or "Capital expenditures'' is defined as purchases of property,
plant and equipment and capitalised software, plus payments of principal on
lease obligations, less proceeds from disposals of property, plant and
equipment. Capex is used as a measure to ensure that cash spending on capital
investment is in line with the Group's overall strategy for the use of cash.
''Comparable Free cash flow'' is defined as net cash flows from operating
activities less capital expenditures (as defined above) and net interest
payments, adjusted for items that are not reasonably likely to recur within
two years, nor have occurred within the prior two years. Comparable free cash
flow is used as a measure of the Group's cash generation from operating
activities, taking into account investments in property, plant and equipment,
non-discretionary lease and net interest payments while excluding the effects
of items that are unusual in nature to allow for better period over period
comparability. Comparable free cash flow reflects an additional way of viewing
our liquidity, which we believe is useful to our investors, and is not
intended to represent residual cash flow available for discretionary
expenditures. Refer to page 14 for additional information.
''Comparable EBITDA'' is calculated as Earnings Before Interest, Tax,
Depreciation and Amortisation (EBITDA), after adding back items impacting the
comparability of period over period financial performance. Comparable EBITDA
does not reflect cash expenditures, or future requirements for capital
expenditures or contractual commitments. Further, comparable EBITDA does not
reflect changes in, or cash requirements for, working capital needs, and
although depreciation and amortisation are non-cash charges, the assets being
depreciated and amortised are likely to be replaced in the future and
comparable EBITDA does not reflect cash requirements for such replacements.
''Net Debt'' is defined as borrowings adjusted for the fair value of hedging
instruments and other financial assets/liabilities related to borrowings, net
of cash and cash equivalents and short term investments. We believe that
reporting net debt is useful as it reflects a metric used by the Group to
assess cash management and leverage. In addition, the ratio of net debt to
comparable EBITDA is used by investors, analysts and credit rating agencies to
analyse our operating performance in the context of targeted financial
leverage.
''ROIC" or "Return on invested capital" is defined as reported profit after
tax attributable to shareholders divided by the average of opening and closing
invested capital for the year. Invested capital is calculated as the addition
of borrowings and equity attributable to shareholders less cash and cash
equivalents and short term investments.
"Comparable ROIC" adjusts reported profit after tax for items impacting the
comparability of period-over-period financial performance and is defined as
comparable operating profit after tax attributable to shareholders divided by
the average of opening and closing invested capital for the year. Comparable
ROIC is used as a measure of capital efficiency and reflects how well the
Group generates comparable operating profit relative to the capital invested
in the business.
''Dividend payout ratio'' is defined as dividends as a proportion of
comparable profit after tax.
Additionally, within this document, we provide certain forward-looking
non-IFRS financial information, which management uses for planning and
measuring performance. We are not able to reconcile forward-looking non-IFRS
measures to reported measures without unreasonable efforts because it is not
possible to predict with a reasonable degree of certainty the actual impact or
exact timing of items that may impact comparability throughout year.
Unless otherwise stated, percent amounts are rounded to the nearest 0.5%.
Supplementary Financial Information - Items Impacting Comparability - Reported
to Comparable
The following provides a summary reconciliation of items impacting
comparability for the years ended 31 December 2023 and 31 December 2022:
Full Year 2023
In millions of € except share data which is calculated prior to rounding Operating profit Profit after taxes Diluted earnings per share (€)
As Reported 2,339 1,669 3.63
Items impacting comparability
Restructuring charges ( 1 ) 94 79 0.18
Acquisition and Integration related costs ( 2 ) 12 14 0.03
European flooding ( 3 ) (9) (7) (0.02)
Coal royalties ( 4 ) (18) (12) (0.03)
Property sale ( 5 ) (54) (38) (0.08)
Litigation ( 6 ) 17 12 0.03
Accelerated amortisation ( 7 ) 27 19 0.04
Sale of sub-strata and associated mineral rights ( 8 ) (35) (35) (0.07)
Comparable 2,373 1,701 3.71
Full Year 2022
In millions of € except share data which is calculated prior to rounding Operating profit Profit after taxes Diluted earnings per share (€)
As Reported 2,086 1,521 3.29
Items impacting comparability
Restructuring charges ( 1 ) 163 121 0.27
Acquisition and Integration related costs ( 2 ) 3 3 0.01
European flooding ( 3 ) (11) (8) (0.02)
Coal royalties ( 4 ) (96) (67) (0.15)
Defined benefit plan amendment ( 9 ) (7) (6) (0.01)
Comparable 2,138 1,564 3.39
__________________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent costs incurred in connection with the proposed
acquisition of CCBPI for the year ended 31 December 2023 as well as
integration costs related to the acquisition of CCL recognised during the year
ended 31 December 2022.
( 3 ) Amounts represent the incremental expense incurred offset by the
insurance recoveries collected as a result of the July 2021 flooding events,
which impacted the operations of our production facilities in Chaudfontaine
and Bad Neuenahr.
( 4 ) Amounts represent royalty income arising from the ownership of certain
mineral rights in Australia. The royalty income was recognised as "Other
income" in our consolidated income statement for the years ended 31 December
2023 and 31 December 2022, respectively.
( 5 ) Amounts represent gains mainly attributable to the sale of property in
Germany. The gains on disposal were recognised as "Other income" in our
consolidated income statement for the year ended 31 December 2023.
( 6 ) Amounts relate to the establishment of a provision in connection with an
ongoing labour law matter in Germany.
( 7 ) Amounts represent accelerated amortisation charges associated with the
discontinuation of the relationship between CCEP and Beam Suntory upon
expiration of the current contractual agreements.
( 8 ) Amounts represent the considerations received relating to the sale of
the sub-strata and associated mineral rights in Australia. The transaction
completed in April 2023 and the proceeds were recognised as "Other income" in
our consolidated income statement for the year ended 31 December 2023.
( 9 ) Amounts represent the impact of a plan amendment arising from
legislative changes in respect of the minimum retirement age.
Supplemental Financial Information - Operating Profit - Reported to Comparable
Revenue
Revenue CCEP Fourth-Quarter Ended Year Ended
In millions of €, except per case data which is calculated prior to
rounding. FX impact calculated by recasting current year results at prior year
rates
.
31 December 2023 31 December 2022 % Change 31 December 2023 31 December 2022 % Change
As reported 4,518 4,295 5.0 % 18,302 17,320 5.5 %
Adjust: Impact of fx changes 79 n/a n/a 396 n/a n/a
Fx-neutral 4,597 4,295 7.0 % 18,698 17,320 8.0 %
Revenue per unit case 5.73 5.41 6.0 % 5.70 5.25 8.5 %
Revenue Europe Fourth-Quarter Ended Year Ended
In millions of €, except per case data which is calculated prior to
rounding. FX impact calculated by recasting current year results at prior year
rates.
31 December 2023 31 December 2022 % Change 31 December 2023 31 December 2022 % Change
As reported 3,492 3,258 7.0 % 14,553 13,529 7.5 %
Adjust: Impact of fx changes 13 n/a n/a 147 n/a n/a
Fx-neutral 3,505 3,258 7.5 % 14,700 13,529 8.5 %
Revenue per unit case 5.54 5.26 5.5 % 5.56 5.14 8.0 %
Revenue API Fourth-Quarter Ended Year Ended
In millions of €, except per case data which is calculated prior to
rounding. FX impact calculated by recasting current year results at prior year
rates.
31 December 2023 31 December 2022 % Change 31 December 2023 31 December 2022 % Change
As reported 1,026 1,037 (1.0) % 3,749 3,791 (1.0) %
Adjust: Impact of fx changes 66 n/a n/a 249 n/a n/a
Fx-neutral 1,092 1,037 5.5 % 3,998 3,791 5.5 %
Revenue per unit case 6.45 5.94 8.5 % 6.30 5.67 11.0 %
Revenue by Geography Year ended 31 December 2023
In millions of €
As reported Reported Fx-Neutral
% change % change
Great Britain 3,235 5.0 % 6.5 %
Germany 3,018 12.5 % 12.5 %
Iberia( 1 ) 3,325 9.5 % 9.5 %
France( 2 ) 2,321 11.0 % 11.0 %
Belgium and Luxembourg 1,078 3.5 % 3.5 %
Netherlands 718 5.5 % 5.5 %
Norway 376 (7.0) % 5.5 %
Sweden 398 (5.5) % 2.0 %
Iceland 84 (3.5) % 1.0 %
Total Europe 14,553 7.5 % 8.5 %
Australia 2,385 2.0 % 9.5 %
New Zealand and Pacific Islands 679 4.5 % 11.0 %
Indonesia and Papua New Guinea 685 (14.5) % (10.5) %
Total API 3,749 (1.0) % 5.5 %
Total CCEP 18,302 5.5 % 8.0 %
( 1 ) Iberia refers to Spain, Portugal & Andorra.
( 2 ) France refers to continental France & Monaco.
Volume
Comparable Volume - Selling Day Shift CCEP Fourth-Quarter Ended Year Ended
In millions of unit cases, prior period volume recast using current year
selling days
31 December 2023 31 December 2022 % Change 31 December 2023 31 December 2022 % Change
Volume 802 794 1.0 % 3,279 3,300 (0.5) %
Impact of selling day shift n/a - n/a n/a - n/a
Comparable volume - Selling Day Shift adjusted 802 794 1.0 % 3,279 3,300 (0.5) %
Comparable Volume - Selling Day Shift Europe Fourth-Quarter Ended Year Ended
In millions of unit cases, prior period volume recast using current year
selling days
31 December 2023 31 December 2022 % Change 31 December 2023 31 December 2022 % Change
Volume 632 619 2.0 % 2,644 2,631 0.5 %
Impact of selling day shift n/a - n/a n/a - n/a
Comparable volume - Selling Day Shift adjusted 632 619 2.0 % 2,644 2,631 0.5 %
Comparable Volume - Selling Day Shift API Fourth-Quarter Ended Year Ended
In millions of unit cases, prior period volume recast using current year
selling days
31 December 2023 31 December 2022 % Change 31 December 2023 31 December 2022 % Change
Volume 170 175 (3.0) % 635 669 (5.0) %
Impact of selling day shift n/a - n/a n/a - n/a
Comparable volume - Selling Day Shift adjusted 170 175 (3.0) % 635 669 (5.0) %
Cost of Sales
Cost of Sales Year Ended
In millions of €, except per case data which is calculated prior to
rounding. FX impact calculated by recasting current year results at prior year
rates.
31 December 2023 31 December 2022 % Change
As reported 11,582 11,096 4.5 %
Adjust: Total items impacting comparability (6) (8) n/a
Adjust: Restructuring charges ( 1 ) (9) (19)
Adjust: European flooding ( 2 ) 9 11
Adjust: Litigation ( 3 ) (6) -
Comparable 11,576 11,088 4.5 %
Adjust: Impact of fx changes 249 n/a n/a
Comparable & fx-neutral 11,825 11,088 6.5 %
Cost of sales per unit case 3.61 3.36 7.5 %
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent the incremental expense incurred offset by the
insurance recoveries collected as a result of the July 2021 flooding events,
which impacted the operations of our production facilities in Chaudfontaine
and Bad Neuenahr.
( 3 ) Amounts relate to the establishment of a provision in connection with an
ongoing labour law matter in Germany.
( )
For the year ending 31 December 2023, reported cost of sales were €11,582
million, up 4.5% versus 2022.
Comparable cost of sales for the same period were €11,576 million, up 4.5%
versus 2022. Cost of sales per unit case increased by 7.5% on a comparable and
fx-neutral basis, reflecting increased revenue per unit case driving higher
concentrate costs, and inflation in commodities and manufacturing.
Operating expenses
Operating Expenses Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2023 31 December 2022 % Change
As reported 4,488 4,234 6.0 %
Adjust: Total items impacting comparability (135) (140) n/a
Adjust: Restructuring charges ( 1 ) (85) (144)
Adjust: Acquisition and Integration related costs ( 2 ) (12) (3)
Adjust: Litigation ( 3 ) (11) -
Adjust: Accelerated amortisation ( 4 ) (27) -
Adjust: Defined benefit plan amendment ( 5 ) - 7
Comparable 4,353 4,094 6.5 %
Adjust: Impact of fx changes 96 n/a n/a
Comparable & fx-neutral 4,449 4,094 8.5 %
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent costs incurred in connection with the proposed
acquisition of CCBPI for the year ended 31 December 2023 as well as
integration costs related to the acquisition of CCL recognised during the year
ended 31 December 2022.
( 3 ) Amounts relate to the establishment of a provision in connection with an
ongoing labour law matter in Germany.
( 4 ) Amounts represent accelerated amortisation charges associated with the
discontinuation of the relationship between CCEP and Beam Suntory upon
expiration of the current contractual agreements.
( 5 ) Amounts represent the impact of a plan amendment arising from
legislative changes in respect of the minimum retirement age.
( )
For the year ending 31 December 2023, reported operating expenses were
€4,488 million, up 6.0% versus 2022.
Comparable operating expenses were €4,353 million for the same period, up
6.5% versus 2022, reflecting the impact of inflation, partially offset by the
benefit of ongoing efficiency programmes and our continuous efforts on
discretionary spend optimisation.
Restructuring charges of €85 million were recognised within reported
operating expenses for the year ending 31 December 2023, which are primarily
attributable to severance charges related to various transformation
initiatives.
Restructuring charges of €144 million were recognised within reported
operating expenses for the year ending 31 December 2022, which are primarily
attributable to €82 million of expense recognised in connection with the
transformation of the full service vending operations and related initiatives
in Germany.
Operating profit
Operating Profit CCEP Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2023 31 December 2022 % Change
As reported 2,339 2,086 12.0 %
Adjust: Total items impacting comparability 34 52 n/a
Comparable 2,373 2,138 11.0 %
Adjust: Impact of fx changes 51 n/a n/a
Comparable & fx-neutral 2,424 2,138 13.5 %
Operating Profit Europe Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2023 31 December 2022 % Change
As reported 1,842 1,529 20.5 %
Adjust: Total items impacting comparability 46 141 n/a
Comparable 1,888 1,670 13.0 %
Adjust: Impact of fx changes 19 n/a n/a
Comparable & fx-neutral 1,907 1,670 14.0 %
Operating Profit API Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2023 31 December 2022 % Change
As reported 497 557 (11.0) %
Adjust: Total items impacting comparability (12) (89) n/a
Comparable 485 468 3.5%
Adjust: Impact of fx changes 32 n/a n/a
Comparable & fx-neutral 517 468 10.5 %
Supplemental Financial Information - Effective Tax Rate
The reported effective tax rate was 24% and 22% for the years ended 31
December 2023 and 31 December 2022, respectively.
The increase in the reported effective tax rate to 24% in 2023 (2022: 22%) is
largely due to the increase in the UK statutory tax rate to a weighted average
of 23.5% and the review of uncertain tax positions.
The comparable effective tax rate was 24% and 22% for the years ended 31
December 2023 and 31 December 2022, respectively.
Income tax Year Ended
In millions of €
31 December 2023 31 December 2022
As reported 534 436
Adjust: Total items impacting comparability 4 9
Adjust: Restructuring charges ( 1 ) 15 42
Adjust: European flooding ( 2 ) (2) (3)
Adjust: Defined benefit plan amendment ( 3 ) - (1)
Adjust: Coal royalties ( 4 ) (6) (29)
Adjust: Property sale ( 5 ) (16) -
Adjust: Litigation ( 6 ) 5 -
Adjust: Accelerated amortisation ( 7 ) 8 -
Comparable 538 445
__________________________
( 1 ) Amounts represent the tax impact of restructuring charges related to
business transformation activities.
( 2 ) Amounts represent the tax impact of the incremental expense incurred
offset by the insurance recoveries collected as a result of the July 2021
flooding events, which impacted the operations of our production facilities in
Chaudfontaine and Bad Neuenahr.
( 3 ) Amounts represent the tax impact of a plan amendment arising from
legislative changes in respect of the minimum retirement age.
( 4 ) ( )Amounts represent the tax impact of royalty income arising from the
ownership of certain mineral rights in Australia. The royalty income was
recognised as "Other income" in our consolidated income statement for the
years ended 31 December 2023 and 31 December 2022, respectively.
( 5 ) Amounts represent the tax impact of gains mainly attributable to the
sale of property in Germany. The gains on disposal were recognised as "Other
income" in our consolidated income statement for the year ended 31 December
2023.
( 6 ) Amounts represent the tax impact related to the establishment of a
provision in connection with an ongoing labour law matter in Germany.
( 7 ) Amounts represent the tax impact of accelerated amortisation charges
associated with the discontinuation of the relationship between CCEP and Beam
Suntory upon expiration of the current contractual agreements.
Supplemental Financial Information - Comparable Free Cash Flow
Comparable Free Cash Flow Year Ended
In millions of €
31 December 2023 31 December 2022
Net cash flows from operating activities 2,806 2,932
Less: Purchases of property, plant and equipment (672) (500)
Less: Purchases of capitalised software (140) (103)
Add: Proceeds from sales of property, plant and equipment 101 11
Less: Payments of principal on lease obligations (148) (153)
Less: Net interest payments (124) (130)
Adjust: Items impacting comparability ( 1 ) (89) (252)
Comparable Free Cash Flow 1,734 1,805
( 1 ) During the year ended 31 December 2023, the Group has received net of
tax cash proceeds of €89 million in connection with the royalty income
arising from the ownership of certain mineral rights in Australia. During the
year ended 31 December 2022, €252 million of cash proceeds were received
from the regional tax authorities of Bizkaia (Basque Region), in connection
with the ongoing dispute in Spain regarding the refund of historical VAT
amounts related to the period 2013-2016. The proceeds associated with these
specific events have been included within the Group's net cash flows from
operating activities for the years ended 31 December 2023 and 31 December
2022, respectively. Given the unusual nature and to allow for better period
over period comparability, our comparable free cash flow measure excludes the
cash impact related to these items.
Supplemental Financial Information - Borrowings
Net Debt As at Credit Ratings
In millions of € As of 22 February 2024
31 December 2023 31 December 2022 Moody's Fitch Ratings
Total borrowings 11,396 11,907 Long-term rating Baa1 BBB+
Fair value of hedges related to borrowings( 1 ) 28 (83) Outlook Stable Stable
Other financial assets/liabilities( 1 ) 20 25 Note: Our credit ratings can be materially influenced by a number of factors
including, but not limited to, acquisitions, investment decisions and working
capital management activities of TCCC and/or changes in the credit rating of
TCCC. A credit rating is not a recommendation to buy, sell or hold securities
and may be subject to revision or withdrawal at any time.
Adjusted total borrowings( 1 ) 11,444 11,849
Less: cash and cash equivalents( 2 ) (1,419) (1,387)
Less: short term investments( 3 ) (568) (256)
Net debt 9,457 10,206
___________________
( 1 ) Net debt includes adjustments for the fair value of derivative
instruments used to hedge both currency and interest rate risk on the Group's
borrowings. In addition, net debt also includes other financial
assets/liabilities relating to cash collateral pledged by/to external parties
on hedging instruments related to borrowings.
( 2 ) Cash and cash equivalents as at 31 December 2023 and 31 December 2022
includes €42 million and €102 million respectively of cash in Papua New
Guinea Kina. Presently, there are government-imposed currency controls which
impact the extent to which the cash held in Papua New Guinea can be converted
into foreign currency and remitted for use elsewhere in the Group.
( 3 ) Short term investments are term cash deposits with maturity dates when
acquired of greater than three months and less than one year. These short term
investments are held with counterparties that are continually assessed with a
focus on preservation of capital and liquidity. Short term term investments as
at 31 December 2023 and 31 December 2022 includes €33 million and €49
million respectively of assets in Papua New Guinea Kina, subject to the same
currency controls outlined above.
Supplemental Financial Information - Comparable EBITDA
Comparable EBITDA Year Ended
In millions of €
31 December 2023 31 December 2022
Reported profit after tax 1,669 1,521
Taxes 534 436
Finance costs, net 120 114
Non-operating items 16 15
Reported operating profit 2,339 2,086
Depreciation and amortisation( 1 ) 792 816
Reported EBITDA 3,131 2,902
Items impacting comparability
Restructuring charges( 2 ) 83 119
Defined benefit plan amendment( 3 ) - (7)
Acquisition and integration related costs( 4 ) 12 3
Litigation( 5 ) 17 -
European flooding( 6 ) (9) (11)
Property sale( 7 ) (54) -
Sale of sub-strata and associated mineral rights( 8 ) (35) -
Coal royalties( 9 ) (18) (96)
Comparable EBITDA 3,127 2,910
Net debt to reported EBITDA 3.0 3.5
Net debt to comparable EBITDA 3.0 3.5
______________________
( 1 ) Amounts include accelerated amortisation charges associated with the
discontinuation of the relationship between CCEP and Beam Suntory upon
expiration of the current contractual agreements for the year ended 31
December 2023.
( 2 ) Amounts represent restructuring charges related to business
transformation activities, excluding accelerated depreciation included in the
depreciation and amortisation line.
( 3 ) Amounts represent the impact of a plan amendment arising from
legislative changes in respect of the minimum retirement age.
( 4 ) Amounts represent costs incurred in connection with the proposed
acquisition of CCBPI for the year ended 31 December 2023 as well as
integration costs related to the acquisition of CCL recognised during the year
ended 31 December 2022.
( 5 ) Amounts relate to the establishment of a provision in connection with an
ongoing labour law matter in Germany.
( 6 ) Amounts represent the incremental expense incurred offset by the
insurance recoveries collected as a result of the July 2021 flooding events,
which impacted the operations of our production facilities in Chaudfontaine
and Bad Neuenahr.
( 7 ) Amounts represent gains mainly attributable to the sale of property in
Germany. The gains on disposal were recognised as "Other income" in our
consolidated income statement for the year ended 31 December 2023.
( 8 ) Amounts represent the considerations received relating to the sale of
the sub-strata and associated mineral rights in Australia. The transaction
completed in April 2023 and the proceeds were recognised as "Other income" in
our consolidated income statement for the year ended 31 December 2023.
( 9 ) Amounts represent royalty income arising from the ownership of certain
mineral rights in Australia. The royalty income was recognised as "Other
income" in our consolidated income statement for the years ended 31 December
2023 and 31 December 2022, respectively.
Supplemental Financial Information - Return on invested capital
( )
ROIC Year Ended
In millions of €
31 December 2023 31 December 2022
Reported profit after tax 1,669 1,521
Taxes 534 436
Finance costs, net 120 114
Non-operating items 16 15
Reported operating profit 2,339 2,086
Items impacting comparability( 1 ) 34 52
Comparable operating profit( 1 ) 2,373 2,138
Taxes( 2 ) (570) (474)
Non-controlling interest - (13)
Comparable operating profit after tax attributable to shareholders 1,803 1,651
Opening borrowings less cash and cash equivalents and short term investments 10,264 11,675
Opening equity attributable to shareholders 7,447 7,033
Opening Invested Capital 17,711 18,708
Closing borrowings less cash and cash equivalents and short term investments 9,409 10,264
Closing equity attributable to shareholders 7,976 7,447
Closing Invested Capital 17,385 17,711
Average Invested Capital 17,548 18,210
ROIC 9.5 % 8.4 %
Comparable ROIC 10.3 % 9.1 %
____________________
( 1 ) Reconciliation from reported to comparable operating profit is included
in the Supplementary Financial Information - Items impacting comparability
section.
( 2 ) Tax rate used is the comparable effective tax rate for the year (2023:
24.0%; 2022: 22.2%).
Discussions with U.S. Securities and Exchange Commission (SEC)
During 2023, the Company received written correspondence from the staff (the
"Staff") of the Securities and Exchange Commission (the "SEC") regarding their
review of CCEP's Annual Report (Form 20-F) for the year ended 31 December
2022. As of 23 February 2024, there is an open comment concerning the
Company's long-standing accounting policy and disclosures related to the
treatment of the TCCC bottling rights as indefinite-lived intangible assets.
As of 31 December 2022, the Company has indefinite-lived intangible assets of
€11,874 million related to the TCCC bottling arrangements that were
recognised as a result of business combinations and valued on perpetual cash
flows basis. The accounting policy is disclosed in the notes to the 2022
Consolidated Financial Statements, more specifically Note 7 ("Intangible
assets and goodwill") and Note 3 ("Significant judgements and estimates"). The
Company has responded to the comments and will continue engaging with the
Staff if further comments are raised.
If the Company's accounting policy was reevaluated to limit the useful
economic life of the intangible assets to the remaining contractual terms of
the bottler's agreements with TCCC, the Company's historical and current
consolidated financial statements would need to be adjusted to reduce the fair
value of the intangible assets and related deferred tax liabilities, with an
equivalent increase in goodwill effective as of the acquisition dates.
Further, amortisation expense on the intangible assets would be recognised
over the remaining contractual life of the agreements in place at acquisition.
All resulting balance sheet and income statement effects would be non-cash and
would not impact CCEP's generation and use of distributable profits.
CCEP's unaudited consolidated results contained in this release were prepared
in accordance with its existing accounting policies and judgments, which the
Company believes are appropriate and consistent with those applied during the
preparation of prior period audited financial statements.
Coca-Cola Europacific Partners plc
Consolidated Income Statement (Unaudited)
Year Ended
31 December 2023 31 December 2022
€ million € million
Revenue 18,302 17,320
Cost of sales (11,582) (11,096)
Gross profit 6,720 6,224
Selling and distribution expenses (3,178) (2,984)
Administrative expenses (1,310) (1,250)
Other Income 107 96
Operating profit 2,339 2,086
Finance income 65 67
Finance costs (185) (181)
Total finance costs, net (120) (114)
Non-operating items (16) (15)
Profit before taxes 2,203 1,957
Taxes (534) (436)
Profit after taxes 1,669 1,521
Profit attributable to shareholders 1,669 1,508
Profit attributable to non-controlling interests - 13
Profit after taxes 1,669 1,521
Basic earnings per share (€) 3.64 3.30
Diluted earnings per share (€) 3.63 3.29
The financial information presented does not constitute statutory accounts as
defined in section 434 of the Companies Act 2006 ('the Act'). A copy of the
statutory accounts for the year ended 31 December 2022 has been delivered to
the Registrar of Companies for England and Wales. The auditor's report on
those accounts was unqualified, did not include a reference to any matters to
which the auditor drew attention by way of emphasis without qualifying the
report and did not contain a statement under sections 498(2) or 498(3) of the
Act.
The financial information presented in the unaudited consolidated income
statement, consolidated statement of financial position and consolidated
statement of cash flows within this document does not represent the Group's
full consolidated financial statements for the year ended 31 December 2023.
This financial information has been extracted from the CCEP's consolidated
financial statements, which will be delivered to the Registrar of Companies in
due course. Accordingly, the financial information for 2023 is presented
unaudited.
Coca-Cola Europacific Partners plc
Consolidated Statement of Financial Position (Unaudited)
31 December 2023 31 December 2022
€ million € million
ASSETS
Non-current:
Intangible assets 12,395 12,505
Goodwill 4,514 4,600
Property, plant and equipment 5,344 5,201
Non-current derivative assets 100 191
Deferred tax assets 1 21
Other non-current assets 295 252
Total non-current assets 22,649 22,770
Current:
Current derivative assets 161 257
Current tax assets 58 85
Inventories 1,356 1,380
Amounts receivable from related parties 123 139
Trade accounts receivable 2,547 2,466
Other current assets 351 479
Assets held for sale 22 94
Short term investments 568 256
Cash and cash equivalents 1,419 1,387
Total current assets 6,605 6,543
Total assets 29,254 29,313
LIABILITIES
Non-current:
Borrowings, less current portion 10,096 10,571
Employee benefit liabilities 191 108
Non-current provisions 45 55
Non-current derivative liabilities 169 187
Deferred tax liabilities 3,378 3,513
Non-current tax liabilities 75 82
Other non-current liabilities 46 37
Total non-current liabilities 14,000 14,553
Current:
Current portion of borrowings 1,300 1,336
Current portion of employee benefit liabilities 8 8
Current provisions 114 115
Current derivative liabilities 99 76
Current tax liabilities 253 241
Amounts payable to related parties 270 485
Trade and other payables 5,234 5,052
Total current liabilities 7,278 7,313
Total liabilities 21,278 21,866
EQUITY
Share capital 5 5
Share premium 276 234
Merger reserves 287 287
Other reserves (823) (507)
Retained earnings 8,231 7,428
Equity attributable to shareholders 7,976 7,447
Non-controlling interest - -
Total equity 7,976 7,447
Total equity and liabilities 29,254 29,313
Coca-Cola Europacific Partners plc
Consolidated Statement of Cash Flows (Unaudited)
Year Ended
31 December 2023 31 December 2022
€ million € million
Cash flows from operating activities:
Profit before taxes 2,203 1,957
Adjustments to reconcile profit before tax to net cash flows from operating
activities:
Depreciation 653 715
Amortisation of intangible assets 139 101
Share-based payment expense 57 33
Gain on sale of sub-strata and associated mineral rights (35) -
Gain on the sale of property (54) -
Finance costs, net 120 114
Income taxes paid (509) (415)
Changes in assets and liabilities:
(Increase) in trade and other receivables (5) (282)
Decrease/(increase) in inventories 6 (244)
Increase in trade and other payables 124 885
Increase/(decrease) in net payable receivable from related parties 80 (15)
(Decrease)/increase in provisions (11) 37
Change in other operating assets and liabilities 38 46
Net cash flows from operating activities 2,806 2,932
Cash flows from investing activities:
Purchases of property, plant and equipment (672) (500)
Purchases of capitalised software (140) (103)
Proceeds from sales of property, plant and equipment 101 11
Proceeds from sales of intangible assets 37 143
Proceeds from the sale of sub-strata and associated mineral rights 35 -
Net (payments)/proceeds of short term investments (342) (207)
Investments in equity instruments (5) (2)
Proceeds from sale of equity instruments - 13
Interest received 58 -
Other investing activity, net (9) -
Net cash flows used in investing activities (937) (645)
Cash flows from financing activities:
Proceeds from borrowings, net 694 -
Changes in short-term borrowings - (285)
Repayments on third party borrowings (1,159) (938)
Settlement of debt-related cross-currency swaps 69 -
Payments of principal on lease obligations (148) (153)
Interest paid (182) (130)
Dividends paid (841) (763)
Exercise of employee share options 43 13
Transactions with non-controlling interests (282) -
Other financing activities, net (16) (20)
Net cash flows (used in)/from financing activities (1,822) (2,276)
Net change in cash and cash equivalents 47 11
Net effect of currency exchange rate changes on cash and cash equivalents (15) (31)
Cash and cash equivalents at beginning of period 1,387 1,407
Cash and cash equivalents at end of period 1,419 1,387
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