REG - Coca-Cola EP PLC - Preliminary Unaudited Results Q4 & FY 2024
14/02/2025 07:15
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250214:nRSN1137Xa&default-theme=true
RNS Number : 1137X Coca-Cola Europacific Partners plc 14 February 2025
COCA-COLA EUROPACIFIC PARTNERS
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Preliminary unaudited results for the full year ended 31 December 2024
Great end to a solid year, well placed for FY25 and beyond; announcing €1bn
share buyback* over next 12 months
FY 2024 Total CCEP Key Financial Metrics( 1 ) As Reported Comparable ( 1 ) Change vs FY 2023 Adjusted Comparable( 4 ) Change vs FY 2023
As Reported Comparable( 1 ) Comparable FXN( 1 ) Adjusted Comparable( 4 ) Adjusted Comparable FXN( 4 )
Volume (M UC)( 2 ) 3,864 3,864 17.8 % 16.9% 3,965 0.0%
Revenue per UC( 2 ) (€) 5.30 (5.1)% 5.23 2.7%
Revenue (€M) 20,438 20,438 11.7 % 11.7% 11.8 % 20,706 3.3% 3.5%
Operating profit (€M) 2,132 2,663 (8.8)% 12.2% 12.1 % 2,673 8.1% 8.0%
Diluted EPS (€) 3.08 3.95 (15.3)% 6.6% 6.5 %
Comparable free cash flow (€M) 1,817
Dividend per share (€) 1.97
DAMIAN GAMMELL, CHIEF EXECUTIVE OFFICER, SAID:
"2024 has been another solid year for CCEP with continued robust top and
bottom-line growth. Our geographic diversification, reinforced by the
Philippines, means we are even more resilient. We've grown share ahead of the
market, created value for our customers, delivered underlying volume growth
and gains in revenue per unit case through revenue and margin growth
management. Actively managing pricing and promotions across our broad pack
offering ensures we are relevant to all consumers, while driving profitable
revenue growth. Alongside ongoing productivity gains, we drove impressive free
cash flow and the early return to our leverage target. This all reflects our
great brands, great execution and great people as well as strong relationships
with our brand partners and customers, to whom we are extremely grateful.
"We are well placed for 2025 and beyond in categories that are growing, with
strong investment and commercial plans in place to drive growth. We are
confident that we have the right strategy, done sustainably to deliver on our
mid-term growth objectives. Our FY25 guidance, combined with the resumption of
share buybacks, demonstrate the strength of our business and our ability to
deliver continued shareholder value. We have the platform and momentum to go
even further while continuing to be a great partner for our customers and a
great place to work for our colleagues. We look forward to sharing more on our
exciting future at our capital markets event in May."
___________________________
* Buyback programme of up to €1bn is subject to further shareholder approval
at the 2025 Annual General Meeting. For detailed footnotes see below.
FY 2024 Metric( 1 ) As Reported Comparable( 1 ) Change vs FY 2023 Adjusted Comparable( 4 ) Change vs FY 2023
As Reported Comparable FXN( 1 ) Adjusted Comparable( 4 ) Adjusted Comparable FXN( 4 )
Comparable( 1 )
Total CCEP
Volume (M UC)( 2 ) 3,864 3,864 17.8 % 16.9 % 3,965 0.0 %
Revenue (€M) 20,438 20,438 11.7 % 11.7 % 11.8 % 20,706 3.3 % 3.5 %
Cost of sales (€M) 13,227 13,155 14.2 % 13.6 % 13.8 % 13,369 3.2 % 3.4 %
Operating profit (€M) 2,132 2,663 (8.8)% 12.2 % 12.1 % 2,673 8.1 % 8.0 %
Profit after taxes (€M) 1,444 1,849 (13.5)% 8.7 % 8.6 %
Diluted EPS (€) 3.08 3.95 (15.3)% 6.6 % 6.5 %
Revenue per UC( 2 ) (€) 5.30 (5.1)% 5.23 2.7 %
Cost of sales per UC( 2 ) (€) 3.41 (3.4)% 3.38 2.6 %
Comparable free cash flow (€M) 1,817
Dividend per share(*) (€) 1.97
Europe
Volume (M UC)( 2 ) 2,601 2,601 (1.6)% (2.4)% 2,601 (2.4)%
Revenue (€M) 14,971 14,971 2.9 % 2.9 % 2.3 % 14,971 2.9 % 2.3 %
Operating profit (€M) 1,769 2,015 (4.0)% 6.7 % 6.0 % 2,015 6.7 % 6.0 %
Revenue per UC( 2 ) (€) 5.72 4.0 % 5.72 4.0 %
APS (Australia, Pacific & Southeast Asia)
Volume (M UC)( 2 ) 1,263 1,263 98.9 % 97.3 % 1,364 4.9 %
Revenue (€M) 5,467 5,467 45.8 % 45.8 % 48.8 % 5,735 4.4 % 6.6 %
Operating profit (€M) 363 648 (27.0)% 33.6 % 35.9 % 658 12.5 % 14.5 %
Revenue per UC( 2 ) (€) 4.42 (25.2)% 4.29 0.9 %
___________________________
Note - Volumes disclosed on a comparable and adjusted comparable basis exclude
Q4'24 benefit of additional selling days versus Q4'23. Including the
additional selling days adjusted volumes for FY24 +0.8% & for Q4'24 +2.0%
FY & Q4 REVENUE HIGHLIGHTS( 1 , 4 )
Revenue
FY Reported +11.7%; Adjusted Comparable +3.5%( 3 , 4 )
• Continued to deliver more revenue growth for our retail customers
in our key markets than any of our FMCG peers( 5 )
• NARTD value share gains( 5 ) in-store +40bps, online +10bps &
in the away-from-home channel (AFH) +10bps
• Transactions ahead of volume growth in both Europe & APS
• Adjusted comparable volume 0.0%( 4 ) : underlying* up 0.7%
◦ By geography:
▪ Europe -2.4% (underlying -1.4%) reflecting great in-market
execution offset by strategic de-listing of Capri Sun, mixed summer weather
& softer demand in the AFH channel
▪ APS +4.9% reflecting:
- Australia/Pacific (AP): solid underlying momentum (excl. strategic
bulk water de-listings
in Q2 last year)
- Southeast Asia (SEA): strong growth driven by demand in the
Philippines
◦ By channel: AFH +0.8%; Home -0.6%
▪ Europe: AFH -3.6% impacted by mixed summer weather &
softer demand; Home -1.6% (underlying -0.4%)
▪ APS: AFH +5.7%; Home +4.0%, both in line with overall volume
growth
• Adjusted comparable revenue per unit case +2.7%( 2 , 3 , 4 )
reflecting positive headline pricing, promotional optimisation &
favourable brand mix, partly offset by geographic mix
◦ Europe: +4.0% reflecting headline price increases & favourable
brand mix
◦ APS: +0.9% reflecting headline price increases & promotional
optimisation, offset by geographic mix driven by strong growth in the
Philippines (being at a lower revenue per unit case)
Q4 Reported +16.2%; Adjusted Comparable +4.6%( 3 , 4 )
• Adjusted comparable volume -1.1%( 4 )
◦ By geography:
▪ Europe -2.6% (underlying -1.7%) reflecting strong in-market
execution offset by strategic de-listing of Capri Sun, cycling solid
comparables (Q4'23 comparable volume +2.0%) & softer demand in the AFH
channel
▪ APS +1.7% reflecting strong in-market execution:
- AP: continued momentum
- SEA: solid demand in the Philippines
◦ By channel: AFH -0.9%; Home -1.1%
▪ Europe: AFH -3.9%; Home -2.0% (underlying -0.9%)
▪ APS: AFH +2.0%; Home +2.6%
• Adjusted comparable revenue per unit case +2.6%( 2 , 3 , 4 )
reflecting positive headline pricing, promotional optimisation &
favourable brand mix, partly offset by geographic mix
◦ Europe: +3.1% reflecting headline price increases across all
markets
◦ APS: +2.3% reflecting headline price increases & promotional
optimisation, partly offset by geographic mix driven by strong growth in the
Philippines
___________________________
Note - Volumes disclosed on a comparable and adjusted comparable basis exclude
Q4'24 benefit of additional selling days versus Q4'23. Including the
additional selling days adjusted volumes for FY24 +0.8% & for Q4'24 +2.0%
*Underlying volume performance excludes the impact of strategic de-listings
Operating profit
FY Reported -8.8%; Adjusted Comparable +8.0%( 3 , 4 )
· Adjusted comparable cost of sales per unit case +2.6%( 2 , 3 , 4 ) reflecting
increased revenue per unit case driving higher concentrate costs, inflation in
manufacturing & consumption tax increase driven by Netherlands, partially
offset by the mix effect from strong growth in the Philippines (being at a
lower cost per unit case)
· Adjusted comparable operating profit of €2,673m, +8.0%( 3 , 4 ) driven by
top-line growth, delivery of efficiency programmes & optimisation of
discretionary spend. Reported operating profit of €2,132m, -8.8% reflecting
higher business transformation costs & non-cash impairment of Indonesian
business unit( 6 )
· Comparable diluted EPS of €3.95, +6.5%( 3 ) (reported -15.3%)
Other
· Comparable free cash flow & share buyback: generated impressive comparable
free cash flow of €1,817m reflecting strong performance & working
capital initiatives (net cash flows from operating activities of €3,061m)
· supports return to leverage range of 2.5-3.0x, one year ahead of plan with
FY24 year-end net debt:comparable EBITDA at 2.7x (FY23: 3.0x)
o consistent with its disciplined capital allocation framework, CCEP today
announces new share buyback programme of €1bn over next 12 months. Any
separate release with further details on the programme will be available via
www.cocacolaep.com
· FY dividend per share €1.97 +7.1%, maintains annualised payout ratio of ~50%
· Adjusted comparable ROIC( )(4 ) of 10.8% (reported 8.1%) up 50bps driven by
the increase in comparable profit after tax & continued focus on capital
allocation
· Transferred UK listing to Equity Shares Commercial Companies category in
November 2024. Potential inclusion in FTSE Index Series from March 2025( 7 )
· Sustainability highlights
o Retained MSCI AAA rating & inclusion on CDP A List for climate
o Included in Sustainalytics ESG top-rated companies list for 2025
FY25 GUIDANCE( 1 , 4 )
FY25 guidance( 1 , 4 ) in line with mid-term strategic objectives( 8 ).
Outlook for FY25 reflects our current assessment of market conditions. Unless
stated otherwise, guidance is on an adjusted comparable( 4 ) & FX-neutral
basis.
• Revenue: growth of approx.~4%
• Balanced between volume & revenue per unit case
• Two fewer selling days in Q1, one extra in Q4
• Cost of sales per UC: comparable growth of ~2%
• Expect broadly flat commodity inflation (hedged at ~80% for
FY25)
• Concentrate directly linked to revenue per UC through
incidence pricing
• Other:
• Operating profit: growth of ~7%
• Comparable effective tax rate: ~26%
• CAPEX: ~5% of revenue (incl. leases)
• Comparable free cash flow: at least €1.7bn
• Dividend payout ratio: ~50%( 9 ) based on comparable EPS
• Share buyback: €1bn over next 12 months
Fourth quarter & Full Year Revenue Performance by Geography( 1 )
Volumes are on a comparable basis for Europe and Australia / Pacific, and on
an adjusted comparable basis for SEA, total APS and total CCEP. Volumes
disclosed on a comparable and adjusted comparable basis exclude Q4'24 benefit
of additional selling days versus Q4'23.
Fourth quarter Full Year
Fx-Neutral Fx-Neutral
€ million % change % change € million % change % change
FBN( 10 ) 1,194 2.5% 2.5% 5,067 1.8% 1.9%
Germany 815 7.2% 7.2% 3,179 5.3% 5.3%
Great Britain 866 6.7% 2.3% 3,327 2.8% 0.1%
Iberia( 11 ) 777 2.9% 2.9% 3,398 2.2% 2.2%
Total Europe 3,652 4.6% 3.6% 14,971 2.9% 2.3%
Australia / Pacific( 13 ) 994 8.3% 8.2% 3,412 3.7% 5.1%
Southeast Asia( 4 , 14 ) 606 2.7% 5.4% 2,323 5.5% 8.9%
Total APS( 4 ) 1,600 6.1% 7.1% 5,735 4.4% 6.6%
Total CCEP( 4 ) 5,252 5.0% 4.6% 20,706 3.3% 3.5%
FBN( 10 )
• Mid single-digit volume decline during Q4 & FY driven by
strategic de-listing of Capri Sun (representing around half of volume decline)
& adverse weather.
• The Netherlands was also impacted by the consumption tax
increase.
• Strong FY volume growth for Powerade & Sprite supported by
great Olympics activation in France.
• Monster & Fuze Tea volumes also outperformed, driven by
growth in France.
• FY revenue/UC( 12 ) growth driven by headline price increases
across all markets.
Germany
• Q4 low single-digit volume decline, cycling strong
comparables.
• FY volume decline largely driven by softer AFH demand with
Home channel broadly flat.
• High single-digit FY volume growth in Monster.
• Have also seen strong growth from Coca-Cola Zero Sugar, Fuze
Tea & Powerade.
• FY revenue/UC( 12 ) growth driven by headline price increase
implemented in Q3.
• Positive pack & brand mix also contributed to the growth
e.g. Monster & Powerade.
Great Britain
• Q4 volume decline reflecting softer AFH demand &
de-listing of Capri Sun (underlying broadly flat) with adverse weather over
the summer contributing to FY volume decline.
• High single-digit FY volume growth for Coca-Cola Zero, Dr
Pepper & Monster with Powerade up >50%.
• FY increase in revenue/UC( 12 ) driven by headline price
increases implemented towards the end of Q2.
• Positive brand mix also contributed to the growth e.g.
Monster, Powerade & de-listing of Capri Sun.
Iberia( 11 )
• Q4 volume decline reflected adverse weather mitigated by solid
execution, with FY low single-digit decline.
• FY saw good growth in both Sprite & Aquarius volumes.
• Portfolio transition from Nestea to Fuze Tea, which began
during Q4, is progressing well.
• FY revenue/UC( 12 ) growth driven by headline price increases.
Australia / Pacific( 13 )
• Q4 & FY volume growth reflects continued momentum,
supported by great in-market activation.
• FY volume growth across Home & AFH channels.
• Share gains driven by outperformance of Coca-Cola Zero Sugar,
Fanta & Monster. FY volume growth supported by great activation, execution
& innovation incl. Coca-Cola OREO(TM), Fanta Pineapple Zero Sugar &
new Monster variants e.g. Ultra Strawberry Dreams & Peachy Keen.
• Growth in FY revenue/UC( 12 ) driven by headline price
increases & promotional optimisation.
Southeast Asia( 4 ,)( 14 )
• Solid Q4 & FY volume growth in the Philippines, reflecting
strong underlying market demand, robust share gains & great execution.
• FY volumes grew strongly in both Home & AFH channels, with
double-digit growth in the Philippines, driven by Coca-Cola Original Taste,
Sprite & water. This was partially offset by a weaker volume performance
in Indonesia impacted by the geopolitical situation in the Middle East.
Encouraging sparkling & transaction growth in unaffected areas.
• FY revenue/UC( 12 ) growth driven by headline price increases
& promotional optimisation.
Fourth quarter & Full Year Volume Performance by Category( 1 , 4 )
Volumes disclosed on a comparable and adjusted comparable basis exclude Q4'24
benefit of additional selling days versus Q4'23.
Fourth quarter Full Year
% of Total % Change % of Total % Change
Coca-Cola® 60.5% -% 59.3% 1.0 %
Flavours & Mixers 21.5% (1.9)% 21.8% (0.5)%
Water, Sports, RTD Tea & Coffee( 15 ) 10.9% (1.7)% 11.8% 0.8 %
Other inc. Energy 7.1% (6.1)% 7.1% (7.3)%
Total 100.0% (1.1)% 100.0% - %
Coca-Cola®
Q4: Flat; FY: +1.0%
• FY Coca-Cola Original Taste +0.9% reflecting strong demand in the
Philippines, partially offset by mixed summer weather in Europe.
• Coca-Cola Zero Sugar +3.6% with growth in both Europe & APS
driven by great execution & innovation e.g. Coca-Cola OREO(TM) Zero Sugar.
• Value share gains of Coca-Cola Original Taste +50bps( 5 ), led by
the Philippines with Coca-Cola Zero Sugar +20bps driven by growth in Europe.
Flavours & Mixers
Q4: -1.9%; FY: -0.5%
• FY Sprite +3.7% driven by robust consumer demand & great
execution across all key markets.
• Fanta FY slight decline reflecting growth in APS offset by adverse
weather in Europe. Flavour extensions e.g. Fanta Exotic & Afterlife
supported overall performance.
• Royal Bliss performed strongly with double-digit growth led by the
Netherlands.
Water, Sports, RTD Tea & Coffee( 15 )
Q4: -1.7%; FY: +0.8%
• FY Water growth driven by the Philippines, partially offset by
mixed summer weather in Europe & strategic de-listings within Europe &
Australia.
• FY Sports +4.1% with growth in Powerade driven by continued
favourable consumer trends in this category, great activation & innovation
e.g. Powerade Mango.
• RTD Tea & Coffee -1.4% with growth of Fuze Tea in Europe
offset by Frestea decline in Indonesia.
Other inc. Energy
Q4: -6.1% (+3.8% exc. Juices)
FY: -7.3% (+4.2% exc. Juices)
• FY solid growth in Energy +6.3% led by Monster, despite strong
comparables (FY23: +14.0%), driven by distribution (incl. category launch in
the Philippines) & share gains through innovation (e.g. Bad Apple, Ultra
Peachy Keen & Strawberry Dreams).
• Juices decline resulting from strategic de-listing of Capri Sun in
Europe.
• Alcohol volume decline reflects Australian excise increases partly
offset by good growth in Europe (e.g. launch of Absolut & Sprite).
Conference Call (with presentation)
• 14 February 2025 at 12:00 GMT, 13:00 CET & 07:00 a.m. EST;
accessible via www.cocacolaep.com
• Replay & transcript will be available at
www.cocacolaep.com
Financial Calendar
• Annual Report & Form 20F published: 21 March 2025
• Q1 2025 trading update: 29 April 2025
• Capital markets event: 13-15 May 2025
• Financial calendar available here:
https://ir.cocacolaep.com/financial-calendar/
Contacts
Investor Relations
Sarah
Willett
Charles Richardson Matt
Sharff
sarah.willett@ccep.com
charles.richardson@ccep.com msharff@ccep.com
Media Relations
mediaenquiries@ccep.com
The person responsible for arranging the release of this announcement on
behalf of the Company is Clare Wardle, General Counsel and Company Secretary.
The intention to return €1bn through a share buyback programme is the inside
information that is contained in this announcement.
About CCEP (LEI 549300LTH67W4GWMRF57)
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 4 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
___________________________
1. Refer to 'Note Regarding the Presentation of Adjusted financial
information and Alternative Performance Measures' for further details & to
'Supplementary Financial Information' for a reconciliation of reported to
comparable & reported to adjusted 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. Comparable & FX-neutral
4. Non-IFRS adjusted comparable financial information as if the
acquisition of Coca-Cola Beverages Philippines, Inc (CCBPI) occurred at the
beginning of the period presented for illustrative purposes only. It does not
intend to represent the results had the acquisition occurred at the dates
indicated, or project the results for any future dates or periods. Acquisition
completed on 23 February 2024. Prepared on a basis consistent with CCEP IFRS
accounting policies and includes acquisition accounting adjustments for the
period 1 January to 23 February. Refer to 'Note Regarding the Presentation of
Adjusted financial information and Alternative Performance Measures' for
further details.
5. External data sources: Haystack FY 24, Nielsen & IRI Period FY
24
6. See Note 5, 'Intangible Assets & Goodwill' in the accompanying
condensed consolidated financial statements
7. See release for more detail Coca-Cola Europacific Partners -
Coca-Cola EP PLC - Intention to Transfer to ESCC Category. FTSE Russell also
issues an 'Informative Notice' on 18.10.24
8. See our mid-term strategic objectives Coca-Cola Europacific
Partners - Guidance
9. Dividends subject to Board approval
10. Includes France, Monaco, Belgium, Luxembourg, the Netherlands,
Norway, Sweden & Iceland
11. Includes Spain, Portugal & Andorra
12. Revenue per unit case
13. Includes Australia, New Zealand, the Pacific Islands & Papua New
Guinea
14. Includes Philippines & Indonesia
15. RTD refers to ready to drink
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, divestitures, , 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. Forward-looking statements are based upon
various assumptions as well as 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. Factors that, in CCEP's view, could cause such actual results to
differ materially from forward looking statements include, but are not limited
to, those set forth in the "Risk Factors" section of CCEP's 2023 Annual Report
on Form 20-F filed with the SEC on 15 March 2024 and subsequent filings,
including, but not limited to: changes in the marketplace; changes in
relationships with large customers; adverse weather conditions; importation of
other bottlers' products into our territories; deterioration of global and
local economic and political conditions; increases in costs of raw materials;
changes in interest rates or debt rating; deterioration in political unity
within the European Union; defaults of or failures by counterparty financial
institutions; changes in tax law in countries in which we operate; additional
levies of taxes; legal changes in our status; waste and pollution, health
concerns perceptions, and recycling matters related to packaging; global or
regional catastrophic events; cyberattacks against us or our customers or
suppliers; technology failures; initiatives to realise cost savings;
calculating infrastructure investment; executing on our acquisition strategy;
costs, limitations of supplies, and quality of raw materials; maintenance of
brand image and product quality; managing workplace health, safety and
security; water scarcity and regulations; climate change and legal and
regulatory responses thereto; other legal, regulatory and compliance
considerations; anti-corruption laws, regulations, and sanction programmes;
legal claims against suppliers; litigation and legal proceedings against us;
attracting, retaining and motivating employees; our relationship with TCCC and
other franchisors; and differing views among our shareholders.
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, 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. 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.
Note Regarding the Presentation of Adjusted financial information and
Alternative Performance Measures
Adjusted financial information
Non-IFRS adjusted financial information for selected metrics has been provided
in order to illustrate the effects of the acquisition of CCBPI on the results
of operations of CCEP and to allow for greater comparability of the results of
the combined group between periods. The adjusted financial information has
been prepared for illustrative purposes only, and because of its nature
addresses a hypothetical situation. It does not intend to represent the
results had the acquisition occurred at the dates indicated, or project the
results for any future dates or periods. It is based on information and
assumptions that CCEP believe are reasonable, including assumptions as at 1
January of the period presented relating to transaction accounting
adjustments. No cost savings or synergies were contemplated in these
adjustments.
The non-IFRS adjusted financial information has not been prepared in
accordance with the requirements of Regulation S-X Article 11 of the US
Securities Act of 1933 or any generally accepted accounting standards, may not
necessarily be comparable to similarly titled measures employed by other
companies and should be considered supplemental to, and not a substitute for,
financial information prepared in accordance with generally accepted
accounting standards.
The acquisition completed on 23 February 2024 and the non-IFRS adjusted
financial information provided reflects the inclusion of CCBPI as if the
acquisition had occurred at the beginning of the period presented. It has been
prepared on a basis consistent with CCEP IFRS accounting policies and includes
transaction accounting adjustments for the periods presented.
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 enable 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.
For purposes of this document, the following terms are defined:
''As reported'' are results extracted from our unaudited condensed
consolidated financial statements.
"Adjusted" includes the results of CCEP as if the CCBPI acquisition had
occurred at the beginning of the period presented, including 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, impairment charges, accelerated
amortisation charges, acquisition and integration related costs, inventory
fair value step up related to acquisition accounting, expenses related to
certain legal provisions, net impact related to European flooding, gains on
the sale of property, income arising from the ownership of certain mineral
rights in Australia and gain on sale of sub-strata and associated mineral
rights in Australia. Comparable volume is also adjusted for selling days.
''Adjusted comparable" is defined as adjusted results excluding items
impacting comparability, as described above.
''Fx-neutral'' or "FXN" 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.
''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.
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 2024 and 31 December 2023:
Full Year 2024
In millions of € except share data which is calculated prior to rounding Operating profit Profit after taxes Diluted earnings per share (€)
As Reported 2,132 1,444 3.08
Items impacting comparability 531 405 0.87
Restructuring charges( 1 ) 264 194 0.43
Acquisition and Integration related costs( 2 ) 14 12 0.02
European flooding( 3 ) 1 1 -
Inventory step-up( 4 ) 5 3 -
Impairment( 5 ) 189 154 0.34
Litigation( 6 ) 3 2 -
Accelerated amortisation( 7 ) 55 39 0.08
Comparable 2,663 1,849 3.95
Full Year 2023
As Reported 2,339 1,669 3.63
Items impacting comparability 34 32 0.08
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( 8 ) (18) (12) (0.03)
Property sale( 9 ) (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( 10 ) (35) (35) (0.07)
Comparable 2,373 1,701 3.71
__________________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent cost associated with the acquisition and integration
of CCBPI.
( 3 ) Amounts represent the incremental expense incurred as a result of the
July 2021 flooding events, which impacted the operations of our production
facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December
2024 and the incremental expense incurred offset by the insurance recoveries
collected for the year ended 31 December 2023.
( 4 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( 5 ) Amounts represent the expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
( 6 ) Amounts relate to the increase in a provision established 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 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 year ended 31 December
2023.
( 9 ) 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.
( 10 ) 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.
Supplementary Financial Information - Items impacting comparability - Reported
to Adjusted Comparable
The following provides a summary reconciliation for CCEP's reported results
and adjusted comparable financial information for the year ended 31 December
2024:
Year ended 31 December 2024 (unaudited)
In € millions except per share data which is calculated prior to rounding Reported Items impacting comparability( 1 ) Comparable Adjusted comparable( 2 ) Transaction accounting adjustments( 3 ) Adjusted comparable combined
CCEP CCEP CCBPI CCEP CCEP
Revenue 20,438 - 20,438 268 - 20,706
Cost of sales 13,227 (72) 13,155 214 - 13,369
Operating profit 2,132 531 2,663 10 - 2,673
Total finance costs, net 187 - 187 3 - 190
Profit after taxes 1,444 405 1,849 5 - 1,854
Attributable to:
Shareholders 1,418 402 1,820 3 - 1,823
Non-controlling interest 26 3 29 2 - 31
Diluted earnings per share (€) 3.08 3.95 3.96
Diluted weighted average shares outstanding 461
The following provides a summary reconciliation of CCEP's reported and
adjusted comparable financial information for the full year ended 31 December
2023, assuming the acquisition occurred on 1 January 2023. Following the
announcement of the acquisition on 23 February 2024, the adjusted financial
information has been updated to reflect changes in the acquisition accounting
adjustments.
Year ended 31 December 2023 (unaudited) Reported Items impacting comparability( 1 ) Comparable Adjusted comparable( 2 ) Transaction accounting adjustments( 3 ) Adjusted comparable combined
CCEP CCEP CCBPI CCEP CCEP
Revenue 18,302 - 18,302 1,744 - 20,046
Cost of sales 11,582 (6) 11,576 1,382 - 12,958
Operating profit 2,339 34 2,373 100 - 2,473
Total finance costs, net 120 - 120 28 26 174
Profit after taxes 1,669 32 1,701 51 (19) 1,733
Attributable to:
Shareholders 1,669 32 1,701 31 (19) 1,713
Non-controlling interest - - - 20 - 20
Diluted earnings per share (€) 3.63 3.71 3.73
Diluted weighted average shares outstanding 459
__________________________
( 1 ) Amounts represent items affecting the comparability of CCEP's
year-over-year financial performance.
( 2 ) Amounts represent unaudited results of CCBPI as if the acquisition had
occurred on 1 January, including acquisition accounting adjustments, CCEP IFRS
accounting policy reclassifications and the impact of debt financing costs in
connection with the acquisition, excluding items impacting comparability.
( 3 ) Amounts represent transaction accounting adjustments for the 12 months
ending 31 December 2023 as if the acquisition had occurred on 1 January 2023
comprising finance costs from CCEP acquisition financing. Tax rate used is
24%, in line with the Group's effective tax rate for the year ended 31
December 2023. Separate financing adjustment is included within CCBPI Adjusted
comparable.
The table below illustrates the impact of adjustments made to CCBPI in order
to present them on a basis consistent with CCEP's accounting policies and
including acquisition accounting adjustments.
Year ended 31 December 2023 (unaudited)
In € millions Historical CCBPI( 1 ) Reclassifications( 2 ) Historical adjusted CCBPI Transaction accounting adjustments( 3 ) Items impacting comparability( 4 ) Adjusted comparable
Revenue 1,757 (1) 1,756 - (12) 1,744
Cost of sales 1,380 (2) 1,378 17 (13) 1,382
Operating profit 124 (3) 121 (21) - 100
Total finance costs, net - (2) (2) 29 1 28
Profit after taxes 90 - 90 (39) - 51
( 1 ) Historical unaudited CCBPI results for the period 1 January 2023 to 31
December 2023.
( 2 ) Accounting policy and classification adjustments made to CCBPI in order
to present on a basis consistent with CCEP IFRS accounting.
( 3 ) Amounts represent transaction accounting adjustments for the 12 months
ending 31 December 2023 as if the acquisition had occurred on 1 January 2023,
and mainly include incremental depreciation and amortisation impact relating
to fair values for intangibles and property plant and equipment, inventory
step-up costs, an increase in total finance costs as a result of local
financing in the Philippines related to the acquisition and the inclusion of
acquisition and integration related costs.
( 4 ) Amounts represent one-time items identified by CCBPI which are not
expected to recur, and mainly include inventory step-up costs, acquisition and
integration related costs and the impact from the reversal of certain
provisions.
( )
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 2024 31 December 2023 % Change 31 December 2024 31 December 2023 % Change
As reported 5,252 4,518 16.2 % 20,438 18,302 11.7 %
Adjust: Impact of fx changes (20) n/a n/a 29 n/a n/a
Fx-neutral 5,232 4,518 15.8 % 20,467 18,302 11.8 %
Revenue per unit case 5.23 5.63 (7.1)% 5.30 5.58 (5.1)%
Revenue Europe
As reported 3,652 3,492 4.6% 14,971 14,553 2.9%
Adjust: Impact of fx changes (35) n/a n/a (83) n/a n/a
Fx-neutral 3,617 3,492 3.6% 14,888 14,553 2.3%
Revenue per unit case 5.68 5.52 3.1% 5.72 5.50 4.0%
Revenue APS
As reported 1,600 1,026 55.9 % 5,467 3,749 45.8 %
Adjust: Impact of fx changes 15 n/a n/a 112 n/a n/a
Fx-neutral 1,615 1,026 57.4 % 5,579 3,749 48.8 %
Revenue per unit case 4.44 6.05 (26.7)% 4.42 5.91 (25.2)%
Revenue by Geography Year ended 31 December 2024
In millions of €
As reported Reported Fx-Neutral
% change % change
Great Britain 3,327 2.8 % 0.1 %
Germany 3,179 5.3 % 5.3 %
Iberia( 1 ) 3,398 2.2 % 2.2 %
France( 2 ) 2,322 0.0 % 0.0 %
Belgium and Luxembourg 1,070 (0.7)% (0.7)%
Netherlands 785 9.3 % 9.3 %
Norway 398 5.9 % 7.7 %
Sweden 410 3.0 % 2.5 %
Iceland 82 (2.4)% (2.4)%
Total Europe 14,971 2.9 % 2.3 %
Australia 2,475 3.8 % 4.5 %
New Zealand and Pacific Islands 694 2.2 % 3.7 %
Indonesia 403 (12.0)% (8.5)%
Papua New Guinea 243 7.0 % 15.0 %
Philippines 1,652 n/a n/a
Total APS 5,467 45.8 % 48.8 %
Total CCEP 20,438 11.7 % 11.8 %
( 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 2024 31 December 2023 % Change 31 December 2024 31 December 2023 % Change
Volume 1,000 802 24.7% 3,864 3,279 17.8%
Impact of selling day shift - 26 n/a - 26 n/a
Comparable volume - Selling Day Shift adjusted 1,000 828 20.8% 3,864 3,305 16.9%
Comparable Volume - Selling Day Shift Europe
Volume 636 632 0.6% 2,601 2,644 (1.6)%
Impact of selling day shift - 21 n/a - 21 n/a
Comparable volume - Selling Day Shift adjusted 636 653 (2.6)% 2,601 2,665 (2.4)%
Comparable Volume - Selling Day Shift APS
Volume 364 170 114.1% 1,263 635 98.9%
Impact of selling day shift - 5 n/a - 5 n/a
Comparable volume - Selling Day Shift adjusted 364 175 108.0% 1,263 640 97.3%
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 2024 31 December 2023 % Change
As reported 13,227 11,582 14.2%
Adjust: Total items impacting comparability (72) (6) n/a
Adjust: Restructuring charges( 1 ) (10) (9)
Adjust: European flooding( 2 ) (1) 9
Adjust: Litigation( 3 ) (2) (6)
Adjust: Impairment( 4 ) (54) -
Adjust: Inventory step-up( 5 ) (5) -
Comparable 13,155 11,576 13.6%
Adjust: Impact of fx changes 20 n/a n/a
Comparable & fx-neutral 13,175 11,576 13.8%
Cost of sales per unit case 3.41 3.53 (3.4)%
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent the incremental expense incurred as a result of the
July 2021 flooding events, which impacted the operations of our production
facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December
2024 and the incremental expense incurred offset by the insurance recoveries
collected for the year ended 31 December 2023.
( 3 ) Amounts relate to the increase in a provision established in connection
with an ongoing labour law matter in Germany.
( 4 ) Amounts represent the expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
( 5 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( )
For the year ending 31 December 2024, reported cost of sales were €13,227
million, up 14.2% versus 2023.
Comparable cost of sales for the same period were €13,155 million, up 13.6%
versus 2023. Cost of sales per unit case decreased by 3.4% on a comparable and
fx-neutral basis, reflecting the impact of the newly acquired CCBPI
operations, partly offset by increased revenue per unit case driving higher
concentrate costs, inflation in manufacturing and consumption tax increase
driven by the Netherlands.
Operating expenses
Operating Expenses Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2024 31 December 2023 % Change
As reported 5,079 4,488 13.2%
Adjust: Total items impacting comparability (459) (135) n/a
Adjust: Restructuring charges( 1 ) (254) (85)
Adjust: Acquisition and Integration related costs( 2 ) (14) (12)
Adjust: Litigation( 3 ) (1) (11)
Adjust: Accelerated amortisation( 4 ) (55) (27)
Adjust: Impairment( 5 ) (135) -
Comparable 4,620 4,353 6.1%
Adjust: Impact of fx changes 11 n/a n/a
Comparable & fx-neutral 4,631 4,353 6.4%
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent cost associated with the acquisition and integration
of CCBPI.
( 3 ) Amounts relate to the increase in a provision established 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 expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
( )
For the year ending 31 December 2024, reported operating expenses were
€5,079 million, up 13.2% versus 2023.
Comparable operating expenses were €4,620 million for the same period, up
6.1% versus 2023, reflecting the impact of the newly acquired CCBPI operations
and inflation, partially offset by the benefit of ongoing efficiency
programmes and our continuous efforts on discretionary spend optimisation.
In November 2022, the Group announced a new efficiency programme to be
delivered by the end of 2028. This programme focusses on further supply chain
efficiencies, leveraging global procurement and a more integrated shared
service centre model, all enabled by next generation technology including
digital tools and data and analytics. During 2024, as part of this efficiency
programme, the Group announced restructuring proposals resulting in €254
million of operating expenses primarily related to expected severance
payments. This compares to €85 million of restructuring charges within
operating expenses incurred in year ended 31 December 2023, related to various
productivity initiatives.
Acquisition and integration related costs of €14 million were recognised
within reported operating expenses for the year ended 31 December 2024
associated with the acquisition of CCBPI, primarily brokerage and advisory
fees.
Operating profit
Operating Profit CCEP Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2024 31 December 2023 % Change
As reported 2,132 2,339 (8.8)%
Adjust: Total items impacting comparability 531 34 n/a
Comparable 2,663 2,373 12.2%
Adjust: Impact of fx changes (2) n/a n/a
Comparable & fx-neutral 2,661 2,373 12.1%
( )
Operating Profit Europe
As reported 1,769 1,842 (4.0)%
Adjust: Total items impacting comparability 246 46 n/a
Comparable 2,015 1,888 6.7%
Adjust: Impact of fx changes (13) n/a n/a
Comparable & fx-neutral 2,002 1,888 6.0%
( )
Operating Profit APS
As reported 363 497 (27.0)%
Adjust: Total items impacting comparability 285 (12) n/a
Comparable 648 485 33.6%
Adjust: Impact of fx changes 11 n/a n/a
Comparable & fx-neutral 659 485 35.9%
Supplemental Financial Information - Operating Profit - Reported to Adjusted
Comparable
Revenue
Adjusted 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 2024 31 December 2023 % Change 31 December 2024 31 December 2023 % Change
As reported 5,252 4,518 16.2% 20,438 18,302 11.7%
Add: Adjusted revenue impact( 1 ) - 485 n/a 268 1,756 n/a
Adjust: Total items impacting comparability - (3) n/a - (12) n/a
Adjusted Comparable 5,252 5,000 5.0% 20,706 20,046 3.3%
Adjust: Impact of fx changes (20) n/a n/a 37 n/a n/a
Adjusted Comparable and fx-neutral 5,232 5,000 4.6% 20,743 20,046 3.5%
Adjusted Revenue per unit case 5.23 5.10 2.6% 5.23 5.09 2.7%
Adjusted Revenue APS
As reported 1,600 1,026 55.9% 5,467 3,749 45.8%
Add: Adjusted revenue impact( 1 ) - 485 n/a 268 1,756 n/a
Adjust: Total items impacting comparability - (3) n/a - (12) n/a
Adjusted Comparable 1,600 1,508 6.1% 5,735 5,493 4.4%
Adjust: Impact of fx changes 15 n/a n/a 120 n/a n/a
Adjusted Comparable and fx-neutral 1,615 1,508 7.1% 5,855 5,493 6.6%
Adjusted Revenue per unit case 4.44 4.33 2.3% 4.29 4.26 0.9%
( 1 ) The adjusted revenue impact reflects the inclusion of Philippines
revenue as if the acquisition had occurred at the beginning of the period
presented and prepared on a basis consistent with CCEP IFRS accounting
policies.
Volume
( )
Adjusted 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 2024 31 December 2023 % Change 31 December 2024 31 December 2023 % Change
Volume 1,000 802 24.7% 3,864 3,279 17.8%
Impact of selling day shift - 26 n/a - 26 n/a
Comparable volume - Selling Day Shift adjusted 1,000 828 20.8% 3,864 3,305 16.9%
Add: Adjusted volume impact( 1 ) - 183 n/a 101 660 n/a
Adjusted comparable volume 1,000 1,011 (1.1)% 3,965 3,965 0.0%
Adjusted Comparable Volume - Selling Day Shift APS
Volume 364 170 114.1% 1,263 635 98.9%
Impact of selling day shift - 5 n/a - 5 n/a
Comparable volume - Selling Day Shift adjusted 364 175 108.0% 1,263 640 97.3%
Add: Adjusted volume impact( 1 ) - 183 n/a 101 660 n/a
Adjusted comparable volume 364 358 1.7% 1,364 1,300 4.9%
( 1 ) The adjusted volume impact reflects the inclusion of Philippines volume
as if the acquisition had occurred at the beginning of the period presented.
Adjusted Philippines volume for the year ended 31 December 2023 is 655 million
unit cases. Including the impact of the Q4 selling day shift (5 million unit
cases), adjusted comparable Philippines volume is 660 million unit cases.
Cost of Sales
( )
Adjusted 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 2024 31 December 2023 % Change
As reported 13,227 11,582 14.2%
Add: Adjusted cost of sales impact( 1 ) 213 1,378 n/a
Adjust: Acquisition accounting( 2 ) 1 17
Adjust: Total items impacting comparability (72) (19)
Adjust: Restructuring charges( 3 ) (10) (9)
Adjust: European flooding( 4 ) (1) 9
Adjust: Inventory step-up( 5 ) (5) (5)
Adjust: Litigation( 6 ) (2) (6)
Adjust: Impairment( 7 ) (54) -
Adjust: Other( 8 ) - (8)
Adjusted Comparable 13,369 12,958 3.2%
Adjust: Impact of fx changes 26 n/a n/a
Adjusted Comparable & fx-neutral 13,395 12,958 3.4%
Adjusted cost of sales per unit case 3.38 3.29 2.6%
__________________________
( 1 ) Amounts represent unaudited cost of sales of CCBPI as if the acquisition
had occurred on 1 January, including acquisition accounting adjustments and
CCEP IFRS accounting policy reclassifications.
( 2 ) Amounts represent transaction accounting adjustments as if the
acquisition had occurred on 1 January. These include the depreciation impact
relating to fair values for property plant and equipment and the non-recurring
impact of the fair value step-up of CCBPI finished goods.
( 3 ) Amounts represent restructuring charges related to business
transformation activities.
( 4 ) Amounts represent the incremental expense incurred as a result of the
July 2021 flooding events, which impacted the operations of our production
facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December
2024 and the incremental expense incurred offset by the insurance recoveries
collected for the year ended 31 December 2023.
( 5 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( 6 ) Amounts relate to the increase in a provision established in connection
with an ongoing labour law matter in Germany.
( 7 ) Amounts represent the expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
( 8 ) Amounts represent one-time items identified by CCBPI which are not
expected to recur, and mainly include the impact from the reversal of certain
provisions partially offset by charges related to business transformation
activities.
Adjusted comparable cost of sales for the year ended 31 December 2024 were
€13,369 million, up 3.2% versus 2023.
Cost of sales per unit case increased by 2.6% on an adjusted comparable and
fx-neutral basis, driven by an increase in concentrate in line with our
incidence model reflecting the improvement in revenue per unit case. There was
also upward pressure on manufacturing costs and increased consumption tax
driven by the Netherlands, partially offset by the mix effect from the strong
growth in the Philippines.
Operating Expenses
Adjusted Operating Expenses Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2024 31 December 2023 % Change
As reported 5,079 4,488 13.2%
Add: Adjusted operating expenses impact( 1 ) 43 257 n/a
Adjust: Acquisition accounting( 2 ) 1 4
Adjust: Total items impacting comparability (459) (134)
Adjust: Restructuring charges( 3 ) (254) (85)
Adjust: Acquisition and Integration related costs( 4 ) (14) (12)
Adjust: Litigation( 5 ) (1) (11)
Adjust: Impairment( 6 ) (135) -
Adjust: Accelerated amortisation( 7 ) (55) (27)
Adjust: Other( 8 ) - 1
Adjusted Comparable 4,664 4,615 1.1%
Adjust: Impact of fx changes 12 n/a n/a
Adjusted Comparable & fx-neutral 4,676 4,615 1.3%
__________________________
( 1 ) Amounts represent unaudited operating expenses of CCBPI as if the
acquisition had occurred on 1 January, including acquisition accounting
adjustments and CCEP IFRS accounting policy reclassifications.
( 2 ) Amounts represent transaction accounting adjustments as if the
acquisition had occurred on 1 January. These include the depreciation and
amortisation impact relating to fair values for intangibles and property plant
and equipment and acquisition and integration related costs.
( 3 ) Amounts represent restructuring charges related to business
transformation activities.
( 4 ) Amounts represent cost associated with the acquisition and integration
of CCBPI.
( 5 ) Amounts relate to the increase in a provision established in connection
with an ongoing labour law matter in Germany.
( 6 ) Amounts represent the expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
( 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 one-time items identified by CCBPI which are not
expected to recur, and mainly include the impact from the reversal of certain
provisions partially offset by charges related to business transformation
activities.
Adjusted comparable operating expenses for the year ended 31 December 2024
were €4,664 million, up 1.1% versus 2023, reflecting inflation, partially
offset by the benefit of on-going efficiency programmes and our continuous
efforts on discretionary spend optimisation in areas such as trade marketing,
travel and meetings.
Operating Profit
Adjusted Operating Profit CCEP Year Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
31 December 2024 31 December 2023 % Change
As reported 2,132 2,339 (8.8)%
Add: Adjusted operating profit impact 12 121 n/a
Adjust: Acquisition accounting (2) (21)
Adjust: Total items impacting comparability 531 34
Adjusted Comparable 2,673 2,473 8.1%
Adjust: Impact of fx changes (1) n/a n/a
Adjusted Comparable & fx-neutral 2,672 2,473 8.0%
Adjusted Operating Profit APS
As reported 363 497 (27.0)%
Add: Adjusted operating profit impact 12 121 n/a
Adjust: Acquisition accounting (2) (21)
Adjust: Total items impacting comparability 285 (12)
Adjusted Comparable 658 585 12.5%
Adjust: Impact of fx changes 12 n/a n/a
Adjusted Comparable & fx-neutral 670 585 14.5%
Supplemental Financial Information - Effective Tax Rate
The reported effective tax rate was 25% and 24% for the years ended 31
December 2024 and 31 December 2023, respectively.
The increase in the reported effective tax rate to 25% in 2024 (2023: 24%)
reflects the impact of non-UK operations which is substantially offset by
prior period adjustments.
The comparable effective tax rate was 25% and 24% for the years ended 31
December 2024 and 31 December 2023, respectively.
Income tax Year Ended
In millions of €
31 December 2024 31 December 2023
As reported 492 534
Adjust: Total items impacting comparability 126 4
Adjust: Restructuring charges( 1 ) 70 15
Adjust: European flooding( 2 ) - (2)
Adjust: Acquisition and Integration related costs( 3 ) 2 -
Adjust: Inventory step-up( 4 ) 2 -
Adjust: Coal royalties( 5 ) - (6)
Adjust: Property sale( 6 ) - (16)
Adjust: Litigation( 7 ) 1 5
Adjust: Impairment( 8 ) 35 -
Adjust: Accelerated amortisation( 9 ) 16 8
Comparable 618 538
__________________________
( 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 as
a result of the July 2021 flooding events, which impacted the operations of
our production facilities in Chaudfontaine and Bad Neuenahr, for the year
ended 31 December 2024 and the incremental expense incurred offset by the
insurance recoveries collected for the year ended 31 December 2023.
( 3 ) Amounts represent the tax impact of cost associated with the acquisition
and integration of CCBPI.
( 4 ) Amounts represent the tax impact of the non-recurring impact of fair
value step-up of CCBPI inventories.
( 5 ) 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 year
ended 31 December 2023.
( 6 ) 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.
( 7 ) Amounts represent the tax impact related to the increase in a provision
established in connection with an ongoing labour law matter in Germany.
( 8 ) Amounts represent the tax impact of the expense recognised in relation
to the impairment of the Group's Indonesia cash generating unit and the
impairment of the Feral brand, which was sold during the year ended 31
December 2024.
( 9 ) 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 2024 31 December 2023
Net cash flows from operating activities 3,061 2,806
Less: Purchases of property, plant and equipment (791) (672)
Less: Purchases of capitalised software (148) (140)
Add: Proceeds from sales of property, plant and equipment 15 101
Less: Payments of principal on lease obligations (157) (148)
Less: Net interest payments (175) (124)
Adjust: Items impacting comparability( 1 ) 12 (89)
Comparable Free Cash Flow 1,817 1,734
( 1 ) During the year ended 31 December 2023, the Group 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 2024, the Group paid a further €12 million of cash taxes
in connection with those proceeds. The cash impacts associated with those
specific events have been included within the Group's net cash flows from
operating activities for the years ended 31 December 2024 and 31 December
2023, respectively. Given the unusual nature and to allow for better period to
period comparability, our comparable free cash flow measure excludes the cash
impact related to those items.
If the Acquisition had occurred on 1 January 2024, adjusted comparable free
cash flow for the year ended 31 December 2024 is estimated to approximate the
comparable free cash flow in the table above.
Supplemental Financial Information - Borrowings
Net Debt As at Credit Ratings
In millions of € As of 13 February 2025
31 December 2024 31 December 2023 Moody's Fitch Ratings
Total borrowings 11,331 11,396 Long-term rating Baa1 BBB+
Fair value of hedges related to borrowings( 1 ) 36 28 Outlook Stable Stable
Other financial assets/liabilities( 1 ) 18 20 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 ) 11,385 11,444
Less: cash and cash equivalents( 2 3 ) (1,563) (1,419)
Less: short term investments( 4 ) (150) (568)
Net debt 9,672 9,457
___________________
( 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 2024 and 31 December 2023
includes €36 million and €42 million of cash in Papua New Guinea Kina,
respectively. 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 ) Cash and cash equivalents as at 31 December 2024 includes €10
million (31 December 2023: nil) of cash held by the Group's Employee Benefit
Trust. The funds can be solely used for the purchases of CCEP shares to
satisfy the Group's award requirements under its current and future
share-based compensation plans.
( 4 ) 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 2024 and 31 December 2023 include €18 million and €33
million of assets in Papua New Guinea Kina, respectively, subject to the same
currency controls outlined above.
Supplemental Financial Information - Comparable EBITDA
Comparable EBITDA Year Ended
In millions of €
31 December 2024 31 December 2023
Reported profit after tax 1,444 1,669
Taxes 492 534
Finance costs, net 187 120
Non-operating items 9 16
Reported operating profit 2,132 2,339
Depreciation and amortisation 933 792
Reported EBITDA 3,065 3,131
Items impacting comparability
Restructuring charges( 1 ) 247 83
Acquisition and integration related costs( 2 ) 14 12
Litigation( 3 ) 3 17
European flooding( 4 ) 1 (9)
Property sale( 5 ) - (54)
Sale of sub-strata and associated mineral rights( 6 ) - (35)
Coal royalties( 7 ) - (18)
Inventory step-up( 8 ) 5 -
Impairment( 9 ) 189 -
Comparable EBITDA 3,524 3,127
Net debt to reported EBITDA 3.2 3.0
Net debt to comparable EBITDA 2.7 3.0
______________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities, excluding accelerated depreciation included in the
depreciation and amortisation line.
( 2 ) Amounts represent cost associated with the acquisition and integration
of CCBPI.
( 3 ) Amounts relate to the increase in a provision established in connection
with an ongoing labour law matter in Germany.
( 4 ) Amounts represent the incremental expense incurred as a result of the
July 2021 flooding events, which impacted the operations of our production
facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December
2024 and the incremental expense incurred offset by the insurance recoveries
collected for the year ended 31 December 2023.
( 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 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.
( 7 ) 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 year ended and 31
December 2023.
( 8 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( 9 ) Amounts represent the expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
Adjusted Comparable EBITDA Year Ended
In millions of €
31 December 2024
Reported profit after tax 1,444
Taxes 492
Finance costs, net 187
Non-operating items 9
Reported operating profit 2,132
Add: Adjusted operating profit impact( 1 ) 12
Adjust: Acquisition accounting( 2 ) (2)
Adjusted operating profit 2,142
Depreciation and amortisation( 3 ) 945
Adjusted EBITDA 3,087
Items impacting comparability
Restructuring charges( 4 ) 247
Acquisition and integration related costs( 5 ) 14
Litigation( 6 ) 3
European flooding( 7 ) 1
Inventory step-up( 8 ) 5
Impairment( 9 ) 189
Adjusted Comparable EBITDA 3,546
Net debt to adjusted EBITDA 3.1
Net debt to adjusted comparable EBITDA 2.7
______________________
( 1 ) Amounts represent unaudited operating profit of CCBPI as if the
acquisition had occurred on 1 January, including acquisition accounting
adjustments and CCEP IFRS accounting policy reclassifications.
( 2 ) Amounts represent transaction accounting adjustments as if the
acquisition had occurred on 1 January. These include the depreciation and
amortisation impact relating to fair values for intangibles and property plant
and equipment, the non-recurring impact of the provisional fair value step-up
of CCBPI finished goods and acquisition and integration related costs.
( 3 ) Includes the depreciation and amortisation impact relating to fair
values for intangibles and property plant and equipment as if the acquisition
had occurred on 1 January.
( 4 ) Amounts represent restructuring charges related to business
transformation activities, excluding accelerated depreciation included in the
depreciation and amortisation line.
( 5 ) Amounts represent cost associated with the acquisition and integration
of CCBPI.
( 6 ) Amounts relate to increase in a provision established in connection with
an ongoing labour law matter in Germany.
( 7 ) Amounts represent the incremental expense incurred as a result of the
July 2021 flooding events, which impacted the operations of our production
facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December
2024 and the incremental expense incurred offset by the insurance recoveries
collected for the year ended 31 December 2023.
( 8 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( 9 ) Amounts represent the expense recognised in relation to the impairment
of the Group's Indonesia cash generating unit and the impairment of the Feral
brand, which was sold during the year ended 31 December 2024.
Supplemental Financial Information - Return on invested capital
( )
ROIC Year Ended
In millions of €
31 December 2024 31 December 2023
Reported profit after tax 1,444 1,669
Taxes 492 534
Finance costs, net 187 120
Non-operating items 9 16
Reported operating profit 2,132 2,339
Items impacting comparability( 1 ) 531 34
Comparable operating profit( 1 ) 2,663 2,373
Taxes( 2 ) (667) (570)
Non-controlling interest (29) -
Comparable operating profit after tax attributable to shareholders 1,967 1,803
Opening borrowings less cash and cash equivalents and short term investments 9,409 10,264
Opening equity attributable to shareholders 7,976 7,447
Opening Invested Capital 17,385 17,711
Closing borrowings less cash and cash equivalents and short term investments 9,618 9,409
Closing equity attributable to shareholders 8,489 7,976
Closing Invested Capital 18,107 17,385
Average Invested Capital 17,746 17,548
ROIC 8.1% 9.5%
Comparable ROIC 11.1% 10.3%
____________________
( 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 (2024:
25%; 2023: 24%).
Adjusted comparable ROIC Year Ended
In millions of €
31 December 2024
Reported profit after tax 1,444
Taxes 492
Finance costs, net 187
Non-operating items 9
Reported operating profit 2,132
Add: Adjusted operating profit impact( 1 ) 12
Adjust: Acquisition accounting( 2 ) (2)
Adjusted operating profit 2,142
Items impacting comparability( 3 ) 531
Adjusted comparable operating profit( 3 ) 2,673
Taxes( 4 ) (670)
Non-controlling interest (31)
Adjusted comparable operating profit after tax attributable to shareholders 1,972
Opening borrowings less cash and cash equivalents and short term 10,536
investments( 5 )
Opening equity attributable to shareholders( 5 ) 7,976
Opening Invested Capital 18,512
Closing borrowings less cash and cash equivalents and short term investments 9,618
Closing equity attributable to shareholders 8,489
Closing Invested Capital 18,107
Average Invested Capital 18,310
Adjusted comparable ROIC 10.8%
____________________
( 1 ) Amounts represent unaudited operating profit of CCBPI as if the
acquisition had occurred on 1 January, including acquisition accounting
adjustments and CCEP IFRS accounting policy reclassifications.
( 2 ) Amounts represent transaction accounting adjustments as if the
acquisition had occurred on 1 January. These include the depreciation and
amortisation impact relating to fair values for intangibles and property plant
and equipment.
( 3 ) Reconciliation from reported to comparable and to adjusted comparable
operating profit is included in the Supplementary Financial Information -
Items impacting comparability section.
( 4 ) Tax rate used is the comparable effective tax rate for the year (2024:
25%; 2023: 24%).
( 5 ) In light of the CCBPI acquisition and in order to provide investors with
a more meaningful measure of capital efficiency for 2024, an adjusted
comparable ROIC measure has been presented for the year ended 31 December
2024. To derive this adjusted comparable measure, opening borrowings, cash and
cash equivalents and short term investments, and equity attributable to
shareholders were adjusted to reflect transaction accounting adjustments, the
impact of debt financing and cash flows in connection with the acquisition, as
if the transaction had occurred on 1 January 2024.
Coca-Cola Europacific Partners plc
Condensed Consolidated Income Statement (Unaudited)
Year Ended
31 December 2024 31 December 2023
Note € million € million
Revenue 3 20,438 18,302
Cost of sales (13,227) (11,582)
Gross profit 7,211 6,720
Selling and distribution expenses (3,345) (3,178)
Administrative expenses (1,734) (1,310)
Other Income 14 - 107
Operating profit 2,132 2,339
Finance income 85 65
Finance costs (272) (185)
Total finance costs, net (187) (120)
Non-operating items (9) (16)
Profit before taxes 1,936 2,203
Taxes 12 (492) (534)
Profit after taxes 1,444 1,669
Profit attributable to shareholders 1,418 1,669
Profit attributable to non-controlling interests 26 -
Profit after taxes 1,444 1,669
Basic earnings per share (€) 4 3.08 3.64
Diluted earnings per share (€) 4 3.08 3.63
Coca-Cola Europacific Partners plc
Condensed Consolidated Statement of Comprehensive Income (Unaudited)
Year Ended
31 December 2024 31 December 2023
€ million € million
Profit after taxes 1,444 1,669
Components of other comprehensive income/(loss):
Items that may be subsequently reclassified to the income statement:
Foreign currency translations:
Pretax activity, net (85) (246)
Tax effect - -
Foreign currency translation, net of tax (85) (246)
Cash flow hedges:
Pretax activity, net 15 21
Tax effect (3) (11)
Cash flow hedges, net of tax 12 10
Other reserves:
Pretax activity, net (8) 3
Tax effect 3 -
Other reserves, net of tax (5) 3
Items that may be subsequently reclassified to the income statement (78) (233)
Items that will not be subsequently reclassified to the income statement:
Pension plan remeasurements:
Pretax activity, net 61 (108)
Tax effect (16) 35
Pension plan adjustments, net of tax 45 (73)
Items that will not be subsequently reclassified to the income statement: 45 (73)
Other comprehensive income/(loss) for the period, net of tax (33) (306)
Comprehensive income for the period 1,411 1,363
Comprehensive income attributable to shareholders 1,385 1,363
Comprehensive income attributable to non-controlling interests 26 -
Comprehensive income for the period 1,411 1,363
Coca-Cola Europacific Partners plc
Condensed Consolidated Statement of Financial Position (Unaudited)
31 December 2024 31 December 2023
Note € million € million
ASSETS
Non-current:
Intangible assets 5 12,749 12,395
Goodwill 5 4,687 4,514
Property, plant and equipment 6 6,434 5,344
Investment property 7 73 -
Non-current derivative assets 98 100
Deferred tax assets 24 1
Other non-current assets 397 295
Total non-current assets 24,462 22,649
Current:
Current derivative assets 102 161
Current tax assets 58 58
Inventories 1,608 1,356
Amounts receivable from related parties 89 123
Trade accounts receivable 2,564 2,547
Other current assets 458 351
Assets held for sale 8 46 22
Short term investments 150 568
Cash and cash equivalents 1,563 1,419
Total current assets 6,638 6,605
Total assets 31,100 29,254
LIABILITIES
Non-current:
Borrowings, less current portion 9 9,940 10,096
Employee benefit liabilities 172 191
Non-current provisions 104 45
Non-current derivative liabilities 161 169
Deferred tax liabilities 3,498 3,378
Non-current tax liabilities 30 75
Other non-current liabilities 61 46
Total non-current liabilities 13,966 14,000
Current:
Current portion of borrowings 9 1,391 1,300
Current portion of employee benefit liabilities 7 8
Current provisions 246 114
Current derivative liabilities 45 99
Current tax liabilities 301 253
Amounts payable to related parties 373 270
Trade and other payables 5,786 5,234
Total current liabilities 8,149 7,278
Total liabilities 22,115 21,278
EQUITY
Share capital 5 5
Share premium 307 276
Merger reserves 287 287
Other reserves (912) (823)
Retained earnings 8,802 8,231
Equity attributable to shareholders 8,489 7,976
Non-controlling interest 10 496 -
Total equity 8,985 7,976
Total equity and liabilities 31,100 29,254
Coca-Cola Europacific Partners plc
Condensed Consolidated Statement of Cash Flows (Unaudited)
Year Ended
31 December 2024 31 December 2023
Note € million € million
Cash flows from operating activities:
Profit before taxes 1,936 2,203
Adjustments to reconcile profit before tax to net cash flows from operating
activities:
Depreciation 6 751 653
Amortisation of intangible assets 5 182 139
Impairment losses 189 -
Share-based payment expense 45 57
Gain on sale of sub-strata and associated mineral rights 14 - (35)
Gain on the sale of property 14 - (54)
Finance costs, net 187 120
Income taxes paid (561) (509)
Changes in assets and liabilities:
Decrease/(increase) in trade and other receivables 37 (5)
(Increase)/decrease in inventories (37) 6
Increase in trade and other payables 158 124
Increase in net payable receivable from related parties 89 80
Increase/(decrease) in provisions 137 (11)
Change in other operating assets and liabilities (52) 38
Net cash flows from operating activities 3,061 2,806
Cash flows from investing activities:
Acquisition of bottling operations, net of cash acquired 2 (1,524) -
Purchases of property, plant and equipment (791) (672)
Purchases of capitalised software (148) (140)
Proceeds from sales of property, plant and equipment 15 101
Proceeds from sales of intangible assets - 37
Proceeds from the sale of sub-strata and associated mineral rights 14 - 35
Net proceeds/(payments) of short term investments 420 (342)
Investments in equity instruments (6) (5)
Interest received 74 58
Other investing activity, net 3 (9)
Net cash flows used in investing activities (1,957) (937)
Cash flows from financing activities:
Proceeds from borrowings, net 1,008 694
Proceeds received from a non-controlling shareholder relating to the 468 -
acquisition of bottling operations
Changes in short-term borrowings 9 - -
Repayments on third party borrowings (1,207) (1,159)
Settlement of debt-related cross-currency swaps 66 69
Payments of principal on lease obligations (157) (148)
Interest paid (249) (182)
Dividends paid (910) (841)
Exercise of employee share options 31 43
Acquisition of non-controlling interests - (282)
Other financing activities, net (23) (16)
Net cash flows (used in)/from financing activities (973) (1,822)
Net change in cash and cash equivalents 131 47
Net effect of currency exchange rate changes on cash and cash equivalents 13 (15)
Cash and cash equivalents at beginning of period 1,419 1,387
Cash and cash equivalents at end of period 1,563 1,419
Coca-Cola Europacific Partners plc
Condensed Consolidated Statement of Changes in Equity (Unaudited)
Share capital Share premium Merger reserves Other reserves Retained earnings Total Non-controlling interest Total equity
Note € million € million € million € million € million € million € million € million
Balance as at 31 December 2022 5 234 287 (507) 7,428 7,447 - 7,447
Profit after taxes - - - - 1,669 1,669 - 1,669
Other comprehensive loss - - - (233) (73) (306) - (306)
Total comprehensive income/ (loss) - - - (233) 1,596 1,363 - 1,363
Cash flow hedge (gains)/losses transferred to cost of inventories - - - (114) - (114) - (114)
Tax effect on cash flow hedge (gains)/losses transferred to cost of - - - 31 - 31 - 31
inventories
Issue of shares during the period - 42 - - - 42 - 42
Equity-settled share-based payment expense - - - - 54 54 - 54
Purchases of shares for equity settled Employee Share Purchase Plan - - - - (4) (4) - (4)
Share-based payment tax effects - - - - 1 1 - 1
Dividends 10 - - - - (844) (844) - (844)
Balance as at 31 December 2023 5 276 287 (823) 8,231 7,976 - 7,976
Balance as at 31 December 2023 5 276 287 (823) 8,231 7,976 - 7,976
Profit after taxes - - - - 1,418 1,418 26 1,444
Other comprehensive income/ (loss) - - - (78) 45 (33) - (33)
Total comprehensive income/ (loss) - - - (78) 1,463 1,385 26 1,411
Non-controlling interest established in connection with the Acquisition 10 - - - - - - 468 468
Non-controlling interest assumed as part of Acquisition 2 - - - - - - 2 2
Cash flow hedge (gains)/losses transferred to goodwill relating to business - - - 2 - 2 - 2
combination
Cash flow hedge (gains)/losses transferred to cost of inventories - - - (20) - (20) - (20)
Tax effect on cash flow hedge (gains)/losses transferred to cost of - - - 7 - 7 - 7
inventories
Issue of shares during the period - 31 - - - 31 - 31
Purchases of shares for equity settled Employee Share Purchase Plan - - - - (16) (16) - (16)
Treasury shares acquired 10 - - - - (7) (7) - (7)
Equity-settled share-based payment expense - - - - 42 42 - 42
Dividends 10 - - - - (911) (911) - (911)
Balance as at 31 December 2024 5 307 287 (912) 8,802 8,489 496 8,985
Notes to the Condensed Consolidated Financial Statements
Note 1
GENERAL INFORMATION AND BASIS OF PREPARATION
Coca-Cola Europacific Partners plc (the Company) and its subsidiaries
(together CCEP, or the Group) are a leading consumer goods group in Western
Europe and the Asia Pacific region, making, selling and distributing an
extensive range of primarily non-alcoholic ready to drink beverages.
On 23 February 2024, the Group together with Aboitiz Equity Ventures Inc.
(AEV) jointly acquired 100% of Coca-Cola Beverages Philippines, Inc. (CCBPI)
(the Acquisition), a wholly owned subsidiary of The Coca-Cola Company (TCCC).
Refer to Note 2 for further details about the acquisition of CCBPI.
The Company has ordinary shares with a nominal value of €0.01 per share
(Shares). CCEP is a public company limited by shares, incorporated under the
laws of England and Wales with the registered number in England of 9717350.
The Group's Shares are listed and traded on Euronext Amsterdam, the NASDAQ
Global Select Market, London Stock Exchange and on the Spanish Stock
Exchanges. The address of the Company's registered office is Pemberton House,
Bakers Road, Uxbridge, UB8 1EZ, United Kingdom.
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 2023 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 condensed consolidated
income statement, condensed consolidated statement of comprehensive income,
condensed consolidated statement of financial position, condensed consolidated
statement of cash flows, condensed consolidated statement of changes in equity
and notes to the condensed consolidated financial statements within this
document does not represent the Group's full consolidated financial statements
for the year ended 31 December 2024. 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 2024 is presented unaudited.
Basis of preparation
These condensed consolidated financial statements have been prepared in
accordance with UK adopted International Accounting Standards, International
Financial Reporting Standards (IFRS) as adopted by the European Union and
International Financial Reporting Standards as issued by the International
Accounting Standards Board (IASB). These condensed consolidated financial
statements do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with the Group's
2023 consolidated financial statements.
Going concern
As part of the Directors' consideration of the appropriateness of adopting the
going concern basis in preparing the condensed consolidated financial
statements, the Directors have considered the Group's financial performance in
the period and have taken into account its current cash position and its
access to a €1.8 billion undrawn committed credit facility.
Further, the Directors have considered the current cash flow forecast,
including a downside stress test, which supports the Group's ability to
continue to generate cash flows during the next 12 months. On this basis, the
Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for a period of 12 months from the date
of signing these condensed consolidated financial statements. Accordingly,
these condensed consolidated financial statements have been prepared on a
going concern basis and the Directors do not believe there are any material
uncertainties to disclose in relation to the Group's ability to continue as a
going concern.
Accounting policies
The accounting policies applied in these condensed consolidated financial
statements are consistent with those followed in the preparation of the
Group's consolidated financial statements as at and for the year ended 31
December 2023, except for the adoption of applicable standards and amendments
to accounting standards effective as of 1 January 2024.
Several amendments apply for the first time in 2024, but do not have a
material impact on the condensed consolidated financial statements of the
Group. The Group has not early adopted any amendments to accounting standards
that have been issued but are not yet effective.
Foreign currency
The Group's reporting currency is the Euro. CCEP translates the income
statements of non-Euro functional currency subsidiary operations to the Euro
at average exchange rates and the balance sheets at the closing exchange rate
as at the end of the period.
The principal exchange rates used for translation purposes in respect of one
Euro were:
Average for the year ended 31 December Closing as at 31 December
2024 2023 2024 2023
British pound 1.18 1.15 1.21 1.15
US dollar 0.92 0.92 0.96 0.90
Norwegian krone 0.09 0.09 0.08 0.09
Swedish krona 0.09 0.09 0.09 0.09
Icelandic krona 0.01 0.01 0.01 0.01
Australian dollar 0.61 0.61 0.60 0.61
Indonesian rupiah( 1 ) 0.06 0.06 0.06 0.06
New Zealand dollar 0.56 0.57 0.54 0.57
Papua New Guinean kina 0.24 0.26 0.24 0.24
Philippine peso( 2 ) 0.02 n/a 0.02 n/a
( 1 ) Indonesian Rupiah is shown as 1000 IDR versus 1 EUR.
( 2 ) For the year ended 31 December 2024, the Philippine peso average rate is
calculated as average from 23 February 2024 to 31 December 2024.
Reporting periods
In these condensed consolidated financial statements, the Group is reporting
the financial results for the years ended 31 December 2024 and 31 December
2023.
The following table summarises the number of selling days for the years ended
31 December 2024 and 31 December 2023 (based on a standard five day selling
week):
First half Second half Full year
2024 130 132 262
2023 130 130 260
Change - 2 2
Comparability
Sales of the Group's products are seasonal. In Europe, the second and third
quarters typically account for higher unit sales of the Group's products than
the first and fourth quarters. In the Group's Asia Pacific territories, the
fourth quarter would typically reflect higher sales volumes in the year. The
seasonality of the Group's sales volume, combined with the accounting for
fixed costs such as depreciation, amortisation, rent and interest expense,
impacts the Group's reported results for the first and second halves of the
year. Additionally, year over year shifts in holidays, selling days and
weather patterns can impact the Group's results on an annual or half yearly
basis.
Note 2
BUSINESS COMBINATIONS
In November 2023, the Group together with Aboitiz Equity Ventures Inc. (AEV)
entered into a definitive agreement with The Coca-Cola Company (TCCC) to
jointly acquire 100% of CCBPI, a wholly owned subsidiary of TCCC.
The Acquisition was effected through the establishment of a special purpose
vehicle, CCEP Aboitiz Beverages Philippines, Inc. (CABPI), which is owned and
funded 60% by CCEP and 40% by AEV, commensurate with the effective 60:40
ownership structure of CCBPI.
On 23 February 2024, CABPI acquired 100% of the beneficial ownership of
Coca-Cola Beverages Philippines, Inc. (CCBPI) for a total consideration of
US$1.68 billion (€1.54 billion), all of which was settled in cash upon
completion. CABPI is determined to have economic substance and is identified
as the accounting acquirer of CCBPI.
CCBPI is the authorised bottler and distributor of The Coca-Cola Company's
(TCCC) beverage brands in the Philippines. The Acquisition is a further step
for the Group to create a more diverse footprint within its existing
Australia, Pacific and Indonesia business segment. The transaction is aligned
with the Group's aim of driving sustainable growth through diversification and
building scale.
The transaction is being accounted for under IFRS 3, "Business Combinations",
using the acquisition method. The accounting for the Acquisition is complete
at the end of the current reporting period. Measurement period adjustments to
provisional amounts previously disclosed are immaterial.
The following table details the Euro equivalent consideration and fair
values of assets acquired and liabilities assumed:
Total
€ million
Intangible assets 478
Property, plant and equipment 1,084
Investment property 46
Other non-current assets 56
Inventories 228
Amounts receivable from related parties 25
Trade accounts receivable 75
Other current assets 47
Cash and cash equivalents 19
Borrowings, less current portion (6)
Employee benefit liabilities (15)
Non-current provisions (29)
Non-current tax liabilities (6)
Deferred tax liabilities (170)
Other non-current liabilities (21)
Current portion of borrowings (63)
Current provisions (29)
Current tax liabilities (23)
Amounts payable to related parties (55)
Trade and other payables (372)
Net identifiable assets acquired 1,269
Non-controlling interest (2)
Goodwill 276
Fair value of consideration 1,543
Intangible assets include both indefinite life and finite life intangible
assets. Indefinite life intangible assets consist of the bottling agreement
with TCCC (€440 million), which provides the Company with the exclusive
rights to prepare, package, distribute and sell TCCC branded products in the
territories in which it operates. Finite life intangible assets are comprised
primarily of customer relationships.
The bottling agreement with TCCC and customer relationships have been valued
using a multi-period excess earnings model, whereby the value of a specific
intangible asset is estimated from the excess earnings after fair returns on
all other assets employed have been deducted from the business's after-tax
operating earnings.
Goodwill of €276 million has been recognised in connection with the
Acquisition, representing the excess of consideration transferred over the
fair values of the net identifiable assets acquired.
The goodwill is attributable to new growth opportunities, workforce and
synergies of the combined business operations, and it is not expected to be
deductible for tax purposes.
Property, plant and equipment has been valued using a variety of valuation
techniques and considering the highest and best use of each asset. These
techniques include capitalisation of comparable net market income, depreciated
replacement cost and sales comparison approach. Included within Property,
plant and equipment are right of use assets which have been valued at
€8 million. A corresponding lease liability of €11 million is included
within Borrowings.
The fair value of acquired trade accounts receivable, net is €75 million.
The gross contractual amount related to these receivables is €84 million,
of which €9 million is expected to be uncollectible.
From the effective date of the Acquisition, CCBPI contributed revenue of
€1.7 billion and profit before tax of €85 million to the Group for the
year ended 31 December 2024. If the Acquisition had taken place at the
beginning of the year, adjusted comparable revenue and profit before tax for
CCEP for the year ended 31 December 2024 would have been €20.7 billion and
€2.5 billion, respectively.
Deal and integration costs of €14 million are included in Administrative
expenses in the condensed consolidated income statement for the year ended 31
December 2024. Cash payments for deal and integration costs are included in
operating cash flows in the condensed consolidated statement of cash flows.
Note 3
OPERATING SEGMENTS
Description of segments and principal activities
Following the acquisition of CCBPI, the Group reevaluated its segment
reporting under IFRS 8, "Operating Segments". The Group continues to derive
its revenues through a single business activity, which is making, selling and
distributing an extensive range of primarily non-alcoholic ready to drink
beverages. The acquisition of CCBPI has broadened the Group's geographic
footprint which now includes the Philippines, within its existing API business
segment, from now on renamed APS (Australia, Pacific & South East Asia).
The Group's Board continues to be its Chief Operating Decision Maker (CODM),
which allocates resources and evaluates performance of its operating segments
based on volume, revenue and comparable operating profit. Comparable operating
profit excludes items impacting the comparability of period over period
financial performance.
The following table provides a reconciliation between reportable segment
operating profit and consolidated profit before tax:
Year ended 31 December 2024 Year ended 31 December 2023
Europe APS Total Europe APS Total
€ million € million € million € million € million € million
Revenue 14,971 5,467 20,438 14,553 3,749 18,302
Comparable operating profit( 1 ) 2,015 648 2,663 1,888 485 2,373
Items impacting comparability( 2 ) (531) (34)
Reported operating profit 2,132 2,339
Total finance costs, net (187) (120)
Non-operating items (9) (16)
Reported profit before tax 1,936 2,203
( 1 ) Comparable operating profit includes comparable depreciation and
amortisation of €596 million and €265 million for Europe and APS
respectively, for the year ended 31 December 2024. Comparable depreciation and
amortisation charges for the year ended 31 December 2023 totalled €558
million and €196 million, for Europe and APS respectively.
( 2 ) Items impacting the comparability of period-over-period financial
performance for 2024 primarily include restructuring charges of €264 million
(refer to Note 13), €14 million of deal and integration costs related to the
Acquisition (refer to Note 2), impairment charges of €189 million mainly
related to the Group's Indonesia CGU (refer to Note 5), and accelerated
amortisation charges of €55 million (refer to Note 5). Items impacting the
comparability for 2023 primarily include restructuring charges of €94
million and accelerated amortisation charges of €27 million (refer to Note
5), partially offset by €18 million of royalty income arising from the
ownership of certain mineral rights in Australia (refer to Note 14),
considerations of €35 million received relating to the sale of the
sub-strata and associated mineral rights in Australia (refer to Note 14) and
gains of €54 million mainly attributable to the sale of property in Germany
(refer to Note 14).
( )
No single customer accounted for more than 10% of the Group's revenue during
the year ended 31 December 2024 and 31 December 2023.
Revenue by geography
The following table summarises revenue from external customers by geography,
which is based on the origin of the sale:
Year Ended
31 December 2024 31 December 2023
Revenue € million € million
Great Britain 3,327 3,235
Germany 3,179 3,018
Iberia( 1 ) 3,398 3,325
France( 2 ) 2,322 2,321
Belgium/Luxembourg 1,070 1,078
Netherlands 785 718
Norway 398 376
Sweden 410 398
Iceland 82 84
Total Europe 14,971 14,553
Australia 2,475 2,385
Philippines 1,652 -
New Zealand and Pacific Islands 694 679
Indonesia 403 458
Papua New Guinea 243 227
Total APS 5,467 3,749
Total CCEP 20,438 18,302
( 1 ) Iberia refers to Spain, Portugal & Andorra.
( 2 ) France refers to continental France & Monaco.
Note 4
EARNINGS PER SHARE
Basic earnings per share is calculated by dividing profit after taxes by the
weighted average number of Shares in issue during the period, after deducting
the weighted average number of treasury shares held. Diluted earnings per
share is calculated in a similar manner, but includes the effect of dilutive
securities, principally share options, restricted stock units and performance
share units. Share-based payment awards that are contingently issuable upon
the achievement of specified market and/or performance conditions are included
in the diluted earnings per share calculation based on the number of Shares
that would be issuable if the end of the period was the end of the contingency
period.
The following table summarises basic and diluted earnings per share
calculations for the periods presented:
Year Ended
31 December 2024 31 December 2023
Profit after taxes attributable to equity shareholders (€ million) 1,418 1,669
Basic weighted average number of Shares in issue( 1 ) (million) 460 459
Effect of dilutive potential Shares( 2 ) (million) 1 -
Diluted weighted average number of Shares in issue( 1 ) (million) 461 459
Basic earnings per share (€)( 3 ) 3.08 3.64
Diluted earnings per share (€)( 3 ) 3.08 3.63
( 1 ) As at 31 December 2024 and 31 December 2023, the Group had 460,947,057
and 459,200,818 Shares, respectively, in issue. As at 31 December 2024 the
Group held 92,564 treasury shares that were acquired by Coca-Cola Europacific
Partners Plc Employee Benefit Trust (see Note 10). The shares held by the
trust are excluded from the calculation of basic and diluted earnings per
share. The Group did not hold any treasury shares as at 31 December 2023.
( 2 ) For the year ended 31 December 2024 and 31 December 2023, there were no
outstanding options to purchase Shares excluded from the diluted earnings per
share calculation. The dilutive impact of the remaining options outstanding,
unvested restricted stock units and unvested performance share units was
included in the effect of dilutive securities.
( 3 ) Basic and diluted earnings per share are calculated prior to rounding.
Note 5
INTANGIBLE ASSETS AND GOODWILL
The following table summarises the movement in net book value for intangible
assets and goodwill during the year ended 31 December 2024:
Intangible assets Goodwill
€ million € million
Net book value as at 31 December 2023 12,395 4,514
Acquisition of CCBPI 478 276
Additions 198 -
Amortisation expense (182) -
Impairment (83) (30)
Transfers and reclassifications (5) -
Currency translation adjustments (52) (73)
Net book value as at 31 December 2024 12,749 4,687
Impairment of Feral brand
During 2024, the Group recognised €10 million of impairment in relation to
the Feral brand and subsequently sold it in September 2024.
Impairment of Indonesia CGU
As disclosed in its consolidated financial statements for the year ended 31
December 2023, the Group estimated that reasonably possible changes in the
value in use terminal growth rate or in the discount rate, each in isolation,
would eliminate existing headroom in the Indonesia CGU. During the second half
of 2024, Indonesia experienced worsening business performance primarily driven
by the continued geopolitical situation in the Middle East.
As at 31 December 2024, the Group's annual impairment test resulted in an
impairment of €175 million, as the recoverable amount was lower than the
carrying amount of the CGU. The recoverable amount was determined based on
value in use assumptions updated with management's best estimate of expected
future cash flows, reflecting the persistent geopolitical uncertainty. The
impairment loss reduced the carrying amount of Goodwill allocated to the CGU
to zero. The remaining impairment charge was allocated pro rata to the
Property, plant and equipment and Intangible assets included in the carrying
value of the CGU.
An impairment loss of €54 million, €6 million and €115 million was
included in the condensed consolidated income statement in Cost of sales,
Selling and distribution expenses and Administrative expenses, respectively,
and under APS for segmental allocation purposes.
The following table sets out key assumptions used in the impairment assessment
of the Indonesia CGU:
2024 2023
Pre-tax discount rate 13.5 % 12.2 %
Terminal growth rate 2.5 % 1.6 %
As at 31 December 2024, the recoverable amount of the Indonesia CGU was €182
million and represents its value in use.
Note 6
PROPERTY, PLANT AND EQUIPMENT
The following table summarises the movement in net book value for property,
plant and equipment during the year ended 31 December 2024:
Total
€ million
Net book value as at 31 December 2023 5,344
Acquisition of CCBPI 1,084
Additions 914
Disposals (20)
Impairment( 1 ) (76)
Transfers to assets held for sale (22)
Transfers to investment property (33)
Depreciation expense (751)
Other transfers and reclassifications 5
Currency translation adjustments (11)
Net book value as at 31 December 2024 6,434
( 1 ) Amounts relate to the impairment of the Group's Indonesia cash
generating unit and the impairment of the Feral brand, which was sold during
the year ended 31 December 2024.
( )
The net book value of property, plant and equipment includes right of use
assets of €691 million of which €8 million was acquired as part of the
Acquisition.
Note 7
INVESTMENT PROPERTY
Investment property consists of land and buildings held primarily for earning
rental income, capital appreciation, or both. These properties are not used by
the Group in the ordinary course of business. The Group applies the cost model
for measuring investment property. Under the cost model, investment properties
are initially recognised at cost. Subsequently, they are depreciated on a
straight-line basis over their useful life (consistent with owner-occupied
property).
The following table summarises the movement in net book value for investment
property during the year ended 31 December 2024:
Total
€ million
Net book value as at 31 December 2023 -
Acquisition of CCBPI 46
Transfers from property, plant and equipment 33
Transfers to assets held for sale (6)
Net book value as at 31 December 2024 73
As at 31 December 2024 and 31 December 2023 the carrying value of investment
property was €73 million and nil, respectively. The increase is primarily
due to the properties acquired as part of the CCBPI business combination
transaction (€46 million) and the transfer of some properties in Indonesia
and Great Britain from Property, plant & equipment to Investment property
(€33 million).
No impairments were recognised during the year ended 31 December 2024.
Note 8
ASSETS HELD FOR SALE
Assets classified as held for sale as at 31 December 2024 and 31 December 2023
were €46 million and €22 million, respectively. These assets primarily
consist of properties expected to be sold in the near future.
Note 9
BORROWINGS AND LEASES
Borrowings Outstanding
The following table summarises the carrying value of the Group's borrowings as
at the dates presented:
31 December 2024 31 December 2023
€ million € million
Non-current:
Euro denominated bonds( 1 , 2 ) 7,903 8,428
Foreign currency bonds (swapped into Euro)( 3 ) 478 451
Australian dollar denominated bonds 295 338
Foreign currency bonds (swapped into Australian dollar or New Zealand 330 337
dollar)( 1 , 3 )
PHP Term loan due 2034( 4 ) 387 -
Lease obligations 547 542
Total non-current borrowings 9,940 10,096
Current:
Euro denominated bonds( 5 ) 1,150 500
Foreign currency bonds (swapped into Euro)( 3 , 6 ) - 588
Australian dollar denominated bonds( 7 ) 31 62
Philippines peso denominated loans( 8 , 9 ) 49 -
Euro commercial paper( 10 ) - -
Lease obligations 161 150
Total current borrowings 1,391 1,300
( 1 ) Some bonds are designated in full or partially in a fair value hedge
relationship.
( 2 ) In September 2024, the Group issued €600 million 3.25% Notes due
2032.
( 3 ) Cross currency swaps are used by the Group to swap foreign currency
bonds into the required local currency.
( 4 ) In February 2024, in connection with the Acquisition, the Group entered
into a term loan facility agreement with the Bank of Philippine Islands. A
term loan facility in an aggregate amount of US$500 million was made
available under the agreement to be utilised in PHP. On 20 February 2024, the
Group drew down a PHP 23.5 billion (US$420 million) loan under the facility
with a maturity date of 20 February 2034. The vast majority of the balance
(90% of the total principal amount) is repayable in full upon maturity. In
April 2024, the remaining undrawn portion of this facility was subsequently
cancelled.
( 5 ) In May 2024, the Group repaid on maturity the outstanding amount related
to the €500 million 1.125% Notes 2024.
( 6 ) In May 2024, the Group repaid on maturity the outstanding amount
related to the $650 million 0.8% Notes due 2024.
( 7 ) In April 2024, the Group repaid AUD$100 million 3.5% Notes.
( 8 ) Included within the Group's borrowings as at 31 December 2024 is a short
term loan denominated in PHP assumed as part of the Acquisition. In August
2024 and November 2024, the Group repaid PHP 500 million and PHP 2 billion,
respectively.
( 9 ) In December 2024, the Group entered into a short term loan agreement
with Metropolitan Bank and Trust Company and drew down PHP 2 billion payable
in full upon maturity on 19 December 2025.
( 10 ) During the year ended 31 December 2024, the Group issued €10,074
million and repaid €10,074 million Euro commercial paper. During the year
ended 31 December 2023, the Group issued €6,810 million and repaid €6,810
million Euro commercial paper. The issuance, net of repayments, of Euro
commercial paper is presented as changes in short-term borrowings in our
condensed consolidated statement of cash flows.
Note 10
EQUITY
Share Capital
As at 31 December 2024, the Company had issued and fully paid 460,947,057
Shares (as at 31 December 2023: 459,200,818 Shares) with a nominal value of
€0.01 per share. Shares in issue have one voting right each and no
restrictions related to dividends or return of capital. The number of Shares
increased during the years ended 31 December 2024 and 31 December 2023 from
the issue of 1,746,239 and 2,094,365 Shares, respectively, following the
exercise of share-based payment awards.
Dividends
Dividends are recognised on the date that the shareholder's right to receive
payment is established. This is generally the date when the dividend is
declared.
Year Ended
31 December 2024 31 December 2023
€ million € million
First half dividend( 1 ) 340 308
Second half dividend( 2 ) 567 533
Total dividend on ordinary shares declared and paid 907 841
( 1 ) Dividend of €0.74 per Share was paid in first half of 2024. Dividend
of €0.67 per Share was paid in first half of 2023.
( 2 ) Dividend of €1.23 per Share was paid in second half of 2024. Dividend
of €1.17 per Share was paid in second half of 2023.
Additionally, dividends attributable to restricted stock units and performance
share units that are unvested at the period end date are accrued accordingly.
During 2024, an incremental dividend accrual of €4 million has been
recognised (2023: €3 million).
Treasury shares
In December 2024, Coca-Cola Europacific Partners Plc Employee Benefit Trust
was established for the purpose of facilitating the acquisition and
distribution of CCEP shares for the benefit of satisfying the Group's
share-based payments obligations under its existing and future share-based
compensation plans. The Trust's operations are included in the Group's
consolidated financial statements.
CCEP shares acquired on the market and held by the Trust are classified as
treasury shares. The book value of shares held is deducted from retained
earnings. As at 31 December 2024, the total consideration of the shares
acquired by the Trust of €7 million, including directly attributable costs,
was deducted from retained earnings. As at 31 December 2024 the trust held
92,564 Shares (31 December 2023: nil). The shares held by the trust are
excluded from the calculation of earnings per share (see Note 4).
Dividends are waived on all treasury shares held by the Trust.
Non-controlling interests
A non-controlling interest (NCI) of €468 million has been recognised in
connection with Aboitiz Equity Ventures Inc. (AEV) 40% ownership of CCEP
Aboitiz Beverages Philippines, Inc. (CABPI), the accounting acquirer of CCBPI
(refer to Note 2 for further details). The Group measured the non-controlling
interest in CABPI based on their proportionate share of net assets. The Group
recognises changes in NCI based upon post-acquisition results of the year and
movements in reserves.
As at 31 December 2024, equity attributable to non-controlling interest was
€496 million (31 December 2023: nil).
Note 11
RELATED PARTY TRANSACTIONS
Details surrounding the Group's related party transactions are disclosed
within Note 19 of CCEP's 2023 consolidated financial statements. The following
summarises the unique related party transactions, which took place during
2024.
Acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI)
On 23 February 2024, the joint acquisition of CCBPI was successfully
consummated for a total consideration of US$1.68 billion (€1.54 billion),
all of which was settled in cash upon completion. The Group's share of the
total consideration was US$1.0 billion (€930 million), commensurate with the
effective 60:40 ownership structure of CCBPI. The transaction has been
accounted for under IFRS 3 "Business Combinations", using the acquisition
method of accounting. Refer to Note 2 for further detail concerning the
acquisition of CCBPI.
In December 2024, the Group purchased from Cobega property located in Bilbao,
Spain for a total consideration of €15 million, inclusive of relevant
taxes.
Note 12
TAXES
Income Tax expense
The effective tax rate (ETR) was 25.4% for the year ended 31 December 2024 and
24.2% for the year ended 31 December 2023.
The ETR of 25.4% is broadly in line with the UK statutory rate, reflecting the
impact of non-UK operations which is substantially offset by prior period
adjustments.
The following table summarises the major components of income tax expense for
the periods presented:
31 December 2024 31 December 2023
€ million € million
Current income tax:
Current income tax charge 596 555
Adjustment in respect of current income tax from prior periods (38) (10)
Total current tax 558 545
Deferred tax:
Relating to the origination and reversal of temporary differences (71) 11
Adjustment in respect of deferred income tax from prior periods 2 (22)
Relating to changes in tax rates or the imposition of new taxes 3 -
Total deferred tax (66) (11)
Income tax charge per the condensed consolidated income statement 492 534
Tax Provisions
The Group is routinely under audit by tax authorities in the ordinary course
of business. Due to their nature, such proceedings and tax matters involve
inherent uncertainties including, but not limited to, court rulings,
settlements between affected parties and/or governmental actions. The
probability of outcome is assessed and accrued as a liability and/or
disclosed, as appropriate. The Group maintains provisions for uncertainty
related to these tax matters that it believes appropriately reflect its risk.
As at 31 December 2024, €267 million (31 December 2023: €175 million) of
these provisions is included in current tax liabilities and the remainder is
included in non-current tax liabilities.
The Group reviews the adequacy of these provisions at the end of each
reporting period and adjusts them based on changing facts and circumstances.
Due to the uncertainty associated with tax matters, it is possible that at
some future date, liabilities resulting from audits or litigation could vary
significantly from the Group's provisions. When an uncertain tax liability is
regarded as probable, it is measured on the basis of the Group's best
estimate.
The Group has received tax assessments in certain jurisdictions for potential
tax related to the Group's purchases of concentrate. The value of the Group's
concentrate purchases is significant, and therefore, the tax assessments are
substantial. The Group strongly believes the application of tax has no
technical merit based on applicable tax law, and its tax position would be
sustained. Accordingly, the Group has not recorded a tax liability for these
assessments and is vigorously defending its position against these
assessments.
Global Minimum Top-Up Tax
On 12 May 2023, the International Accounting Standards Board ("the IASB")
issued International Tax Reform - Pillar Two Model Rules - Amendments to IAS
12 ("the Amendments"). The Amendments introduce a mandatory temporary
exception from the recognition and disclosure of deferred taxes arising from
the implementation of the OECD's Pillar Two Model Rules.
Pillar Two legislation was enacted in the UK on 11 July 2023, under Finance
(No 2) Act 2023, and was effective from 1 January 2024.
The Group has applied the exception under the IAS 12 amendment to recognising
and disclosing information about deferred tax assets and liabilities related
to top-up tax in preparing its condensed consolidated financial statements as
at 31 December 2024.
The Group is in scope of the Pillar Two tax legislation and is subject to
top-up tax in relation to its operations in a few countries. No material
liability has been recognised in these condensed consolidated financial
statements.
Note 13
PROVISIONS AND CONTINGENCIES
Restructuring programmes
In November 2022, the Group announced a new efficiency programme to be
delivered by the end of 2028. This programme focusses on further supply chain
efficiencies, leveraging global procurement and a more integrated shared
service centre model, all enabled by next generation technology including
digital tools and data and analytics.
During 2024, as part of this efficiency programme, the Group announced
restructuring proposals resulting in €264 million of recognised costs
primarily related to expected severance payments. The most notable
announcement took place on 1 October 2024 related to restructuring initiatives
implemented in Germany, more specifically, the closure of a production
facility in Cologne, as well as planned changes and optimisations in the
logistical network resulting in the closure of several logistical sites. These
initiatives attributed a total restructuring expense of €108 million,
mainly comprised of expected severance payments. The rest of the restructuring
spend is attributable to various initiatives implemented across different
markets aiming to enhance efficiency and productivity.
Guarantees
As of 31 December 2024, the Group has issued guarantees to third parties of
€892 million (31 December 2023: €1,164 million), primarily relating to
ongoing litigations and tax matters in certain territories. No significant
additional liabilities in the accompanying condensed consolidated financial
statements are expected to arise from the guarantees issued.
Contingencies
As a result of the Acquisition, the Group recognised a provision of €55
million related to various legal proceedings.
There have been no other significant changes in contingencies since 31
December 2023.
Refer to Note 22 of the 2023 consolidated financial statements for further
details about the Group's guarantees, commitments and contingencies.
Note 14
OTHER INCOME
For the year ended 31 December 2024 and 31 December 2023, other income
totalled nil and €107 million, respectively.
The balance for the year ended 31 December 2023 was primarily attributable to
the following activities.
The Group recognised €18 million of royalty income arising from the
ownership of mineral rights in Queensland, Australia. On 7 March 2023, the
Group entered into an agreement to sell the sub-strata and associated mineral
rights. Upon regulatory approval, the transaction was consummated in April
2023. The total consideration approximated €35 million.
The Group recognised a gain of €54 million related to the sales of
properties, mainly attributable to the sale of property in Germany completed
on 7 July 2023.
Note 15
EVENTS AFTER THE REPORTING PERIOD
On 14 February 2025, the Group announced its intention to commence a share
buyback programme of up to €1 billion, to be completed over a 12-month
period.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR GPURCPUPAUUCRecent news on Coca-Cola Europacific Partners
See all newsREG - Coca-Cola EP PLC - Transactions in Own Shares and Programme Update
AnnouncementREG - Coca-Cola EP PLC - Total Voting Rights
AnnouncementREG - Coca-Cola EP PLC - Transaction in Own Shares
AnnouncementREG - Coca-Cola EP PLC - Transactions in Own Shares
AnnouncementREG - Coca-Cola EP PLC - Transactions in Own Shares
Announcement