REG - Coca-Cola EP PLC - Results for the six months ended 27 June 2025
06/08/2025 07:00
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RNS Number : 1270U Coca-Cola Europacific Partners plc 06 August 2025
COCA-COLA EUROPACIFIC PARTNERS
Results for the six months ended 27 June 2025
Solid first half; reaffirming full-year profit & cash guidance
H1 2025 Total CCEP Key Financial Metrics( 1 ) Change vs H1 2024 Adjusted Comparable( 4 ) Change vs H1 2024
Comparable ( 1 )
As Reported
As Reported Comparable Comparable FXN( 1 ) Adjusted Comparable( 4 ) Adjusted Comparable FXN( 4 )
( 1 )
Volume (M UC)( 2 ) 1,932 1,932 4.1% 5.5% 1,932 0.3%
Revenue per UC( 2 ) (€) 5.36 1.1% 5.36 3.8%
Revenue (€M) 10,274 10,274 4.5% 4.5% 5.3% 10,274 1.8% 2.5%
Operating profit (€M) 1,364 1,390 19.4% 7.3% 8.0% 1,390 6.4% 7.2%
Diluted EPS (€) 1.99 2.02 15.0% 2.4% 3.1%
Comparable free cash flow (€M) 425
Interim dividend per share (€) 0.79
DAMIAN GAMMELL, CHIEF EXECUTIVE OFFICER, SAID:
"We're pleased to have delivered a solid first half performance. This reflects
our great brands, great people, great execution and strong relationships with
our brand partners and customers. We've continued to grow share ahead of the
market, create value for our customers, and deliver solid gains in revenue per
unit case through revenue and margin growth management.
"In Europe, Easter timing, better weather and performance in Away from Home
supported a return to volume growth in Q2. Total first half volumes were
impacted by a weaker consumer backdrop in Indonesia, however we remain excited
about the long-term opportunity and continue to focus on our transformation
journey. Our other APS markets performed well.
"Given our year-to-date performance, strong commercial plans for the balance
of the year, continued focus on productivity and a good start to the second
half, we are pleased to be reaffirming our full-year profit and cash guidance.
While the global macroeconomic environment is volatile, we remain resilient.
Our leading market positions in growing categories across our 31 locally
driven markets continue to support our performance.
"Our first half interim dividend and ongoing share buybacks demonstrate the
strength of our business and our ability to deliver continued shareholder
value. Strong cash generation is supporting record investment in future
growth. This includes unlocking more value with technology and AI, as
showcased at our recent investor event. We're confident we have the right
strategy, done sustainably to deliver on our mid-term growth objectives."
___________________________
Note: All footnotes included alongside the 'About CCEP' section
*Comparable volume movements adjust for the impact of selling day movements,
with two fewer selling days in H1'25 versus H1'24
H1 Financial Summary
H1 2025 Metric( 1 ) As Reported Comparable( 1 ) Change vs H1 2024 Adjusted Comparable( 4 ) Change vs H1 2024
As Reported Comparable Comparable FXN( 1 ) Adjusted Comparable( 4 ) Adjusted Comparable FXN( 4 )
( 1 )
Total CCEP
Volume (M UC)( 2 ) 1,932 1,932 4.1% 5.5% 1,932 0.3%
Revenue (€M) 10,274 10,274 4.5% 4.5% 5.3% 10,274 1.8% 2.5%
Cost of sales (€M) 6,637 6,643 4.8% 5.1% 5.8% 6,643 1.7% 2.4%
Operating profit (€M) 1,364 1,390 19.4% 7.3% 8.0% 1,390 6.4% 7.2%
Profit after taxes (€M) 937 951 15.5% 2.9% 3.7%
Diluted EPS (€) 1.99 2.02 15.0% 2.4% 3.1%
Revenue per UC( 2 ) (€) 5.36 1.1% 5.36 3.8%
Cost of sales per UC( 2 ) (€) 3.46 1.6% 3.46 3.6%
Comparable free cash flow (€M) 425
Interim dividend per share(*) (€) 0.79
Europe
Volume (M UC)( 2 ) 1,246 1,246 (1.9)% (0.3)% 1,246 (0.3)%
Revenue (€M) 7,471 7,471 2.6% 2.6% 2.3% 7,471 2.6% 2.3%
Operating profit (€M) 1,070 1,053 21.3% 7.6% 7.2% 1,053 7.6% 7.2%
Revenue per UC( 2 ) (€) 5.98 4.2% 5.98 4.2%
APS (Australia, Pacific & Southeast Asia)
Volume (M UC)( 2 ) 686 686 17.1% 18.1% 686 1.5%
Revenue (€M) 2,803 2,803 10.0% 10.0% 13.9% 2,803 (0.5)% 3.1%
Operating profit (€M) 294 337 13.1% 6.3% 10.7% 337 3.1% 7.3%
Revenue per UC( 2 ) (€) 4.23 (2.6)% 4.23 3.2%
*First half interim dividend per share of €0.79 (declared at Q1 & paid
in May), calculated as 40% of the FY24 dividend
H1 & Q2 Revenue Highlights( 1 , 4 )
H1 Revenue: Reported +4.5%; Adjusted Comparable FXN +2.5%( 4 )
• A leading value creator, delivering solid revenue growth for
retail customers in our key markets compared to FMCG peers
• NARTD YTD value share( 5 ) +10bps in-store & broadly flat
online
• Transactions growing ahead of volumes in Europe; behind in APS
impacted by Indonesia
• Adjusted comparable volume +0.3%( 4 , 6 ) reflecting great
in-market execution
- By geography:
◦ Europe -0.3% (slightly ahead excl. Capri Sun) reflects solid
growth in Q2, offset by impact of French sugar tax & strategic de-listing
of Capri Sun (now annualised)
◦ APS +1.5% reflecting:
▪ Australia/Pacific (AP): mid-single digit increase driven by
Australia & the Pacific Islands
▪ Southeast Asia (SEA): volumes broadly flat with continued
growth in the Philippines (cycling H1'24 +17%) offset by decline in Indonesia
reflecting a weaker consumer backdrop
- By channel:
Away from Home (AFH) +0.4%, Home +0.1%
◦ Europe: AFH +1.1% (Q1: +0.6%), Home -1.1% (Q1: -3.6%)
◦ APS: AFH -0.3% (Q1: +0.9%), Home +5.0% (Q1: +4.5%)
▪ Adjusted comparable revenue per unit case +3.8%( 2 , 3 , 4 )
driven by positive headline pricing, promotional optimisation & positive
pack mix
◦ Europe: +4.2% reflecting headline price increases in France,
Iberia & GB with annualisation of H2'24 pricing in Germany
◦ APS: 3.2% reflecting headline price increases & promotional
optimisation in Australia
Q2 Revenue: Reported +4.1%; Adjusted Comparable FXN +5.4%( 4 )
• Adjusted comparable volume +1.1%( 4 , 6 ) reflecting great
in-market execution
- By geography:
◦ Europe +1.2% reflecting later Easter timing & better
weather in several markets
◦ APS +0.9% reflecting:
▪ AP: continued solid underlying momentum
▪ SEA: low single-digit decline driven by double-digit volume
decline in Indonesia, largely reflecting a weaker consumer backdrop, more than
offsetting Philippines growth (cycling Q2'24 +18%)
- By channel: AFH +0.1%, Home +1.8%
◦ Europe: AFH +1.4%; Home +1.1%
◦ APS: AFH -1.4%, Home +5.6%
▪ Adjusted comparable revenue per unit case +4.3%( 2 , 3 , 4 )
driven by positive headline pricing, promotional optimisation & brand mix
◦ Europe: +4.2% reflecting Q1 headline price increases (France
& Iberia) & GB in Q2
◦ APS: +4.4% reflecting headline price increases &
promotional optimisation
VOLUMES NOTE - Year on year volume movements are disclosed on a comparable and
adjusted comparable basis which (i) assumes the acquisition of Coca-Cola
Beverages Philippines, Inc. occurred at the beginning of the comparative
period & (ii) adjusts for the impact of two fewer selling days versus
H1'24
Excluding selling days adjusted H1'25 volumes were CCEP -1.3% (Europe -1.9%,
APS -0.1%)
H1 Operating Profit, Other Highlights & FY25 Guidance( 1 )
H1 Operating profit: Reported +19.4%; Adjusted Comparable FXN +7.2%( 4 )
• Adjusted comparable cost of sales per unit case +3.6%( 2 , 3 , 4 ) as
expected, reflecting increased revenue per unit case driving higher
concentrate costs, inflation in manufacturing & tax increases in France
& GB
• Adjusted comparable operating profit of €1,390m, +7.2%( 3 , 4 ) reflecting
top-line growth & ongoing productivity & efficiency programmes.
Reported operating profit of €1,364m, +19.4% reflecting lower business
transformation costs
• Comparable diluted EPS of €2.02, +3.1%( 3 ) (reported €1.99, +15.0%)
Other
• Comparable free cash flow: generated solid comparable free cash
flow of €425m reflecting solid performance (net cash flows from operating
activities of €986m)
• Following the transfer of CCEP's UK listing to the Equity
Shares (Commercial Companies) category in November 2024, CCEP entered the FTSE
UK Index Series in March 2025
• Sustainability highlights:
◦ Carbon Disclosure Project's A list for Climate - 9th
consecutive year
◦ Sustainalytics ESG top-rated companies list for 2025
FY25 guidance( 1 , 4 )
Outlook for FY25 reflects our current assessment of market conditions. Unless
stated otherwise, guidance is on an adjusted comparable( 4 ) & FX-neutral
basis.
(Based on current spot rates, FX represents a full year headwind of ~150 basis
points to revenue & ~200 basis points to operating profit)
• Revenue: growth of 3% to 4% (previously ~4%)
◦ 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 ~95% for FY25)
◦ Concentrate directly linked to revenue per UC through incidence pricing
▪ 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%( 7 ) based on comparable EPS
▪ Share buyback: €1bn over 12 months from February 2025
(~€460m now completed)( 14 )
SECOND QUARTER & FIRST HALF REVENUE PERFORMANCE BY GEOGRAPHY( 1 )
All values are unaudited and all references to volumes are on a comparable
basis for Europe and Australia / Pacific, and on an adjusted comparable basis
for SEA, total APS and total CCEP. All changes are versus prior year
equivalent period unless stated otherwise.
Second Quarter First Half
Fx-Neutral Fx-Neutral
€ million % change % change € million % change % change
FBN( 8 ) 1,506 8.9% 8.5% 2,672 3.8% 3.6%
Germany 861 3.2% 3.2% 1,547 0.5% 0.5%
Great Britain 938 7.8% 7.2% 1,697 6.5% 5.0%
Iberia( 9 ) 913 1.2% 1.2% 1,555 (1.0)% (1.0)%
Total Europe 4,218 5.7% 5.5% 7,471 2.6% 2.3%
Australia / Pacific( 11 ) 772 1.8% 10.3% 1,613 0.1% 5.1%
Southeast Asia( 4 , 12 ) 595 (3.4)% (0.8)% 1,190 (1.2)% 0.3%
Total APS( 4 ) 1,367 (0.5)% 5.3% 2,803 (0.5)% 3.1%
Total CCEP( 4 ) 5,585 4.1% 5.4% 10,274 1.8% 2.5%
FBN( 8 )
▪ H1 volumes broadly flat excluding Q1 impact of Capri Sun de-listing.
▪ Double-digit volume growth in Monster across all markets driven by
innovation with new listings for Monster Green & Ultra in the Netherlands.
▪ France sugar tax increase contributed to volume decline of Coca-Cola
Original Taste, partly offset by strong double-digit growth of Sprite driven
by new listings.
▪ H1 revenue/UC( 10 ) growth driven by headline price increases,
positive pack mix & the sugar tax increase in France.
Germany
• Q2 volume growth supported by timing of Easter; H1 low single-digit
volume decline driven by the Home channel.
• Double-digit growth in Coca-Cola Zero Sugar & Monster, supported
by Q2 launch of Rio Punch & Strawberry Dreams.
• H1 revenue/UC( 10 ) growth driven by annualisation of headline price
increase implemented in Q3 last year & positive pack mix.
Great Britain
• H1 low single-digit volume growth driven by improved performance in
AFH, better weather in June & innovation (e.g. double-digit volume
increase in both Monster & Dr. Pepper). Diet Coke performance also
improved.
• Strong ARTD growth supported by launch of Jack Daniel's & Cherry
Coca-Cola & new multipacks.
• H1 revenue/UC( 10 ) growth supported by phasing on headline price
increase (Q2 versus Q3 LY) & also reflects recent increase in sugar tax.
• Growth of Monster, Jack Daniel's & Coca-Cola & de-listing of
Capri Sun supported positive brand mix.
Iberia( 9 )
• Slight volume decline driven by transition from Nestea to FuzeTea
which is progressing ahead of plan. Volumes excluding transition impact low
single-digit growth.
• Continued strong growth in Sports with Aquarius & in Energy with
Monster, supported by new launches & great execution.
• H1 revenue/UC( 10 ) growth driven by headline price increase.
Australia / Pacific( 11 )
• Mid-single digit increase in H1 volumes driven by growth in Australia
& the Pacific Islands.
• Strong growth in Coca-Cola Zero Sugar & improving performance of
Diet Coke driving growth in overall Coke trademark volumes.
• Fanta performed well with high single-digit volume growth supported
by the Q1 launch of Fanta Lemon in Australia.
• Energy volumes grew double-digit, supported by innovation (e.g. Q1
launch of Ultra Ruby Red & Strawberry Dreams) alongside strong growth of
the original Ultra White variant during Q2.
• Revenue/UC( 10 ) solid growth driven by headline price increases
& pack mix benefit from the growth of mini cans & smaller PET in
Australia.
Southeast Asia( 4 , 12 )
• Mid-single digit increase in H1 volumes in the Philippines (cycling
H1'24 +17%) driven by continued growth of Coca-Cola Original Taste &
Wilkins Pure water, especially in modern trade. Coca-Cola Zero Sugar also
performed strongly though from a small base.
• Volume declines in Indonesia driven by a softer Ramadan festive
period reflecting a weaker consumer & macroeconomic backdrop. The ongoing
geopolitical situation in the Middle East also remained a factor.
• Revenue/UC( 10 ) growth driven by headline price increases in the
Philippines implemented during Q4 last year.
SECOND QUARTER & FIRST HALF VOLUME PERFORMANCE BY CATEGORY( 1 , 4 , 6 )
All values are unaudited and all references to volumes are on an adjusted
comparable basis. All changes are versus prior year equivalent period unless
stated otherwise.
Second Quarter First Half
% of Total % Change % of Total % Change
Coca-Cola® 59.5% 1.2% 59.1% 0.4%
Flavours & Mixers 21.0% (1.4)% 21.7% (1.3)%
Water, Sports, RTD Tea & Coffee( 13 ) 11.8% (0.8)% 11.6% (0.5)%
Other inc. Energy 7.7% 11.5% 7.6% 6.2%
Total 100.0% 1.1% 100.0% 0.3%
Coca-Cola®
Q2: +1.2%; H1: +0.4%
• Return of 'Share A Coke' campaign, well executed & received by
consumers.
• Coca-Cola Original Taste H1 -1.1%, with improved Q2 volumes driven by
growth in the Philippines and a stronger performance in Europe.
• Coca-Cola Zero Sugar H1 +4.7% with growth in both Europe & APS.
• Improved Diet Coke performance in Europe & APS supported by 'This
is My Taste' campaign.
Flavours & Mixers
Q2: -1.4%; H1: -1.3%
• Sprite H1 -1.0% with solid growth in Europe driven by new listings in
FBN, offset by decline in Indonesia
• Fanta H1 -2.5% with improved Q2 performance in Europe supported by
new variants & 'Wanta Fanta' campaign, offset by Q2 APS decline.
• Strong double-digit volume increase for Dr. Pepper in GB driven by
new Cherry Crush variant.
Water, Sports, RTD Tea & Coffee( 13 )
Q2: -0.8%; H1: -0.5%
• Water +3.6% driven by growth of Wilkins Pure in the Philippines,
Aquabona in Iberia & Chaudfontaine in FBN.
• H1 Sports +2.7% (Q2 +4.2%) driven by Aquarius in Spain, supported by
the launch of new Red Peach variant.
• RTD Tea & Coffee -12.6% driven by Frestea decline in Indonesia
& transition from Nestea to Fuze Tea in Spain, which is nevertheless ahead
of plan.
Other inc. Energy
Q2: +11.5% (+17.0% exc. Juices)
H1: +6.2% (+13.6% exc. Juices)
• Strong growth in Energy with H1 +14.6% (Q2 +16.8%) driven by growth
of new variants e.g. Rio Punch & Mango Loco & continued strength of
Ultra.
• Juices decline of -13.6% in H1 (Q2 -5.5%) resulting from strategic
de-listing of Capri Sun in Europe which has now fully annualised.
• Ongoing rollout of ARTD portfolio continues to perform strongly
following Q1 launch of Bacardi & Coke, Jack Daniel's & Coca-Cola
Cherry & Absolut Sprite Watermelon.
Conference Call
• 6 August 2025 at 12:00 BST, 13:00 CEST & 7:00 a.m. EDT;
accessible via www.cocacolaep.com
• Replay & transcript will be available at
www.cocacolaep.com as soon as possible
Financial Calendar
• Third quarter trading update: 5 November 2025
• Financial calendar available here:
https://ir.cocacolaep.com/financial-calendar/
Contacts
Investor Relations
Sarah Willett Charles Richardson Matt Sharff Dimitar Todorchev
sarah.willett@ccep.com charles.richardson@ccep.com msharff@ccep.com dtodorchev@ccep.com
Media Relations Contacts
mediaenquiries@ccep.com
About CCEP
Coca-Cola Europacific Partners is one of the world's leading consumer goods
companies. We make, move and sell some of the world's most loved brands -
serving nearly 600 million consumers and helping over 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, London Stock
Exchange and on the Spanish Stock Exchanges, and a constituent of both the
NASDAQ 100 and FTSE 100 indices, trading under the symbol CCEP (ISIN No.
GB00BDCPN049)
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 and 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 2024 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: Nielsen & IRI Period 5 YTD
6. Reflects selling day shift with 2 fewer selling days in H1'25
versus H1'24. Excluding the selling days adjusted volumes were CCEP -1.3%
(Europe -1.9%, APS -0.1%)
7. Dividends subject to Board approval
8. Includes France, Monaco, Belgium, Luxembourg, the Netherlands,
Norway, Sweden & Iceland
9. Includes Spain, Portugal & Andorra
10. Revenue per unit case
11. Includes Australia, New Zealand, the Pacific Islands & Papua New
Guinea
12. Includes Philippines & Indonesia
13. RTD refers to ready to drink
14. As of 30 July 2025
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 2024 Annual Report
on Form 20-F filed with the SEC on 21 March 2025 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; uncertainty and volatility from the
impact and extent of actual and promised tariff adjustments; 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, including tariff
adjustments; 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 in 2024 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 2024 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 allow investors to better
analyse our business performance and allow for greater comparability. To do
so, we have excluded items affecting the comparability of period-over-period
financial performance as described below. The alternative performance measures
included herein should be read in conjunction with and do not replace the
directly reconcilable IFRS measures.
For purposes of this document, the following terms are defined:
''As reported'' are results extracted from our condensed consolidated interim
financial statements.
"Adjusted" includes the results of CCEP as if the CCBPI acquisition had
occurred at the beginning of 2024, 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, additional considerations related to
property sales, accelerated amortisation charges, expenses and releases
related to certain legal provisions, acquisition and integration-related
costs, net tax items arising from rate and law changes, inventory fair value
step-up related to acquisition accounting, impairment charges and net impact
related to European flooding. 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.
''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 the items impacting
comparability for the six months ended 27 June 2025 and 28 June 2024:
First Six Months 2025
In millions of €, except share data, which is calculated prior to rounding. Operating profit Profit after taxes Diluted earnings per share (€)
As Reported 1,364 937 1.99
Items impacting comparability 26 14 0.03
Restructuring charges( 1 ) 46 29 0.07
Property sale( 2 ) (30) (21) (0.05)
Accelerated amortisation( 3 ) 27 19 0.04
Litigation( 4 ) (19) (13) (0.03)
Acquisition and integration related costs( 5 ) 2 2 -
Net tax( 6 ) - (2) -
Comparable 1,390 951 2.02
First Six Months 2024
As Reported 1,142 811 1.73
Items impacting comparability 154 113 0.24
Restructuring charges( 1 ) 95 70 0.16
Acquisition and integration related costs( 5 ) 11 9 0.02
European flooding( 7 ) 1 1 -
Inventory step-up( 8 ) 5 3 -
Impairment( 9 ) 12 8 0.02
Litigation( 4 ) 2 2 -
Accelerated amortisation( 3 ) 28 20 0.04
Comparable 1,296 924 1.97
__________________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent additional consideration received from the sale of a
property in Germany, which was recognised as 'Other income'.
( 3 ) Amounts represent accelerated amortisation charges associated with the
discontinuation of the relationship between CCEP and Beam Suntory upon
expiration of the current contractual agreements.
( 4 ) Amounts represent the release of a provision that had been established
in prior years in connection with an ongoing labour law matter in Germany, for
which no future cash outflows are expected. In 2024, the amount reflected an
increase in this provision based on the assessment at that time.
( 5 ) Amounts represent costs associated with the acquisition and integration
of CCBPI.
( 6 ) Amounts represent the deferred tax impact related to income tax rate
and law changes.
( 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.
( 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 Feral brand, which was sold during the year ended 31 December 2024.
( )
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 six months ended 28
June 2024:
First Six Months 2024 (unaudited)
In € millions, except per share data, which is calculated prior to rounding. Reported Items impacting comparability( 1 ) Comparable Adjusted comparable( 2 ) Adjusted comparable combined
CCEP CCEP CCBPI CCEP
Revenue 9,828 - 9,828 268 10,096
Cost of sales 6,332 (12) 6,320 214 6,534
Operating profit 1,142 154 1,296 10 1,306
Total finance costs, net 87 - 87 3 90
Profit after taxes 811 113 924 5 929
Attributable to:
Shareholders 797 110 907 3 910
Non-controlling interest 14 3 17 2 19
Diluted earnings per share (€) 1.73 1.97 1.98
Diluted weighted average shares outstanding 460
__________________________
( 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.
( )
Supplemental Financial Information - Operating Profit - Reported to Comparable
Revenue
Revenue CCEP Second Quarter Ended Six Months 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.
27 June 2025 28 June 2024 % Change 27 June 2025 28 June 2024 % Change
As reported 5,585 5,363 4.1% 10,274 9,828 4.5%
Adjust: Impact of fx changes 70 n/a n/a 74 n/a n/a
Fx-neutral 5,655 5,363 5.4% 10,348 9,828 5.3%
Revenue per unit case 5.45 5.22 4.3% 5.36 5.30 1.1%
Revenue Europe
As reported 4,218 3,989 5.7% 7,471 7,279 2.6%
Adjust: Impact of fx changes (10) n/a n/a (27) n/a n/a
Fx-neutral 4,208 3,989 5.5% 7,444 7,279 2.3%
Revenue per unit case 6.05 5.80 4.2% 5.98 5.74 4.2%
Revenue APS
As reported 1,367 1,374 (0.5)% 2,803 2,549 10.0%
Adjust: Impact of fx changes 80 n/a n/a 101 n/a n/a
Fx-neutral 1,447 1,374 5.3% 2,904 2,549 13.9%
Revenue per unit case 4.23 4.05 4.4% 4.23 4.35 (2.6)%
Revenue by Geography Six Months Ended 27 June 2025
In millions of €
As reported Reported Fx-Neutral
% change % change
Great Britain 1,697 6.5% 5.0%
Iberia( 1 ) 1,555 (1.0)% (1.0)%
Germany 1,547 0.5% 0.5%
France( 2 ) 1,261 3.4% 3.4%
Belgium/Luxembourg 536 1.9% 1.9%
Netherlands 412 8.4% 8.4%
Norway 212 3.9% 5.4%
Sweden 210 1.4% (1.4)%
Iceland 41 5.1% 2.6%
Total Europe 7,471 2.6% 2.3%
Australia 1,176 0.6% 5.4%
Philippines 995 41.7% 43.6%
New Zealand and Pacific Islands 312 (4.3)% 0.9%
Indonesia 195 (17.0)% (14.5)%
Papua New Guinea 125 6.8% 14.5%
Total APS 2,803 10.0% 13.9%
Total CCEP 10,274 4.5% 5.3%
____________________
( 1 ) Iberia refers to Spain, Portugal & Andorra.
( 2 ) France refers to continental France & Monaco.
Volume
Comparable Volume - Selling Day Shift CCEP Second Quarter Ended Six Months Ended
In millions of unit cases, prior period volume recast using current year
selling days.
27 June 2025 28 June 2024 % Change 27 June 2025 28 June 2024 % Change
Volume 1,038 1,027 1.1% 1,932 1,856 4.1%
Impact of selling day shift n/a n/a n/a n/a (25) n/a
Comparable volume - Selling Day Shift adjusted 1,038 1,027 1.1% 1,932 1,831 5.5%
Comparable Volume - Selling Day Shift Europe
Volume 696 688 1.2% 1,246 1,270 (1.9)%
Impact of selling day shift n/a n/a n/a n/a (20) n/a
Comparable volume - Selling Day Shift adjusted 696 688 1.2% 1,246 1,250 (0.3)%
Comparable Volume - Selling Day Shift APS
Volume 342 339 0.9% 686 586 17.1%
Impact of selling day shift n/a n/a n/a n/a (5) n/a
Comparable volume - Selling Day Shift adjusted 342 339 0.9% 686 581 18.1%
Cost of Sales
Cost of Sales Six Months 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.
27 June 2025 28 June 2024 % change
As reported 6,637 6,332 4.8%
Adjust: Total items impacting comparability 6 (12) n/a
Adjust: Restructuring charges( 1 ) (6) (5)
Adjust: Litigation( 2 ) 12 (1)
Adjust: European flooding( 3 ) - (1)
Adjust: Inventory step-up( 4 ) - (5)
Comparable 6,643 6,320 5.1%
Adjust: Impact of FX changes 45 n/a n/a
Comparable and Fx-neutral 6,688 6,320 5.8%
Cost of sales per unit case 3.46 3.41 1.6%
__________________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent the release of a provision that had been established
in prior years in connection with an ongoing labour law matter in Germany, for
which no future cash outflows are expected. In 2024, the amount reflected an
increase in this provision based on the assessment at that time.
( 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.
( 4 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( )
For the six months ending 27 June 2025, reported cost of sales were €6,637
million, up 4.8% versus 2024. Comparable cost of sales for the same period
were €6,643 million, up 5.1% versus 2024. Cost of sales per unit case
increased by 1.6% on a comparable and fx-neutral basis, reflecting the impact
of increased revenue per unit case driving higher concentrate costs, inflation
in manufacturing and tax increases in France and GB, partially offset by the
impact of CCBPI operations acquired in 2024.
Operating expenses
Operating Expenses Six Months Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
27 June 2025 28 June 2024 % Change
As reported 2,303 2,354 (2.2)%
Adjust: Total items impacting comparability (62) (142) n/a
Adjust: Restructuring charges( 1 ) (40) (90)
Adjust: Accelerated amortisation( 2 ) (27) (28)
Adjust: Litigation( 3 ) 7 (1)
Adjust: Acquisition and Integration related costs( 4 ) (2) (11)
Adjust: Impairment( 5 ) - (12)
Comparable 2,241 2,212 1.3%
Adjust: Impact of FX changes 19 n/a n/a
Comparable and Fx-neutral 2,260 2,212 2.2%
__________________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities.
( 2 ) Amounts represent accelerated amortisation charges associated with the
discontinuation of the relationship between CCEP and Beam Suntory upon
expiration of the current contractual agreements.
( 3 ) Amounts represent the release of a provision that had been established
in prior years in connection with an ongoing labour law matter in Germany, for
which no future cash outflows are expected. In 2024, the amount reflected an
increase in this provision based on the assessment at that time.
( 4 ) Amounts represent costs associated with the acquisition and
integration of CCBPI.
( 5 ) Amounts represent the expense recognised in relation to the impairment
of the Feral brand, which was sold during the year ended 31 December 2024.
( )
For the six months ending 27 June 2025, reported operating expenses were
€2,303 million, down 2.2% versus 2024, mainly driven by lower business
transformation costs. Comparable operating expenses were €2,241 million for
the same period, up 1.3% versus 2024, reflecting the impact of the CCBPI
operations acquired in 2024 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 the first half of 2025, as part
of this efficiency programme, the Group announced restructuring proposals
resulting in €40 million of operating expenses primarily related to expected
severance payments. This compares to €90 million of restructuring charges
within operating expenses incurred in the six month period ending 28 June
2024.
Operating profit
Operating Profit CCEP Six Months Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
27 June 2025 28 June 2024 % Change
As reported 1,364 1,142 19.4%
Adjust: Total items impacting comparability 26 154 n/a
Comparable 1,390 1,296 7.3%
Adjust: Impact of fx changes 10 n/a n/a
Comparable & Fx-neutral 1,400 1,296 8.0%
Operating Profit Europe
As reported 1,070 882 21.3%
Adjust: Total items impacting comparability (17) 97 n/a
Comparable 1,053 979 7.6%
Adjust: Impact of fx changes (4) n/a n/a
Comparable & Fx-neutral 1,049 979 7.2%
Operating Profit APS
As reported 294 260 13.1%
Adjust: Total items impacting comparability 43 57 n/a
Comparable 337 317 6.3%
Adjust: Impact of fx changes 14 n/a n/a
Comparable & Fx-neutral 351 317 10.7%
Supplemental Financial Information - Operating Profit - Reported to Adjusted
Comparable
Revenue
Adjusted Revenue CCEP Second Quarter Ended Six Months 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.
27 June 2025 28 June 2024 % Change 27 June 2025 28 June 2024 % Change
As reported 5,585 5,363 4.1% 10,274 9,828 4.5%
Add: Adjusted revenue impact( 1 ) - - n/a - 268 n/a
Adjusted Comparable 5,585 5,363 4.1% 10,274 10,096 1.8%
Adjust: Impact of fx changes 70 n/a n/a 74 n/a n/a
Adjusted Comparable and Fx-neutral 5,655 5,363 5.4% 10,348 10,096 2.5%
Adjusted Revenue per unit case 5.45 5.22 4.3% 5.36 5.16 3.8%
Adjusted Revenue APS
As reported 1,367 1,374 (0.5)% 2,803 2,549 10.0%
Add: Adjusted revenue impact( 1 ) - - n/a - 268 n/a
Adjusted Comparable 1,367 1,374 (0.5)% 2,803 2,817 (0.5)%
Adjust: Impact of fx changes 80 n/a n/a 101 n/a n/a
Adjusted Comparable and Fx-neutral 1,447 1,374 5.3% 2,904 2,817 3.1%
Adjusted Revenue per unit case 4.23 4.05 4.4% 4.23 4.10 3.2%
( 1 ) The adjusted revenue impact reflects the inclusion of Philippines
revenue as if the acquisition had occurred at the beginning of 2024 and
prepared on a basis consistent with CCEP IFRS accounting policies.
Volume
Adjusted Comparable Volume - Selling Day Shift CCEP Second Quarter Ended Six Months Ended
In millions of unit cases, prior period volume recast using current year
selling days.
27 June 2025 28 June 2024 % Change 27 June 2025 28 June 2024 % Change
Volume 1,038 1,027 1.1% 1,932 1,856 4.1%
Impact of selling day shift n/a - n/a n/a (25) n/a
Comparable volume - Selling Day Shift adjusted 1,038 1,027 1.1% 1,932 1,831 5.5%
Add: Adjusted volume impact( 1 ) - - n/a - 95 n/a
Adjusted comparable volume 1,038 1,027 1.1% 1,932 1,926 0.3%
Adjusted Comparable Volume - Selling Day Shift APS
Volume 342 339 0.9% 686 586 17.1%
Impact of selling day shift n/a - n/a n/a (5) n/a
Comparable volume - Selling Day Shift adjusted 342 339 0.9% 686 581 18.1%
Add: Adjusted volume impact( 1 ) - - n/a - 95 n/a
Adjusted comparable volume 342 339 0.9% 686 676 1.5%
( 1 ) The adjusted volume impact reflects the inclusion of Philippines
volume as if the acquisition had occurred at the beginning of 2024. Adjusted
volume impact for Philippines for the year ended 31 December 2024 is 101
million unit cases. Including the impact of the Q1 selling day shift (6
million unit cases), adjusted comparable Philippines volume is 95 million unit
cases.
( )
Cost of Sales
Adjusted Cost of Sales Six Months 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.
27 June 2025 28 June 2024 % Change
As reported 6,637 6,332 4.8%
Add: Adjusted cost of sales impact( 1 ) - 213 n/a
Adjust: Acquisition accounting( 2 ) - 1
Adjust: Total items impacting comparability 6 (12)
Adjust: Restructuring charges( 3 ) (6) (5)
Adjust: Litigation( 4 ) 12 (1)
Adjust: Inventory step-up( 5 ) - (5)
Adjust: European flooding( 6 ) - (1)
Adjusted Comparable 6,643 6,534 1.7%
Adjust: Impact of fx changes 45 n/a n/a
Adjusted Comparable & Fx-neutral 6,688 6,534 2.4%
Adjusted cost of sales per unit case 3.46 3.34 3.6%
__________________________
( 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 release of a provision that had been established
in prior years in connection with an ongoing labour law matter in Germany, for
which no future cash outflows are expected. In 2024, the amount reflected an
increase in this provision based on the assessment at that time.
( 5 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( 6 ) 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.
Adjusted comparable cost of sales for the six months ending 27 June 2025 were
€6,643 million, up 1.7% versus 2024. Cost of sales per unit case increased
by 3.6% 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 tax driven by France and GB.
Operating Expenses
Adjusted Operating Expenses Six Months Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
27 June 2025 28 June 2024 % Change
As reported 2,303 2,354 (2.2)%
Add: Adjusted operating expenses impact( 1 ) - 43 n/a
Adjust: Acquisition accounting( 2 ) - 1
Adjust: Total items impacting comparability (62) (142)
Adjust: Restructuring charges( 3 ) (40) (90)
Adjust: Accelerated amortisation( 4 ) (27) (28)
Adjust: Litigation( 5 ) 7 (1)
Adjust: Acquisition and Integration related costs( 6 ) (2) (11)
Adjust: Impairment( 7 ) - (12)
Adjusted Comparable 2,241 2,256 (0.7)%
Adjust: Impact of fx changes 19 n/a n/a
Adjusted Comparable & Fx-neutral 2,260 2,256 0.2%
__________________________
( 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 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 release of a provision that had been established
in prior years in connection with an ongoing labour law matter in Germany, for
which no future cash outflows are expected. In 2024, the amount reflected an
increase in this provision based on the assessment at that time.
( 6 ) Amounts represent costs associated with the acquisition and integration
of CCBPI.
( 7 ) Amounts represent the expense recognised in relation to the impairment
of the Feral brand, which was sold during the year ended 31 December 2024.
Adjusted comparable operating expenses for the six months ending 27 June 2025
were €2,241 million, down 0.7% versus 2024, reflecting inflation, 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 Six Months Ended
In millions of €. FX impact calculated by recasting current year results at
prior year rates.
27 June 2025 28 June 2024 % Change
As reported 1,364 1,142 19.4%
Add: Adjusted operating profit impact - 12 n/a
Adjust: Acquisition accounting - (2)
Adjust: Total items impacting comparability 26 154
Adjusted Comparable 1,390 1,306 6.4%
Adjust: Impact of fx changes 10 n/a n/a
Adjusted Comparable & Fx-neutral 1,400 1,306 7.2%
Adjusted Operating Profit APS
As reported 294 260 13.1%
Add: Adjusted operating profit impact - 12 n/a
Adjust: Acquisition accounting - (2)
Adjust: Total items impacting comparability 43 57
Adjusted Comparable 337 327 3.1%
Adjust: Impact of fx changes 14 n/a n/a
Adjusted Comparable & Fx-neutral 351 327 7.3%
Supplemental Financial Information - Effective Tax Rate
The effective tax rate was 26% and 22% for the six months ended 27 June 2025
and 28 June 2024, respectively, and 25% for the year ended 31 December 2024.
For the six months ending 27 June 2025, the effective tax rate reflects the
impact of having operations outside the UK which are taxed at rates other than
the statutory UK rate of 25%, and adjustments made in respect of prior
periods.
We expect our full year 2025 comparable effective tax rate to be approximately
26%.
Income tax Six Months Ended
In millions of €
27 June 2025 28 June 2024
As reported 323 234
Adjust: Total items impacting comparability 12 41
Adjust: Restructuring charges( 1 ) 17 25
Adjust: Property sale( 2 ) (9) -
Adjust: Accelerated amortisation( 3 ) 8 8
Adjust: Litigation( 4 ) (6) -
Adjust: Net tax( 5 ) 2 -
Adjust: Impairment( 6 ) - 4
Adjust: Acquisition and Integration related costs( 7 ) - 2
Adjust: Inventory step-up( 8 ) - 2
Comparable 335 275
__________________________
( 1 ) Amounts represent the tax impact of restructuring charges related to
business transformation activities.
( 2 ) Amounts represent the tax impact of additional consideration received
from the sale of a property in Germany, which was recognised as 'Other
income'.
( 3 ) 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.
( 4 ) Amounts represent the tax impact of release of a provision that had been
established in prior years in connection with an ongoing labour law matter in
Germany, for which no future cash outflows are expected.
( 5 ) Amounts represent the deferred tax impact arising from income tax rate
and law changes.
( 6 ) Amounts represent the tax impact of the expense recognised in relation
to the impairment of the Feral brand, which was sold during the year ended 31
December 2024.
( 7 ) Amounts represent the tax impact of costs associated with the
acquisition and integration of CCBPI.
( 8 ) Amounts represent the tax impact of the non-recurring impact of fair
value step-up of CCBPI inventories.
( )
Supplemental Financial Information - Comparable Free Cash Flow
Comparable Free Cash Flow Six Months Ended
In millions of €
27 June 2025 28 June 2024
Net cash flows from operating activities 986 1,122
Less: Purchases of property, plant and equipment (343) (390)
Less: Purchases of capitalised software (87) (42)
Add: Proceeds from sales of property, plant and equipment 45 2
Less: Payments of principal on lease obligations (76) (77)
Less: Net interest payments (100) (88)
Adjust: Items impacting comparability( 1 ) - 12
Comparable Free Cash Flow 425 539
( 1 ) During the six months ended 28 June 2024, the Group paid an additional
€12 million in cash taxes related to cash proceeds received in 2023 (€89
million) from royalty income arising from the ownership of certain mineral
rights in Australia. The cash impact of this event has been included within
the Group's net cash flows from operating activities for the six months ended
28 June 2024. Given the unusual nature of this item and to support better
period-to-period comparability, our comparable free cash flow measure excludes
the cash impact related to this matter.
( )
If the Acquisition had occurred on 1 January 2024, adjusted comparable free
cash flow for the six months ended 28 June 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 5 August 2025
27 June 2025 31 December 2024 Moody's Fitch Ratings
Total borrowings 12,012 11,331 Long-term rating Baa1 BBB+
Fair value of hedges related to borrowings( 1 ) 66 36 Outlook Positive Stable
Other financial assets/liabilities( 1 ) 14 18 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 12,092 11,385
Less: cash and cash equivalents( 2 , 4 ) (1,659) (1,563)
Less: short term (401) (150)
investments( 3 )
Net debt 10,032 9,672
______________________
( 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 27 June 2025 and 31 December 2024
include €24 million and €36 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 ) Short term investments are term cash deposits held in API and Europe
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 investments as at 27 June 2025 and 31 December 2024 include €16
million and €18 million of assets in Papua New Guinea Kina respectively,
subject to the same currency controls outlined above.
( 4 ) Cash and cash equivalents as at 27 June 2025 and 31 December 2024
include nil and €10 million respectively 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.
Supplemental Financial Information - Comparable EBITDA
Comparable EBITDA Six Months Ended
In millions of €
27 June 2025 28 June 2024
Reported profit after tax 937 811
Taxes 323 234
Finance costs, net 98 87
Non-operating items 6 10
Reported operating profit 1,364 1,142
Depreciation and amortisation 469 448
Reported EBITDA 1,833 1,590
Items impacting comparability
Restructuring charges( 1 ) 44 87
Property sale( 2 ) (30) -
Litigation( 3 ) (19) 2
Acquisition and Integration related costs( 4 ) 2 11
Impairment( 5 ) - 12
Inventory step-up( 6 ) - 5
European flooding( 7 ) - 1
Comparable EBITDA 1,830 1,708
______________________
( 1 ) Amounts represent restructuring charges related to business
transformation activities, excluding accelerated depreciation included in the
depreciation and amortisation line.
( 2 ) Amounts represent additional consideration received from the sale of a
property in Germany, which was recognised as 'Other income'.
( 3 ) Amounts represent the release of a provision that had been established
in prior years in connection with an ongoing labour law matter in Germany, for
which no future cash outflows are expected. In 2024, the amount reflected an
increase in this provision based on the assessment at that time.
( 4 ) Amounts represent costs associated with the acquisition and integration
of CCBPI.
( 5 ) Amounts represent the expense recognised in relation to the impairment
of the Feral brand, which was sold during the year ended 31 December 2024.
( 6 ) Amounts represent the non-recurring impact of fair value step-up of
CCBPI inventories.
( 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.
( )
Principal Risks and Risk Factors
The Group faces a number of risks and uncertainties that may have an adverse
effect on its operations, performance and future prospects and has a robust
risk management programme to assess these and evaluate strategies to manage
them. The principal risks and risk factors in our 2024 Annual Report on Form
20-F for the year ended 31 December 2024 ('2024 Annual Report' pages 66 to 77
and 284 to 293 respectively) continue to represent our risks.
As part of our risk management governance and routines we continuously monitor
the risk landscape and discuss with business leaders risk trends every
quarter, velocity and actions to be taken, as well as scanning for future
risks. Based on that exercise we do not intend to change the principal risks
included in our 2024 Annual Report, but we have identified some developments
this first half of 2025.
Since the publication of the Annual Report in March, the macro risk
environment remains volatile and we believe that the reported key mitigations
continue to be appropriate and effective. If current geopolitical tensions
escalate and macro-economic indicators deteriorate further, we foresee that
potential additional freight disruptions, shortages and sanctions as well as
eroding consumer confidence and sentiment could be the consequences and have a
significant impact on global trade and sales.
Recent US policy changes are creating uncertainty and heightened volatility
across markets, foreign exchange, and commodities. While CCEP's direct
exposure remains relatively limited thanks to our local sourcing, strong
execution, and minimal reliance on US imports, the broader implications could
be a factor. Our procurement and treasury teams are monitoring the
developments continuously and are prepared to take advantage of falling
commodity prices and favourable exchange rates.
We continue to closely monitor the developments in global conflict zones,
particularly in the Middle East and Ukraine, which have impacted the global
supply of raw materials, supplies, finished goods, gas/oil/energy and
increased cyber risks. In response, CCEP has taken steps to de-risk its supply
chain and put plans in place to secure commodities in particular with our
Asian Pacific suppliers due to geopolitical tensions in the region. We have
noticed a weaker volume performance in Indonesia impacted by the geopolitical
situation in the Middle East.
At CCEP we are embracing the technological advancements made in recent years
and are increasing our technical footprint through transformation projects and
acquisitions. We are reviewing cybersecurity startups focused on proactive
detection, continuous assessment, and AI integration to enhance our threat
readiness. In parallel, we are engaging with strategic partners to assess and
prepare for the long-term risks posed by quantum computing. These efforts
support our ongoing commitment to staying ahead of emerging cyber threats.
We continue to work on our affordability strategies to respond to the cost of
living challenges faced by our consumers.
When it comes to our products, discussions on potential taxes to soft drinks
and plastic continue in different countries across our territories. Based on
our experience we engage in open and collaborative discussions with
authorities and other stakeholders. We are also evaluating and responding
appropriately to recent reports in relation to sweeteners and commercial and
marketing restrictions considering the risk of commercial impact, regulation,
litigation and reputational damage, as well as the developments in regard to
the implementation of Deposit Return Systems and waste collection solutions.
Accordingly, the information provided about our principal risks and risk
factors in the table below and in the Principal Risks and Risk Factors in our
2024 Annual Report, and any or all of the Principal Risks and Risk Factors
contained therein may be exacerbated by developments in the factors identified
above and in our Forward-Looking Statements set out above.
The risks described in this report and in our 2024 Annual Report are not the
only risks facing the Group. Additional risks and uncertainties not currently
known to us or that we currently deem to be immaterial may also adversely
affect our business, financial condition or future results.
SUMMARY OF OUR PRINCIPAL RISKS
The table below shows our Principal Risks:
Principal Risk Risk description Key mitigations to manage risk Focus areas for 2025 Opportunities arising from risk
Market The risk that CCEP fails to identify and effectively respond to changes in • International marketing services agreement guidelines • Development of eB2B capability as part of our overall digital strategy • Improving operational performance and decision making through the use of
the competitive environment, including access to customers and consumers,
AI and digital technology, product innovation and reducing our response times
and pricing terms and conditions resulting in a loss of market share, revenue • Affordability plans in several European markets • Roll out of our eB2B platform in Spain and Portugal to changes in consumer habits and market conditions
and reduction in shareholder value.
• Shopper insights • Focus on Coca-Cola Original Taste to further accelerate the growth of our
biggest brand
• New route to market opportunities
• Recruiting consumers into our great brands by offering affordable
• Pack and product innovation propositions for shoppers searching for value
Economic and tax The risk that an inability to anticipate and effectively manage fluctuations • Hedging policy • Implement a global treasury management system that will standardise and • Improving our financial and business performance by working with
in foreign exchange and commodity prices, balance our capital allocation for
automate exposure and hedge management for FX and commodities governments on consultation processes for tax regulation, continuing to build
reinvestment and effectively manage our tax positions leads to a reduction in • Maintain a strong level of liquidity and back up credit lines for working strong macro-economic capabilities and effectively hedging commodities and
revenue, profitability, and shareholder value. capital purposes as well as unexpected cash flow swings managing debt
• CCEP controls framework
• Regular updates on the Group's tax position to the Chief Accounting
Officer, Chief Financial Officer and the Audit Committee
• Group's tax strategy
Packaging The risk that an inability to deliver environmentally sustainable packaging • Roadmap to support collection including advocacy for container deposit and • Strengthen our 2030 collection roadmaps with a focus on DRS implementation • Reducing the amount of waste going to landfill by leveraging the strength
solutions for our products may lead to increased taxes and regulations return schemes and EPR in European markets and self-funded collection in emerging markets and of our portfolio mix, increasing collection rates, investment in recycling
relating to packaging (e.g. limits on single use plastics) and a shift in
continue to invest in recycled PET technologies and promoting recycling
consumer and customer preferences towards more sustainable alternatives • rPET roadmap
resulting in reduced revenue or market share, increases to the cost of
production and compliance, an inability to achieve our GHG emissions reduction • Packaging design and innovation
targets causing reputational damage and a loss of our social license to
operate. • CCEP Ventures investment in new recycling technologies and packaging
innovation
• Continued investment in refillable packaging in multiple markets
Category perception The risk that CCEP is unable to effectively identify and respond to changes in • Support TCCC, EU or national associations in their consultation with • Customer category management • Improving financial performance and market share through portfolio
customer, consumer and regulatory perception and preferences for our products governments regarding no and low-calorie sweeteners
diversification and working with local governments on taxation and regulations
leading to a loss of market share, revenue, increased regulatory scrutiny,
• Consumer information on the wide range of products in our portfolio that impact marketing, labelling, packaging and ingredients such as sugar and
higher taxes and damage to brand and reputation. • Category management capabilities including low and no calorie sweetened beverages sweeteners
• Customer engagement
Geopolitical and global The risk that an inability to anticipate and respond to geopolitical • CCEP Incident Management and Crisis Response (IMCR) process • Enhance community management capabilities for digital communication • Improving business resilience and financial performance through supplier
instability and global events (e.g. regional conflicts or wars, global
platforms diversification and protecting consumer loyalty and sentiment about our brands
pandemics, natural disasters) leads to disruptions to global supply chains, a • TCCC Business Resilience Framework
by thoughtfully addressing the challenges of social media influence and
reduction in profitability and shareholder value, and damage to reputation and
• Review of CCEP digital monitoring and alert tools solutions and develop differing viewpoints
brand. • CCEP Business Continuity and Resilience (BCR) Framework stronger ways of working with TCCC and other bottlers in Europe and APS to
anticipate and prepare
• Early warning indicators to identify potential risks early and increase
the reaction time needed to implement adequate countermeasures
• Monitoring of global issues and tracking of political elections and
corporate positions including within the Coca-Cola system
Cyber and IT/OT resilience The risk that cloud concentration and/or an inability to protect information • Cyber strategy • Embed asset management • Driving operational and technological efficiencies by modernising
systems and data from unauthorised access, misuse, software update incidents,
equipment, applications, and processes to address technology debt and prevent
or physical destruction results in disruption to operations, regulatory • Information security and data privacy training and awareness • New campaigns for operational technology (OT) training and awareness potential entry points for threats and by upgrading systems and the OT
intervention, financial losses or damage to our company's reputation.
organisation
• BCP and disaster recovery programme • Back up tool migration and recovery exercises
• Threat vulnerability management and threat intelligence • Secure remote access of third parties
• Global Security Operations Centre • Vulnerability management for OT and obsolescence programme
• IT/OT programme for the Philippines
• NIS2 compliance
Business Transformation and digital capability The risk that a failure to successfully execute the business transformation • Competitiveness steering committee and governance model for enterprise • Continue developing the existing competitiveness and digital • Improved business growth and performance by embracing change to drive
agenda leads to a diversion of management's focus away from our core business, wide digital transformation transformation initiatives innovation and deliver operational efficiencies
an inability to execute our business plans effectively, possible disruption to
our operations, and not delivering the expected value or benefit to the • CCEP project management methodology and dedicated programme management
business. office
• Analysis and review of acquisition-related activities including enterprise
valuation and capital allocation, business performance risk indicators and
integration planning
Key supplier The risk that critical suppliers are unable to provide the raw materials and • Supply risk and contingency process • Third party due diligence (TPDD) across non-supplier third parties and • Improved financial performance and supply chain resilience through
services needed to produce CCEP's products leading to an inability and/or
customers (e.g. charities, NGOs, Iberian distributors) scenario planning, the development of alternatives and a more sustainable
delay in the delivery of our products to our customers, financial losses and • Cross Enterprise Procurement Group (CEPG) to leverage global collaboration
supplier base
reputation damage.
• Integration of risk management processes into new territories
• Digital risk management and sensing technology
Product quality The risk of CCEP products failing to meet food safety, regulatory and quality • Franchisor standards and governance • Drive food safety culture • Improving business and financial performance through reduction of product
requirements could harm consumers, lead to litigation, regulatory fines,
quality incidents, product recalls and liabilities, by focusing on First Time
damage our brand and reputation, and jeopardise our franchise agreements. • ISO 9001 and FSSC 22000 certification • Governance of action plans from lessons learnt Right (FTR) and the investment in our systems and people
• Customer and consumer complaint management • Strengthen hazard analysis and critical control points
• Incident management and crisis resolution
Health, safety and security The risk of harm to the mental and physical health, safety and security of our • Safety strategy • Implementation of the travel security programme across CCEP • Improved business performance through the removal of hazards and reduction
employees, contractors and third parties, and the risk of theft, damage or
of risks by continuing the roll out of our safety strategy and establishing an
fraudulent loss of organisational assets and financial integrity. • Security and integrity training and communication • Pilot of fraud detection software internal intelligence service to provide actionable intelligence and monitor
geopolitical risks, emerging threats, and market trends
• Travel security programme • Implementation of mandatory online fraud training module
• CCEP wide fraud risk assessment • Focus on strength of defences assessments to eliminate the potential for
serious injuries
• Anti-fraud policy
• Global implementation of new contractor management system
• Machinery safety technology using radar to fail-safe
Climate and water The risk that an inability to manage the physical and transition risks • Roadmap to reduce GHG emissions by 30% versus 2019 • Launch six climate accelerators to identify low carbon technologies and • Improving energy efficiency and reducing operating costs and reliability
associated with climate change results in supply chain disruption, damage to
solutions to support our climate roadmap through the investment in new technology, engaging in partnerships with other
our brand and reputation, regulatory fines and penalties, litigation, a • Supplier GHG emissions reduction targets and engagement programme
industries, customers and partners and focusing on water security and
reduction in shareholder value and ultimately damage to the environment and
• Review and update our water reduction roadmap focusing on plants with the long-term water rights
the broader community. • FAWVAs highest water risk and prioritising water-intensive processes to maximise
benefits
• EWRA
• Improve capital allocation by applying prioritisation formulas to maximise
• CCEP Ventures investment in low-carbon technologies and innovation return on investments
Legal, regulatory and compliance The risk that an inability to identify, advocate for, and comply with new • Compliance processes and training programmes • Deep dive risk assessments into bribery and corruption • Driving a culture of respect and compliance and continuing to share our
and/or changes to existing legal, regulatory and compliance requirements
local value model and positive impact in the communities we operate in with
results in new or higher taxes, stricter sales and marketing controls, other • Monitoring and implementation of new or changing laws and regulations • CCEP digital regulatory monitoring and alert capability including stakeholders and, in particular, regulators to have the right regulatory
punitive actions from regulators or legislative bodies, or litigation that
collaboration with TCCC and other bottlers environment for all
negatively impacts our financial results, business performance and license to • Dialogue with government representatives and input to public consultations
operate. on new or changing regulations • Continue awareness and change management for improved adoption of
compliance procedures
• Records and information management programme
• Harmonise data protection training and maturity, enable global
inter-company transfers
Talent and corporate social responsibility The risk that CCEP is unable to attract, develop, retain and motivate existing • CoC, CCEP Human Rights policy and Restructuring Guidelines, and • Implementation of the Corporate Sustainability Due Diligence Directive • Driving sustainable growth and maintaining our competitive edge as an
and future employees through its internal people and culture processes, and Responsible Sourcing policy (CS3D) employer of choice through the investment in our workforce development
social commitments which may result in a failure to achieve our strategic
programmes and platforms like the Career Hub for talent attraction and
objectives, increased turnover rates, a decline in employee engagement and • Annual Modern Slavery Statement and country specific human rights risk • Implement the Global Inclusion Survey and follow up action plan retention
overall business performance. A failure to act responsibly towards social assessments in Bulgaria and Germany
commitments and corporate citizenship (including human rights) may also lead
• Further embed the Accessibility Matrix across CCEP
to reputational damage and/or litigation. • Anti-harassment and Inclusion, Diversity & Equity Policy
• Create a global workplace adjustments framework
• Community Investment programmes
• Implement a new Employee Assistance Programme provider
• Business for Societal Impact Framework
TCCC and strategic partners The risk that the incentives and strategy of TCCC and other strategic partners • Clear agreements govern the relationships • Focus on the innovation pipeline with TCCC and Monster to further • Improving market share and financial performance through research and
is misaligned with that of CCEP leading to actions and decisions that could
accelerate the growth of our brands development with TCCC and Monster into new products, reformulation and
negatively impact on CCEP's business relationships, license to operate and • Long range planning and annual business planning processes portfolio diversification, and equipment innovation
ability to deliver on its own strategic objectives.
• Routines between CCEP and franchisors
Related Parties
Related party disclosures are presented in Note 10 of the Notes to the
condensed consolidated interim financial statements contained in this interim
management report.
Going Concern
As part of the Directors' consideration of the appropriateness of adopting the
going concern basis in preparing the condensed consolidated interim 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 financial statements. Accordingly, the
condensed consolidated interim 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.
Responsibility Statement
The Directors of the Company confirm that to the best of their knowledge:
• The condensed consolidated interim financial statements for the
six months ended 27 June 2025 have been prepared in accordance with
International Accounting Standard 34, "Interim Financial Reporting" as adopted
by the European Union, International Accounting Standard 34, "Interim
Financial Reporting", as issued by the International Accounting Standards
Board, UK adopted International Accounting Standard 34 "Interim Financial
Reporting" and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority (DTR), and give a true and fair view of
the assets, liabilities, financial position and profit or loss of the Group.
• The interim management report includes a fair review of the
information required by the DTR 4.2.7 R and DTR 4.2.8 R as follows:
• DTR 4.2.7 R: (1) an indication of important events that have
occurred during the first six months of the financial year, and their impact
on the condensed set of financial statements, and (2) a description of the
principal risks and uncertainties for the remaining six months of the
financial year; and
• DTR 4.2.8 R: (1) related parties transactions that have taken
place in the first six months of the current financial year and that have
materially affected the financial position or the performance of the Group
during that period, and (2) any changes in the related parties transactions
described in the last annual report that could have a material effect on the
financial position or performance of the Group in the first six months of the
current financial year.
A list of current directors is maintained on CCEP's website:
www.cocacolaep.com/about-us/governance/board-of-directors/.
On behalf of the Board
Damian Gammell Ed Walker
Chief Executive Officer Chief Financial Officer
6 August 2025
INDEPENDENT REVIEW REPORT TO COCA-COLA EUROPACIFIC PARTNERS PLC
Conclusion
We have been engaged by the Company to review the condensed consolidated set
of financial statements in the half-yearly financial report for the six months
ended 27 June 2025 which comprises the condensed consolidated interim income
statement, condensed consolidated interim statement of comprehensive income,
condensed consolidated interim statement of financial position, condensed
consolidated interim statement of cash flows, condensed consolidated interim
statement of changes in equity and the related explanatory notes. We have read
the other information contained in the half yearly financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated set of financial statements in the
half-yearly financial report for the six months ended 27 June 2025 is not
prepared, in all material respects, in accordance with International
Accounting Standard 34, "Interim Financial Reporting" as issued by the
International Accounting Standards Board, International Accounting Standard
34, "Interim Financial Reporting" as adopted by the European Union, U.K.
adopted International Accounting Standard 34, "Interim Financial Reporting"
and the Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with U.K. 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). The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with International Accounting Standard 34, "Interim
Financial Reporting" as issued by the International Accounting Standards
Board, International Accounting Standard 34, "Interim Financial Reporting" as
adopted by the European Union, and U.K. adopted International Accounting
Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
6 August 2025
Coca-Cola Europacific Partners plc
Condensed Consolidated Interim Income Statement (Unaudited)
Six Months Ended
27 June 2025 28 June 2024
Note € million € million
Revenue 2 10,274 9,828
Cost of sales (6,637) (6,332)
Gross profit 3,637 3,496
Selling and distribution expenses (1,629) (1,610)
Administrative expenses (674) (744)
Other income 13 30 -
Operating profit 1,364 1,142
Finance income 34 42
Finance costs (132) (129)
Total finance costs, net (98) (87)
Non-operating items (6) (10)
Profit before taxes 1,260 1,045
Taxes 11 (323) (234)
Profit after taxes 937 811
Profit attributable to shareholders 913 797
Profit attributable to non-controlling interests 24 14
Profit after taxes 937 811
Basic earnings per share (€) 3 1.99 1.73
Diluted earnings per share (€) 3 1.99 1.73
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Coca-Cola Europacific Partners plc
Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited)
Six Months Ended
27 June 2025 28 June 2024
Note € million € million
Profit after taxes 937 811
Components of other comprehensive income/(loss):
Items that may be subsequently reclassified to the income statement:
Foreign currency translations:
Pretax activity, net (567) 44
Tax effect - -
Foreign currency translation, net of tax (567) 44
Cash flow hedges:
Pretax activity, net 7 (103) 35
Tax effect 28 (8)
Cash flow hedges, net of tax (75) 27
Other reserves:
Pretax activity, net (1) (6)
Tax effect - 2
Other reserves, net of tax (1) (4)
Items that may be subsequently reclassified to the income statement (643) 67
Items that will not be subsequently reclassified to the income statement:
Pension plan remeasurements:
Pretax activity, net (12) 23
Tax effect 3 (6)
Pension plan adjustments, net of tax (9) 17
Changes in the fair value of equity investments at FVOCI
Pretax activity, net 1 -
Tax effect - -
Changes in the fair value of equity investments at FVOCI, net of tax 1 -
Items that will not be subsequently reclassified to the income statement: (8) 17
Other comprehensive income/(loss) for the period, net of tax (651) 84
Comprehensive income for the period 286 895
Comprehensive income attributable to shareholders 305 882
Comprehensive income/(loss) attributable to non-controlling interests (19) 13
Comprehensive income for the period 286 895
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Coca-Cola Europacific Partners plc
Condensed Consolidated Interim Statement of Financial Position (Unaudited)
27 June 2025 31 December 2024
Note € million € million
ASSETS
Non-current:
Intangible assets 4 12,434 12,749
Goodwill 4 4,544 4,687
Property, plant and equipment 5 6,199 6,434
Investment property 66 73
Non-current derivative assets 7 40 98
Deferred tax assets 18 24
Other non-current assets 407 397
Total non-current assets 23,708 24,462
Current:
Current derivative assets 7 27 102
Current tax assets 59 58
Inventories 1,808 1,608
Amounts receivable from related parties 10 102 89
Trade accounts receivable 3,246 2,564
Other current assets 706 458
Assets held for sale 6 70 46
Short term investments 401 150
Cash and cash equivalents 1,659 1,563
Total current assets 8,078 6,638
Total assets 31,786 31,100
LIABILITIES
Non-current:
Borrowings, less current portion 8 9,755 9,940
Employee benefit liabilities 171 172
Non-current provisions 12 56 104
Non-current derivative liabilities 7 138 161
Deferred tax liabilities 3,385 3,498
Non-current tax liabilities 34 30
Other non-current liabilities 54 61
Total non-current liabilities 13,593 13,966
Current:
Current portion of borrowings 8 2,257 1,391
Current portion of employee benefit liabilities 7 7
Current provisions 12 194 246
Current derivative liabilities 7 98 45
Current tax liabilities 364 301
Amounts payable to related parties 10 494 373
Trade and other payables 6,274 5,786
Total current liabilities 9,688 8,149
Total liabilities 23,281 22,115
EQUITY
Share capital 5 5
Share premium 308 307
Merger reserves 287 287
Other reserves (1,522) (912)
Retained earnings 8,950 8,802
Equity attributable to shareholders 8,028 8,489
Non-controlling interests 9 477 496
Total equity 8,505 8,985
Total equity and liabilities 31,786 31,100
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Coca-Cola Europacific Partners plc
Condensed Consolidated Interim Statement of Cash Flows (Unaudited)
Six Months Ended
27 June 2025 28 June 2024
Note € million € million
Cash flows from operating activities:
Profit before taxes 1,260 1,045
Adjustments to reconcile profit before tax to net cash flows from operating
activities:
Depreciation 5 380 360
Amortisation of intangible assets 4 89 88
Impairment - 12
Share-based payment expense 21 20
Gain on sale of property 13 (30) -
Finance costs, net 98 87
Income taxes paid (230) (243)
Changes in assets and liabilities:
Increase in trade and other receivables (767) (347)
Increase in inventories (262) (338)
Increase in trade and other payables 705 308
Increase in net payable receivable from related parties 123 113
(Decrease)/increase in provisions (94) 42
Change in other operating assets and liabilities (307) (25)
Net cash flows from operating activities 986 1,122
Cash flows from investing activities:
Acquisition of bottling operations, net of cash acquired - (1,528)
Purchases of property, plant and equipment (343) (390)
Purchases of capitalised software (87) (42)
Proceeds from sales of property, plant and equipment 45 2
Investments in equity instruments (1) (3)
Net (payments)/proceeds of short term investments (271) 296
Interest received 24 37
Other investing activity, net - 6
Net cash flows used in investing activities (633) (1,622)
Cash flows from financing activities:
Proceeds from borrowings, net 8 793 382
Proceeds received from a non-controlling shareholder relating to the - 468
acquisition of bottling operations
Changes in short-term borrowings 8 355 1,133
Settlement of debt-related cross currency swaps - 66
Repayments on third party borrowings 8 (366) (1,167)
Payments of principal on lease obligations (76) (77)
Interest paid (124) (125)
Dividends paid (367) (343)
Purchase of own shares under share buyback programme 9 (365) -
Treasury shares acquired 9 (40) -
Exercise of employee share options 1 11
Other financing activities, net (15) (16)
Net cash flows used in financing activities (204) 332
Net change in net cash and cash equivalents 149 (168)
Net effect of currency exchange rate changes on cash and cash equivalents (53) 25
Net cash and cash equivalents at beginning of period 1,563 1,419
Net cash and cash equivalents at end of period 1,659 1,276
Net cash and cash equivalents consist of:
Cash and cash equivalents 1,659 1,610
Bank overdrafts - (334)
Net cash and cash equivalents at end of period 1,659 1,276
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Coca-Cola Europacific Partners plc
Condensed Consolidated Interim 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 2023 5 276 287 (823) 8,231 7,976 - 7,976
Profit after taxes - - - - 797 797 14 811
Other comprehensive income - - - 68 17 85 (1) 84
Total comprehensive income - - - 68 814 882 13 895
Non-controlling interest established in connection with the Acquisition - - - - - - 468 468
Non-controlling interest as part of Acquisition - - - - - - 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 - - - (24) - (24) - (24)
Tax effect on cash flow hedge (gains)/losses transferred to cost of - - - 7 - 7 - 7
inventories
Issue of shares during the period - 11 - - - 11 - 11
Purchase of own shares during the period - - - - (8) (8) - (8)
Equity-settled share-based payment expense - - - - 20 20 - 20
Share-based payments tax effects - - - - 1 1 - 1
Dividends - - - - (341) (341) - (341)
Balance as at 28 June 2024 5 287 287 (770) 8,717 8,526 483 9,009
Balance as at 31 December 2024 5 307 287 (912) 8,802 8,489 496 8,985
Profit after taxes - - - - 913 913 24 937
Other comprehensive income/(loss) - - - (599) (9) (608) (43) (651)
Total comprehensive income/(loss) - - - (599) 904 305 (19) 286
Cash flow hedge (gains)/losses transferred to cost of inventories - - - (15) - (15) - (15)
Tax effect on cash flow hedge (gains)/losses transferred to cost of - - - 4 - 4 - 4
inventories
Issue of shares during the period - 1 - - - 1 - 1
Purchases of shares for equity settled Employee Share Purchase Plan - - - - (9) (9) - (9)
Equity-settled share-based payment expense - - - - 22 22 - 22
Share-based payments tax effects - - - - (7) (7) - (7)
Treasury shares acquired 9 - - - - (33) (33) - (33)
Own shares purchased under share buyback programme 9 - - - - (365) (365) - (365)
Dividends - - - - (364) (364) - (364)
Balance as at 27 June 2025 5 308 287 (1,522) 8,950 8,028 477 8,505
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Notes to the Condensed Consolidated Interim 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 4 of the 2024 consolidated financial statements 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.
These condensed consolidated interim financial statements do not constitute
statutory accounts as defined by Section 434 of the Companies Act 2006 (the
Act). They have been reviewed but not audited by the Group's auditor. The
statutory accounts for the Company for the year ended 31 December 2024, which
were prepared in accordance with U.K. 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), have been delivered to
the Registrar of Companies for England and Wales. The auditor's opinion on
those accounts was unqualified and did not contain a statement made under
section 498 (2) or 498 (3) of the Companies Act 2006.
Basis of Preparation and Accounting Policies
The condensed consolidated interim financial statements of the Group have been
prepared in accordance with the U.K. adopted International Accounting Standard
34, "Interim Financial Reporting" and the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority, the International
Accounting Standard 34, "Interim Financial Reporting" as adopted by the
European Union, the International Accounting Standard 34, "Interim Financial
Reporting" as issued by the International Accounting Standards Board and
should be read in conjunction with our 2024 consolidated financial statements.
The annual financial statements of the Group for the year ended 31 December
2025 will be prepared in accordance with U.K. 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).
The accounting policies applied in these interim 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 2024. The Group has not early adopted any standards, amendments to
accounting standards or interpretations that have been issued but are not yet
effective. The policy for recognising income taxes in the interim period is
consistent with that applied in previous interim periods and is described in
Note 11.
Lack of exchangeability - Amendments to IAS 21 (The Effects of Changes in
Foreign Exchange Rates) apply for the first time in 2025, but do not have a
material impact on the condensed consolidated interim financial statements of
the Group.
The condensed consolidated interim financial statements have been prepared on
a going concern basis (refer to the "Going Concern" paragraph above).
Reporting periods
Results are presented for the interim period from 1 January 2025 to 27 June
2025.
The Group's financial year ends on 31 December. For half-yearly reporting
convenience, the first six month period closes on the Friday nearest to the
end of the interim calendar period. There are two less selling days between
the six months ended 27 June 2025 versus the six months ended 28 June 2024,
and there will be one more selling day in the second six months of 2025 versus
the second six months of 2024 (based upon a standard five-day selling week).
The following table summarises the number of selling days for the half/full
years ended 31 December 2025 and 31 December 2024 (based on a standard
five-day selling week):
Half year Full year
2025 128 261
2024 130 262
Change (2) (1)
Comparability
Operating results for the first half of 2025 may not be indicative of the
results expected for the year ended 31 December 2025 as 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
results for the first half 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.
Exchange rates
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 six month period ended Closing as at
27 June 2025 28 June 2024 27 June 2025 31 December 2024
British pound 1.187 1.169 1.172 1.206
US dollar 0.920 0.925 0.855 0.957
Norwegian krone 0.086 0.087 0.085 0.084
Swedish krona 0.090 0.088 0.090 0.087
Icelandic krona 0.007 0.007 0.007 0.007
Australian dollar 0.582 0.609 0.558 0.597
Indonesian rupiah( 1 ) 0.056 0.058 0.053 0.059
New Zealand dollar 0.532 0.563 0.517 0.541
Papua New Guinean kina 0.227 0.245 0.211 0.237
Philippine peso( 2 ) 0.016 0.016 0.015 0.017
( 1 ) Indonesian Rupiah is shown as 1000 IDR versus 1 EUR.
( 2 ) For the six month period ended 28 June 2024, the Philippine peso average
rate is calculated as average from 23 February 2024 to 28 June 2024.
Note 2
OPERATING SEGMENTS
Description of segments and principal activities
The Group derives 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 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:
Six Months Ended 27 June 2025 Six Months Ended 28 June 2024
Europe APS Total Europe APS Total
€ million € million € million € million € million € million
Revenue 7,471 2,803 10,274 7,279 2,549 9,828
Comparable operating profit( 1 ) 1,053 337 1,390 979 317 1,296
Items impacting comparability( 2 ) (26) (154)
Reported operating profit 1,364 1,142
Total finance costs, net (98) (87)
Non-operating items (6) (10)
Reported profit before tax 1,260 1,045
( 1 ) Comparable operating profit includes comparable depreciation and
amortisation of €298 million and €143 million for Europe and APS
respectively, for the six months ended 27 June 2025. Comparable depreciation
and amortisation charges for the six months ended 28 June 2024 totalled
€290 million and €123 million, for Europe and APS respectively.
( 2 ) Items impacting the comparability of period-over-period financial
performance for 2025 primarily include restructuring charges of
€46 million, accelerated amortisation charges of €27 million,
€2 million of deal and integration costs related to the Acquisition, offset
by additional consideration received from the sale of a property in Germany of
€30 million and a litigation provision reversal of €19 million. Items
impacting the comparability for 2024 primarily include restructuring charges
of €95 million, €11 million of deal and integration costs related to the
Acquisition, impairment charges of €12 million, and accelerated
amortisation charges of €28 million.
( )
No single customer accounted for more than 10% of the Group's revenue during
the six months ended 27 June 2025 and 28 June 2024.
Revenue by geography
The following table summarises revenue from external customers by geography,
which is based on the origin of the sale:
Six Months Ended
27 June 2025 28 June 2024
Revenue € million € million
Great Britain 1,697 1,594
Iberia( 1 ) 1,555 1,570
Germany 1,547 1,540
France( 2 ) 1,261 1,219
Belgium/Luxembourg 536 526
Netherlands 412 380
Norway 212 204
Sweden 210 207
Iceland 41 39
Total Europe 7,471 7,279
Australia 1,176 1,169
Philippines 995 702
New Zealand and Pacific Islands 312 326
Indonesia 195 235
Papua New Guinea 125 117
Total APS 2,803 2,549
Total CCEP 10,274 9,828
( 1 ) Iberia refers to Spain, Portugal & Andorra.
( 2 ) France refers to continental France & Monaco.
Note 3
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:
Six Months Ended
27 June 2025 28 June 2024
Profit after taxes attributable to equity shareholders (€ million) 913 797
Basic weighted average number of Shares in issue( 1 ) (million) 459 460
Effect of dilutive potential Shares( 2 ) (million) - -
Diluted weighted average number of Shares in issue( 1 ) (million) 459 460
Basic earnings per share (€)( 3 ) 1.99 1.73
Diluted earnings per share (€)( 3 ) 1.99 1.73
( 1 ) As at 27 June 2025 and 28 June 2024, the Group had 457,224,052 and
460,371,583 Shares, respectively, in issue. As at 27 June 2025, the Group held
530,509 Shares that were acquired in the market by Coca-Cola Europacific
Partners plc Employee Benefit Trust (see Note 9), classified as treasury
shares for accounting purposes. The Shares held by the trust are excluded from
the calculation of basic and diluted earnings per share. The Group held no
treasury shares as at 28 June 2024.
( 2 ) For the six months ended 27 June 2025 and 28 June 2024, 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 4
INTANGIBLE ASSETS AND GOODWILL
The following table summarises the movement in net book value for intangible
assets and goodwill during the six months ended 27 June 2025:
Intangible assets Goodwill
€ million € million
Net book value as at 31 December 2024 12,749 4,687
Additions 80 -
Amortisation expense (89) -
Currency translation adjustments (306) (143)
Net book value as at 27 June 2025 12,434 4,544
Note 5
PROPERTY, PLANT AND EQUIPMENT
The following table summarises the movement in net book value for property,
plant and equipment during the six months ended 27 June 2025:
Total
€ million
Net book value as at 31 December 2024 6,434
Additions 405
Disposals (8)
Transfers to assets held for sale (33)
Depreciation expense (380)
Currency translation adjustments (219)
Net book value as at 27 June 2025( 1 ) 6,199
( 1 ) The net book value of property, plant and equipment includes right of
use assets of €693 million.
Note 6
ASSETS HELD FOR SALE
Assets classified as held for sale as at 27 June 2025 and 31 December 2024
were €70 million and €46 million, respectively. These assets primarily
consist of properties expected to be sold in the near future.
Note 7
FAIR VALUES AND FINANCIAL RISK MANAGEMENT
Fair Value Measurements
All assets and liabilities for which fair value is measured or disclosed in
the condensed consolidated interim financial statements are categorised in the
fair value hierarchy as described in our 2024 consolidated financial
statements.
The fair values of the Group's cash and cash equivalents, short term
investments, trade accounts receivable, amounts receivable from related
parties, trade and other payables, and amounts payable to related parties
approximate their carrying amounts due to their short-term nature.
The fair values of the Group's investments in money market funds, which are
classified as financial assets at fair value through profit or loss as they do
not meet the solely payments of principle and interest criterion, as at 27
June 2025 and 31 December 2024, were €323 million and €241 million,
respectively.
The fair values of the Group's borrowings are estimated based on borrowings
with similar maturities and credit quality and current market interest rates.
These are categorised in Level 2 of the fair value hierarchy as the Group uses
certain pricing models and quoted prices for similar liabilities in active
markets in assessing their fair values. The total fair value of borrowings as
at 27 June 2025 and 31 December 2024, was €11.4 billion and €10.7 billion,
respectively. This compared to the carrying value of total borrowings as at 27
June 2025 and 31 December 2024 of €12.0 billion and €11.3 billion,
respectively. Refer to Note 8 for further details regarding the Group's
borrowings.
The Group's derivative assets and liabilities are carried at fair value, which
is determined using a variety of valuation techniques, depending on the
specific characteristics of the hedging instrument taking into account credit
risk. The fair value of our derivative contracts (including forwards, options,
cross-currency swaps and interest rate swaps) is determined using standard
valuation models. The significant inputs used in these models are readily
available in public markets or can be derived from observable market
transactions and, therefore, the derivative contracts have been classified as
Level 2. Inputs used in these standard valuation models include the applicable
spot, forward, and discount rates. The standard valuation model for the option
contracts also includes implied volatility, which is specific to individual
options and is based on rates quoted from a widely used third-party resource.
As at 27 June 2025 and 31 December 2024, the total value of derivative assets
was €67 million and €200 million, respectively. As at 27 June 2025 and 31
December 2024, the total value of derivative liabilities was €236 million
and €206 million, respectively. During the six months ended 27 June 2025, a
loss of €103 million (28 June 2024: gain of €35 million) was recorded
within Other Comprehensive Income, primarily related to changes in fair value
of foreign currency hedges.
For assets and liabilities that are recognised in the condensed consolidated
interim financial statements on a recurring basis, the Group determines
whether transfers have occurred between levels in the hierarchy by
re-assessing categorisation at the end of each reporting period. There have
been no transfers between levels during the periods presented.
Financial Instruments Risk Management Objectives and Policies
The Group's activities expose it to several financial risks including market
risk, credit risk, and liquidity risk. Financial risk activities are governed
by appropriate policies and procedures to minimise the uncertainties these
risks create over the Group's future cash flows. Such policies are developed
and approved by the Group's Treasury and Commodities Risk Committee through
the authority provided to it by the Group's Board of Directors. There have
been no changes to the Group's risk management policies since the year end.
Note 8
BORROWINGS AND LEASES
Borrowings Outstanding
The following table summarises the carrying value of the Group's borrowings as
at the dates presented:
27 June 2025 31 December 2024
€ million € million
Non-current:
Euro denominated bonds( 1 , 2 , 3 ) 7,867 7,903
Foreign currency bonds (swapped into Euro)( 4 ) 427 478
Australian dollar denominated bonds 257 295
Foreign currency bonds (swapped into Australian dollar or New Zealand 318 330
dollar)( 1 , 4 )
PHP Term loan due 2034 353 387
Lease obligations 533 547
Total non-current borrowings 9,755 9,940
Current:
Euro denominated bonds( 1 , 5 ) 1,645 1,150
Australian dollar denominated bonds 46 31
Philippines peso denominated loans( 6 ) 30 49
Euro commercial paper( 7 ) 355 -
Lease obligations 181 161
Total current borrowings 2,257 1,391
( 1 ) Some bonds are fully or partially designated in a fair value hedge
relationship.
( 2 ) In June 2025, the Group issued €300 million Floating Rate Notes
maturing in 2027.
( 3 ) In June 2025, the Group issued €500 million 3.125% Notes maturing in
2031.
( 4 ) The Group uses cross-currency swaps to convert foreign currency bonds
into the required local currency.
( 5 ) In May 2025, the Group repaid on maturity the outstanding amount related
to the €350 million 2.375% Notes 2025.
( 6 ) In February 2025, the Group repaid on maturity the outstanding amount
related to the PHP3.5 billion 6.000% Loan.
( 7 ) During six months ended 27 June 2025, the Group issued €5,346 million
and repaid €4,991 million Euro commercial paper. During six months ended 28
June 2024, the Group issued €4,778 million and repaid €3,645 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
interim statement of cash flows.
Note 9
EQUITY
Share Capital
As at 27 June 2025, the Company had issued and fully paid 457,224,052 Shares
(31 December 2024: 460,947,057 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. During the six months ended 27 June 2025,
the Group issued 851,256 Shares (1,170,765 Shares for the six months ended 28
June 2024) in connection with its current share-based compensation plans.
Share buyback programme
In February 2025, the Group launched a share buyback programme of up to €1
billion to be completed over a 12-month period. All shares repurchased under
the programme are subject to cancellation. For the six months ended 27 June
2025, 4,574,261 shares were repurchased and cancelled. The total consideration
paid for the repurchase of shares during the six months ended 27 June 2025,
including transaction costs, approximated €365 million and was recognised as
a deduction from retained earnings. No shares were repurchased during six
months ended 28 June 2024.
Treasury shares
As at 27 June 2025, the total consideration of the Shares acquired by the
Coca-Cola Europacific Partners plc Employee Benefit Trust (referred to as "the
Trust") of €40 million (31 December 2024: €7 million), including directly
attributable costs, was deducted from retained earnings. As at 27 June 2025,
the Trust held 530,509 Shares (31 December 2024: held 92,564 Shares)
classified as treasury shares for accounting purposes. The Shares held by the
Trust are excluded from the calculation of earnings per share (see Note 3).
Dividends are waived on all Shares held with this classification by the Trust.
Dividends
During the first six months of 2025, the Board declared a first half dividend
of €0.79 per share, which was paid on 27 May 2025. During the first six
months of 2024, the Board declared a first half dividend of €0.74 per share,
which was paid on 23 May 2024.
Non-controlling interests
As at 27 June 2025 and 31 December 2024, equity attributable to
non-controlling interests was €477 million and €496 million, respectively.
Note 10
RELATED PARTY TRANSACTIONS
For the purpose of these condensed consolidated interim financial statements,
transactions with related parties mainly comprise transactions between
subsidiaries of the Group and the related parties of the Group.
Transactions with The Coca-Cola Company (TCCC)
The principal transactions with TCCC are for the purchase of concentrate,
syrup and finished goods. The following table summarises the transactions with
TCCC that directly impacted the condensed consolidated interim income
statement for the periods presented:
Six Months Ended
27 June 2025 28 June 2024
€ million € million
Amounts affecting revenue( 1 ) 72 68
Amounts affecting cost of sales( 2 ) (2,381) (2,332)
Amounts affecting operating expenses( 3 ) - (1)
Total net amount affecting the consolidated income statement (2,309) (2,265)
( 1 ) Amounts principally relate to fountain syrup and packaged product sales.
( 2 ) Amounts principally relate to the purchase of concentrate, syrup,
mineral water and juice as well as funding for marketing programmes.
( 3 ) Amounts principally relate to certain costs associated with new product
development initiatives and reimbursement of certain marketing expenses.
The following table summarises the transactions with TCCC that impacted the
consolidated statement of financial position as at the dates presented:
27 June 2025 31 December 2024
€ million € million
Amount due from TCCC 96 76
Amount payable to TCCC 442 320
Transactions with Cobega companies
The principal transactions with Cobega are for the purchase of juice
concentrate and packaging materials. The following table summarises the
transactions with Cobega that directly impacted the condensed consolidated
interim income statement for the periods presented:
Six Months Ended
27 June 2025 28 June 2024
€ million € million
Amounts affecting revenues( 1 ) 1 1
Amounts affecting cost of sales( 2 ) (37) (35)
Amounts affecting operating expenses( 3 ) (3) (6)
Total net amount affecting the consolidated income statement (39) (40)
( 1 ) Amounts principally relate to packaged product sales.
( 2 ) Amounts principally relate to the purchase of packaging materials.
( 3 ) Amounts principally relate to maintenance and repair services and
transportation.
The following table summarises the transactions with Cobega that impacted the
consolidated statement of financial position as at the dates presented:
27 June 2025 31 December 2024
€ million € million
Amount due from Cobega 1 7
Amount payable to Cobega 25 32
Transactions with Other Related Parties
For the six months ended 27 June 2025 and 28 June 2024 the Group recognised
charges in cost of sales of €108 million and €104 million, respectively,
in connection with transactions that have been entered into with joint
ventures, associates and other related parties predominantly for the purchase
of resin as well as container deposit scheme charges in Australia.
Transactions with joint ventures, associates and other related parties that
impacted the condensed consolidated interim statement of financial position as
at 27 June 2025 include €5 million in amounts receivable from related
parties and €27 million in amounts payable to related parties, respectively.
As at 31 December 2024 amounts receivable from related parties and amounts
payable to related parties included €6 million and €21 million
respectively related to transactions with joint ventures, associates and other
related parties.
There are two post-employment defined benefit plan entities (Coca-Cola
Bottlers Philippines, Inc. Retirement plan and Philippine Beverage Partners,
Inc. Retirement Plan) that are considered related parties to the Group. For
the six months ended 27 June 2025 and 28 June 2024, the Group made
contributions to the retirement plans amounting to €5 million and €6
million, respectively.
Note 11
TAXES
Income Tax expense
Taxes on income in interim periods are accrued using the tax rate that would
be applicable to the expected total annual profit or loss.
The effective tax rate (ETR) was 26% and 22% for the six months ended 27 June
2025 and 28 June 2024, respectively, and 25% for the year ended 31 December
2024. The ETR has been calculated by applying the weighted average annual ETR,
excluding discrete items, of 26% and 27% to the profit before tax for the six
months ended 27 June 2025 and 28 June 2024, respectively.
The ETR of 26% which is higher than statutory UK rate of 25% reflects the
impact of having operations outside the UK which are taxed at rates other than
the statutory UK rate and adjustments made in respect of prior periods.
The following table summarises the major components of income tax expense for
the periods presented:
27 June 2025 28 June 2024
€ million € million
Current income tax:
Current income tax charge 303 289
Adjustment in respect of current income tax from prior periods (1) (47)
Total current tax 302 242
Deferred tax:
Relating to the origination and reversal of temporary differences 22 (12)
Adjustment in respect of deferred income tax from prior periods 1 -
Relating to changes in tax rates or the imposition of new taxes (2) 4
Total deferred tax 21 (8)
Income tax charge per the consolidated income statement 323 234
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 27 June 2025, €295 million (31 December 2024: €267 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
The Group is in scope of the Pillar Two tax legislation and is subject to
global minimum top-up taxes in relation to its operations in several
countries.
No material liability has been recognised in the Group's condensed
consolidated interim financial statements as of the six-month period ended 27
June 2025.
In preparing these condensed consolidated interim financial statements, the
Group has applied the mandatory exception under the IAS 12 amendment to
recognising and disclosing information about deferred tax assets and
liabilities related to top-up tax.
Note 12
PROVISIONS, COMMITMENTS AND CONTINGENCIES
The following table summarises the movement of provisions for the periods
presented:
Restructuring Provision Other Provisions( 1 ) Total
€ million € million € million
Balance as at 31 December 2024 250 100 350
Charged/(credited) to profit or loss:
Additional provisions recognised 28 5 33
Unused amounts reversed( 2 ) (2) (29) (31)
Utilised during the period (95) (4) (99)
Translation (1) (2) (3)
Balance as at 27 June 2025 180 70 250
( 1 ) Other provisions primarily relate to decommissioning provisions,
property tax assessment provisions and legal reserves.
( 2 ) The reversal of unused amounts primarily reflects a reduction in the
provision previously recognised in relation to an ongoing labour law
matter in Germany. Based on the latest assessment, no future cash
outflows are expected in connection with this matter.
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 the first half of 2025, as part of this efficiency programme, the Group
announced restructuring proposals resulting in €46 million of recognised
costs primarily related to expected severance payments.
Guarantees
As of 27 June 2025, the Group has issued guarantees to third parties of €919
million (31 December 2024: €892 million), primarily relating to ongoing
litigations and tax matters in certain territories. No significant additional
liabilities in the accompanying condensed consolidated interim financial
statements are expected to arise from the guarantees issued.
Commitments
There have been no significant changes in commitments since 31 December 2024.
Contingencies
There have been no significant changes in contingencies since 31 December
2024.
Refer to Note 24 of the 2024 consolidated financial statements for further
details about the Group's guarantees, commitments and contingencies.
Note 13
OTHER INCOME
For the six months ended 27 June 2025 and 28 June 2024, other income totalled
€30 million and nil, respectively.
During the first half of 2025, the Group recognised €30 million of other
income related to additional consideration received from the sale of a
property located in Germany.
Note 14
EVENTS AFTER THE REPORTING PERIOD
On 11 July 2025, Germany substantively enacted legislation to reduce its
corporate income tax rate by 1 percentage point per annum over a five-year
period, from 2028 to 2032, ultimately lowering the rate to approximately 25%.
As this legislative change was substantively enacted after the Group's balance
sheet date of 27 June 2025, but before the interim financial statements were
authorised for issue, it is considered a non-adjusting event in accordance
with IAS 10 - Events After the Reporting Period. Accordingly, the deferred tax
balances have not been remeasured as at the reporting date.
The Group is currently assessing the impact of the remeasurement, and it is
expected that the rate change will result in a reduction in deferred tax
liabilities, not exceeding €70 million.
On 24 July 2025, the Supreme Court of Spain released its ruling on a tax
jurisdiction dispute, determining whether the Spanish Tax Authorities ("STA")
or the Tax Authorities of Bizkaia (Basque Country, referred to as "BTA") are
responsible for collecting VAT from the Group in relation to its operations
carried out in the Basque territory between 2013 and 2016. Further details
regarding this dispute can be found in Note 26 of our 2024 Annual Report.
As a result of the ruling, the STA is required to refund approximately €250
million in VAT, including interest, to the Group. Conversely, the Group must
repay approximately €280 million, including interest, to the BTA for VAT
received in December 2022. The €30 million difference between the receivable
from the STA and the payable to the BTA is attributable to previously
recognised balance sheet positions. The Supreme Court's decision upholds the
principle of VAT neutrality in jurisdictional disputes.
As the ruling constitutes an adjusting post-balance sheet event, as at 27 June
2025, the Group has recognised a VAT receivable of €250 million from the
STA, and a VAT payable of €280 million to the BTA. Both amounts are expected
to be settled concurrently.
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