TIDMCCEP
RNS Number : 7948B
Coca-Cola Europacific Partners plc
16 February 2022
COCA-COLA EUROPACIFIC PARTNERS
Preliminary unaudited results for the full-year ended 31
December 2021
Extraordinary year, entering 2022 as a stronger business
FY 2021 As Reported Comparable Change vs 2020 Pro forma Change vs 2020
Metric([1]) ([1]) Comparable
([3])
============ =========== ==== ================ --------------------------------------- ============== -----------------------------
As Reported Comparable Comparable Pro forma Pro forma
([1]) Fx-Neutral Comparable Comparable
([1]) ([3]) Fx-Neutral([3])
============ =========== ==== ================ ============ =========== ============ ============== ============ ===============
Total Volume (M 23.5
CCEP UC)([2]) 2,804 2,804 23.0% % 3,019 4.5%
------------ ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
30.0 28.0
Revenue (EURM) 13,763 13,763 30.0% % % 14,819 9.5% 7.5%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Cost of sales 26.5 24.5
(EURM) 8,677 8,606 26.5% % % 9,222 8.0% 6.0%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Operating expenses 30.0 28.5
(EURM) 3,570 3,385 22.0% % % 3,711 6.0% 4.5%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Operating profit 48.5 46.0 26.0
(EURM) 1,516 1,772 86.5% % % 1,886 % 23.5%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Profit after 58.5 56.0
taxes (EURM) 988 1,302 98.5% % %
-------------------- ----------- ---- ---------------- ------------ ----------- ------------
Diluted EPS 57.0 54.5
(EUR) 2.15 2.83 97.0% % %
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Revenue per
UC (EUR) 4.83 4.0% 4.83 3.0%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Cost of sales
per UC (EUR) 3.02 1.0% 3.00 1.5%
==================== =========== ==== ================ ============ =========== ============ -------------- ------------ ---------------
Dividend per
share([4]) Maintained dividend payout
(EUR) 1.40 ratio of c.50%
============ =========== ==== =========================================================
Volume (M UC)([2]) 2,379 2,379 4.5% 5.0% 2,379 5.0%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Revenue (EURM) 11,584 11,584 9.0% 9.0% 8.0% 11,584 9.0% 8.0%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Operating profit 25.5
(EURM) 1,298 1,500 59.5% % 24.0% 1,500 25.5% 24.0%
-------------------- ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Revenue per
Europe UC (EUR) 4.81 3.5% 4.81 3.5%
------------ ----------- ---- ---------------- ------------ ----------- ------------ -------------- ------------ ---------------
Volume (M
API UC)([2]) 425 425 640 4.0%
-------------- ------------ ---------------
Revenue (EURM) 2,179 2,179 3,235 10.5% 7.0%
-------------------- ----------- ---- ---------------- -------------- ------------ ---------------
Operating profit
(EURM) 218 272 386 28.0% 23.5%
-------------------- =========== ==== ================ ============== ------------ ---------------
Revenue per
UC (EUR) 4.95 4.88 3.0%
-------------------- ----------- ---- ---------------- -------------- ------------ ---------------
DAMIAN GAMMELL, CHIEF EXECUTIVE OFFICER, SAID:
"2021 was an extraordinary year for CCEP. We are a stronger more
diverse business, built on great people, great service and great
beverages - done sustainably. Solid top-line recovery, value share
gains, operating margin expansion and remarkable free cash flow
generation demonstrate our strong performance in a challenging
environment. Our results also reflect the successful acquisition
and integration of Coca-Cola Amatil, a fantastic business to have
acquired at the right time, as we look forward to an even brighter
future together.
"Together with The Coca-Cola Company and our other partners, our
focus on core brands, in-market execution and smart revenue growth
management initiatives solidified our FY21 position as the largest
FMCG value creator([5]) , delivering revenue per unit case([2],[3])
growth ahead of FY19([6],[11]) . We also continued to make progress
on our ambition to reach net zero emissions by 2040 and invest in
making our packaging more sustainable.
"We are well placed as we look to FY22 and beyond. Our aim is to
be smart and sustainable - through our people centric, data driven
and digitally enabled approach. Disciplined investment in these
areas, as well as in our portfolio, will support our long-term
growth ambitions. In the near-term, we expect to see further volume
and mix recovery whilst managing our key levers of pricing,
promotional spend and driving efficiencies across our business,
collectively with the aim of mitigating inflationary pressures.
"It is an outstanding time to be leading CCEP. We are making a
difference and believe we have the right foundation to drive
sustainable growth and, as evidenced by our FY21 dividend being
greater than FY19 and FY20, deliver increased shareholder value.
"
___________________________
Note: All footnotes included after the 'About CCEP' section
FY & Q4 HIGHLIGHTS([1],[3])
Revenue
FY Reported +30.0%; FY Pro forma +7.5%([6])
-- Reported growth, in addition to the drivers below, reflects
the acquisition of Coca-Cola Amatil (completed 10 May 2021)
-- NARTD value share gains across measured channels both in
store([7]) (+40bps) including sparkling (+30bps) & online([8])
(+120bps)
-- Delivered more revenue growth for our retail customers than any of our FMCG peers([5])
-- Pro forma :
comparable volume +4.5%([9]) (-5.5% vs FY19) driven by the
reopening of Away from Home (AFH) & increased consumer mobility
given the easing of restrictions across most of our markets
comparable volume by channel: AFH +10.0% (-16.0% vs FY19)
reflecting fewer restrictions & recovery of immediate
consumption (IC) packs (+20.5%([10]) vs FY20; -19.5%([10]) vs
FY19); Home +1.5% (+2.0% vs FY19) supported by growth of IC &
sustained growth in key future consumption packs (e.g. multipack
cans +3.5%([10]) vs FY20; +18.5%([10]) vs FY19)
revenue per unit case +3.0%([2],[6]) (+1.5%([11]) vs FY19)
reflecting positive pack & channel mix driven by the
improvement in AFH volume & growth in IC packs, alongside
favourable price & brand mix
Q4 Reported +50.5%; Q4 Pro forma +8.5%([6])
-- Reported growth, in addition to the drivers below, reflects
the acquisition of Coca-Cola Amatil
-- Pro forma:
comparable volume +8.5%([9]) (-1.5% vs FY19) driven by solid
execution in the Home channel & cycling of soft comparables
comparable volume by channel: AFH +23.0% (-9.5% vs FY19); Home
+1.5% (+4.0% vs FY19)
revenue per unit case +5.5%([2],[6]) (+1.5%([11]) vs FY19)
primarily driven by favourable pack mix & promotional
optimisation
-- Recent trading impacted by Omicron however restrictions not
as severe as PY (pro forma comparable volume Q1 2021 -8.5% vs
FY20)
Operating profit
Reported +86.5%; Pro forma comparable +23.5%([6])
-- Reported growth, in addition to the drivers below, reflects
the acquisition of Coca-Cola Amatil
-- Pro forma cost of sales per unit case +1.5%([2],[6])
reflecting increased revenue per unit case driving higher
concentrate costs, commodity inflation & adverse mix, partially
offset by the favourable recovery of fixed manufacturing costs
given higher volumes
-- Pro forma comparable operating profit of EUR1,886m,
+23.5%([6]) reflecting the increased revenue, the benefit of
on-going efficiency programmes & our continuous efforts on
discretionary spend optimisation
-- Comparable diluted EPS of EUR2.83, +54.5%([6]) (reported +97.0%)
Dividend
-- FY21 dividend per share of EUR1.40 (paid December([4]) ),
+64.5% vs last year & +13.0% vs FY19, maintaining annualised
dividend payout ratio of approximately 50% (in line with our
dividend policy)
-- CCEP announces that it will revert to two interim dividends
starting in FY22, the first declared with the Q1 trading update
(paid in June), the second declared at the Q3 trading update (paid
in December). The first interim dividend will be calculated as 40%
of the prior year FY dividend, with the second interim dividend
being paid with reference to the current year annualised total
dividend payout ratio of approximately 50%
Other
-- Generated strong free cash flow of EUR1,460m (net cash flows
from operating activities of EUR2,117m), supporting our focus on
returning to our target leverage range (Net debt:Adjusted EBITDA of
2.5x-3x) by FY24. Assuming the Coca-Cola Amatil acquisition
occurred on 1 January 2021, FY21 pro forma free cash flow is
estimated to be EUR85m lower
-- Pro forma ROIC 8.0% (reported ROIC 9.2%)
-- API integration progressing very well; reorienting the
portfolio to maximise system value creation to enable greater focus
on NARTD, RTD alcohol & Spirits:
sale of NARTD own brands to The Coca-Cola Company for A$275m;
annualised EBIT impact of A$25m
progressing previously announced plans to exit production, sale
& distribution of Australia beer & apple cider products;
minimal EBIT impact
these initiatives are expected to substantially complete by the
end of the first half
Sustainability
-- Europe: closed 2021 at 53%([12]) recycled plastic (rPET)
achieving 2023 target 2 years early
-- API([13]) : announced industry partnerships to build new PET
recycling facilities in Australia & Indonesia
-- 2 manufacturing sites in Spain & Sweden certified carbon
neutral. Aiming for at least 8 sites by end of 2023
-- Retained on Carbon Disclosures Project's A Lists for climate
change & water security; in Dow Jones Sustainability Indices
(Europe & World) for 6 years in a row & MSCI ESG Leaders
index
FY22 Guidance & Outlook([1],[3])
The outlook for FY22 reflects current markets conditions.
Guidance is on a pro forma comparable & Fx-neutral basis.
Revenue: pro forma comparable growth of 6-8%
Volume
-- Continued recovery as easing restrictions support AFH & tourism
Price
-- Successful execution of pricing strategies to date across
many of our markets, elevated given input cost pressures
Promotions
-- Optimising our spend
-- Continuing to leverage segmentation, analytics, customer & consumer insights
Mix
-- Continued recovery of AFH & IC packs
-- Driving positive mix through smart revenue growth management
initiatives & scaling innovation
Cost of sales per unit case: pro forma comparable growth of 5% (previously 4-5%)
-- Volume recovery supporting favourable overhead absorption
-- We expect commodity inflation to be in the high single-digit range
-- FY22 hedge coverage at 57%
Operating profit: pro forma comparable growth of 6-9%
-- Remain on track to deliver our previously announced
efficiency savings & API combination benefits (multi-year
programmes amounting to EUR350 to EUR395m in total (vs FY19))
-- Continued focus on optimising our discretionary spend
Comparable effective tax rate: c.22-23%
Dividend payout ratio: c.50%([14])
Fourth-quarter & Full-Year Pro forma Revenue Performance by Geography([1])
All values are unaudited, changes versus equivalent 2020
period
Fourth-quarter Full Year
----------------------------------------------- ----------------------------------------------
Fx-Neutral Fx-Neutral
EUR million % change % change EUR million % change % change
=================== ================= ============= ============= ================ ============= =============
Great Britain 702 24.0 % 16.5 % 2,613 18.5 % 14.0 %
------------------- ----------------- ------------- ------------- ---------------- ------------- -------------
France([15]) 454 13.0 % 13.0 % 1,813 6.0 % 6.0 %
------------------- ----------------- ------------- ------------- ---------------- ------------- -------------
Germany 608 4.0 % 4.0 % 2,335 3.0 % 3.0 %
=================== ================= ============= ============= ================ ============= =============
Iberia([16]) 631 22.0 % 22.0 % 2,495 15.0 % 15.0 %
=================== ================= ============= ============= ================ ============= =============
Northern
Europe([17]) 555 6.5 % 4.5 % 2,328 3.5 % 2.0 %
=================== ================= ============= ============= ================ ============= =============
Total Europe 2,950 14.0 % 12.0 % 11,584 9.0 % 8.0 %
API([13]) (Pro (1.0)
forma)([3]) 946 4.0 % % 3,235 10.5 % 7.0 %
=================== ================= ============= ============= ================ ============= =============
Total CCEP (Pro
forma)([3]) 3,896 11.5 % 8.5 % 14,819 9.5 % 7.5 %
API
-- Q4 volumes reflect supply challenges & adverse weather in
Australia, offset by fewer restrictions in Indonesia & a strong
start to the summer selling period in New Zealand. FY volumes
reflect the continued recovery of the AFH channel in all markets
& solid performance in the Home channel.
-- Coca-Cola No Sugar outperformed in Australia, gaining +380bps
of Q4 value share. Monster continued to grow in all markets.
-- FY revenue/UC([18]) growth driven by positive pack &
brand mix, lower promotions in Australia & underlying
favourable price .
-- API reported revenues for Q4 were EUR946m & for the FY21 were EUR2,179m
France
-- FY & Q4 volumes reflect fewer restrictions & cycling
soft comparables. Strong rebound in the AFH channel & continued
growth in the Home channel led by IC.
-- Coca-Cola Zero Sugar & Monster continued to outperform,
with both FY & Q4 volumes ahead of FY19.
-- FY revenue/UC([18]) growth supported by positive customer
& pack mix led by AFH rebound & increased mobility e.g.
small PET +22.0%; small glass +14.5%.
Germany
-- Q4 volumes reflect fewer restrictions in the AFH channel. FY
volumes impacted by adverse weather in Q3 & restrictions within
HoReCa([19]) throughout the year slowing the overall recovery of
the AFH channel. Continued growth in the Home channel.
-- Coca-Cola Zero Sugar & Fuze Tea outperformed, with both FY & Q4 volumes above FY19 levels.
-- FY revenue/UC([18]) growth driven by positive brand mix from
Monster & the delisting of some PET waters, as well as
favourable underlying price & positive pack mix.
Great Britain
-- Q4 volumes reflect rebound of AFH channel with few
restrictions in place during the quarter. FY volumes reflected the
continued recovery of the AFH channel, as well as increased
domestic tourism & cycling soft comparables. Solid performance
in the Home channel.
-- FY & Q4 volumes for Coca-Cola(R) TM, Fanta & Monster were ahead of FY19.
-- FY revenue/UC([18]) growth supported by favourable underlying
price, alongside positive pack mix led by IC e.g. small glass
+39.5%; small PET +25.0%.
Iberia
-- FY & Q4 volumes reflect fewer restrictions & cycling
soft comparables. Strong rebound in the AFH channel, although
Omicron slowed the recovery in Q4 as restrictions in HoReCa([19])
were reintroduced. FY volumes impacted by lower international
tourism & the increased Spanish VAT rate within the Home
channel.
-- Coca-Cola Zero Sugar & Monster volumes ahead of FY19 for FY & Q4.
-- FY revenue/UC([18]) growth driven by positive pack &
channel mix led by the on-going recovery of the AFH channel &
favourable underlying price.
Northern Europe
-- Q4 volumes reflect fewer restrictions in the AFH channel,
although Omicron slowed its recovery with restrictions reintroduced
in some markets. FY volumes affected by adverse weather in Q3,
including the impact of flooding in Belgium in July.
-- Coca-Cola Zero Sugar, Monster & Capri-Sun all
outperformed in both Q4 & FY, with volumes ahead of FY19.
-- FY revenue/UC([18]) (excluding soft drinks taxes([20]) )
growth supported by positive pack mix, alongside favourable brand
mix & underlying price.
___________________________
Note: All values are unaudited and all references to volumes are
on a comparable basis
Fourth-quarter & Full-Year Pro forma Volume Performance by Category([1],[3],[9])
Comparable volumes, changes versus equivalent 2020 period.
Fourth-quarter Full Year
% of Total % Change % of Total % Change([5])
============================================ ============== ============= ============== =============
Sparkling 85.0 % 8.5 % 84.5 % 4.5 %
Coca-Cola(TM) 59.5 % 7.5 % 59.0 % 3.5 %
Flavours, Mixers & Energy 25.5 % 10.5 % 25.5 % 7.0 %
Stills 15.0 % 10.5 % 15.5 % 5.0 %
Hydration 7.5 % 9.5 % 7.5 % - %
RTD Tea, RTD Coffee, Juices & Other([21]) 7.5 % 11.5 % 8.0% 10.0 %
100.0 100.0
Total % 8.5 % % 4.5 %
Coca-Cola(TM)
-- Q4 Original Taste +7.5%; Lights +7.5% driven by the continued
rebound of the AFH channel & strong performance of the
reformulated & rebranded Coca-Cola Zero Sugar (+9.5%)
-- FY Coca-Cola Zero Sugar in growth vs both FY20 (+8.5%) & FY19 (+11.5%)
-- Coca-Cola Zero Sugar gained FY value share([7]) of Total Cola
+90bps, supported by new look, new taste launch
Flavours, Mixers & Energy
-- Q4 Fanta +15.5% driven by the continued rebound of the AFH channel
-- Q4 Energy +11.0% with growth in both channels led by Monster.
FY Energy +21.5% vs FY20 & +35.5% vs FY19 supported by solid
distribution & innovation
-- Schweppes Mixers growth vs FY19 (Q4: +1.0%; FY: +1.5%)
Hydration
-- Q4 Water +7.0% reflecting its exposure to IC across both
channels, with fewer restrictions & increased mobility during
the quarter
-- FY Sports category brands in API in growth vs both FY20 (+11.0%) & FY19 (+9.0%)
RTD Tea, RTD Coffee, Juices & Other([21])
-- Q4 Juice drinks +8.5% reflecting the continued rebound of the
AFH channel. Solid growth in Capri-Sun (Q4:+20.5%; FY:+16.5% vs
FY19)
-- Fuze Tea growth vs FY19 (Q4: +10.5%([10]) ; FY: +9.5%([10]) )
& continuing to grow value share in Europe([7])
-- Alcohol delivered strong growth in Australia driven by
Spirits & RTD (Q4: +9.5%; FY: +5.0% vs FY19)
___________________________
Note: All references to volumes are on a comparable basis
Conference Call (with presentation)
-- 16 February 2022 at 12:00 GMT, 13:00 CET & 7:00 a.m.EST; accessible via www.cocacolaep.com
-- Replay & transcript will be available at www.cocacolaep.com as soon as possible
Financial Calendar
-- First-quarter 2022 trading update: 27 April 2022
-- Financial calendar available here: https://ir.cocacolaep.com/financial-calendar/
Contacts
Investor Relations
Sarah Willett Joe Collins Claire Copps
+44 7970 145 218 +44 7583 903 560 +44 7980 775 889
Media Relations
Shanna Wendt Nick Carter
+44 7976 595 168 +44 7976 595 275
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 600 million consumers and
helping 1.75 million customers across 29 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, the
NASDAQ Global Select Market, London Stock Exchange and on the
Spanish Stock Exchanges, trading under the symbol CCEP.
For more information about CCEP, please visit www.cocacolaep.com
& follow CCEP on Twitter at @CocaColaEP
___________________________
1. Refer to 'Note Regarding the Presentation of Pro forma
financial information and Alternative Performance Measures' for
further details and to 'Supplementary Financial Information' for a
reconciliation of reported to comparable and reported to pro forma
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. Pro forma figures as if the acquisition of Coca-Cola Amatil
Limited occurred at the beginning of the period presented for
illustrative purposes only, it is not intended to estimate or
predict future financial performance or what actual results would
have been. Acquisition completed on 10 May 2021. Prepared on a
basis consistent with CCEP accounting policies and include
transaction accounting adjustments for the period 1 January to 10
May. Refer to 'Note Regarding the Presentation of Pro forma
financial information and Alternative Performance Measures' for
further details
4. 9 November 2021 declared EUR1.40 dividend per share, paid 6 December 2021
5. NielsenIQ Strategic Planner FY21 Data to 02.Jan.22 Countries
included are ES, DE, GB, FR, BE, NL, SE, PT & NO
6. Comparable & FX-neutral
7. Combined NARTD (non-alcoholic ready to drink) NielsenIQ
Global Track MAT data for ES, PT, DE, FR, BE, NL, NZ, NO, SE to
02.Jan.22; GB to 01.Jan.22; IND to 31.Dec.21; NARTD IRI data for
AUS to 02.Jan.22
8. Online Data is for available markets MAT GB to 01.Jan.22
(Retailer data+NielsenIQ), ES, FR, NL & SE to 02.Jan.22
(NielsenIQ), AUS to 02.Jan.22 (Retailer Data)
9. Adjusted for 4 fewer selling days in Q4; 1 less selling day
in FY21; CCEP pro forma volume Q4 +3.0% vs FY20; CCEP pro forma
volume FY21 +4.5% vs FY20
10. Europe only
11. Management's best estimate
12. Unassured & provisional
13. Includes Australia, New Zealand & the Pacific Islands, Indonesia & Papua New Guinea
14. Dividends subject to Board approval
15. Includes France & Monaco
16. Includes Spain, Portugal & Andorra
17. Includes Belgium, Luxembourg, the Netherlands, Norway, Sweden & Iceland
18. Revenue per unit case
19. HoReCa = Hotels, Restaurants & Cafes
20. Northern Europe revenue per unit case declined in FY21 as a
result of changes to Norwegian Soft Drink Taxe s
21. RTD refers to Ready to Drink; Other includes Alcohol & Coffee
Forward-Looking Statements
This document contains statements, estimates or projections that
constitute "forward-looking statements" concerning the financial
condition, performance, results, strategy and objectives of
Coca-Cola Europacific Partners plc and its subsidiaries (together
"CCEP" or the "Group"). Generally, the words "ambition," "target,"
"aim," "believe," "expect," "intend," "estimate," "anticipate,"
"project," "plan," "seek," "may," "could," "would," "should,"
"might," "will," "forecast," "outlook," "guidance," "possible,"
"potential," "predict," "objective" and similar expressions
identify forward-looking statements, which generally are not
historical in nature.
Forward-looking statements are subject to certain risks that
could cause actual results to differ materially from CCEP's
historical experience and present expectations or projections,
including with respect to the acquisition of Coca-Cola Amatil
Limited and its subsidiaries (together "CCL" or "API") completed on
10 May 2021 (the "Acquisition"). As a result, undue reliance should
not be placed on forward-looking statements, which speak only as of
the date on which they are made. These risks include but are not
limited to:
1. those set forth in the "Risk Factors" section of CCEP's 2020
Annual Report on Form 20-F filed with the SEC on 12 March 2021,as
updated and supplemented with the additional information set forth
in the "Principal Risks and Risk Factors" section of the H1 2021
Half-year Report Filed with the SEC on 2 September 2021;
2. those set forth in the "Business and Sustainability Risks"
section of CCL's 2020 Financial and Statutory Reports; and
3. risks and uncertainties relating to the Acquisition,
including the risk that the businesses will not be integrated
successfully or such integration may be more difficult, time
consuming or costly than expected, which could result in additional
demands on CCEP's resources, systems, procedures and controls,
disruption of its ongoing business and diversion of management's
attention from other business concerns; the possibility that
certain assumptions with respect to API or the Acquisition could
prove to be inaccurate; burdensome conditions imposed in connection
with any regulatory approvals; ability to raise financing; the
potential that the Acquisition may involve unexpected liabilities
for which there is no indemnity; the potential failure to retain
key employees as a result of the Acquisition or during integration
of the businesses and disruptions resulting from the Acquisition,
making it more difficult to maintain business relationships; the
potential for (i) negative reaction from financial markets,
customers, regulators, employees and other stakeholders, (ii)
litigation related to the Acquisition.
The full extent to which the COVID-19 pandemic will negatively
affect CCEP and the results of its operations, financial condition
and cash flows will depend on future developments that are highly
uncertain and cannot be predicted, including the scope and duration
of the pandemic and actions taken by governmental authorities and
other third parties in response to the pandemic.
Due to these risks, CCEP's actual future results, dividend
payments, capital and leverage ratios, growth, market share, tax
rate, efficiency savings, the results of the integration of the
businesses following the Acquisition, including expected efficiency
and combination savings, and achievement of sustainability goals,
may differ materially from the plans, goals, expectations and
guidance set out in forward-looking statements (including those
issued by CCL prior to the Acquisition). These risks may also
adversely affect CCEP's share price. Additional risks that may
impact CCEP's future financial condition and performance are
identified in filings with the SEC which are available on the SEC's
website at www.sec.gov. CCEP does not undertake any obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise, except
as required under applicable rules, laws and regulations.
Furthermore, CCEP assumes no responsibility for the accuracy and
completeness of any forward-looking statements. Any or all of the
forward-looking statements contained in this filing and in any
other of CCEP's or CCL's public statements (whether prior or
subsequent to the Acquisition) may prove to be incorrect.
Note Regarding the Presentation of Pro forma financial information
and Alternative Performance Measures
Pro forma financial information
Pro forma financial information has been provided in order to
illustrate the effects of the acquisition of Coca-Cola Amatil
Limited (referred to as CCL pre acquisition, API post acquisition)
on the results of operations of CCEP and allow for greater
comparability of the results of the combined group between periods.
The pro forma financial information has been prepared for
illustrative purposes only and because of its nature, addresses a
hypothetical situation. It is based on information and assumptions
that CCEP believes are reasonable, including assumptions as at 1
January 2021 and 1 January 2020 relating to acquisition accounting
provisional fair values of API assets and liabilities which are
assumed to be equivalent to those that have been provisionally
determined as of the acquisition date and included in the financial
statements for the year ended 31 December 2021, on a constant
currency basis. The pro forma information also assumes the interest
impact of additional debt financing reflecting the actual weighted
average interest rate for acquisition financing of c.0.40% for all
periods presented. Acquisition costs included in 2020 pro forma
financial information are assumed to be equivalent to those
incurred in 2021.
The pro forma financial information does not intend to represent
what CCEP's results of operations actually would have been if the
acquisition had been completed on the dates indicated, nor does it
intend to represent, predict or estimate the results of operations
for any future period or financial position at any future date. In
addition, it does not reflect ongoing cost savings that CCEP
expects to achieve as a result of the acquisition or the costs
necessary to achieve these cost savings or synergies. As pro forma
information is prepared to illustrate retrospectively the effects
of future transactions, there are limitations that are inherent to
the nature of pro forma information. As such, had the acquisition
taken place on the dates assumed, the actual effects would not
necessarily have been the same as those presented in the Pro Forma
financial information contained herein .
Alternative Performance Measures
We use certain alternative performance measures (non-GAAP
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 GAAP measures.
For purposes of this document, the following terms are
defined:
"As reported" are results extracted from our condensed
consolidated interim financial statements.
"Pro forma " includes the results of CCEP and API as if the
Acquisition had occurred at the beginning of the period presented,
including acquisition accounting adjustments relating to
provisional fair values. Pro forma also includes impact of the
additional debt financing costs incurred by CCEP in connection with
the Acquisition for all periods presented.
"Comparable" is defined as results excluding items impacting
comparability, which include restructuring charges, acquisition and
integration related costs, inventory fair value step up related to
acquisition accounting, the impact of the closure of the GB defined
benefit pension scheme, net costs related to European flooding and
net tax items relating to rate and law changes. Comparable volume
is also adjusted for selling days.
"Pro forma Comparable" is defined as the pro forma results
excluding items impacting comparability, as described above.
"Fx-neutral" is defined as period results excluding the impact
of foreign exchange rate changes. Foreign exchange impact is
calculated by recasting current year results at prior year exchange
rates.
"Capex" or "Capital expenditures" is defined as purchases of
property, plant and equipment and capitalised software, plus
payments of principal on lease obligations, less proceeds from
disposals of property, plant and equipment. Capex is used as a
measure to ensure that cash spending on capital investment is in
line with the Group's overall strategy for the use of cash.
"Free cash flow" is defined as net cash flows from operating
activities less capital expenditures (as defined above) and
interest paid. 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 and non-discretionary
lease and interest payments. Free cash flow is not intended to
represent residual cash flow available for discretionary
expenditures.
"Adjusted 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. Adjusted EBITDA does not reflect cash expenditures, or
future requirements for capital expenditures or contractual
commitments. Further, adjusted 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 adjusted EBITDA does not reflect cash requirements for
such replacements.
"Net Debt" is defined as the net of cash and cash equivalents
and short term investments less borrowings and adjusted for the
fair value of hedging instruments related to borrowings and other
financial assets/liabilities related to borrowings. 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 adjusted EBITDA is used by investors, analysts
and credit rating agencies to analyse our operating performance in
the context of targeted financial leverage.
"ROIC" or "Return on invested capital" is defined as comparable
operating profit after tax attributable to shareholders divided by
the average of opening and closing invested capital for the year.
Invested capital is calculated as the addition of borrowings and
equity attributable to shareholders less cash and cash equivalents
and short term investments. ROIC is used as a measure of capital
efficiency and reflects how well the Group generates comparable
operating profit relative to the capital invested in the
business.
"Dividend payout ratio" is defined as dividends as a proportion
of comparable profit after tax.
Additionally, within this document, we provide certain
forward-looking non-GAAP financial Information, which management
uses for planning and measuring performance. We are not able to
reconcile forward-looking non-GAAP measures to reported measures
without unreasonable efforts because it is not possible to predict
with a reasonable degree of certainty the actual impact or exact
timing of items that may impact comparability throughout year.
Unless otherwise stated, percent amounts are rounded to the
nearest 0.5%.
Supplementary Financial Information - Income Statement - Reported
to Comparable
The following provides a summary reconciliation of CCEP's
reported and comparable results for the full-year ended 31 December
2021 and 31 December 2020:
Full year 2021 As Reported Items impacting Comparability Comparable
================ ================
Unaudited, in CCEP Restructuring Defined Acquisition Inventory European Net Tax CCEP
millions Charges benefit and Integration step flooding([5]) ([6])
of EUR except ([1]) plan related up costs
per closure([2]) costs ([4])
share data which ([3])
is calculated
prior
to rounding
================ ================ ================== ================ ================ =============== ================ ============== ================
Revenue 13,763 - - - - - - 13,763
Cost of sales 8,677 (17) 3 - (48) (9) - 8,606
================ ================ ================== ================ ================ =============== ================ ============== ================
Gross profit 5,086 17 (3) - 48 9 - 5,157
Operating
expenses 3,570 (136) 6 (49) - (6) - 3,385
================ ================ ================== ================ ================ =============== ================ ============== ================
Operating profit 1,516 153 (9) 49 48 15 - 1,772
Total finance
costs,
net 129 - - (4) - - - 125
Non-operating
items 5 - - - - - - 5
================ ================ ================== ================ ================ =============== ================ ============== ================
Profit before
taxes 1,382 153 (9) 53 48 15 - 1,642
Taxes 394 43 4 10 13 3 (127) 340
================ ================ ================== ================ ================ =============== ================ ============== ================
Profit after
taxes 988 110 (13) 43 35 12 127 1,302
================ ================ ================== ================ ================ =============== ================ ============== ================
Attributable to:
Shareholders 982 109 (13) 43 34 12 127 1,294
Non-controlling
interest 6 1 - - 1 - - 8
================ ================ ================== ================ ================ =============== ================ ============== ================
Profit after
taxes 988 110 (13) 43 35 12 127 1,302
---------------- ---------------- ------------------ ---------------- ---------------- --------------- ---------------- -------------- ----------------
Diluted earnings
per share (EUR) 2.15 0.24 (0.03) 0.09 0.07 0.03 0.28 2.83
---------------- ---------------- ------------------ ---------------- ---------------- --------------- ---------------- -------------- ----------------
Full year 2020 As Reported Items impacting Comparability Comparable
================= =================
Unaudited, in CCEP Mark-to-market Restructuring Total Net Tax CCEP
millions of effects Charges Acquisition ([6])
EUR except share ([7]) ([1]) Related
data which Costs
is calculated ([3])
prior to
rounding
================ ================= ================= =================== ================== ================= =================
Revenue 10,606 - - - - 10,606
Cost of sales 6,871 - (62) - - 6,809
================= ================= ================= =================== ================== ================= =================
Gross profit 3,735 - 62 - - 3,797
Operating
expenses 2,922 (2) (306) (11) - 2,603
================= ================= ================= =================== ================== ================= =================
Operating profit 813 2 368 11 - 1,194
Total finance
costs, net 111 - - (3) - 108
Non-operating
items 7 - - - - 7
================= ================= ================= =================== ================== ================= =================
Profit before
taxes 695 2 368 14 - 1,079
Taxes 197 - 103 3 (45) 258
================= ================= ================= =================== ================== ================= =================
Profit after
taxes 498 2 265 11 45 821
================= ================= ================= =================== ================== ================= =================
Attributable to:
Shareholders 498 2 265 11 45 821
Non-controlling
interest - - - - - -
================ ================= ================= =================== ================== ================= =================
Profit after
taxes 498 2 265 11 45 821
----------------- ----------------- ----------------- ------------------- ------------------ ----------------- -----------------
Diluted earnings
per share
(EUR) 1.09 - 0.58 0.03 0.10 1.80
----------------- ----------------- ----------------- ------------------- ------------------ ----------------- -----------------
_ _________________________
([1]) Amounts represent restructuring charges related to
business transformation activities.
([2]) Amounts represent the impact of the closure of the GB
defined benefit pension scheme to future benefits accrual on 31
March 2021.
([3]) Amounts represent cost associated with the acquisition and
integration of CCL.
([4]) Amounts represent the non-recurring impact of the fair
value step-up of API finished goods.
([5]) Amounts represent the incremental net costs incurred as a
result of the July 2021 flooding events, which impacted the
operations of our manufacturing facilities in Chaudfontaine and Bad
Neuenahr.
([6]) Amounts include the deferred tax impact related to income
tax rate and law changes.
([7]) Amounts represent the net out of period mark-to-market
impact of non-designated commodity hedges.
Supplementary Financial Information - Income Statement - Reported
to Pro forma Comparable
The following provides a summary reconciliation of CCEP's
reported and pro forma comparable results for the full-year ended
31 December 2021 and 31 December 2020:
Transaction Items impacting
Pro forma accounting Comparability
adjustments adjustments Pro forma ([E]) Pro forma
Full Year 2021 As Reported CCL ([A]) ([B]) Combined Comparable
==================== ===================== ==================== ==================== ======================== ====================
Unaudited, in CCEP CCEP CCEP
millions
of EUR except
share
data which is
calculated
prior to
rounding
================ ==================== ===================== ==================== ==================== ======================== ====================
Revenue 13,763 1,056 - 14,819 - 14,819
Cost of sales 8,677 616 - 9,293 (71) 9,222
================ ==================== ===================== ==================== ==================== ======================== ====================
Gross profit 5,086 440 - 5,526 71 5,597
Operating
expenses 3,570 323 68 3,961 (250) 3,711
================ ==================== ===================== ==================== ==================== ======================== ====================
Operating profit 1,516 117 (68) 1,565 321 1,886
Total finance
costs,
net 129 12 9 150 (4) 146
Non-operating
items 5 (1) - 4 - 4
================ ==================== ===================== ==================== ==================== ======================== ====================
Profit before
taxes 1,382 106 (77) 1,411 325 1,736
Taxes 394 29 (20) 403 (36) 367
================ ==================== ===================== ==================== ==================== ======================== ====================
Profit after
taxes 988 77 (57) 1,008 361 1,369
================ ==================== ===================== ==================== ==================== ======================== ====================
Attributable to:
Shareholders 982 74 (58) 998 359 1,357
Non-controlling
interest 6 3 1 10 2 12
================ ==================== ===================== ==================== ==================== ======================== ====================
Profit after
taxes 988 77 (57) 1,008 361 1,369
================ ==================== ===================== ==================== ==================== ======================== ====================
Diluted earnings
per
share (EUR) 2.15 0.16 (0.13) 2.18 0.79 2.97
================ ==================== ===================== ==================== ==================== ======================== ====================
_ _________________________
([A]) Amounts represent adjustments to include CCL financial
results prepared on a basis consistent with CCEP accounting
policies, as if the Acquisition had occurred on 1 January 2021 and
excludes CCL acquisition and integration related costs.
([B]) Amounts represent transaction accounting adjustments for
the period 1 January to 10 May as if the Acquisition had occurred
on 1 January 2021. These include the depreciation and amortisation
impact relating to provisional fair values for intangibles and
property plant and equipment, the interest impact of additional
debt financing reflecting the actual weighted average interest rate
for Acquisition financing of c.0.40% and the inclusion of
acquisition and integration related costs incurred by CCL prior to
the Acquisition.
Transaction Pro forma Items impacting
Historical accounting Combined Comparability
adjusted adjustments ([E]) Pro forma
Full Year 2020 As Reported CCL([C]) ([D]) Comparable
==================== ==================== ==================== ==================== ========================= ====================
Unaudited, in CCEP CCEP CCEP
millions
of EUR except
share
data which is
calculated
prior to
rounding
================ ==================== ==================== ==================== ==================== ========================= ====================
Revenue 10,606 2,929 - 13,535 - 13,535
Cost of sales 6,871 1,737 57 8,665 (118) 8,547
================ ==================== ==================== ==================== ==================== ========================= ====================
Gross profit 3,735 1,192 (57) 4,870 118 4,988
Operating
expenses 2,922 1,022 130 4,074 (581) 3,493
================ ==================== ==================== ==================== ==================== ========================= ====================
Operating profit 813 170 (187) 796 699 1,495
Total finance
costs,
net 111 37 19 167 (7) 160
Non-operating
items 7 2 - 9 (4) 5
================ ==================== ==================== ==================== ==================== ========================= ====================
Profit before
taxes 695 131 (206) 620 710 1,330
Taxes 197 44 (57) 184 142 326
================ ==================== ==================== ==================== ==================== ========================= ====================
Profit after
taxes 498 87 (149) 436 568 1,004
================ ==================== ==================== ==================== ==================== ========================= ====================
Attributable to:
Shareholders 498 109 (152) 455 542 997
Non-controlling
interest - (22) 3 (19) 26 7
================ ==================== ==================== ==================== ==================== ========================= ====================
Profit after
taxes 498 87 (149) 436 568 1,004
================ ==================== ==================== ==================== ==================== ========================= ====================
Diluted earnings
per
share (EUR) 1.09 0.24 (0.33) 1.00 1.19 2.19
================ -------------------- -------------------- -------------------- -------------------- ------------------------- --------------------
__________________________
([C]) Amounts represent adjustments to reflect CCL financial
results as if the Acquisition had occurred on 1 January 2020. The
impact of adjustments made to CCL's historical financial statements
in order to present them on a basis consistent with CCEP's
accounting policies is provided in Note 1.
([D]) Amounts represent transaction accounting adjustments for
the period 1 January to 31 December as if the Acquisition had
occurred on 1 January 2020. These include the depreciation and
amortisation impact relating to provisional fair values for
intangibles and property plant and equipment, the non-recurring
impact of the provisional fair value step-up of API finished goods,
the interest impact of additional debt financing reflecting the
actual weighted average interest rate for Acquisition financing of
c.0.40% and the inclusion of acquisition related costs.
([E]) Items impacting comparability represents amounts included
within pro forma Combined CCEP affecting the comparability of
CCEP's year-over-year financial performance and are set out in the
following table:
Full year Items impacting Comparability
2021
=====================
Unaudited, Restructuring Defined Acquisition Inventory European Net Tax Other Total
in millions Charges benefit and Integration step up flooding([5]) ([6]) ([7]) items
of EUR except ([1]) plan closure([2]) related costs impacting
share data costs ([4]) Comparability
which is ([3])
calculated
prior to
rounding
================ ================== =================== =================== ================== =================== ================= =================== =====================
Revenue - - - - - - - -
Cost of sales (17) 3 - (48) (9) - - (71)
================ ================== =================== =================== ================== =================== ================= =================== =====================
Gross profit 17 (3) - 48 9 - - 71
Operating
expenses (136) 6 (110) - (6) - (4) (250)
================ ================== =================== =================== ================== =================== ================= =================== =====================
Operating
profit 153 (9) 110 48 15 - 4 321
Total finance
costs, net - - (4) - - - - (4)
Non-operating
items - - - - - - - -
================ ================== =================== =================== ================== =================== ================= =================== =====================
Profit before
taxes 153 (9) 114 48 15 - 4 325
Taxes 43 4 27 13 3 (127) 1 (36)
================ ================== =================== =================== ================== =================== ================= =================== =====================
Profit after
taxes 110 (13) 87 35 12 127 3 361
================ ================== =================== =================== ================== =================== ================= =================== =====================
Attributable
to:
Shareholders 109 (13) 87 34 12 127 3 359
Non-controlling
interest 1 - - 1 - - 2
================ ================== =================== =================== ================== =================== ================= =================== =====================
Profit after
taxes 110 (13) 87 35 12 127 3 361
================ ================== =================== =================== ================== =================== ================= =================== =====================
Diluted earnings
per share
(EUR) 0.24 (0.03) 0.19 0.07 0.03 0.28 0.01 0.79
================ ================== =================== =================== ================== =================== ================= =================== =====================
Full year 2020 Items impacting Comparability
=====================
Unaudited, in Restructuring Acquisition Inventory Mark-to-market Net Tax Impairment Other Total
millions of Charges and Integration step up effects ([6]) ([9]) ([7]) items
EUR except share ([1]) related costs ([8]) impacting
data which is costs ([4]) Comparability
calculated prior ([3])
to rounding
================ ================== =================== ================== =================== =============== ============== ================ =====================
Revenue - - - - - - - -
Cost of sales (70) - (48) - - - - (118)
================ ================== =================== ================== =================== =============== ============== ================ =====================
Gross profit 70 - 48 - - - - 118
Operating
expenses (325) (125) - (2) - (116) (13) (581)
================ ================== =================== ================== =================== =============== ============== ================ =====================
Operating profit 395 125 48 2 - 116 13 699
Total finance
costs, net - (7) - - - - - (7)
Non-operating
items - - - - - - (4) (4)
================ ================== =================== ================== =================== =============== ============== ================ =====================
Profit before
taxes 395 132 48 2 - 116 17 710
Taxes 111 30 13 - (45) 29 4 142
================ ================== =================== ================== =================== =============== ============== ================ =====================
Profit after
taxes 284 102 35 2 45 87 13 568
================ ================== =================== ================== =================== =============== ============== ================ =====================
Attributable
to:
Shareholders 284 102 34 2 45 62 13 542
Non-controlling
interest - - 1 - - 25 - 26
================ ================== =================== ================== =================== =============== ============== ================ =====================
Profit after
taxes 284 102 35 2 45 87 13 568
================ ================== =================== ================== =================== =============== ============== ================ =====================
Diluted earnings
per share (EUR) 0.62 0.23 0.07 - 0.10 0.14 0.03 1.19
================ ------------------ ------------------- ------------------ ------------------- --------------- -------------- ---------------- ---------------------
_________________________
([1]) Amounts represent restructuring charges related to
business transformation activities.
([2]) Amounts represent the impact of the closure of the GB
defined benefit pension scheme to future benefits accrual on 31
March 2021.
([3]) Amounts represent cost associated with the acquisition and
integration of CCL.
([4]) Amounts represent the non-recurring impact of the
provisional fair value step-up of API finished goods. For 2021,
these charges are included within the As Reported results. For
2020, these charges are included within Transaction accounting
adjustments.
([5]) Amounts represent the incremental net costs incurred as a
result of the July 2021 flooding events, which impacted the
operations of our manufacturing facilities in Chaudfontaine and Bad
Neuenahr.
([6]) Amounts include the deferred tax impact related to income
tax rate and law changes.
([7]) Amounts represent charges incurred prior to Acquisition
classified as non-trading items by CCL which are not expected to
recur.
([8]) Amounts represent the net out of period mark-to-market
impact of non-designated commodity hedges.
([9]) Amounts represent the charges recognised by CCL relating
to the impairment of Indonesia and Fiji during H1 2020.
Note 1: Adjustments to API's financial statements
The financial statements below illustrate the impact of
adjustments made to the historical financial statements of CCL in
order to present them on a basis consistent with CCEP's accounting
policies.
Historical Reclassifications Adjusted Historical
CCL ([1]) ([2]) CCL Adjusted
Full year 2020 CCL ([3])
============================= ============================== ============================== ==============================
Unaudited, in AUD (A$) AUD (A$) AUD (A$) EUR (EUR)
millions of
EUR
================ ============================= ============================== ============================== ==============================
Revenue - 4,853 4,853 2,929
Trading revenue 4,762 (4,762) - -
Cost of sales - (2,877) (2,877) (1,737)
Cost of goods
sold (2,862) 2,862 - -
Delivery (221) 221 - -
================ ============================= ============================== ============================== ==============================
Gross profit 1,679 297 1,976 1,192
Other revenues 39 (39) - -
Operating
expenses (1,438) (255) (1,693) (1,022)
================ ============================= ============================== ============================== ==============================
Operating profit 280 3 283 170
Finance income 33 33 20
Finance costs (95) (95) (57)
================ ============================= ============================== ============================== ==============================
Total finance
costs, net (62) - (62) (37)
Non-operating
items - (3) (3) (2)
================ ============================= ============================== ============================== ==============================
Profit before
taxes 218 - 218 131
Taxes - (73) (73) (44)
Income tax
expense (73) 73 - -
================ ============================= ============================== ============================== ==============================
Profit after
taxes 145 - 145 87
================ ============================= ============================== ============================== ==============================
Attributable to:
Shareholders 180 - 180 109
Non-controlling
interest (35) - (35) (22)
================ ============================= ============================== ============================== ==============================
Profit after
taxes 145 - 145 87
================ ----------------------------- ------------------------------ ------------------------------ ------------------------------
__________________________
([1]) Historical income statement previously published by CCL
for the period 1 January 2020 to 31 December 2020.
([2]) Accounting policy and classification adjustments made to
CCL's income statement in order to present on a basis consistent
with CCEP.
([3]) CCL income statement has been translated from Australian
Dollars to Euros using the average exchange rate for the period of
0.6036.
Supplemental Financial Information - Operating Profit - Reported
to Comparable
Revenue
Fourth-Quarter Ended Year Ended
=========== --------------------------------------------------------------- --------------------------------------------------------------
Revenue 31 December 31 December % Change 31 December 31 December % Change
CCEP 2021 2020 2021 2020
In millions
of
EUR, except
per
case data
which
is
calculated
prior to
rounding.
FX impact
calculated
by
recasting
current
year
results at
prior year
rates.
=========== ======================== ====================== ============= ======================= ====================== =============
As reported 3,896 2,590 50.5 % 13,763 10,606 30.0 %
Adjust:
Impact
of fx
changes (96) n/a n/a (206) n/a n/a
Fx-neutral 3,800 2,590 46.5 % 13,557 10,606 28.0 %
Revenue per
unit
case 4.86 4.53 7.5 % 4.83 4.66 4.0 %
Fourth-Quarter Ended Year Ended
=========== --------------------------------------------------------------- -----------------------------------------------------------
Revenue 31 December 31 December % Change 31 December 31 December % Change
Europe 2021 2020 2021 2020
In millions
of
EUR, except
per
case data
which
is
calculated
prior to
rounding.
FX impact
calculated
by
recasting
current
year
results at
prior year
rates.
=========== ======================== ====================== ============= ======================= ====================== ==========
As reported 2,950 2,590 14.0 % 11,584 10,606 9.0 %
Adjust:
Impact
of fx
changes (53) n/a n/a (132) n/a n/a
Fx-neutral 2,897 2,590 12.0 % 11,452 10,606 8.0 %
Revenue per
unit
case 4.82 4.53 6.5 % 4.81 4.66 3.5 %
Fourth-Quarter Ended Year Ended
=========== ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
Revenue API 31 December 31 December 31 December 31 December
In millions 2021 2020 2021 2020
of
EUR, except
per
case data
which
is
calculated
prior to
rounding.
FX impact
calculated
by
recasting
current
year
results at
prior year
rates.
=========== ====================================== ==================================== ====================================== ====================================
As reported 946 - 2,179 -
Adjust:
Impact
of fx
changes (43) n/a (74) n/a
Fx-neutral 903 - 2,105 -
Revenue per
unit
case 5.02 - 4.95 -
Year Ended 31 December 2021
================================
Revenue by Geography As reported Reported Fx-Neutral
In millions of EUR % change % change
================================ ======================= ============= ==============
Great Britain 2,613 18.5 % 14.0 %
--------------------------------- ----------------------- ------------- --------------
Germany 2,335 3.0 % 3.0 %
--------------------------------- ----------------------- ------------- --------------
Iberia([1]) 2,495 15.0 % 15.0 %
--------------------------------- ----------------------- ------------- --------------
France([2]) 1,813 6.0 % 6.0 %
================================= ======================= ============= ==============
Belgium and Luxembourg 926 4.0 % 4.0 %
--------------------------------- ----------------------- ------------- --------------
Netherlands 557 5.5 % 5.5 %
================================= ======================= ============= ==============
(12.5)
Norway 391 (7.5) % %
--------------------------------- ----------------------- ------------- --------------
Sweden 375 11.5 % 7.5 %
--------------------------------- ----------------------- ------------- --------------
Iceland 79 13.0 % 10.0 %
--------------------------------- ----------------------- ------------- --------------
Total Europe 11,584 9.0 % 8.0 %
--------------------------------- ----------------------- ------------- --------------
Australia 1,359 n/a n/a
-------------------------------- ----------------------- ------------- --------------
New Zealand and Pacific Islands 377 n/a n/a
-------------------------------- ----------------------- ------------- --------------
Indonesia and Papua New Guinea 443 n/a n/a
-------------------------------- ----------------------- ------------- --------------
Total API 2,179 n/a n/a
Total CCEP 13,763 30.0 % 28.0 %
([1]) Iberia refers to Spain, Portugal & Andorra.
([2]) France refers to continental France & Monaco.
Volume
Fourth-Quarter Ended Year Ended
=========== --------------------------------------------------------------- ---------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2021 2020 2021 2020
- Selling
Day
Shift CCEP
In millions
of
unit cases,
prior
period
volume
recast
using
current
year
selling
days
=========== ====================== ======================== ============= ===================== ========================= =============
Volume 781 572 36,5% 2,804 2,277 23.0 %
Impact of
selling
day shift n/a (30) n/a n/a (7) n/a
Comparable
volume
- Selling
Day
Shift
adjusted 781 542 44.0 % 2,804 2,270 23.5 %
Fourth-Quarter Ended Year Ended
=========== --------------------------------------------------------------- ------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2021 2020 2021 2020
- Selling
Day
Shift
Europe
In millions
of
unit cases,
prior
period
volume
recast
using
current
year
selling
days
=========== ====================== ======================== ============= ===================== ========================= ==========
Volume 601 572 5.0 % 2,379 2,277 4.5 %
Impact of
selling
day shift n/a (30) n/a n/a (7) n/a
Comparable
volume
- Selling
Day
Shift
adjusted 601 542 11.0 % 2,379 2,270 5.0 %
Fourth-Quarter Ended Year Ended
=========== -------------------------------------------------------- --------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2021 2020 2021 2020
- Selling
Day
Shift API
In millions
of
unit cases,
prior
period
volume
recast
using
current
year
selling
days
=========== ====================== ====================== ======== ====================== ====================== ========
Volume 180 - n/a 425 - n/a
Impact of
selling
day shift n/a - n/a n/a - n/a
Comparable
volume
- Selling
Day
Shift
adjusted 180 - n/a 425 - n/a
Cost of Sales
Year Ended
============================================ -----------------------------------------------------------------
Cost of Sales 31 December 31 December % Change
In millions of EUR, except per case data 2021 2020
which is calculated prior to rounding.
FX impact calculated by recasting current
year results at prior year rates.
============================================ ======================== ======================== =============
As reported 8,677 6,871 26.5 %
Adjust: Total items impacting comparability (71) (62) n/a
Comparable 8,606 6,809 26.5 %
Adjust: Impact of fx changes (130) n/a n/a
Comparable & fx-neutral 8,476 6,809 24.5 %
Cost of sales per unit case 3.02 2.99 1.0 %
For the year ending 31 December 2021, reported cost of sales
were EUR8,677 million, up 26.5% versus 2020, and include the impact
of a EUR48 million acquisition accounting fair value step up to API
finished goods at the time of the Acquisition that were sold during
May and June.
Comparable cost of sales for the same period were EUR8,606
million, up 26.5% versus 2020. Cost of sales per unit case
increased by 1.0% on a comparable and fx-neutral basis, reflecting
the impact of the newly acquired API operations, increased revenue
per unit case driving higher concentrate costs, commodity inflation
& adverse mix, partially offset by the favourable recovery of
fixed manufacturing costs given higher volumes.
Operating expenses
Year Ended
============================================ ----------------------------------------------------------------
Operating Expenses 31 December 31 December % Change
In millions of EUR. FX impact calculated 2021 2020
by recasting current year results at prior
year rates.
============================================ ======================== ======================= =============
As reported 3,570 2,922 22.0 %
Adjust: Total items impacting comparability (185) (319) n/a
Comparable 3,385 2,603 30.0 %
Adjust: Impact of fx changes (45) n/a n/a
Comparable & fx-neutral 3,340 2,603 28.5 %
For the year ending 31 December 2021, reported operating
expenses were EUR3,570 million, up 22.0% versus 2020.
Comparable operating expenses were EUR3,385 million for the same
period, up 30.0% versus 2020, reflecting the impact of the newly
acquired API operations and higher volumes, partially offset by the
benefit of ongoing efficiency programmes and our continuous efforts
on discretionary spend optimisation.
Restructuring charges of EUR136 million were recognised within
reported operating expenses for the year ending 31 December 2021
related principally to the continuation of the Accelerate
Competitiveness programme announced in October 2020. This programme
relates to initiatives across Europe aimed at improving
productivity through the use of technology enabled solutions.
Restructuring charges in 2021 include EUR51 million of severance
costs related to productivity initiatives within the commercial
organisation in Iberia.
Restructuring charges of EUR306 million were recognised within
operating expenses for the year ending 31 December 2020, the
majority of which also relate to the severance and accelerated
depreciation in connection with the Accelerate Competitiveness
programme. Charges included costs associated with closure of
production sites in Germany and Iberia as well as the closure of
five distribution centres and changes in commercial organisation in
Germany.
Acquisition and integration related costs of EUR49 million were
recognised within reported operating expenses the year ending 31
December 2021 associated with the acquisition of CCL, primarily
brokerage and advisory fees. This compares to EUR11 million of
acquisition related costs recognised during the year ending 31
December 2020.
Operating profit
Year Ended
============================================ ---------------------------------------------------------------
Operating Profit CCEP 31 December 31 December % Change
In millions of EUR. FX impact calculated 2021 2020
by recasting current year results at prior
year rates.
============================================ ======================== ====================== =============
As reported 1,516 813 86.5 %
Adjust: Total items impacting comparability 256 381 n/a
Comparable 1,772 1,194 48.5 %
Adjust: Impact of fx changes (31) n/a n/a
Comparable & fx-neutral 1,741 1,194 46.0 %
Year Ended
============================================ ---------------------------------------------------------------
Operating Profit Europe 31 December 31 December % Change
In millions of EUR. FX impact calculated 2021 2020
by recasting current year results at prior
year rates.
============================================ ======================== ====================== =============
As reported 1,298 813 59.5 %
Adjust: Total items impacting comparability 202 381 n/a
Comparable 1,500 1,194 25.5 %
Adjust: Impact of fx changes (22) n/a n/a
Comparable & fx-neutral 1,478 1,194 24.0 %
Year Ended
====================================================== -------------------------------------------------
Operating Profit API 31 December 31 December
In millions of EUR. FX impact calculated by recasting 2021 2020
current year results at prior year rates.
====================================================== ========================= ======================
As reported 218 -
Adjust: Total items impacting comparability 54 -
Comparable 272 -
Adjust: Impact of fx changes (9) -
Comparable & fx-neutral 263 -
Supplemental Financial Information - Operating Profit - Reported
to Pro forma Comparable
Revenue
Fourth-Quarter Ended Year Ended
============ --------------------------------------------------------------- --------------------------------------------------------------
Pro forma 31 December 31 December % Change 31 December 31 December % Change
Revenue 2021 2020 2021 2020
CCEP
In millions
of
EUR, except
per
case data
which
is
calculated
prior to
rounding.
FX impact
calculated
by recasting
current
year results
at
prior year
rates.
============ ======================== ====================== ============= ======================= ====================== =============
As reported
and
comparable 3,896 2,590 50.5 % 13,763 10,606 30.0 %
Add: Pro
forma
adjustments - 911 n/a 1,056 2,929 n/a
Pro forma
Comparable 3,896 3,501 11.5 % 14,819 13,535 9.5 %
Adjust:
Impact
of fx
changes (96) n/a n/a (240) n/a n/a
Pro forma
Comparable
and
fx-neutral 3,800 3,501 8.5 % 14,579 13,535 7.5 %
Pro forma
Revenue
per unit
case 4.86 4.61 5.5 % 4.83 4.68 3.0 %
Fourth-Quarter Ended Year Ended
============ --------------------------------------------------------------- --------------------------------------------------------------
Pro forma 31 December 31 December % Change 31 December 31 December % Change
Revenue 2021 2020 2021 2020
API
In millions
of
EUR, except
per
case data
which
is
calculated
prior to
rounding.
FX impact
calculated
by recasting
current
year results
at
prior year
rates.
============ ======================== ====================== ============= ======================= ====================== =============
As reported
and
comparable 946 - n/a 2,179 - n/a
Add: Pro
forma
adjustments - 911 n/a 1,056 2,929 n/a
Pro forma
Comparable 946 911 4.0 % 3,235 2,929 10.5 %
Adjust:
Impact
of fx
changes (43) n/a n/a (108) n/a n/a
Pro forma
Comparable
and
fx-neutral 903 911 (1.0) % 3,127 2,929 7.0 %
Pro forma
Revenue
per unit
case 5.01 4.88 3.0 % 4.88 4.74 3.0 %
Fourth-Quarter Ended 31 Full Year Ended 31 December
December 2021 2021
---------------------------------------------------
Pro forma Pro forma Pro forma Pro forma Pro forma Pro forma Pro forma
revenue comparable comparable Fx-Neutral comparable comparable Fx-Neutral
by % change % change % change % change
Geography
In
millions
of
EUR
Europe 2,950 14.0 % 12.0 % 11,584 9.0 % 8.0 %
Australia 590 1.0 % (3.5) % 2,028 11.0 % 5.5 %
---------- --------------------- ------------- ------------- --------------------- ------------- -------------
New
Zealand
and
Pacific
Islands 173 6.0 % 0.5 % 555 12.5 % 7.5 %
---------- --------------------- ------------- ------------- --------------------- ------------- -------------
Indonesia
and Papua
New
Guinea 183 12.5 % 7.5 % 652 7.5 % 10.0 %
Total API 946 4.0 % (1.0) % 3,235 10.5 % 7.0 %
Total CCEP 3,896 11.5 % 8.5 % 14,819 9.5 % 7.5 %
Volume
Fourth-Quarter Ended Year Ended
============ --------------------------------------------------------------- ----------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2021 2020 2021 2020
- Selling
Day
Shift CCEP
In millions
of
unit cases,
prior
period
volume
recast using
current
year selling
days
============ ====================== ======================== ============= ====================== ========================= =============
Volume 781 572 36,5% 2,804 2,277 23.0 %
Impact of
selling
day shift n/a (30) n/a n/a (7) n/a
Comparable
volume
- Selling
Day
Shift
adjusted 781 542 44.0 % 2,804 2,270 23.5 %
Pro forma
impact([1]) - 177 n/a 215 616 n/a
Pro forma
comparable
volume 781 719 8.5 % 3,019 2,886 4.5 %
Fourth-Quarter Ended Year Ended
============ ---------------------------------------------------------- ----------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2021 2020 2021 2020
- Selling
Day
Shift API
In millions
of
unit cases,
prior
period
volume
recast using
current
year selling
days
============ ====================== ====================== ========== ====================== ====================== ==========
Volume 180 - n/a 425 - n/a
Impact of
selling
day shift n/a - n/a n/a - n/a
Comparable
volume
- Selling
Day
Shift
adjusted 180 - n/a 425 - n/a
Pro forma
impact([1]) - 177 n/a 215 616 n/a
Pro forma
comparable
volume 180 177 1.5 % 640 616 4.0 %
([1]) Pro forma API volume for the year ended 31 December 2020
is 618 million unit cases. Including the impact of the Q1 and Q4
selling day shift (2 million unit cases), pro forma comparable API
volume is 616 million unit cases.
Fourth-Quarter Ended Year Ended
================ ------------------------------------------------- -------------------------------------------------
31 December 31 December % Change 31 December 31 December % Change
2021 2020 2021 2020
============= =============
Pro forma % of Total % of Total % of Total % of Total
Comparable
Volume by Brand
Category CCEP
Adjusted for
selling
day shift
================ ================ ================ ============= ================ ================ =============
Sparkling 85.0 % 85.5 % 8.5 % 84.5 % 84.5 % 4.5 %
Coca-Cola(TM) 59.5 % 60.5 % 7.5 % 59.0 % 60.0 % 3.5 %
Flavours,
Mixers
& Energy 25.5 % 25.0 % 10.5 % 25.5 % 24.5 % 7.0 %
Stills 15.0 % 14.5 % 10.5 % 15.5 % 15.5 % 5.0 %
Hydration 7.5 % 7.5 % 9.5 % 7.5 % 8.0 % - %
RTD Tea, RTD
Coffee,
Juices &
Other([1]) 7.5 % 7.0 % 11.5 % 8.0 % 7.5 % 10.0 %
Total 100.0 % 100.0 % 8.5 % 100.0 % 100.0 % 4.5 %
________________________
([1]) RTD refers to Ready-To-Drink.
Cost of Sales
Year Ended
============================================ ----------------------------------------------------------------
Pro forma Cost of Sales 31 December 31 December % Change
In millions of EUR, except per case data 2021 2020
which is calculated prior to rounding.
FX impact calculated by recasting current
year results at prior year rates.
============================================ ======================== ======================= =============
As reported 8,677 6,871 26.5 %
Add: Pro forma adjustments 616 1,737 n/a
Adjust: Transaction accounting adjustments - 57
Adjust: Total items impacting comparability (71) (118)
Pro forma Comparable 9,222 8,547 8.0 %
Adjust: Impact of fx changes (149) n/a n/a
Pro forma Comparable & fx-neutral 9,073 8,547 6.0 %
Cost of sales per unit case 3.00 2.95 1.5 %
Pro forma comparable cost of sales for the year ending 31
December 2021 were EUR9,222 million, up 8.0% versus 2020. Cost of
sales per unit case increased by 1.5% on a 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 commodities and adverse
mix, partially offset by the favourable recovery of fixed
manufacturing costs given higher volumes.
Operating Expenses
Year Ended
============================================ ----------------------------------------------------------------
Pro forma Operating Expenses 31 December 31 December % Change
In millions of EUR. FX impact calculated 2021 2020
by recasting current year results at prior
year rates.
============================================ ======================== ======================= =============
As reported 3,570 2,922 22.0 %
Add: Pro forma adjustments 323 1,022 n/a
Adjust: Transaction accounting adjustments 68 130
Adjust: Total items impacting comparability (250) (581)
Pro forma Comparable 3,711 3,493 6.0 %
Adjust: Impact of fx changes (54) n/a n/a
Pro forma Comparable & fx-neutral 3,657 3,493 4.5 %
Pro forma comparable operating expenses for the year ending 31
December 2021 were EUR3,711 million, up 6.0% versus 2020,
reflecting higher volumes, partially offset by the benefit of
on-going efficiency programmes, combination benefits and our
continuous efforts on discretionary spend optimisation in areas
such as trade marketing, travel and meetings.
Operating Profit
Year Ended
============================================ ----------------------------------------------------------------
Pro forma Operating Profit CCEP 31 December 31 December % Change
In millions of EUR. FX impact calculated 2021 2020
by recasting current year results at prior
year rates.
============================================ ======================== ======================= =============
As reported 1,516 813 86.5 %
Add: Pro forma adjustments 117 170 n/a
Adjust: Transaction accounting adjustments (68) (187)
Adjust: Total items impacting comparability 321 699
Pro forma Comparable 1,886 1,495 26.0 %
Adjust: Impact of fx changes (37) n/a n/a
Pro forma Comparable & fx-neutral 1,849 1,495 23.5 %
Year Ended
============================================ ----------------------------------------------------------------
Pro forma Operating Profit API 31 December 31 December % Change
In millions of EUR. FX impact calculated 2021 2020
by recasting current year results at prior
year rates.
============================================ ======================== ======================= =============
As reported 218 - n/a
Add: Pro forma adjustments 117 170 n/a
Adjust: Transaction accounting adjustments (68) (187)
Adjust: Total items impacting comparability 119 318
Pro forma Comparable 386 301 28.0 %
Adjust: Impact of fx changes (15) n/a n/a
Pro forma Comparable & fx-neutral 371 301 23.5 %
Supplemental Financial Information - Effective Tax Rate
The reported effective tax rate was 29% and 28% for the year
ended 31 December 2021 and 31 December 2020, respectively.
For the year ended 31 December 2021,the effective tax rate
included a EUR127 million impact related to the revaluation of
deferred tax positions due to enacted increases in the UK statutory
income tax rate from 19% to 25% effective from 1 April 2023, the
Netherlands statutory income tax rate from 25% to 25.8% effective
from 1 January 2022 and an enacted law change in Indonesia which
held its statutory income tax rate at 22% from 1 January 2022,
reversing the previously enacted reduction from 22% to 20%.
The comparable effective tax rate was 21% and 24% for the years
ended 31 December 2021 and 31 December 2020, respectively.
Supplemental Financial Information - Free Cash Flow
Year Ended
================================================= -------------------------------------------------
Free Cash Flow 31 December 31 December
In millions of EUR 2021 2020
================================================= ======================= ========================
Net cash flows from operating activities 2,117 1,490
Less: Purchases of property, plant and equipment (349) (348)
Less: Purchases of capitalised software (97) (60)
Add: Proceeds from sales of property, plant and
equipment 25 49
Less: Payments of principal on lease obligations (139) (116)
Less: Interest paid, net (97) (91)
Free Cash Flow 1,460 924
If the Acquisition had occurred on 1 January 2021, free cash
flow for the year ended 31 December 2021 is estimated to be EUR85
million lower.
Supplemental Financial Information - Borrowings
As at
----------------------------------------- ==============
31 December 31 December Credit Ratings Moody's Fitch Ratings
2021 2020 As of 15
Net Debt February
In millions of EUR 2022
==================== =================== ============== ======= =============
Long-term
Total borrowings 13,140 7,187 rating Baa1 BBB+
Fair value of hedges
related to borrowings([1]) (110) 36 Outlook Stable Stable
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
Other financial and may be subject to revision
assets/liabilities([1]) 42 - or withdrawal at any time.
Adjusted total
borrowings([1]) 13,072 7,223
Less: cash and cash
equivalents([2]) (1,407) (1,523)
Less: short term
investments([3]) (58) -
Net debt 11,607 5,700
___________________
([1]) Following the acquisition of CCL, 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. As at 31 December 2020, the Group did not hold interest
rate hedging instruments and adjusted Net Debt only for currency
impacts. In addition, Net Debt also includes other financial
assets/liabilities relating to cash collateral pledged by/to
external parties on hedging instruments related to borrowings.
([2]) Cash and cash equivalents as at 31 December 2021 includes
EUR45 million of cash in Papua New Guinea Kina. Presently, there
are government-imposed currency controls which impact the extent to
which the cash held in Papua New Guinea can be converted into
foreign currency and remitted for use elsewhere in the Group.
([3]) Short term investments are term cash deposits held in API
with maturity dates when acquired of greater than three months and
less than one year. These short term investments are held with
counterparties that are continually assessed with a focus on
preservation of capital and liquidity. Short term term investments
as at 31 December 2021 includes EUR44 million of assets in Papua
New Guinea Kina, subject to the same currency controls outlined
above.
Supplemental Financial Information - Adjusted EBITDA
Year Ended
=============================================== -----------------------------------------------------------
Adjusted EBITDA 31 December 31 December
In millions of EUR 2021 2020
=============================================== ============================= ============================
Reported profit after tax 988 498
Taxes 394 197
Finance costs, net 129 111
Non-operating items 5 7
Reported operating profit 1,516 813
Depreciation and amortisation([1]) 782 727
Reported EBITDA 2,298 1,540
Items impacting comparability
Mark-to-market effects([2]) - 2
Restructuring charges([3]) 97 247
Defined benefit plan closure([4]) (9) -
Acquisition and Integration related costs([5]) 49 11
Inventory step up costs([6]) 48 -
European flooding([7]]) 15 -
Adjusted EBITDA 2,498 1,800
Net debt to EBITDA 5.1 3.7
Net debt to adjusted EBITDA 4.7 3.2
______________________
([1]) Includes the depreciation and amortisation impact relating
to provisional fair values for intangibles and property plant and
equipment.
([2]) Amounts represent the net out of period mark-to-market
impact of non-designated commodity hedges.
([3]) Amounts represent restructuring charges related to
business transformation activities, excluding accelerated
depreciation included in the depreciation and amortisation
line.
([4]) Amounts represent the impact of the closure of the GB
defined benefit pension scheme to future benefits accrual on 31
March 2021.
([5]) Amounts represent cost associated with the acquisition and
integration of CCL.
([6]) Amounts represent the non-recurring impact of the fair
value step-up of API finished goods.
([7]) Amounts represent the incremental net costs incurred as a
result of the July 2021 flooding events, which impacted the
operations of our manufacturing facilities in Chaudfontaine and Bad
Neuenahr.
Year Ended
========================================
Pro forma Adjusted EBITDA 31 December 2021
In millions of EUR
======================================== ===============================================================
Reported profit after tax 988
Taxes 394
Finance costs, net 129
Non-operating items 5
Reported operating profit 1,516
Pro forma adjustments CCL([1]) 117
Transaction accounting adjustments([2]) (68)
Pro forma Combined operating profit 1,565
Depreciation and amortisation([3]) 858
Pro forma EBITDA 2,423
Items impacting comparability
Restructuring charges([4]) 97
Defined benefit plan closure ([5]) (9)
Acquisition and Integration related
costs([6]) 110
Inventory step up costs([7]) 48
European flooding([8]) 15
Other([9]) 4
Pro forma adjusted EBITDA 2,688
Net debt to Pro forma adjusted EBITDA 4.3
______________________
([1]) Amounts represent adjustments to include CCL financial
results prepared on a basis consistent with CCEP accounting
policies, as if the Acquisition had occurred on 1 January 2021 and
excludes CCL acquisition and integration related costs.
([2]) Amounts represent transaction accounting adjustments for
the period 1 January to 10 May as if the Acquisition had occurred
on 1 January 2021.
([3]) Includes the depreciation and amortisation impact relating
to provisional fair values for intangibles and property plant and
equipment as if the Acquisition had occurred on 1 January 2021.
([4]) Amounts represent restructuring charges related to
business transformation activities, excluding accelerated
depreciation included in the depreciation and amortisation
line.
([5]) Amounts represent the impact of the closure of the GB
defined benefit pension scheme to future benefits accrual on 31
March 2021.
([6]) Amounts represent costs associated with the acquisition
and integration of CCL.
([7]) Amounts represent the non-recurring impact of the fair
value step-up of API finished goods.
([8]) Amounts represent the incremental net costs incurred as a
result of the July 2021 flooding events, which impacted the
operations of our manufacturing facilities in Chaudfontaine and Bad
Neuenahr.
([9]) Amounts represent charges incurred prior to Acquisition
classified as non-trading items by CCL which are not expected to
recur.
Supplemental Financial Information - Return on invested capital
Year Ended
===================================================
31 December 31 December 31 December
2021 2021 2020
---------------- ----------------- ---------------
ROIC Pro forma([3])
In millions of EUR
=================================================== ================ ================= ===============
Comparable operating profit([1]) 1,886 1,772 1,194
Taxes([2]) (399) (367) (286)
Non-controlling interest (12) (8) -
Comparable operating profit after tax attributable
to shareholders 1,475 1,397 908
Opening borrowings less cash and cash equivalents
and short term investments([3]) 12,498 5,664 6,105
Opening equity attributable to shareholders([3]) 5,911 6,025 6,156
Opening Invested Capital 18,409 11,689 12,261
Closing borrowings less cash and cash equivalents
and short term investments 11,675 11,675 5,664
Closing equity attributable to shareholders 7,033 7,033 6,025
Closing Invested Capital 18,708 18,708 11,689
Average Invested Capital 18,559 15,199 11,975
ROIC 8.0 % 9.2 % 7.6 %
____________________
([1]) Reconciliation from reported operating profit to
comparable operating profit and to pro forma comparable operating
profit is included in Supplementary Financial Information - Income
Statement section.
([2]) Tax rate used is the comparable effective tax rate for the
year (2021 pro forma: 21.1%; 2021: 20.7%; 2020: 23.9%).
([3]) In light of the CCL acquisition and in order to provide
investors with a more meaningful measure of capital efficiency for
2021, a pro forma ROIC measure has been presented. To derive this
pro forma measure, opening borrowings, cash and cash equivalents
and short term investments, and equity attributable to shareholders
have been extracted from the Unaudited pro forma condensed combined
statement of financial position as of 31 December 2020 prepared in
connection with proposed financing of the CCL acquisition and
furnished on Form 6-K on 20 April 2021, and adjusted for any
associated acquisition accounting fair value adjustments in the
period through to 31 December 2021. These adjustments include an
increase in borrowings of EUR38 million and a decrease in equity
attributable to shareholders of EUR18 million.
Coca-Cola Europacific Partners plc
Consolidated Income Statement (Unaudited)
Year Ended
------------------------------------------------------------
31 December 31 December
2021 2020
EUR million EUR million
------------------------------------------------- ----------------------------- -----------------------------
Revenue 13,763 10,606
Cost of sales (8,677) (6,871)
----------------------------- -----------------------------
Gross profit 5,086 3,735
Selling and distribution expenses (2,496) (1,939)
Administrative expenses (1,074) (983)
----------------------------- -----------------------------
Operating profit 1,516 813
Finance income 43 33
Finance costs (172) (144)
----------------------------- -----------------------------
Total finance costs, net (129) (111)
Non-operating items (5) (7)
----------------------------- -----------------------------
Profit before taxes 1,382 695
Taxes (394) (197)
----------------------------- -----------------------------
Profit after taxes 988 498
============================= =============================
Profit attributable to shareholders 982 498
Profit attributable to non-controlling interests 6 -
----------------------------- -----------------------------
Profit after taxes 988 498
============================= =============================
Basic earnings per share (EUR) 2.15 1.09
Diluted earnings per share (EUR) 2.15 1.09
The financial information presented in the unaudited
consolidated income statement, consolidated statement of financial
position and consolidated statement of cash flows within this
document does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. This financial information
has been extracted from CCEP's consolidated financial statements
which will be delivered to the Registrar of Companies in due
course.
Coca-Cola Europacific Partners plc
Consolidated Statement of Financial Position (Unaudited)
31 December 31 December
2021 2020
EUR million EUR million
------------------------------------------------ ---------------------------- ----------------------------
ASSETS
Non-current:
Intangible assets 12,639 8,414
Goodwill 4,623 2,517
Property, plant and equipment 5,248 3,860
Non-current derivative assets 226 6
Deferred tax assets 60 27
Other non-current assets 534 337
---------------------------- ----------------------------
Total non-current assets 23,330 15,161
---------------------------- ----------------------------
Current:
Current derivative assets 150 40
Current tax assets 46 19
Inventories 1,157 681
Amounts receivable from related parties 143 150
Trade accounts receivable 2,305 1,439
Other current assets 271 204
Assets held for sale 223 20
Short term investments 58 -
Cash and cash equivalents 1,407 1,523
---------------------------- ----------------------------
Total current assets 5,760 4,076
---------------------------- ----------------------------
Total assets 29,090 19,237
============================ ============================
LIABILITIES
Non-current:
Borrowings, less current portion 11,790 6,382
Employee benefit liabilities 138 283
Non-current provisions 48 83
Non-current derivative liabilities 47 15
Deferred tax liabilities 3,617 2,134
Non-current tax liabilities 110 131
Other non-current liabilities 37 44
---------------------------- ----------------------------
Total non-current liabilities 15,787 9,072
---------------------------- ----------------------------
Current:
Current portion of borrowings 1,350 805
Current portion of employee benefit liabilities 10 13
Current provisions 86 154
Current derivative liabilities 19 62
Current tax liabilities 181 171
Amounts payable to related parties 210 181
Trade and other payables 4,237 2,754
---------------------------- ----------------------------
Total current liabilities 6,093 4,140
---------------------------- ----------------------------
Total liabilities 21,880 13,212
============================ ============================
EQUITY
Share capital 5 5
Share premium 220 192
Merger reserves 287 287
Other reserves (156) (537)
Retained earnings 6,677 6,078
Equity attributable to shareholders 7,033 6,025
Non-controlling interest 177 -
---------------------------- ----------------------------
Total equity 7,210 6,025
---------------------------- ----------------------------
Total equity and liabilities 29,090 19,237
============================ ============================
Coca-Cola Europacific Partners plc
Consolidated Statement of Cash Flows (Unaudited)
Year Ended
-----------------------------------------------------------
31 December 31 December
2021 2020
EUR million EUR million
---------------------------------------------------- ----------------------------- ----------------------------
Cash flows from operating activities:
Profit before taxes 1,382 695
Adjustments to reconcile profit before tax to
net cash flows from operating activities:
Depreciation 693 665
Amortisation of intangible assets 89 62
Share-based payment expense 16 14
Finance costs, net 129 111
Income taxes paid (306) (273)
Changes in assets and liabilities:
(Increase)/decrease in trade and other
receivables (242) 208
(Increase)/decrease in inventories (1) 34
Increase in trade and other payables 507 53
Increase/(decrease) in net payable receivable
from related parties 8 (112)
(Decrease)/increase in provisions (116) 43
Change in other operating assets and liabilities (42) (10)
----------------------------- ----------------------------
Net cash flows from operating activities 2,117 1,490
----------------------------- ----------------------------
Cash flows from investing activities:
Acquisition of bottling operations, net of cash
acquired (5,401) -
Purchases of property, plant and equipment (349) (348)
Purchases of capitalised software (97) (60)
Proceeds from sales of property, plant and
equipment 25 49
Net proceeds/(payments) of short term
investments 198 -
Investments in equity instruments (4) (11)
Proceeds from sale of equity instruments 25 -
Other investing activity, net (2) -
----------------------------- ----------------------------
Net cash flows used in investing activities (5,605) (370)
----------------------------- ----------------------------
Cash flows from financing activities:
Proceeds from borrowings, net 4,877 1,598
Changes in short-term borrowings 276 (221)
Repayments on third party borrowings (950) (569)
Payments of principal on lease obligations (139) (116)
Interest paid, net (97) (91)
Dividends paid (638) (386)
Purchase of own shares under share buyback
programme - (129)
Exercise of employee share options 28 14
Transactions with non-controlling interests (73) -
Other financing activities, net 5 -
----------------------------- ----------------------------
Net cash flows from financing activities 3,289 100
----------------------------- ----------------------------
Net change in cash and cash equivalents (199) 1,220
----------------------------- ----------------------------
Net effect of currency exchange rate changes
on cash and cash equivalents 83 (13)
Cash and cash equivalents at beginning of period 1,523 316
----------------------------- ----------------------------
Cash and cash equivalents at end of period 1,407 1,523
============================= ============================
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