TIDMCCEP
RNS Number : 0754Q
Coca-Cola Europacific Partners plc
16 February 2023
COCA-COLA EUROPACIFIC PARTNERS
Preliminary unaudited results for the full year ended 31
December 2022
Solid end to a very successful year, well placed for FY23 and
beyond
FY 2022 As Reported Comparable Change vs 2021 Change vs 2021
Metric([1]) ([1])
============ ================ ==== ================ ----------------------------------------- ----------------------------
As Reported Comparable Comparable Pro forma Pro forma
([1]) Fx-Neutral Comparable Comparable
([1]) ([3]) Fx-Neutral([3])
============ ================ ==== ================ =============== =========== =========== =========== ===============
Total Volume (M 17.5 18.0
CCEP UC)([2]) 3,300 3,300 % % 9.5 %
------------ ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
26.0 26.0 24.5 17.0 15.5
Revenue (EURM) 17,320 17,320 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Cost of sales 28.0 29.0 27.5 20.0 19.0
(EURM) 11,096 11,088 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Operating expenses 18.5 21.0 19.5 10.5
(EURM) 4,234 4,094 % % % % 9.0 %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Operating profit 37.5 20.5 19.5 13.5 12.5
(EURM) 2,086 2,138 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Profit after 54.0 20.0 19.0
taxes (EURM) 1,521 1,564 % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Diluted EPS 53.0 19.5 18.5 14.0 13.0
(EUR) 3.29 3.39 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Revenue per
UC([2]) (EUR) 5.20 6.0 % 6.0 %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Cost of sales
per UC([2])
(EUR) 3.33 8.5 % 9.0 %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Adjusted Free
cash Flow (EURM) 1,805
-------------------- ================ ==== ================ =============== =========== =========== ----------- ---------------
Dividend per
share([4]) Maintained dividend payout
(EUR) 1.68 ratio of c.50%
============ ================ ==== ===========================================================
10.5 11.0 11.0
Volume (M UC)([2]) 2,631 2,631 % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
17.0 17.0 16.5 17.0 16.5
Revenue (EURM) 13,529 13,529 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Operating profit 18.0 11.5 11.5 11.5 11.5
(EURM) 1,529 1,670 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Revenue per
UC([2])
Europe (EUR) 5.14 5.5 % 5.5 %
------------ ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Volume (M 57.5 57.5
API UC)([2]) 669 669 % % 5.0 %
--------------- ----------- ----------- ----------- ---------------
74.0 74.0 66.5 17.0 12.0
Revenue (EURM) 3,791 3,791 % % % % %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
Operating profit 72.0 64.5 21.0 16.0
(EURM) 557 468 155.5% % % % %
-------------------- ================ ==== ================ --------------- ----------- ----------- ----------- ---------------
Revenue per
UC([2]) (EUR) 5.42 6.0 % 7.5 %
-------------------- ---------------- ---- ---------------- --------------- ----------- ----------- ----------- ---------------
DAMIAN GAMMELL, CHIEF EXECUTIVE OFFICER, SAID:
"2022 was a very successful year, our first as Coca-Cola
Europacific Partners. This is testament to the hard work of our
colleagues to whom we are extremely grateful. Our focus on well
invested and winning brands across our broad pack offering, great
in-market execution and price and promotion strategy served us
well. We benefited from the continued recovery of the away from
home channel and the return of travel and tourism with further
growth in the home channel. Combined with our ongoing focus on
efficiency, this delivered strong top and bottom-line growth, value
share gains and generated solid free cash flow. We continue to be a
great partner for our customers, a great place to work for our
colleagues whilst making further progress against our
sustainability commitments - more of our sites went carbon neutral,
we switched logistics to lower carbon alternatives and invested in
recycling facilities.
"A record dividend in FY22 combined with our FY23 guidance and
ambitious but achievable mid-term objectives demonstrate the
strength of our business. Enhanced by our great API business, we
are bigger and better, more diverse and robust, operating in
resilient categories. We remain confident in the future, despite a
dynamic outlook, and we continue to invest for the longer-term,
evidenced by the minority buy out of our exciting Indonesian
market. Our clear strategy, strong brand partner relationships and
great people will ensure we continue to create sustainable value
for all our stakeholders. We have the platform and momentum to go
even further together for a greater future."
___________________________
Note: All footnotes included after the 'About CCEP' section
FY & Q4 HIGHLIGHTS([1],[3])
Revenue
FY Reported +26.0%; FY Pro forma +15.5%([5])
-- Reported growth, in addition to the drivers below, reflects
the acquisition of Coca-Cola Amatil (completed 10 May 2021)
-- Delivered more revenue growth for our retail customers than
any of our FMCG peers in Europe, & any of our NARTD peers in
Australia & New Zealand ([6])
-- NARTD value share gains across measured channels both in
store ([7]) (+10bps) including sparkling (+20bps) & online
([8]) (+80bps)
-- Pro forma:
Comparable volume +9.5% ([9]) (+3.5% vs 2019) driven by solid
recovery of away from home (AFH), & continued growth in Home
across our markets
Comparable volume by channel: AFH +18.5% (broadly flat vs 2019)
reflecting fewer restrictions & increased mobility. The return
of tourism & favourable weather in Europe also supported the
strong recovery of immediate consumption (IC) packs (+23.0% ([10])
). Home +4.0% (+6.5% vs 2019) supported by recovery of IC packs
& sustained growth in key future consumption packs (e.g.
multipack cans +6.0% ([10]) & +25.0% vs 2019)
Revenue per unit case +6.0% ([2],[5]) (+9.0% ([11]) vs 2019)
reflecting positive pack & channel mix driven by the recovery
of AFH, promotional optimisation & favourable headline price
following the successful implementation of dynamic headline pricing
strategies across our markets
Q4 Reported +10.0%; Q4 Fx-neutral +10.5%([5])
-- Comparable volume +1.5% ([9]) (flat vs 2019) despite
disruption related to a customer negotiation in the Home channel
& cycling tougher comparables
AFH comparable volume: +5.5% (-4.5% vs 2019)
Home comparable volume: -1.0% (+3.5% vs 2019)
-- Revenue per unit case +9.0% ([2],[5]) (+14.0% ([11]) vs 2019)
driven by favourable price & positive pack & channel mix
driven by the recovery of AFH
-- Recent trading indicating no significant change in underlying consumer demand
Operating profit
FY Reported +37.5%; Pro forma comparable +12.5%([5])
-- Reported growth, in addition to the drivers below, reflects
the acquisition of Coca-Cola Amatil
-- Pro forma cost of sales per unit case +9.0% ([2],[5])
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
-- Comparable operating profit of EUR2,138m, +12.5% ([3],[5])
reflecting increased revenue & the benefit of ongoing
efficiency programmes (over 90% delivered of multi-year EUR375m
programme)
-- Comparable diluted EPS of EUR3.39, +13.0%([3],[5]) (reported +53.0%)
Dividend
-- Record full year interim dividend per share of EUR1.68 ([4])
, +20.0% vs last year & +35.5% vs 2019, maintaining annualised
dividend payout ratio of approximately 50% (in line with our
dividend policy). Equating to total absolute dividend of
EUR763m
Other
-- Generated strong adjusted free cash flow ([12]) of EUR1,805m
reflecting strong performance & working capital initiatives
(net cashflows from operating activities of EUR2,932m), supporting
our guidance to return to the top end of our target leverage range
by the end of 2023 (Net debt:Adjusted EBITDA([1]) of 2.5x-3x). At
the end of 2022, Net debt:Adjusted EBITDA([1]) was 3.5x
-- ROIC increased by 112bps ([3]) on a pro forma basis to 9.1%
driven by the increase in comparable profit after tax &
continued focus on capital allocation
-- Maximising system value creation with API:
Reorientation of the portfolio to enable greater focus on NARTD,
RTD alcohol & spirits nearing completion:
-- Previously announced plans to exit the production, sale &
distribution of Australia beer & apple cider products
completed([13]) ; minimal EBIT impact
-- Sale of NARTD own brands to The Coca-Cola Company for A$275m;
substantially complete; annualised EBIT impact of A$25m
On 15 February 2023, CCEP completed the purchase of The
Coca-Cola Company's 29.4% minority share in our Indonesia business
(Coca-Cola Bottling Indonesia), increasing CCEP's ownership to 100%
for a total consideration of EUR282m (including significant cash
acquired). Expect transaction to be EPS accretive (minimal overall
impact). This simplifies our ownership structure & operations
whilst demonstrating our commitment to the future of this exciting
market
FY22 SUSTAINABILITY HIGHLIGHTS
-- Launched updated commitments & targets to include API
(announced in November 2022, link to presentation here )
-- Retained inclusion on Carbon Disclosures Project's A Lists
for Climate & Water & continued to be recognised in MSCI
ESG Leaders Index
-- Closed 2022 at 48%([14]) recycled plastic (rPET); Europe 56%([14]) & API 27%([14])
Launched tethered closures on our PET bottles in 7 of our
markets
Opened new industry partnership PET recycling facilities in
Australia & Indonesia
-- Achieved 6 manufacturing sites as carbon neutral certified
-- Retained inclusion on the Bloomberg Gender Equality index
FY23 GUIDANCE & OUTLOOK([1])
The outlook for FY23 reflects current market conditions. Unless
stated otherwise, guidance is on a comparable & Fx-neutral
basis
Top line
-- Revenue: comparable growth of 6-8% driven by price & mix
Dynamic headline pricing & promotional optimisation across
our markets & annualisation of FY22 second headline pricing
increases
Bottom line
-- Cost of sales per unit case*: comparable growth of 8%
Expect commodity inflation to be up 10% (previously
mid-teens)
FY23 hedge coverage at 85%
Concentrate directly linked to revenue per unit case through the
incidence pricing model
Low overall FX transactional exposure (<10%)
-- Operating profit*: comparable growth of 6-7%
Continued focus on delivering efficiency programmes &
optimising discretionary spend
Other
-- Comparable effective tax rate: 23%
-- Free cash flow: at least EUR1.6bn
-- Capital expenditure: 4-5% of revenue excluding leases
-- Dividend payout ratio: c.50%([15])
* We expect the cost of sales per unit case increase to be
weighted more to the first half given the lower comparable from
last year as previously disclosed. Consequently we anticipate low
single digit operating profit growth in the first half of this
year
Fourth-quarter & Full-Year Revenue Performance by Geography([1])
Fourth-quarter Full Year
----------------------------------------------- ----------------------------------------------
Fx-Neutral Fx-Neutral
EUR million % change % change EUR million % change % change
=================== ================= ============= ============= ================ ============= =============
Great Britain 795 13.0 % 16.0 % 3,088 18.0 % 17.5 %
------------------- ----------------- ------------- ------------- ---------------- ------------- -------------
France([17]) 504 11.0 % 11.0 % 2,089 15.0 % 15.0 %
------------------- ----------------- ------------- ------------- ---------------- ------------- -------------
Germany 653 7.5 % 7.5 % 2,682 15.0 % 15.0 %
=================== ================= ============= ============= ================ ============= =============
Iberia([18]) 693 10.0 % 10.0 % 3,034 21.5 % 21.5 %
=================== ================= ============= ============= ================ ============= =============
Northern
Europe([19]) 613 10.5 % 12.5 % 2,636 13.0 % 13.5 %
=================== ================= ============= ============= ================ ============= =============
Total Europe 3,258 10.5 % 11.5 % 13,529 17.0 % 16.5 %
API([16][3]) 1,037 9.5 % 8.0 % 3,791 17.0 % 12.0 %
=================== ================= ============= ============= ================ ============= =============
Total CCEP ([3]) 4,295 10.0 % 10.5 % 17,320 17.0 % 15.5 %
API
-- Q4 volume reflects continued trading momentum in Australia
& NZ. Increased mobility, strong trading & navigation of
industry-wide supply constraints in Australia & New Zealand,
& a record Ramadan in Indonesia supported solid FY volume
growth.
-- Coca-Cola No Sugar & Monster outperformed, with both Q4 & FY volume ahead of 2019.
-- FY revenue/UC([20]) growth driven by favourable underlying
price, promotional optimisation in Australia, & positive pack
& channel mix.
France
-- Q4 volume reflects strong momentum in the AFH channel &
solid trading in the Home channel. The rebound of the AFH channel,
supported by the return of tourism & favourable weather, &
growth in the Home channel supported solid FY volume growth in both
channels versus 2019.
-- Coca-Cola Zero Sugar, Fuze Tea & Monster outperformed versus 2019 in both Q4 & FY.
-- FY revenue/UC([20]) growth driven by positive channel &
pack mix led by the recovery of the AFH channel (e.g. small glass
+55.5% & small PET +25.0%) & favourable underlying
price.
Germany
-- Q4 volume reflects the ongoing recovery of the AFH channel
& disruption relating to a customer negotiation (now resolved).
The rebound of the AFH channel, favourable weather & solid
performance in the Home channel, supported FY overall volume growth
versus 2019.
-- Coca-Cola Zero Sugar, Fuze Tea & Monster outperformed versus 2019 in both Q4 & FY.
-- FY revenue/UC([20]) growth driven by favourable underlying
price, positive brand mix (e.g. Monster volume +23.0%) &
positive pack & channel mix led by the recovery of the AFH
channel.
Great Britain
-- Q4 volume reflects sustained trading momentum in the AFH
channel. The solid recovery of this channel, supported by
favourable weather & increased domestic tourism, & further
growth in the Home channel supported double-digit FY volume growth
versus 2019.
-- Coca-Cola Zero Sugar, Fanta, Monster & Dr Pepper outperformed versus 2019 in both Q4 & FY.
-- FY revenue/UC([20]) growth driven by favourable underlying
price & positive pack mix led by the recovery of the AFH
channel (e.g. small glass +20.5% & small PET +15.0%) .
Iberia
-- Q4 volume reflects the strong recovery of the AFH channel.
Continued trading momentum, the return of tourism & favourable
weather supported FY volume growth versus 2019 in this channel.
Despite good trading in the Home channel, overall FY volume versus
2019 was impacted by the increased Spanish VAT rate.
-- Coca-Cola Zero Sugar & Monster outperformed, with both Q4 & FY volume ahead of 2019.
-- FY revenue/UC([20]) growth driven by favourable underlying
price & positive channel & pack mix led by the recovery of
the AFH channel (e.g. small glass +33.5% & small PET +29.5%)
.
Northern Europe
-- Q4 volume reflects the ongoing recovery of the AFH channel.
Despite the late removal of restrictions, the rebound of the AFH
channel & further growth in the Home channel supported solid FY
overall volume growth versus 2019.
-- Coca-Cola Zero Sugar, Monster & Fuze Tea outperformed versus 2019 in both Q4 & FY.
-- FY revenue/UC([20]) growth driven by favourable underlying
price & positive pack & channel mix led by the ongoing
recovery of the AFH channel (e.g. small glass +57.5% & small
PET +16.0%).
___________________________
Note: All values are unaudited and all references to volumes are
on a comparable basis. All changes are versus 2021 equivalent
period unless stated otherwise
Fourth-quarter & Full-Year Volume Performance by Category([1],[3],[9])
Comparable volumes, changes versus equivalent 2021 period.
Fourth-quarter Full Year
% of % Change % of % Change([5])
Total Total
============================================ ============== =========== ============== =============
Sparkling 85.5 % 2.0 % 84.5 % 9.0 %
Coca-Cola(TM) 60.0 % 2.5 % 58.5 % 8.0 %
Flavours, Mixers & Energy 25.5 % 1.0 % 26.0 % 11.5 %
(1.0)
Stills 14.5 % % 15.5 % 11.5 %
Hydration 7.5 % 1.0 % 8.0 % 16.0 %
(3.5)
RTD Tea, RTD Coffee, Juices & Other([21]) 7.0 % % 7.5 % 7.0 %
100.0 100.0
Total % 1.5 % % 9.5 %
Coca-Cola(TM)
-- Q4 Original Taste +2.5%; Lights +2.5%
-- FY Original Taste +9.5%; Lights +6.5% driven by the rebound
of the AFH channel & outperformance of Coca-Cola Zero Sugar
(+10.0%)
-- FY Coca-Cola Zero Sugar +23.5% growth vs 2019
-- Coca-Cola Zero Sugar gained value share([7]) of Total Cola +60bps
Flavours, Mixers & Energy
-- Q4 Fanta +3.0%; Sprite -0.5%
-- FY Fanta +15.5%; Sprite +11.5% driven by the rebound of the AFH channel
-- Q4 Energy +14.0% with continued momentum in both channels led by Monster
-- FY Energy +18.5%, (+60.5% vs 2019) supported by solid
distribution & exciting innovation including Juice & Ultra
flavour extensions
Hydration
-- Q4 Water -4.0%; Sports +16.0%
-- FY Water +13.5% reflecting its exposure to IC across both
channels, with the rebound of the AFH channel & increased
mobility
-- FY Sports +23.0% with growth in both Europe & API
RTD Tea, RTD Coffee, Juices & Other([21])
-- Q4 Juice drinks -7.0% reflecting SKU rationalisation in Indonesia
-- Fuze Tea solid growth vs 2019 (Q4: +31.0%([10]) ; FY:
+39.5%([10]) ) & continuing to grow value share in
Europe([7])
-- Alcohol continued to deliver solid growth in Australia driven
by Spirits & RTD (Q4: +2.0%; FY: +11.0% vs 2019)
___________________________
Note: All references to volumes are on a comparable basis. All
changes are versus 2021 equivalent period unless stated
otherwise
Conference Call (with presentation)
-- 16 February 2023 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
-- Integrated Report and form 20-F for 2022 publication: 17 March 2023
-- First-quarter 2023 trading update: 25 April 2023
-- Financial calendar available here: https://ir.cocacolaep.com/financial-calendar/
Contacts
Investor Relations
Sarah Willett Claire Michael Claire Copps
+44 7970 145 218 +44 7528 251 033 +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. Comparative pro forma figures as if the acquisition of
Coca-Cola Amatil Limited occurred at 1 January 2021 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 for the period 1
January to 10 May 2021. Refer to 'Note Regarding the Presentation
of Pro forma financial information and Alternative Performance
Measures' for further details
4. 27 April 2022 declared first half interim dividend of EUR0.56
dividend per share, paid 26 May 2022; 2 November 2022 declared
second half interim dividend of EUR1.12 dividend per share, paid 7
December 2022
5. Comparable & FX-neutral
6. External data source: Europe: NielsenIQ Strategic Planner
FY22 data: Countries: GB, BE, DE, ES, FR, NL, NO, PT & SE data
to 01.01.23, API: NielsenIQ Global Track FY22 Data; Countries: NZ
& IND data to 01.01.23; IRI FY22 data: Country; AUS data to
01.01.23
7. External data source: Combined NARTD (non-alcoholic ready to
drink) Nielseniq Data ES, PT, DE, FR, BE, NL, SE, NO to 01.01.23,
GB to WE 31.12.22, IND to WE 31.12.22, NZ to WE 01.01.23. IRI Data
AUS to WE 01.01.23
8. External data source: Online Data is for available markets
FY22 GB to 01.Jan.23 (Retailer data+NielsenIQ), ES, FR, NL & SE
to 01.Jan.23 (NielsenIQ), AUS to 01.Jan.23 (Retailer Data)
9. No selling day shift in Q4; FY 2022 adjusted for 1 less
selling day in Q1; FY 2022 pro forma volume +9.5%
10. Europe only
11. Management's best estimate
12. Adjusted Free Cash Flow excludes cash proceeds related to a
historical VAT dispute refund in Spain
13. As previously announced (Q1 2022 Trading update on 27 April
2022), CCEP will retain ownership of Feral craft brewery
14. Unassured & provisional
15. Dividends subject to Board approval
16. Includes Australia, New Zealand & the Pacific Islands, Indonesia & Papua New Guinea
17. Includes France & Monaco
18. Includes Spain, Portugal & Andorra
19. Includes Belgium, Luxembourg, the Netherlands, Norway, Sweden & Iceland
20. Revenue per unit case
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, guidance and outlook, dividends,
consequences of mergers, acquisitions and divestitures, strategy
and objectives of Coca-Cola Europacific Partners plc and its
subsidiaries (together CCEP or the Group). Generally, the words
"ambition", "target", "aim", "believe", "expect", "intend",
"estimate", "anticipate", "project", "plan", "seek", "may",
"could", "would", "should", "might", "will", "forecast", "outlook",
"guidance", "possible", "potential", "predict", "objective" and
similar expressions identify forward-looking statements, which
generally are not historical in nature.
Forward-looking statements are subject to certain risks that
could cause actual results to differ materially from CCEP's
historical experience and present expectations or projections. As a
result, undue reliance should not be placed on forward-looking
statements, which speak only as of the date on which they are made.
These risks include but are not limited to:
1. those set forth in the "Risk Factors" section of CCEP's 2021
Annual Report on Form 20-F filed with the SEC on 15 March 2022 and
as updated and supplemented with the additional information set
forth in the "Principal Risks and Risk Factors" section of the H1
2022 Half-year Report filed with the SEC on 4 August 2022 ;
2. the extent to which COVID-19 will continue to 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;
3. risks and uncertainties relating to the global supply chain,
including impact from war in Ukraine, such as the risk that the
business will not be able to guarantee sufficient supply of raw
materials, supplies, finished goods, natural gas and oil and
increased state-sponsored cyber risks;
4. risks and uncertainties relating to the global economy and/or
a potential recession in one or more countries, including risks
from elevated inflation, price increases, price elasticity,
disposable income of consumers and employees, pressure on and from
suppliers, increased fraud, and the perception or manifestation of
a global economic downturn; and
5. risks and uncertainties relating to potential global energy
crisis, with potential interruptions and shortages in the global
energy supply, specifically the natural gas supply in our
territories. Energy shortages at our sites, our suppliers and
customers could cause interruptions to our supply chain and
capability to meet our production and distribution targets.
Due to these risks, CCEP's actual future results, dividend
payments, capital and leverage ratios, growth, including growth in
revenue, cost of sales per unit case and operating profit, free
cash flow, market share, tax rate, efficiency savings, achievement
of sustainability goals, including net zero emissions, capital
expenditures, the results of the acquisition of the minority share
of our Indonesian business, and the results of the integration of
the businesses following the acquisition of Coca-Cola Amatil,
including expected efficiency and combination savings, may differ
materially from the plans, goals, expectations and guidance set out
in forward-looking statements. These risks may also adversely
affect CCEP's share price. Additional risks that may impact CCEP's
future financial condition and performance are identified in
filings with the SEC which are available on the SEC's website at
www.sec.gov. CCEP does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise, except as
required under applicable rul es, laws and regulations. Any or all
of the forward-looking statements contained in this filing and in
any other of CCEP's public statements may prove to be
incorrect.
Note Regarding the Presentation of 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 (the Acquisition; referred to as CCL pre acquisition, API
post acquisition) on the results of operations of CCEP in 2021 and
allow for greater comparability of the results of the combined
group between periods. The pro forma financial information for 2021
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 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 for 2021 also
assumes the interest impact of additional debt financing reflecting
the actual weighted average interest rate for acquisition financing
of c.0.40% for 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 consolidated
financial statements.
"Pro forma " includes the results of CCEP and API as if the
Acquisition had occurred at the beginning of 2021, 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 impact related to European flooding,
income arising from the favourable court ruling pertaining to the
ownership of certain mineral rights in Australia, impact of a
defined benefit plan amendment arising from legislative changes in
respect of the minimum retirement age 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 free cash flow" is defined as Free cash flow (as
defined above) adjusted for items that are not reasonably likely to
recur within two years, nor have occurred within the prior two
years. Adjusted free cash flow is not intended to represent
residual cash flow available for discretionary expenditures. Refer
to page 19 for additional information.
"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
2022 and 31 December 2021:
Full year 2022 As Reported Items impacting Comparability Comparable
=============== ===============
Unaudited, in CCEP Restructuring Acquisition European Defined Coal CCEP
millions Charges and Integration flooding benefit royalties
of EUR except ([1]) related ([3]) plan ([5])
per share costs amendment
data which is ([2]) ([4])
calculated
prior to
rounding
================ =============== ================== ================ ================ ================ =============== ===============
Revenue 17,320 - - - - - 17,320
Cost of sales 11,096 (19) - 11 - - 11,088
================= =============== ================== ================ ================ ================ =============== ===============
Gross profit 6,224 19 - (11) - - 6,232
Operating
expenses 4,234 (144) (3) - 7 - 4,094
Other income 96 - - - - (96) -
Operating profit 2,086 163 3 (11) (7) (96) 2,138
Total finance
costs,
net 114 - - - - - 114
Non-operating
items 15 - - - - - 15
================= =============== ================== ================ ================ ================ =============== ===============
Profit before
taxes 1,957 163 3 (11) (7) (96) 2,009
Taxes 436 42 - (3) (1) (29) 445
================= =============== ================== ================ ================ ================ =============== ===============
Profit after
taxes 1,521 121 3 (8) (6) (67) 1,564
================= =============== ================== ================ ================ ================ =============== ===============
Attributable to:
Shareholders 1,508 121 3 (8) (6) (67) 1,551
Non-controlling
interest 13 - - - - - 13
================= =============== ================== ================ ================ ================ =============== ===============
Profit after
taxes 1,521 121 3 (8) (6) (67) 1,564
----------------- --------------- ------------------ ---------------- ---------------- ---------------- --------------- ---------------
Diluted earnings
per
share (EUR) 3.29 0.27 0.01 (0.02) (0.01) (0.15) 3.39
----------------- --------------- ------------------ ---------------- ---------------- ---------------- --------------- ---------------
Full year 2021 As Reported Items impacting Comparability Comparable
================ ================
Unaudited, in CCEP Restructuring DB plan Total Inventory European Net CCEP
millions of EUR Charges closure Acquisition step flooding([3]) Tax ([8])
except share ([1]) ([6]) Related up costs
data Costs ([7])
which is ([2])
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
----------------- ---------------- ------------------ --------------- ---------------- --------------- ---------------- -------------- ----------------
_ _________________________
([1]) Amounts represent restructuring charges related to
business transformation activities.
([2]) Amounts represent cost associated with the acquisition and
integration of CCL.
([3]) Amounts represent the incremental expense incurred
offset/partially offset by the insurance recoveries collected as a
result of the July 2021 flooding events, which impacted the
operations of our manufacturing facilities in Chaudfontaine and Bad
Neuenahr.
([4]) Amounts represent the impact of a plan amendment arising
from legislative changes in respect of the minimum retirement
age.
([5]) Amounts represent other income arising from the favourable
court ruling pertaining to the ownership of certain mineral rights
in Australia.
([6]) Amounts represent the impact of the closure of the GB
defined benefit pension scheme to future benefits accrual on 31
March 2021.
([7]) Amounts represent the non-recurring impact of the fair
value step-up of API finished goods.
([8]) Amounts include the deferred tax impact related to income
tax rate and law changes.
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:
Transaction Items
Pro forma accounting impacting
adjustments adjustments Pro forma Comparability Pro forma
Full Year 2021 As Reported CCL ([A]) ([B]) Combined ([C]) 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.
([C]) 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 2021 Items impacting Comparability
==================================================================================================================================== =====================
Unaudited, Restructuring Defined Acquisition Inventory European Net Other Total
in millions Charges benefit and Integration step up flooding([5]) Tax ([6]) ([7]) items
of EUR except ([1]) plan closure([2]) related costs impacting
share data which costs ([4]) Comparability
is calculated ([3])
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
================ ------------------ ------------------- ------------------- ------------------ ---------------- -------------- ---------------- ---------------------
_________________________
([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.
([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.
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 2022 2021 2022 2021
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 4,295 3,896 10.0 % 17,320 13,763 26.0 %
Adjust:
Impact
of fx
changes 19 n/a n/a (172) n/a n/a
Fx-neutral 4,314 3,896 10.5 % 17,148 13,763 24.5 %
Revenue per
unit
case 5.43 4.99 9.0 % 5.20 4.91 6.0 %
Fourth-Quarter Ended Year Ended
=========== -------------------------------------------------------------- ---------------------------------------------------------------
Revenue 31 December 31 December % Change 31 December 31 December % Change
Europe 2022 2021 2022 2021
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 3,258 2,950 10.5 % 13,529 11,584 17.0 %
Adjust:
Impact
of fx
changes 32 n/a n/a (6) n/a n/a
Fx-neutral 3,290 2,950 11.5 % 13,523 11,584 16.5 %
Revenue per
unit
case 5.31 4.91 8.0 % 5.14 4.87 5.5 %
Fourth-Quarter Ended Year Ended
=========== -------------------------------------------------------------- -------------------------------------------------------------
Revenue API 31 December 31 December % Change 31 December 31 December % Change
In millions 2022 2021 2022 2021
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 1,037 946 9.5 % 3,791 2,179 74.0 %
Adjust:
Impact
of fx
changes (13) n/a n/a (166) n/a n/a
Fx-neutral 1,024 946 8.0 % 3,625 2,179 66.5 %
Revenue per
unit
case 5.86 5.25 11.5 % 5.42 5.12 6.0 %
Year ended 31 December
2022
================================
Revenue by Geography As reported Reported Fx-Neutral
In millions of EUR % change % change
================================ ======================= ============= =============
Great Britain 3,088 18.0 % 17.5 %
--------------------------------- ----------------------- ------------- -------------
Germany 2,682 15.0 % 15.0 %
--------------------------------- ----------------------- ------------- -------------
Iberia([1]) 3,034 21.5 % 21.5 %
--------------------------------- ----------------------- ------------- -------------
France([2]) 2,089 15.0 % 15.0 %
================================= ======================= ============= =============
Belgium and Luxembourg 1,042 12.5 % 12.5 %
--------------------------------- ----------------------- ------------- -------------
Netherlands 682 22.5 % 22.5 %
================================= ======================= ============= =============
Norway 404 3.5 % 2.5 %
--------------------------------- ----------------------- ------------- -------------
Sweden 421 12.5 % 17.5 %
--------------------------------- ----------------------- ------------- -------------
Iceland 87 10.0 % 4.0 %
Total Europe 13,529 17.0 % 16.5 %
--------------------------------- ----------------------- ------------- -------------
Australia 2,339 72.0 % 65.5 %
--------------------------------- ----------------------- ------------- -------------
New Zealand and Pacific Islands 649 72.0 % 69.5 %
--------------------------------- ----------------------- ------------- -------------
Indonesia and Papua New Guinea 803 81.5 % 65.5 %
--------------------------------- ----------------------- ------------- -------------
Total API 3,791 74.0 % 66.5 %
Total CCEP 17,320 26.0 % 24.5 %
([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 2022 2021 2022 2021
- Selling
Day
Shift CCEP
In millions
of
unit cases,
prior
period
volume
recast
using
current
year
selling
days
=========== ====================== ====================== ========== ===================== ======================== =============
Volume 794 781 1.5 % 3,300 2,804 17.5 %
Impact of
selling
day shift n/a - n/a n/a (7) n/a
Comparable
volume
- Selling
Day
Shift
adjusted 794 781 1.5 % 3,300 2,797 18.0 %
Fourth-Quarter Ended Year Ended
=========== ---------------------------------------------------------- --------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2022 2021 2022 2021
- Selling
Day
Shift
Europe
In millions
of
unit cases,
prior
period
volume
recast
using
current
year
selling
days
=========== ====================== ====================== ========== ===================== ======================== =============
Volume 619 601 3.0 % 2,631 2,379 10.5 %
Impact of
selling
day shift n/a - n/a n/a (7) n/a
Comparable
volume
- Selling
Day
Shift
adjusted 619 601 3.0 % 2,631 2,372 11.0 %
Fourth-Quarter Ended Year Ended
=========== ------------------------------------------------------------- -------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2022 2021 2022 2021
- Selling
Day
Shift API
In millions
of
unit cases,
prior
period
volume
recast
using
current
year
selling
days
=========== ====================== ====================== ============= ====================== ====================== =============
Volume 175 180 (3.0) % 669 425 57.5 %
Impact of
selling
day shift n/a - n/a n/a - n/a
Comparable
volume
- Selling
Day
Shift
adjusted 175 180 (3.0) % 669 425 57.5 %
Cost of Sales
Year Ended
============================================ ----------------------------------------------------------------
Cost of Sales 31 December 31 December % Change
In millions of EUR, except per case data 2022 2021
which is calculated prior to rounding.
FX impact calculated by recasting current
year results at prior year rates.
============================================ ======================== ======================= =============
As reported 11,096 8,677 28.0 %
Adjust: Total items impacting comparability (8) (71) n/a
Comparable 11,088 8,606 29.0 %
Adjust: Impact of fx changes (107) n/a n/a
Comparable & fx-neutral 10,981 8,606 27.5 %
Cost of sales per unit case 3.33 3.07 8.5 %
For the year ending 31 December 2022, reported cost of sales
were EUR11,096 million, up 28.0% versus 2021, reflecting the full
year impact of the API operations acquired in 2021, higher volumes
and increased cost of sales per case.
Comparable cost of sales for the same period were EUR11,088
million, up 29.0% versus 2021. Cost of sales per unit case
increased by 8.5% on a comparable and fx-neutral basis, reflecting
increased revenue per unit case driving higher concentrate costs,
commodity inflation & adverse mix, partially offset by the
favourable recovery of fixed manufacturing costs as a result of
higher volumes.
Operating expenses
Year Ended
============================================ --------------------------------------------------------------
Operating Expenses 31 December 31 December % Change
In millions of EUR. FX impact calculated 2022 2021
by recasting current year results at prior
year rates.
============================================ ======================= ====================== =============
As reported 4,234 3,570 18.5 %
Adjust: Total items impacting comparability (140) (185) n/a
Comparable 4,094 3,385 21.0 %
Adjust: Impact of fx changes (45) n/a n/a
Comparable & fx-neutral 4,049 3,385 19.5 %
For the year ending 31 December 2022, reported operating
expenses were EUR4,234 million, up 18.5% versus 2021.
Comparable operating expenses were EUR4,094 million for the same
period, up 21.0% versus 2021, reflecting the full year impact of
the API operations acquired in 2021, higher volumes and inflation,
partially offset by the benefit of ongoing efficiency programmes
and our continuous efforts on discretionary spend optimisation.
Restructuring charges of EUR144 million were recognised within
reported operating expenses for the year ending 31 December 2022,
which are primarily attributable to EUR82 million of expense
recognised in connection with the transformation of the full
service vending operations and related initiatives in Germany.
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.
Operating profit
Year Ended
============================================ --------------------------------------------------------------
Operating Profit CCEP 31 December 31 December % Change
In millions of EUR. FX impact calculated 2022 2021
by recasting current year results at prior
year rates.
============================================ ======================= ====================== =============
As reported 2,086 1,516 37.5 %
Adjust: Total items impacting comparability 52 256 n/a
Comparable 2,138 1,772 20.5 %
Adjust: Impact of fx changes (20) n/a n/a
Comparable & fx-neutral 2,118 1,772 19.5 %
Year Ended
============================================ -------------------------------------------------------------
Operating Profit Europe 31 December 31 December % Change
In millions of EUR. FX impact calculated 2022 2021
by recasting current year results at prior
year rates.
============================================ ====================== ====================== =============
As reported 1,529 1,298 18.0 %
Adjust: Total items impacting comparability 141 202 n/a
Comparable 1,670 1,500 11.5 %
Adjust: Impact of fx changes - n/a n/a
Comparable & fx-neutral 1,670 1,500 11.5 %
Year Ended
============================================ ------------------------------------------------------------------
Operating Profit API 31 December 31 December % Change
In millions of EUR. FX impact calculated 2022 2021
by recasting current year results at prior
year rates.
============================================ ======================= ======================= ================
As reported 557 218 155.5 %
Adjust: Total items impacting comparability (89) 54 n/a
Comparable 468 272 72.0 %
Adjust: Impact of fx changes (20) - n/a
Comparable & fx-neutral 448 272 64.5 %
Supplemental Financial Information - Operating Profit - Reported
to Pro forma Comparable
All pro forma measures presented below relate only to the full
year ended 31 December 2021 .
Revenue
Fourth-Quarter Ended Year Ended
============ -------------------------------------------------------------- -------------------------------------------------------------
Pro forma 31 December 31 December % Change 31 December 31 December % Change
Revenue 2022 2021 2022 2021
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 4,295 3,896 10.0 % 17,320 13,763 26.0 %
Add: Pro
forma
adjustments - - n/a 1,056 n/a
Pro forma
Comparable 4,295 3,896 10.0 % 17,320 14,819 17.0 %
Adjust:
Impact
of fx
changes 19 n/a n/a (172) n/a n/a
Pro forma
Comparable
and
fx-neutral 4,314 3,896 10.5 % 17,148 14,819 15.5 %
Pro forma
Revenue
per unit
case 5.43 4.99 9.0 % 5.20 4.91 6.0 %
Fourth-Quarter Ended Year Ended
============ -------------------------------------------------------------- -------------------------------------------------------------
Pro forma 31 December 31 December % Change 31 December 31 December % Change
Revenue 2022 2021 2022 2021
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 1,037 946 9.5 % 3,791 2,179 74.0 %
Add: Pro
forma
adjustments - - n/a - 1,056 n/a
Pro forma
Comparable 1,037 946 9.5 % 3,791 3,235 17.0 %
Adjust:
Impact
of fx
changes (13) n/a n/a (166) n/a n/a
Pro forma
Comparable
and
fx-neutral 1,024 946 8.0 % 3,625 3,235 12.0 %
Pro forma
Revenue
per unit
case 5.86 5.25 11.5 % 5.42 5.05 7.5 %
Fourth-Quarter Ended 31 Year ended 31 December
December 2022 2022
--------------------------------------------------- ---------------------------------------------------
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 3,258 10.5 % 11.5 % 13,529 17.0 % 16.5 %
Australia 654 11.0 % 10.0 % 2,339 15.5 % 11.0 %
---------- --------------------- ------------- ------------- --------------------- ------------- -------------
New
Zealand
and
Pacific
Islands 193 11.5 % 14.0 % 649 17.0 % 15.0 %
---------- --------------------- ------------- ------------- --------------------- ------------- -------------
Indonesia
and Papua
New
Guinea 190 4.0 % (2.0) % 803 23.0 % 12.5 %
Total API 1,037 9.5 % 8.0 % 3,791 17.0 % 12.0 %
Total CCEP 4,295 10.0 % 10.5 % 17,320 17.0 % 15.5 %
Volume
Fourth-Quarter Ended Year Ended
============ ---------------------------------------------------------- ---------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2022 2021 2022 2021
- Selling
Day
Shift CCEP
In millions
of
unit cases,
prior
period
volume
recast using
current
year selling
days
============ ====================== ====================== ========== ====================== ======================== =============
Volume 794 781 1.5 % 3,300 2,804 17.5 %
Impact of
selling
day shift n/a - n/a n/a (7) n/a
Comparable
volume
- Selling
Day
Shift
adjusted 794 781 1.5 % 3,300 2,797 18.0 %
Pro forma
impact([1]) - - n/a - 212 n/a
Pro forma
comparable
volume 794 781 1.5 % 3,300 3,009 9.5 %
Fourth-Quarter Ended Year Ended
============ ------------------------------------------------------------- -------------------------------------------------------------
Comparable 31 December 31 December % Change 31 December 31 December % Change
Volume 2022 2021 2022 2021
- Selling
Day
Shift API
In millions
of
unit cases,
prior
period
volume
recast using
current
year selling
days
============ ====================== ====================== ============= ====================== ====================== =============
Volume 175 180 (3.0) % 669 425 57.5 %
Impact of
selling
day shift n/a - n/a n/a - n/a
Comparable
volume
- Selling
Day
Shift
adjusted 175 180 (3.0) % 669 425 57.5 %
Pro forma
impact([1]) - - n/a - 212 n/a
Pro forma
comparable
volume 175 180 (3.0) % 669 637 5.0 %
([1]) Pro forma API volume for the year ended 31 December 2021
is 640 million unit cases. Including the impact of the Q1 selling
day shift (3 million unit cases), pro forma comparable API volume
is 637 million unit cases.
Fourth-Quarter Ended Year Ended
====================== --------------------------------------------- ---------------------------------------------
31 December 31 December % Change 31 December 31 December % Change
2022 2021 2022 2021
=========== ===========
Pro forma Comparable % of % of % of % of
Volume Total Total Total Total
by Brand Category CCEP
Adjusted for selling
day
shift
====================== =============== =============== =========== =============== =============== ===========
85.5 85.0 84.5 84.5
Sparkling % % 2.0 % % % 9.0 %
60.0 59.5 58.5 59.0
Coca-Cola(TM) % % 2.5 % % % 8.0 %
Flavours, Mixers & 25.5 25.5 26.0 25.5 11.5
Energy % % 1.0 % % % %
14.5 15.0 (1.0) 15.5 15.5 11.5
Stills % % % % % %
16.0
Hydration 7.5 % 7.5 % 1.0 % 8.0 % 7.5 % %
RTD Tea, RTD Coffee,
Juices (3.5)
& Other([1]) 7.0 % 7.5 % % 7.5 % 8.0 % 7.0 %
Total 100.0% 100.0% 1.5% 100.0% 100.0% 9.5%
________________________
([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 2022 2021
which is calculated prior to rounding.
FX impact calculated by recasting current
year results at prior year rates.
============================================ ======================== ======================= =============
As reported 11,096 8,677 28.0 %
Add: Pro forma adjustments - 616 n/a
Adjust: Total items impacting comparability (8) (71)
Pro forma Comparable 11,088 9,222 20.0 %
Adjust: Impact of fx changes (107) n/a n/a
Pro forma Comparable & fx-neutral 10,981 9,222 19.0 %
Cost of sales per unit case 3.33 3.05 9.0 %
Comparable cost of sales for the year ending 31 December 2022
were EUR11,088 million, up 20.0% versus 2021 on a pro forma
comparable basis. Cost of sales per unit case increased by 9.0% on
a pro forma 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 2022 2021
by recasting current year results at prior
year rates.
============================================ ======================= ======================= =============
As reported 4,234 3,570 18.5 %
Add: Pro forma adjustments - 323 n/a
Adjust: Transaction accounting adjustments - 68
Adjust: Total items impacting comparability (140) (250)
Pro forma Comparable 4,094 3,711 10.5 %
Adjust: Impact of fx changes (45) n/a n/a
Pro forma Comparable & fx-neutral 4,049 3,711 9.0 %
Comparable operating expenses for the year ending 31 December
2022 were EUR4,094 million, up 10.5% versus 2021 on a pro forma
comparable basis, reflecting higher volumes and inflation,
partially offset by the benefit of on-going efficiency programmes
and our continuous efforts on discretionary spend optimisation in
areas such as trade marketing, travel and meetings.
Operating Profit
Year Ended
============================================ ---------------------------------------------------------------
Pro forma Operating Profit CCEP 31 December 31 December % Change
In millions of EUR. FX impact calculated 2022 2021
by recasting current year results at prior
year rates.
============================================ ======================= ======================= =============
As reported 2,086 1,516 37.5 %
Add: Pro forma adjustments - 117 n/a
Adjust: Transaction accounting adjustments - (68)
Adjust: Total items impacting comparability 52 321
Pro forma Comparable 2,138 1,886 13.5 %
Adjust: Impact of fx changes (20) n/a n/a
Pro forma Comparable & fx-neutral 2,118 1,886 12.5 %
Year Ended
============================================ ------------------------------------------------------------------
Pro forma Operating Profit API 31 December 31 December % Change
In millions of EUR. FX impact calculated 2022 2021
by recasting current year results at prior
year rates.
============================================ ======================= ======================= ================
As reported 557 218 155.5 %
Add: Pro forma adjustments - 117 n/a
Adjust: Transaction accounting adjustments - (68)
Adjust: Total items impacting comparability (89) 119
Pro forma Comparable 468 386 21.0 %
Adjust: Impact of fx changes (20) n/a n/a
Pro forma Comparable & fx-neutral 448 386 16.0 %
Supplemental Financial Information - Effective Tax Rate
The reported effective tax rate was 22% and 29% for the year
ended 31 December 2022 and 31 December 2021, respectively.
The decrease in the reported effective tax rate to 22% in 2022
(2021: 29%) is largely due to the remeasurement of deferred tax
positions following the enactment of tax rate changes in the United
Kingdom, Netherlands and Indonesia in the prior period.
The comparable effective tax rate was 22% and 21% for the years
ended 31 December 2022 and 31 December 2021, respectively.
Supplemental Financial Information - Free Cash Flow
Year Ended
================================================= -----------------------------------------------
Free Cash Flow 31 December 31 December
In millions of EUR 2022 2021
================================================= ====================== =======================
Net cash flows from operating activities 2,932 2,117
Less: Purchases of property, plant and equipment (500) (349)
Less: Purchases of capitalised software (103) (97)
Add: Proceeds from sales of property, plant and
equipment 11 25
Less: Payments of principal on lease obligations (153) (139)
Less: Interest paid, net (130) (97)
Free Cash Flow ([1]) 2,057 1,460
Less: Proceeds received from Spanish VAT dispute (252) -
Adjusted Free Cash Flow ([2]) 1,805 1,460
([1]) 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.
([2]) In connection with the ongoing dispute in Spain regarding
the refund of historical VAT amounts related to the period
2013-2016, during the year ended 31 December 2022, EUR252 million
of cash proceeds were received from the regional tax authorities of
Bizkaia (Basque Region). These proceeds are included within Group's
net cash flows from operating activities for the year. Given the
unusual nature of this item, and to allow for better period over
period comparability of our free cash flow measure, adjusted free
cash flow excludes the cash proceeds received from the Bizkaia tax
authorities during this year.
Supplemental Financial Information - Borrowings
As at
------------------------------------------ ===================
31 December 31 December Credit Ratings Moody's Fitch
Net Debt 2022 2021 As of 16 February Ratings
In millions of EUR 2023
==================== ==================== =================== ======= ========
Total borrowings 11,907 13,140 Long-term rating Baa1 BBB+
Fair value of hedges
related to
borrowings([1]) (83) (110) 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]) 25 42 or withdrawal at any time.
Adjusted total
borrowings([1]) 11,849 13,072
Less: cash and cash
equivalents([2]) (1,387) (1,407)
Less: short term
investments([3]) (256) (58)
Net debt 10,206 11,607
___________________
[1] Net debt includes adjustments for the fair value of
derivative instruments used to hedge both currency and interest
rate risk on the Group's borrowings. In addition, net debt also
includes other financial assets/liabilities relating to cash
collateral pledged by/to external parties on hedging instruments
related to borrowings.
[2] Cash and cash equivalents as at 31 December 2022 and 31
December 2021 includes EUR102 million and EUR45 million
respectively of cash in Papua New Guinea Kina. Presently, there are
government-imposed currency controls which impact the extent to
which the cash held in Papua New Guinea can be converted into
foreign currency and remitted for use elsewhere in the Group.
[3] Short term investments are term cash deposits with maturity
dates when acquired of greater than three months and less than one
year. These short term investments are held with counterparties
that are continually assessed with a focus on preservation of
capital and liquidity. Short term term investments as at 31
December 2022 and 31 December 2021 includes EUR49 million and EUR44
million respectively 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 2022 2021
=============================================== ============================= =============================
Reported profit after tax 1,521 988
Taxes 436 394
Finance costs, net 114 129
Non-operating items 15 5
Reported operating profit 2,086 1,516
Depreciation and amortisation([1]) 816 782
Reported EBITDA 2,902 2,298
Items impacting comparability
Restructuring charges([2]) 119 97
Defined benefit plan closure([3]) - (9)
Acquisition and Integration related costs([4]) 3 49
Inventory step up costs([5]) - 48
European flooding([6]) (11) 15
Defined benefit plan amendment([7]) (7) -
Coal royalties([8]) (96) -
Adjusted EBITDA 2,910 2,498
Net debt to EBITDA 3.5 5.1
Net debt to adjusted EBITDA 3.5 4.7
______________________
([1]) Includes the depreciation and amortisation impact relating
to provisional fair values for intangibles and property plant and
equipment as at 31 December 2021.
([2]) Amounts represent restructuring charges related to
business transformation activities, excluding accelerated
depreciation included in the depreciation and amortisation
line.
([3]) Amounts represent the impact of the closure of the GB
defined benefit pension scheme to future benefits accrual on 31
March 2021.
([4]) Amounts represent cost associated with the acquisition and
integration of CCL.
([5]) Amounts represent the non-recurring impact of the fair
value step-up of API finished goods.
([6]) Amounts represent the incremental expense incurred
offset/partially offset by the insurance recoveries collected as a
result of the July 2021 flooding events, which impacted the
operations of our manufacturing facilities in Chaudfontaine and Bad
Neuenahr.
([7]) Amounts represent the impact of a plan amendment arising
from legislative changes in respect of the minimum retirement
age.
([8]) Amounts represent other income arising from the favourable
court ruling pertaining to the ownership of certain mineral rights
in Australia.
Pro forma measures presented below relate only to 2021.
Year Ended
===============================================
Pro forma Adjusted EBITDA 31 December 31 December
In millions of EUR 2022 2021
=============================================== ============================= =============================
Reported profit after tax 1,521 988
Taxes 436 394
Finance costs, net 114 129
Non-operating items 15 5
Reported operating profit 2,086 1,516
Pro forma adjustments CCL([1]) - 117
Transaction accounting adjustments([2]) - (68)
Pro forma Combined operating profit 1,565
Depreciation and amortisation([3]) 816 858
Reported EBITDA 2,902 2,423
Items impacting comparability
Restructuring charges([4]) 119 97
Defined benefit plan closure ([5]) - (9)
Acquisition and Integration related costs([6]) 3 110
Inventory step up costs([7]) - 48
European flooding([8]) (11) 15
Defined benefit plan amendment([9]) (7) -
Coal royalties([10]) (96) -
Other([11]) - 4
Pro forma adjusted EBITDA 2,910 2,688
Net debt to Pro forma adjusted EBITDA 3.5 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 expense incurred
offset/partially offset by the insurance recoveries collected 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 the impact of a plan amendment arising
from legislative changes in respect of the minimum retirement
age.
([10]) Amounts represent other income arising from the
favourable court ruling pertaining to the ownership of certain
mineral rights in Australia
([11]) 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
2022 2021 2021
---------------- ---------------- -----------------
ROIC Pro forma([3])
In millions of EUR
=================================================== ================ ================ =================
Comparable operating profit([1]) 2,138 1,886 1,772
Taxes([2]) (474) (399) (367)
Non-controlling interest (13) (12) (8)
Comparable operating profit after tax attributable
to shareholders 1,651 1,475 1,397
Opening borrowings less cash and cash equivalents
and short term investments([3]) 11,675 12,498 5,664
Opening equity attributable to shareholders([3]) 7,033 5,911 6,025
Opening Invested Capital 18,708 18,409 11,689
Closing borrowings less cash and cash equivalents
and short term investments 10,264 11,675 11,675
Closing equity attributable to shareholders 7,447 7,033 7,033
Closing Invested Capital 17,711 18,708 18,708
Average Invested Capital 18,210 18,559 15,199
ROIC 9.1 % 8.0 % 9.2 %
____________________
([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 (2022: 22.2%; 2021 pro forma: 21.1%; 2021: 20.7%).
([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
2022 2021
EUR million EUR million
------------------------------------------------- ---------------------------- -----------------------------
Revenue 17,320 13,763
Cost of sales (11,096) (8,677)
---------------------------- -----------------------------
Gross profit 6,224 5,086
Selling and distribution expenses (2,984) (2,496)
Administrative expenses (1,250) (1,074)
Other Income 96 -
---------------------------- -----------------------------
Operating profit 2,086 1,516
Finance income 67 43
Finance costs (181) (172)
---------------------------- -----------------------------
Total finance costs, net (114) (129)
Non-operating items (15) (5)
---------------------------- -----------------------------
Profit before taxes 1,957 1,382
Taxes (436) (394)
---------------------------- -----------------------------
Profit after taxes 1,521 988
============================ =============================
Profit attributable to shareholders 1,508 982
Profit attributable to non-controlling interests 13 6
---------------------------- -----------------------------
Profit after taxes 1,521 988
============================ =============================
Basic earnings per share (EUR) 3.30 2.15
Diluted earnings per share (EUR) 3.29 2.15
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
2022 2021
EUR million EUR million
------------------------------------------------ ---------------------------- ----------------------------
ASSETS
Non-current:
Intangible assets 12,505 12,639
Goodwill 4,600 4,623
Property, plant and equipment 5,201 5,248
Non-current derivative assets 191 226
Deferred tax assets 21 60
Other non-current assets 252 534
---------------------------- ----------------------------
Total non-current assets 22,770 23,330
---------------------------- ----------------------------
Current:
Current derivative assets 257 150
Current tax assets 85 46
Inventories 1,380 1,157
Amounts receivable from related parties 139 143
Trade accounts receivable 2,466 2,305
Other current assets 479 271
Assets held for sale 94 223
Short term investments 256 58
Cash and cash equivalents 1,387 1,407
---------------------------- ----------------------------
Total current assets 6,543 5,760
---------------------------- ----------------------------
Total assets 29,313 29,090
============================ ============================
LIABILITIES
Non-current:
Borrowings, less current portion 10,571 11,790
Employee benefit liabilities 108 138
Non-current provisions 55 48
Non-current derivative liabilities 187 47
Deferred tax liabilities 3,513 3,617
Non-current tax liabilities 82 110
Other non-current liabilities 37 37
---------------------------- ----------------------------
Total non-current liabilities 14,553 15,787
---------------------------- ----------------------------
Current:
Current portion of borrowings 1,336 1,350
Current portion of employee benefit liabilities 8 10
Current provisions 115 86
Current derivative liabilities 76 19
Current tax liabilities 241 181
Amounts payable to related parties 485 210
Trade and other payables 5,052 4,237
---------------------------- ----------------------------
Total current liabilities 7,313 6,093
---------------------------- ----------------------------
Total liabilities 21,866 21,880
============================ ============================
EQUITY
Share capital 5 5
Share premium 234 220
Merger reserves 287 287
Other reserves (507) (156)
Retained earnings 7,428 6,677
Equity attributable to shareholders 7,447 7,033
Non-controlling interest 177
---------------------------- ----------------------------
Total equity 7,447 7,210
---------------------------- ----------------------------
Total equity and liabilities 29,313 29,090
============================ ============================
Coca-Cola Europacific Partners plc
Consolidated Statement of Cash Flows (Unaudited)
Year Ended
------------------------------------------------------------
31 December 31 December
2022 2021
EUR million EUR million
--------------------------------------------------- ----------------------------- -----------------------------
Cash flows from operating activities:
Profit before taxes 1,957 1,382
Adjustments to reconcile profit before tax to
net cash flows from operating activities:
Depreciation 715 693
Amortisation of intangible assets 101 89
Share-based payment expense 33 16
Finance costs, net 114 129
Income taxes paid (415) (306)
Changes in assets and liabilities:
(Increase)/decrease in trade and other
receivables (282) (242)
(Increase)/decrease in inventories (244) (1)
Increase in trade and other payables 885 507
Increase/(decrease) in net payable receivable
from related parties (15) 8
(Decrease)/increase in provisions 37 (116)
Change in other operating assets and
liabilities* 46 (42)
----------------------------- -----------------------------
Net cash flows from operating activities 2,932 2,117
----------------------------- -----------------------------
Cash flows from investing activities:
Acquisition of bottling operations, net of cash
acquired - (5,401)
Purchases of property, plant and equipment (500) (349)
Purchases of capitalised software (103) (97)
Proceeds from sales of property, plant and
equipment 11 25
Proceeds from sales of intangible assets 143 -
Net proceeds/(payments) of short term
investments (207) 198
Investments in equity instruments (2) (4)
Proceeds from sale of equity instruments 13 25
Other investing activity, net - (2)
----------------------------- -----------------------------
Net cash flows used in investing activities (645) (5,605)
----------------------------- -----------------------------
Cash flows from financing activities:
Proceeds from borrowings, net - 4,877
Changes in short-term borrowings (285) 276
Repayments on third party borrowings (938) (950)
Payments of principal on lease obligations (153) (139)
Interest paid, net (130) (97)
Dividends paid (763) (638)
Purchase of own shares under share buyback
programme - -
Exercise of employee share options 13 28
Transactions with non-controlling interests - (73)
Other financing activities, net (20) 5
----------------------------- -----------------------------
Net cash flows from financing activities (2,276) 3,289
----------------------------- -----------------------------
Net change in cash and cash equivalents 11 (199)
----------------------------- -----------------------------
Net effect of currency exchange rate changes
on cash and cash equivalents (31) 83
Cash and cash equivalents at beginning of period 1,407 1,523
----------------------------- -----------------------------
Cash and cash equivalents at end of period 1,387 1,407
============================= =============================
* Amounts include EUR252 million in cash proceeds received in
December 2022 from the regional tax authorities in Bizkaia (Basque
Region) in connection with an ongoing dispute regarding historical
VAT amounts related to the period 2013-2016. Refer to page 19 for
additional information.
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