TIDMCCEP
RNS Number : 2915X
Coca-Cola Europacific Partners plc
25 April 2023
25 April 2023
COCA-COLA EUROPACIFIC PARTNERS
Trading Update for the First Quarter ended 31 March 2023 &
Interim Dividend Declaration
Good start to the year, confidently reaffirming FY23
guidance
Q1 2023 Change vs 2022
==================================================== =============================================================
Revenue Volume Revenue Comparable Revenue FXN([2],[4]) Revenue
(UC)([1]) per UC([1],[2],[4]) Volume([2],[3]) per UC([1],[2],[4]) Revenue
======= ========= ========== ==================== ================ ==================== ============ =======
Europe EUR3,145m 590m EUR5.42 5.0% 8.5% 14.0% 12.0%
------- ========= ========== ==================== ================ ==================== ============ =======
API EUR1,009m 178m EUR5.77 0.0% 13.5% 13.5% 11.5%
======= ========= ========== ==================== ================ ==================== ============ =======
CCEP EUR4,154m 768m EUR5.50 4.0% 10.0% 14.0% 12.0%
------- ========= ========== ==================== ================ ==================== ============ =======
Damian Gammell, Chief Executive Officer, said:
"We have had an encouraging start to the year, delivering solid
top-line growth as consumers continued to enjoy our portfolio of
leading brands across a broad pack offering. Our performance
reflects great in-market execution with further growth in the home
channel and the tail end of continued recovery of the away from
home channel. This resulted in strong volume growth across our
developed markets and albeit early in its transformation journey,
Indonesia delivered volume growth in the core sparkling category.
Our focus on revenue growth management and our headline price and
promotion strategy also drove solid gains in revenue per unit
case.
"Although our first quarter has set us up really well for the
rest of the year, it is typically our smallest. We are building on
this momentum supported by fantastic activation plans. We remain
focused on driving profitable revenue growth and solid free cash
flow, and I am pleased to confidently reaffirm our full-year
guidance for 2023, despite a dynamic outlook. We are confident that
we have the right strategy, done sustainably, to deliver on our
ambitious mid-term growth objectives which combined with today's
interim dividend declaration, demonstrate the strength and
resilience of our business, and our ability to deliver continued
shareholder value. All underpinned by our talented and engaged
people as well as our strong relationships with The Coca-Cola
Company, our other brand partners, and our customers, who continue
to share in our success."
Note: All footnotes included after the 'About CCEP' section
Q1 HIGHLIGHTS([2])
Revenue
Q1 Reported +12.0%; Q1 Fx-neutral +14.0% ([4])
-- Continued to deliver the largest revenue growth YTD for our
retail customers within FMCG in Europe & within NARTD in
Australia & New Zealand([5])
(--) NARTD YTD value share gains([5]) across measured channels
both in store (+10bps) & online (+40bps)
(--) Comparable volume +4.0%([3]) (Europe: +5.0%; API: flat)
reflecting solid in-market execution & underlying demand. In
API, the strategic SKU portfolio rationalisation in Indonesia
offset continued trading momentum in Australia & New
Zealand
Away from Home (AFH) channel comparable volume: +5.5%([3])
driven by good underlying demand & the tail end of the effects
of the pandemic. Immediate consumption (IC) packs continued to
recover reflecting increased mobility (+9.5%([6]) vs 2022)
Home channel comparable volume: +3.0%([3]) driven by solid
in-market execution
-- Revenue per unit case +10.0%([1],[4]) reflecting positive
headline price across all markets, alongside favourable pack &
channel mix led by the recovery of the AFH channel
-- Recent trading indicating no significant change in underlying consumer demand
Dividend
-- Declaring first-half interim dividend per share of EUR0.67,
calculated as 40% of the full-year 2022 dividend. Reaffirming FY23
guidance for an annualised total dividend payout ratio of
approximately 50%([7])
Other
-- Innovation highlights:
NARTD: Monster Juice & Ultra flavour extensions, What the
Fanta Purple rolled out in Europe, Schweppes Melon Watermelon &
Peach Coconut Soda Mixers launched in GB
ARTD: Jack Daniel's & Coca-Cola ready to drink (RTD)
launched in GB & the Netherlands
-- Sustainability highlights:
Retained inclusion on Carbon Disclosure Project's A List for
Supplier Engagement Rating for fifth consecutive year
Recognised, for the third time, in the Financial Times-Statista
list of Europe's Climate Leaders
Joined 'Open Call to Accelerate Action on Water', an initiative
from the United Nations Global Compact
Second industry partnership PET recycling facility on track to
open in Australia. The two sites will have the capacity to recycle
the equivalent of 2 billion PET bottles each year
FY23 GUIDANCE([2])
The outlook for FY23 reflects current market conditions.
Guidance is on a comparable & Fx-neutral basis
Revenue: comparable growth of 6-8% (unchanged)
-- Driven by price & mix through dynamic headline pricing,
including the annualisation of FY22 second headline price
increases, & promotional optimisation
Cost of sales per unit case: comparable growth of 8%
(unchanged)
-- Concentrate directly linked to revenue per unit case through incidence pricing model
-- Commodity inflation expected to be up 10% (unchanged)
-- FY23 hedge coverage at 90%
-- Low overall FX transactional exposure (<10%)
Operating profi t: comparable growth of 6-7% (unchanged)
-- Continued focus on delivering efficiency programmes & discretionary spend optimisation
Comparable effective tax rate : 23% (unchanged)
Free cash flow: at least EUR1.6bn (unchanged)
Capital expenditure: 4-5% of revenue excluding leases
(unchanged)
Dividend payout rati o : 50%([7]) (unchanged)
First Quarter Revenue Performance by Geography([2])
All values are unaudited & all references to volumes are on
a comparable basis versus prior year equivalent period unless
stated otherwise
Q1
-----------------------------------------------
Fx-neutral
EUR million % change % change
====================== ================= ============= =============
Great Britain 689 4.5 % 10.5 %
---------------------- ----------------- ------------- -------------
France([9]) 535 15.5 % 15.5 %
---------------------- ----------------- ------------- -------------
Germany 659 17.5 % 17.5 %
====================== ================= ------------- =============
Iberia([10]) 655 20.5 % 20.5 %
====================== ================= ------------- =============
Northern Europe([11]) 607 4.5 % 7.5 %
====================== ================= ------------- =============
Total Europe 3,145 12.0 % 14.0 %
API([8]) 1,009 11.5 % 13.5 %
====================== ================= ============= =============
Total CCEP 4,154 12.0 % 14.0 %
====================== ================= ============= =============
API
-- Flat volume reflects strong trading in Australia & New
Zealand, benefiting from the recovery of the AFH channel &
navigation of industry-wide supply constraints, offset mainly by
strategic SKU rationalisation in Indonesia.
-- Coca-Cola Classic, Coca-Cola Zero Sugar & Monster
performed well in all markets. In Australia, Fanta & Sprite
achieved double-digit volume growth reflecting the strategic focus
on Flavours.
-- Revenue/UC([12]) growth driven by favourable underlying price
in all markets, promotional optimisation in Australia &
positive pack & channel mix from the recovery of the AFH
channel.
France
-- Volume growth reflects continued trading momentum in both
channels, whilst also cycling some customer disruption in the Home
channel last year.
-- Coca-Cola Original Taste & Coca-Cola Zero Sugar performed
well, both achieving high single-digit volume growth. Continued
strong performance in Fuze tea, achieving double-digit growth
across both channels.
-- Revenue/UC([12]) growth driven by favourable underlying price
from the annualisation of last year's headline price increases, as
well as further headline price implemented late in the first
quarter of 2023. Positive brand mix also contributed to the
growth.
Germany
-- Volume growth, despite further strategic de-listings within
the water portfolio, reflects the recovery of the AFH channel
following the later removal of covid restrictions last year &
soft comparables. Strong trading in the Home channel also supported
overall volume growth.
-- Coca-Cola Original Taste, Fanta, Fuze Tea & Monster all
performed well, achieving double-digit volume growth.
-- Revenue/UC([12]) growth driven by favourable underlying price
from the annualisation of the second headline price increase last
year & positive pack mix from the recovery of the AFH channel
e.g. small glass +21.5%.
Great Britain
-- Flat volume reflects resilient trading despite cycling tough
comparables following the early rebound of the AFH channel last
year.
-- Coca-Cola Zero Sugar continued to perform well, while Dr
Pepper & Monster achieved double-digit volume growth.
-- Revenue/UC([12]) growth driven predominantly by favourable
underlying price from the annualisation of the second headline
price increase last year & promotional optimisation.
Iberia
-- Volume growth reflects recovery of the AFH channel & soft
comparables from cycling covid restrictions last year. Resilient
trading in the Home channel also supported overall volume
growth.
-- Coca-Cola Original Taste & Coca-Cola Zero Sugar performed
well & both Monster & Aquarius achieved double-digit volume
growth.
-- Revenue/UC([12]) growth driven by favourable underlying
price, with further headline pricing implemented in both Spain
& Portugal, in addition to positive pack & channel mix from
the recovery of the AFH channel e.g. small glass +21.5%.
Northern Europe
-- Volume growth reflects recovery of the AFH channel following
the later removal of covid restrictions last year & soft
comparables.
-- Coca-Cola Zero Sugar, Fuze Tea & Monster all performed well.
-- Revenue/UC([12]) growth driven by favourable underlying
price, with further headline pricing implemented in some markets,
alongside positive pack & channel mix from the recovery of the
AFH channel e.g. small glass +21.5%.
First Quarter Volume Performance by Category([2],[3])
All values are unaudited & all references to volumes are on
a comparable basis versus prior year equivalent period unless
stated otherwise
Q1
% of % Change
Total
============================================ ============== ===========
Sparkling 85.0 % 4.5 %
Coca-Cola(R) 58.5 % 4.5 %
============================================ ============== ===========
Flavours, Mixers & Energy 26.5 % 5.0 %
============================================ ============== ===========
(1.5)
Stills 15.0 % %
Hydration 7.5 % 0.5 %
============================================ ============== ===========
(3.5)
RTD Tea, RTD Coffee, Juices & Other([13]) 7.5 % %
============================================ ============== ===========
100.0
Total % 4.0 %
============================================ ============== ===========
Coca-Cola(R)
-- Original Taste +5.5% driven by the recovery of the AFH
channel in markets cycling covid restrictions last year.
-- Lights +3.0% reflecting continued solid performance in
Coca-Cola Zero Sugar across all markets (+8.0%) supported by
innovation & targeted campaigns.
-- Coca-Cola Zero Sugar continued to gain value share([5]) (+20bps of total Cola).
Flavours, Mixers & Energy
-- Fanta +6.5% driven by the recovery of the AFH channel, with
soft comparables from cycling covid restrictions last year. What
the Fanta continued to drive excitement with the latest flavour
rolling out across Europe.
-- Continuing growth trends in Energy (+15.0%) led by Monster.
Innovation & solid in-market execution continued to drive
recruitment & distribution.
Hydration
-- Continued strong performance in Sports (+14.5%), offsetting
decline in Water. Growth driven by Aquarius & Powerade, both
achieving double-digit growth.
-- Water -5.0% driven by strategic exit of Vio large PET in
Germany & Indonesia SKU rationalisation.
RTD Tea, RTD Coffee, Juices & Other([13])
-- Juice drinks -8.0% reflecting Indonesia SKU rationalisation.
-- RTD Tea +2.0% driven by Fuze Tea (+23.5%) & Nestea
(+15.5%) in Europe, partially offset by SKU rationalisation in
Indonesia.
-- Costa RTD continues to maintain momentum in GB &
Australia continues to benefit from double-digit growth in
-196.
Conference Call
-- 25 April 2023 at 12:00 BST, 13:00 CEST & 7:00 a.m. EDT; accessible via www.cocacolaep.com
-- Replay & transcript will be available at www.cocacolaep.com as soon as possible
Dividend
-- The CCEP Board of Directors declared a first-half interim dividend of EUR0.67 per share
-- The interim dividend is payable 25 May 2023 to those shareholders of record on 12 May 2023
-- CCEP will pay the interim dividend in euros to holders of
shares on Euronext Amsterdam, the Spanish Stock Exchanges &
London Stock Exchange
-- Other publicly held shares will be converted into an
equivalent US dollar amount using exchange rates issued by
WM/Reuters taken at 16:00 BST on 25 April 2023. This translated
amount will be posted on our website here:
https://ir.cocacolaep.com/shareholder-information-and-tools/dividends
Financial Calendar
-- H1 2023 Results: 3 August 2023
Contacts
Investor Relations
Sarah Willett Claire Michael Claire Copps Awais Khan
+44 7970 145 218 +44 7528 251 033 +44 7980 775 889 +44 7528 251 830
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 2 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. A unit case equals approximately 5.678 litres or 24 8-ounce servings
2. Refer to 'Note Regarding the Presentation of Alternative
Performance Measures' for further details & to 'Supplementary
Financial Information' for a reconciliation of reported to
comparable results; Change percentages against prior year
equivalent period unless stated otherwise
3. No selling day shift in Q1; CCEP reported volume +4.0%
4. Comparable & Fx-neutral
5. External date sources: Nielsen & IRI P2 YTD
6. Europe only
7. Dividends subject to Board approval
8. Includes Australia, New Zealand & the Pacific Islands, Indonesia & Papua New Guinea
9. Includes France & Monaco
10. Includes Spain, Portugal & Andorra
11. Includes Belgium, Luxembourg, the Netherlands, Norway, Sweden & Iceland
12. Revenue per unit case
13. 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 2022
Annual Report on Form 20-F filed with the SEC on 17 March 2023;
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 and increasing geopolitical
tension including in the Asia Pacific region, such as the risk that
the business will not be able to guarantee sufficient supply of raw
materials, supplies, finished goods, natural gas and oil and
increased state-sponsored cyber risks;
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;
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; and
6. risks and uncertainties relating to potential water use
reductions due to regulations by national and regional authorities
leading to a potential temporary decrease in production volume.
Due to these risks, CCEP's actual future financial condition,
results of operations, and business activities, including its
results, dividend payments, capital and leverage ratios, growth,
including growth in revenue, cost of sales per unit case and
operating profit, free cash flow, market share, tax rate,
efficiency savings, achievement of sustainability goals, including
net zero emissions and recycling initiatives, capital expenditures,
the results of the acquisition of the minority share of our
Indonesian business, and ability to remain in compliance with
existing and future regulatory compliance, may differ materially
from the plans, goals, expectations and guidance set out in
forward-looking statements. These risks may also adversely affect
CCEP's share price. Additional risks that may impact CCEP's future
financial condition and performance are identified in filings with
the SEC which are available on the SEC's website at www.sec.gov.
CCEP does not undertake any obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required under
applicable rules, laws and regulations. Any or all of the
forward-looking statements contained in this filing and in any
other of CCEP's public statements may prove to be incorrect.
Note Regarding the Presentation of Alternative Performance Measures
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.
"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.
"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.
"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%.
Supplemental Financial Information - Revenue - Reported to Comparable
Revenue
First-Quarter Ended
============================================= --------------------------------------------------------------
Revenue CCEP 31 March 1 April % Change
In millions of EUR, except per case data 2023 2022
which is calculated prior to rounding. FX
impact calculated by recasting current year
results at prior year rates.
============================================= ======================= ====================== =============
As reported and comparable 4,154 3,709 12.0 %
Adjust: Impact of fx changes 71 n/a n/a
Comparable and fx-neutral 4,225 3,709 14.0 %
Revenue per unit case 5.50 5.01 10.0 %
First-Quarter Ended
=============================================
Revenue Europe 31 March 1 April % Change
In millions of EUR, except per case data 2023 2022
which is calculated prior to rounding. FX
impact calculated by recasting current year
results at prior year rates.
============================================= ======================= ====================== =============
As reported and comparable 3,145 2,805 12.0 %
Adjust: Impact of fx changes 56 n/a n/a
Comparable and fx-neutral 3,201 2,805 14.0 %
Revenue per unit case 5.42 4.99 8.5 %
First-Quarter Ended
============================================= --------------------------------------------------------------
Revenue API 31 March 1 April % Change
In millions of EUR, except per case data 2023 2022
which is calculated prior to rounding. FX
impact calculated by recasting current year
results at prior year rates.
============================================= ======================= ====================== =============
As reported and comparable 1,009 904 11.5 %
Adjust: Impact of fx changes 15 n/a n/a
Comparable and fx-neutral 1,024 904 13.5 %
Revenue per unit case 5.77 5.09 13.5 %
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFSASVISFIV
(END) Dow Jones Newswires
April 25, 2023 02:00 ET (06:00 GMT)
Coca-cola Europacific Pa... (LSE:CCEP)
Historical Stock Chart
From Jul 2024 to Aug 2024
Coca-cola Europacific Pa... (LSE:CCEP)
Historical Stock Chart
From Aug 2023 to Aug 2024