Release Details

Coca-Cola EP PLC - Preliminary Unaudited Results Q4 & FY 2022

16 Feb 2023
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 Metric[1]

As Reported

 

Comparable [1]

Change vs 2021

 

Change vs 2021

As Reported

Comparable

[1]

Comparable Fx-Neutral [1]

 

Pro forma Comparable [3]

Pro forma Comparable Fx-Neutral[3]

Total  CCEP

Volume (M UC)[2]

           3,300

 

           3,300

        17.5 %

        18.0 %

 

 

      9.5 %

 

Revenue (€M)

         17,320

 

         17,320

        26.0 %

        26.0 %

        24.5 %

 

        17.0 %

        15.5 %

Cost of sales (€M)

         11,096

 

         11,088

        28.0 %

        29.0 %

        27.5 %

 

        20.0 %

        19.0 %

Operating expenses (€M)

           4,234

 

           4,094

        18.5 %

        21.0 %

        19.5 %

 

        10.5 %

      9.0 %

Operating profit (€M)

           2,086

 

           2,138

        37.5 %

        20.5 %

        19.5 %

 

        13.5 %

        12.5 %

Profit after taxes (€M)

           1,521

 

           1,564

        54.0 %

        20.0 %

        19.0 %

 

 

 

Diluted EPS (€)

             3.29

 

             3.39

        53.0 %

        19.5 %

        18.5 %

 

        14.0 %

        13.0 %

Revenue per UC[2] (€)

 

 

             5.20

 

 

      6.0 %

 

 

      6.0 %

Cost of sales per UC[2] (€)

 

 

             3.33

 

 

      8.5 %

 

 

      9.0 %

Adjusted Free cash Flow (€M)

 

 

           1,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend per share[4] (€)

 

1.68

Maintained dividend payout ratio of c.50%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

Volume (M UC)[2]

           2,631

 

           2,631

        10.5 %

        11.0 %

 

 

        11.0 %

 

Revenue (€M)

         13,529

 

         13,529

        17.0 %

        17.0 %

        16.5 %

 

        17.0 %

        16.5 %

Operating profit (€M)

           1,529

 

           1,670

        18.0 %

        11.5 %

        11.5 %

 

        11.5 %

        11.5 %

Revenue per UC[2] (€)

 

 

             5.14

 

 

      5.5 %

 

 

      5.5 %

 

 

 

 

 

 

 

 

 

 

 

API

Volume (M UC)[2]

              669

 

              669

        57.5 %

        57.5 %

 

 

      5.0 %

 

Revenue (€M)

           3,791

 

           3,791

        74.0 %

        74.0 %

        66.5 %

 

        17.0 %

        12.0 %

Operating profit (€M)

              557

 

              468

          155.5%

        72.0 %

        64.5 %

 

        21.0 %

        16.0 %

Revenue per UC[2] (€)

 

 

             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 €2,138m, +12.5%[3],[5] reflecting increased revenue & the benefit of ongoing efficiency programmes (over 90% delivered of multi-year ~€375m programme)

•       Comparable diluted EPS of €3.39, +13.0%[3],[5] (reported +53.0%)

 

Dividend

•     Record full year interim dividend per share of €1.68[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 €763m

 

 

 

 

 

Other

•     Generated strong adjusted free cash flow[12] of €1,805m reflecting strong performance & working capital initiatives (net cashflows from operating activities of €2,932m), 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 €282m (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 €1.6bn

•       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

 

€ million

% change

% change

 

€ 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 Total

% Change

 

% of Total

% Change[5]

Sparkling

        85.5 %

      2.0 %

 

        84.5 %

      9.0 %

Coca-ColaTM

        60.0 %

      2.5 %

 

        58.5 %

      8.0 %

Flavours, Mixers & Energy

        25.5 %

      1.0 %

 

        26.0 %

        11.5 %

Stills

        14.5 %

       (1.0) %

 

        15.5 %

        11.5 %

Hydration

      7.5 %

      1.0 %

 

      8.0 %

        16.0 %

RTD Tea, RTD Coffee, Juices & Other[21]

      7.0 %

       (3.5) %

 

      7.5 %

      7.0 %

Total

          100.0 %

      1.5 %

 

          100.0 %

      9.5 %

 

Coca-ColaTM

•       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 €0.56 dividend per share, paid 26 May 2022; 2 November 2022 declared second half interim dividend of €1.12 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 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 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 millions of € except per share data which is calculated prior to rounding

 

CCEP

 

Restructuring Charges [1]

Acquisition and Integration related costs [2]

European flooding [3]

Defined benefit plan amendment [4]

Coal royalties [5]

 

CCEP

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 (€)

 

           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 millions of € except share data which is calculated prior to rounding

 

CCEP

 

Restructuring Charges [1]

DB plan closure [6]

Total Acquisition Related Costs [2]

Inventory step up costs [7]

European flooding[3]

Net Tax [8]

 

CCEP

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 (€)

 

           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:

Full Year 2021

As Reported

Pro forma adjustments CCL [A]

Transaction accounting adjustments [B]

Pro forma

Combined

Items impacting Comparability [C]

Pro forma Comparable

Unaudited, in millions of  € except share data which is calculated prior to rounding

CCEP

 

 

CCEP

 

CCEP

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 (€)

                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, in millions of  € except share data which is calculated prior to rounding

Restructuring Charges [1]

Defined benefit plan closure[2]

Acquisition and Integration related costs [3]

Inventory step up costs [4]

European flooding[5]

Net Tax [6]

Other [7]

Total items impacting Comparability

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 (€)

             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

Revenue CCEP

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Revenue Europe

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Revenue API

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Revenue by Geography

In millions of €

 

Year ended 31 December 2022

 

As reported

Reported

% change

Fx-Neutral

% 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

Comparable Volume - Selling Day Shift CCEP

 

In millions of unit cases, prior period volume recast using current year selling days

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Comparable Volume - Selling Day Shift Europe

 

In millions of unit cases, prior period volume recast using current year selling days

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Comparable Volume - Selling Day Shift API

 

In millions of unit cases, prior period volume recast using current year selling days

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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

Cost of Sales

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

31 December 2022

31 December 2021

% Change

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 €11,096 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 €11,088 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

Operating Expenses

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

 

31 December 2022

31 December 2021

% Change

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 €4,234 million, up 18.5% versus 2021.

Comparable operating expenses were €4,094 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 €144 million were recognised within reported operating expenses for the year ending 31 December 2022, which are primarily attributable to €82 million of expense recognised in connection with the transformation of the full service vending operations and related initiatives in Germany.

Restructuring charges of €136 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 €51 million of severance costs related to productivity initiatives within the commercial organisation in Iberia.

Operating profit

Operating Profit CCEP

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

 

31 December 2022

31 December 2021

% Change

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 %

 

Operating Profit Europe

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

 

31 December 2022

31 December 2021

% Change

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 %

 

Operating Profit API

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

 

31 December 2022

31 December 2021

% Change

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

Pro forma Revenue CCEP

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Pro forma Revenue API

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Pro forma revenue by Geography

In millions of €

Fourth-Quarter Ended 31 December 2022

 

Year ended 31 December 2022

Pro forma comparable

Pro forma comparable % change

Pro forma Fx-Neutral

% change

 

Pro forma comparable

Pro forma comparable % change

Pro forma Fx-Neutral

% change

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

Comparable Volume - Selling Day Shift CCEP

 

In millions of unit cases, prior period volume recast using current year selling days

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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 %

 

Comparable Volume - Selling Day Shift API

 

In millions of unit cases, prior period volume recast using current year selling days

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

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.

Pro forma Comparable Volume by Brand Category CCEP

Adjusted for selling day shift

Fourth-Quarter Ended

 

Year Ended

31 December 2022

31 December 2021

% Change

 

31 December 2022

31 December 2021

% Change

% of Total

% of Total

% of Total

% of Total

Sparkling

        85.5 %

        85.0 %

      2.0 %

 

        84.5 %

        84.5 %

      9.0 %

Coca-ColaTM

        60.0 %

        59.5 %

      2.5 %

 

        58.5 %

        59.0 %

      8.0 %

Flavours, Mixers & Energy

        25.5 %

        25.5 %

      1.0 %

 

        26.0 %

        25.5 %

        11.5 %

Stills

        14.5 %

        15.0 %

       (1.0) %

 

        15.5 %

        15.5 %

        11.5 %

Hydration

      7.5 %

      7.5 %

      1.0 %

 

      8.0 %

      7.5 %

        16.0 %

RTD Tea, RTD Coffee, Juices & Other[1]

      7.0 %

      7.5 %

       (3.5) %

 

      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

Pro forma Cost of Sales

In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

31 December 2022

31 December 2021

% Change

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 €11,088 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

Pro forma Operating Expenses

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

 

31 December 2022

31 December 2021

% Change

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 €4,094 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

Pro forma Operating Profit CCEP

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

31 December 2022

31 December 2021

% Change

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 %

 

Pro forma Operating Profit API

In millions of €. FX impact calculated by recasting current year results at prior year rates.

 

Year Ended

31 December 2022

31 December 2021

% Change

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

 

Free Cash Flow

In millions of €

 

Year Ended

 

31 December 2022

 

31 December 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 €85 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, €252 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

 

Net Debt

In millions of €

As at

 

Credit Ratings

As of 16 February 2023

 

 

 

 

31 December 2022

 

31 December 2021

 

 

Moody's

 

Fitch Ratings

Total borrowings

           11,907

 

           13,140

 

Long-term rating

 

Baa1

 

BBB+

Fair value of hedges related to borrowings[1]

                 (83)

 

               (110)

 

Outlook

 

Stable

 

Stable

Other financial assets/liabilities[1]

                  25

 

                  42

 

Note: Our credit ratings can be materially influenced by a number of factors including, but not limited to, acquisitions, investment decisions and working capital management activities of TCCC and/or changes in the credit rating of TCCC. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

Adjusted total borrowings[1]

           11,849

 

           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 €102 million and €45 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 €49 million and €44 million respectively of assets in Papua New Guinea Kina, subject to the same currency controls outlined above.

 

 

Supplemental Financial Information - Adjusted EBITDA

 

Adjusted EBITDA

In millions of €

 

Year Ended

 

31 December 2022

 

31 December 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.

Pro forma Adjusted EBITDA

In millions of €

Year Ended

31 December 2022

 

31 December 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

 

ROIC

In millions of €

Year Ended

31 December 2022

 

31 December 2021

 

31 December 2021

 

 

Pro forma[3]

 

 

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 €38 million and a decrease in equity attributable to shareholders of €18 million. 

 

 


 


Coca-Cola Europacific Partners plc

Consolidated Income Statement (Unaudited)

 

 

Year Ended

 

 

31 December 2022

 

31 December 2021

 

 

€ million

 

€ 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 (€)

 

                       3.30

 

                       2.15

Diluted earnings per share (€)

 

                       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 2022

 

31 December 2021

 

 

€ million

 

€ 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 2022

 

31 December 2021

 

 

€ million

 

€ 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 €252 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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