Business Context and Reporting Period
Company: Coca-Cola Europacific Partners Plc (CCEP)
Reporting Period: Full year ended 31 December 2024
Filing Type: Form 6-K (Preliminary unaudited results)
Key Event: The Group completed the acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI) on 23 February 2024, expanding its footprint in Southeast Asia. Financial results include CCBPI from the acquisition date, with "Adjusted Comparable" metrics presented as if the acquisition occurred on 1 January 2024.
Key Financial Metrics
| Metric | As Reported (€M) | Comparable (€M) | Adjusted Comparable (€M) |
|---|---|---|---|
| Revenue | 20,438 | 20,438 | 20,706 |
| Operating Profit | 2,132 | 2,663 | 2,673 |
| Profit After Tax | 1,444 | 1,849 | 1,854 |
| Diluted EPS (€) | 3.08 | 3.95 | 3.96 |
| Net Debt (€M) | 9,672 | N/A | |
| Operating Cash Flow (€M) | 3,061 | N/A |
Volume Performance: Total volume was 3,864 million unit cases (As Reported). On an Adjusted Comparable basis (including CCBPI for full year), volume was flat (0.0%) versus FY2023.
Margins: Adjusted Comparable operating margin improved to approximately 12.9% (€2,673m / €20,706m).
Material Changes vs. Prior Period
- Revenue Growth: As Reported revenue increased 11.7% to €20.4 billion. On an Adjusted Comparable basis, revenue grew 3.3% (3.5% FX-neutral), driven by positive headline pricing and favorable brand mix.
- Profitability: As Reported operating profit declined 8.8% to €2.1 billion, primarily due to €264 million in restructuring charges and €189 million in impairment charges (Indonesia CGU and Feral brand). Adjusted Comparable operating profit increased 8.1% to €2.7 billion.
- Geographic Performance:
- Europe: Revenue +2.9%; Volume -2.4% (underlying -1.4%). Impacted by strategic de-listing of Capri Sun, mixed summer weather, and softer Away-From-Home (AFH) demand.
- APS (Australia, Pacific & SE Asia): Revenue +45.8% (As Reported) due to CCBPI inclusion. Adjusted Comparable revenue +4.4%. Volume +4.9% (Adjusted Comparable), driven by strong growth in the Philippines.
- Cost of Sales: Adjusted Comparable cost of sales per unit case increased 2.6% due to higher concentrate costs, manufacturing inflation, and consumption tax increases in the Netherlands.
Guidance, Outlook, and Risks
- Capital Allocation: Announced a new share buyback programme of up to €1 billion over the next 12 months (subject to shareholder approval). Dividend per share increased 7.1% to €1.97, maintaining a payout ratio of ~50%.
- Efficiency Programme: Continuing a programme announced in 2022 to be delivered by 2028, focusing on supply chain efficiencies and shared services. FY2024 included €254 million in restructuring costs related to this programme.
- Risks and Contingencies:
- Impairments: Recognized €175 million impairment on the Indonesia Cash Generating Unit (CGU) due to geopolitical uncertainty in the Middle East affecting business performance.
- Legal/Tax: Ongoing labor law matter in Germany and tax assessments regarding concentrate purchases in certain jurisdictions.
- Market Conditions: Exposure to adverse weather, raw material cost inflation, and foreign exchange fluctuations.
Investor Verification Checklist
- Acquisition Accounting: Verify the "Adjusted Comparable" metrics which assume the CCBPI acquisition occurred on 1 January 2024, as these differ significantly from "As Reported" figures.
- Restructuring Costs: Confirm the €264 million restructuring charge impact on operating profit and future cash flow implications of the efficiency programme.
- Indonesia Impairment: Review the €175 million impairment charge related to the Indonesia CGU and the assumptions regarding geopolitical risks.
- Share Buyback: Note that the €1 billion buyback is subject to shareholder approval at the 2025 Annual General Meeting.
- Volume Trends: Distinguish between reported volume growth (driven by acquisition) and underlying organic volume trends, which were flat (0.0%) on an adjusted comparable basis.