Business context and reporting period
Coca-Cola Europacific Partners plc (CCEP) is a beverage bottler and distributor operating across Europe and Australia, the Pacific and Indonesia (API). This Form 20-F covers the fiscal year ended December 31, 2022—not a standalone fourth quarter. The filing text does not provide clear standalone Q4 financial results. CCEP reports under IFRS as issued by the IASB. Comparisons below distinguish reported figures from management’s non-GAAP and pro forma measures, which adjust for items and the 2021 API acquisition.
Financial performance and liquidity
| Metric | FY 2022 | Comparison / context |
|---|---|---|
| Revenue | €17.320bn | +26.0% reported; +15.5% pro forma comparable, FX-neutral |
| Volume / revenue per unit case | Volume +9.5%; revenue per unit case +6.0% | Pro forma comparable basis |
| Operating profit | €2.086bn reported; €2.138bn comparable | Comparable growth +12.5% pro forma, FX-neutral |
| Profit after tax / diluted EPS | €1.521bn; €3.29 reported EPS and €3.39 comparable EPS | Comparable diluted EPS +13.0% pro forma, FX-neutral |
| Cash flow | €2.932bn operating cash flow; €2.057bn free cash flow; €1.805bn adjusted free cash flow | Adjusted free cash flow excludes a €252m Spanish VAT refund; was €1.460bn in 2021 |
| Debt and leverage | €11.907bn borrowings; €10.206bn net debt | Net debt / adjusted EBITDA 3.5x, versus 4.3x on a 2021 pro forma basis |
| Liquidity | €1.387bn cash and €256m short-term investments | €1.95bn revolving credit facility undrawn at year-end; extended in January 2023 to January 2028 |
| Shareholder returns | €1.68 per share dividend; €763m total paid | Approximate 50% payout ratio; no share buybacks in 2022 |
Reported gross, operating and net margins were approximately 35.9%, 12.0% and 8.8%, respectively, calculated from reported financial statement figures. Comparable operating profit margin was approximately 12.3%, calculated using comparable operating profit and reported revenue. ROIC was 9.1%, up 112 basis points on a pro forma basis. Capital expenditure on property, plant and equipment and capitalised software was €603m.
Material changes versus the prior comparable period
- Growth reflected recovering away-from-home sales, returning travel and tourism, resilient home-channel demand, favourable European weather, pricing actions and higher revenue per unit case. Pro forma comparable volume rose 9.5%; away-from-home volume rose 18.5%.
- Revenue per unit case increased 6.0%, supported by pricing, promotion optimisation and channel and package mix. Comparable operating profit grew more slowly than revenue amid commodity, energy, transport and labour inflation, higher concentrate costs and capability investment.
- API revenue was €3.791bn and comparable operating profit €468m; on a pro forma comparable, FX-neutral basis, growth was 12.0% and 16.0%, respectively. Europe revenue was €13.529bn and comparable operating profit €1.670bn.
- Operating cash flow increased from €2.117bn to €2.932bn, reflecting stronger trading, working-capital benefits and a full year of API. Borrowings declined by €1.233bn; management reported no new debt issuance.
Outlook, commentary, risks and unusual items
Management’s stated mid-term objectives are approximately 4% comparable, FX-neutral revenue growth and 7% comparable, FX-neutral operating profit growth, with annual free cash flow of approximately €1.7bn. These are mid-term objectives, not specific FY 2023 guidance. Management said it was well positioned despite an uncertain, inflationary environment and expects continued focus on pricing, innovation, productivity, customer service and investment in brands and capabilities.
- Items affecting comparability included €163m of restructuring charges, principally including German full-service vending transformation, €96m of income following a favourable Australian mineral-rights ruling, and €11m of net insurance recoveries related to 2021 European flooding.
- FY 2022 free cash flow included €252m received in December from Spanish regional tax authorities in a historical VAT dispute. After year-end, CCEP received a proposed approximately €250m VAT assessment for 2017–2019; management said it expects to remain neutral in the dispute. The filing does not establish the final outcome.
- In February 2023, CCEP completed the €282m purchase of TCCC’s remaining 29.4% interest in its Indonesian bottling subsidiary. A sale of certain Australian and New Zealand brands to TCCC was partly completed in 2022, with the remainder expected in the first half of 2023.
- Key risks include inflation and commodity, energy and transport costs; economic and geopolitical uncertainty; customer and consumer shifts; packaging and sugar regulation; climate and water risks; cyber and operational disruption; and reliance on TCCC and other franchisors. The filing says about 90% of 2022 revenue came from beverages distributed under TCCC agreements.
- Two Indonesian employees died in work-related incidents during 2022. CCEP reported a Group total incident rate of 0.87 and described further safety actions.
- CCEP submitted targets to reduce absolute Scope 1, 2 and 3 emissions 30% by 2030 and reach net zero by 2040 for Science Based Targets initiative approval; approval was pending, with review expected by end-2023. Reported value-chain emissions were 9.4% below the 2019 baseline.
The independent auditor issued an unqualified opinion on the financial statements and internal control over financial reporting. Critical audit matters included accrued customer marketing costs and uncertain tax positions.
Most important facts for investors to verify
- Reconcile reported results with comparable and pro forma measures, including the basis for the 2021 API comparison and excluded items.
- Track the outcome and cash timing of the Spanish VAT disputes, including the proposed €250m assessment, and confirm any remaining brand-sale proceeds.
- Assess the Indonesian minority-stake purchase, its funding and subsequent operating performance.
- Monitor net debt, leverage, refinancing and the extended credit facility; note that €102m of cash and €49m of short-term investments were in Papua New Guinea and subject to currency controls.
- Evaluate delivery of the mid-term growth and cash-flow objectives against inflation, customer negotiations and continued investment needs.
- Follow SBTi review of the emissions targets and progress on packaging, recycled PET and regulatory obligations.