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  COCA-COLA EUROPACIFIC PARTNERS PLC company press release from 02/08/2023

  02/08/2023 - 08:15

Results for the six months ended 30 June 2023

COCA-COLA EUROPACIFIC PARTNERS Results for the six months ended 30 June 2023

Strong first half, raising FY guidance

  H1 2023 Metric[1] As Reported   Comparable [1] Change vs H1 2022
As Reported Comparable
Comparable FXN [1]
Total CCEP Volume (M UC)[2] 1,631   1,631 1.0% 1.0%  
Revenue (€M) 8,977   8,977 8.5% 8.5% 10.5%
Cost of sales (€M) 5,707   5,701 8.0% 7.5% 10.0%
Operating expenses (€M) 2,153   2,111 6.5% 9.5% 11.5%
Operating profit (€M) 1,170   1,165 21.0% 11.0% 13.0%
Profit after taxes (€M) 854   847 26.5% 14.0% 16.5%
Diluted EPS (€) 1.86   1.85 27.5% 14.5% 17.0%
Revenue per UC[2] (€)     5.62     10.0%
Cost of sales per UC[2] (€)     3.57     9.0%
Free cash flow (€M)     850      
H1 Interim dividend per share[3] (€)   0.67  
Europe Volume (M UC)[2] 1,307   1,307 2.5% 2.5%  
Revenue (€M) 7,105   7,105 10.0% 10.0% 12.0%
Operating profit (€M) 887   924 19.5% 12.0% 14.0%
Revenue per UC[2] (€)     5.52     9.0%
API Volume (M UC)[2] 324   324 (5.5)% (5.5)%  
Revenue (€M) 1,872   1,872 2.5% 2.5% 7.0%
Operating profit (€M) 283   241 25.0% 6.5% 11.0%
Revenue per UC[2] (€)     6.03     13.0%


“Today, we are excited to announce the proposed joint acquisition of Coca-Cola Beverages Philippines, Inc. with Aboitiz Equity Ventures Inc., one of the leading conglomerates in the local market. This offers us a great opportunity to acquire an established, well-run business with attractive profitability and growth prospects. This would be a natural next step for CCEP, creating a more diverse footprint within our existing API business segment, support Indonesia's transformation journey and underpin our strategic mid-term objectives.

“We are also very pleased to have delivered a great first half, achieving strong top and bottom-line growth and generating impressive free cash flow. Our performance reflects great in-market execution, strong customer relationships allowing our consumers to continue to enjoy our portfolio of leading brands across a broad pack offering. This resulted in solid volume growth across our developed markets, whilst our volume in Indonesia reflected the execution of our long-term transformation strategy. Our focus on revenue and margin growth management, along with our price and promotion strategy, drove solid gains in revenue per unit case with transactions outpacing volume.

“Looking ahead, we remain confident in the resilience of our categories, despite the ongoing dynamic outlook. We have fantastic activation plans to build on our momentum, including the Women's World Cup, to engage customers and consumers. We also continue to actively manage our pricing and promotional spend to remain affordable and relevant to our consumers. Given our strong first half, we are raising revenue, operating profit and free cash flow guidance[1] for FY23. This demonstrates the strength of our business and ability to deliver continued shareholder value. This is all underpinned by our progress on sustainability, our talented and engaged colleagues, and our strong relationships with The Coca-Cola Company, our other brand partners, and our customers, who continue to share in our success.”


Note: All footnotes included after the ‘About CCEP' section



H1 Reported +8.5%; H1 Fx-neutral +10.5%[4]

  • Delivered more revenue growth YTD for our retail customers than any of our FMCG peers in Europe & our NARTD peers in Australia & New Zealand (NZ)[5]
  • NARTD YTD value share gains[5] across measured channels both in-store (+10bps) & online (+90bps)
  • Comparable volume +1.0%[6] (Europe: +2.5%; API: -5.5%) driven by good underlying demand in developed markets & solid in-market execution offset by strategic SKU rationalisation as part of our long-term transformation in Indonesia
    • Away from Home (AFH) channel comparable volume: +0.5%[6] (+0.5% vs 2019) with good underlying demand, ahead of pre-pandemic levels
    • Home channel comparable volume: +1.0%[6] (+8.5% vs 2019) reflecting resilient growth as at-home occasion trends continue
  • Transactions outpaced volume growth in Europe, Australia & NZ
  • Revenue per unit case +10.0%[2],[4] (Europe: +9.0%; API: +13.0%) reflecting the annualisation of last year's headline price increases, & this year's headline price increases across most of our markets, alongside favourable pack & brand mix

Q2 Reported +5.5%; Q2 Fx-neutral +8.0%[4]

  • Comparable volume -1.5%[6] (Europe: +0.5%; API: -11.0%) reflecting good underlying demand in developed markets & tough comparables (Q2 22 pro forma comparable volume: +10.5%) offset by the timing of Ramadan & the strategic SKU rationalisation in Indonesia
    • AFH channel comparable volume: -3.0%[6] reflecting last year's rebound following the removal of restrictions & recovery of tourism, & favourable weather in Europe
    • Home channel comparable volume: -1.0%[6]
  • Revenue per unit case +10.0%[2],[4] (Europe: +9.5%; API: +13.0%) driven by positive headline price increases & promotional optimisation alongside favourable pack & brand mix

H1 Operating profit

Reported +21.0%; Fx-neutral +13.0%[4]

  • Cost of sales per unit case +9.0%[2],[4] reflecting increased revenue per unit case driving higher concentrate costs, & inflation in commodities & manufacturing
  • Comparable operating profit of €1,165m, +13.0%[4] reflecting strong top-line, our efficiency programmes & continuous efforts on discretionary spend optimisation
  • Comparable diluted EPS of €1.85, +17.0%[4] (reported +27.5%) 


  • First half interim dividend per share of €0.67[3] (declared at Q1 & paid in May), calculated as 40% of the FY22 dividend
  • Reaffirming guidance for an annualised total dividend payout ratio of approximately 50%[7]

Proposal to jointly acquire Coca-Cola Beverages Philippines, Inc. with Aboitiz Equity Ventures Inc.


  • Free cash flow: Generated strong free cash flow of €850m reflecting strong performance (net cashflows from operating activities of €1,307m), supporting our journey to return to our target leverage range of Net debt:Adjusted EBITDA[1] of 2.5x-3x. At the end of 2022, Net debt:Adjusted EBITDA[1] was 3.5x
  • Strategic portfolio choices:
    • Australia & NZ Spirits & ARTD[8] category: CCEP plans to maximise its extensive knowledge in the attractive & fast growing ARTD category by launching new scalable offerings aligned with The Coca-Cola Company. In this context, CCEP & Beam Suntory will move forward independently. Effective from the date of contract expiry (30 June 2025 in Australia & 31 December 2025 in NZ)
    • Capri Sun: Following a successful sales & distribution partnership in Europe, CCEP & Capri Sun will move forward independently, consistent with their respective strategies. Will come into effect during 2024 enabling an orderly transition
    • Insignificant impact on CCEP volume, revenue & operating profit[4],[9] from the above
  • Retained MSCI AAA rating, inclusion on Carbon Disclosure Project's A Lists for Climate & Water, & inclusion on the Bloomberg Gender Equality index
  • Progressed our packaging initiatives
    • Boosted recycled content in Indonesia by switching to 100% rPET bottles
    • Installed a PET plastic grinder in Papua New Guinea to support the supply of rPET
    • Transitioned Sprite from green to clear bottles across API, making them easier to recycle
  • Introduced electric trucks in Luxembourg, Belgium & Spain to reduce carbon emissions from our logistics
  • Partnered with The Coca-Cola Company, other bottlers & Greycroft, a seed-to-growth venture capital firm, to create a sustainability-focused venture capital fund

The outlook for FY23 reflects our current assessment of market conditions. Unless stated otherwise, guidance is on a comparable & FX-neutral basis. FX is expected to decrease FX-neutral guidance by approximately 200 basis points for the full year

Revenue: comparable growth of 8-9% (previously 6-8%)

  • Headline pricing successfully implemented across most of our markets without disruption. Germany & the Netherlands to be implemented in the third quarter
  • Continued focus on promotional optimisation & revenue growth management initiatives

Cost of sales per unit case: comparable growth of ~8% (unchanged)

  • Higher concentrate costs reflecting increased revenue per unit case
  • Commodity inflation expected to be ~8% (previously ~10%)
  • FY23 hedge coverage at >95%
  • Low overall FX transactional exposure (<10%)

Operating profit: comparable growth of 12-13% (previously 6-7%)

  • Increased top-line performance
  • Continued focus on delivering efficiency programmes & optimising discretionary spend

Comparable effective tax rate: ~24% (previously ~23%)

  • Primarily due to change of geographic profit mix

Free cash flow: at least €1.7bn (previously at least €1.6bn)

Capital expenditure: 4-5% of revenue excluding leases (unchanged)

Dividend payout ratio: c.50%[7] (unchanged)

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