Cover
Cover | 6 Months Ended |
Jun. 30, 2023 | |
Cover [Abstract] | |
Document type | 6-K |
Document period end date | Jun. 30, 2023 |
Entity registrant name | COCA-COLA EUROPACIFIC PARTNERS PLC |
Entity central index key | 0001650107 |
Amendment flag | false |
Current fiscal year end date | --12-31 |
Document fiscal year focus | 2023 |
Document fiscal period focus | Q2 |
Condensed Consolidated Interim
Condensed Consolidated Interim Income Statement (Unaudited) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Profit or loss [abstract] | ||
Revenue | € 8,977 | € 8,280 |
Cost of sales | (5,707) | (5,288) |
Gross profit | 3,270 | 2,992 |
Selling and distribution expenses | (1,522) | (1,410) |
Administrative expenses | (631) | (615) |
Other income | 53 | 0 |
Operating profit | 1,170 | 967 |
Finance income | 31 | 30 |
Finance costs | (94) | (93) |
Total finance costs, net | (63) | (63) |
Non-operating items | (6) | (6) |
Profit before taxes | 1,101 | 898 |
Taxes | (247) | (223) |
Profit after taxes | 854 | 675 |
Profit attributable to shareholders | 854 | 667 |
Profit attributable to non-controlling interests | € 0 | € 8 |
Basic earnings per share (in EUR per share) | € 1.86 | € 1.46 |
Diluted earnings per share (in EUR per share) | € 1.86 | € 1.46 |
Condensed Consolidated Interi_2
Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Statement of comprehensive income [abstract] | ||
Profit after taxes | € 854 | € 675 |
Foreign currency translations: | ||
Pretax activity, net | (280) | 98 |
Tax effect | 0 | 0 |
Foreign currency translation, net of tax | (280) | 98 |
Cash flow hedges: | ||
Pretax activity, net | (38) | 8 |
Tax effect | 7 | (3) |
Cash flow hedges, net of tax | (31) | 5 |
Other reserves: | ||
Pretax activity, net | 13 | (2) |
Tax effect | (3) | 0 |
Other reserves, net of tax | 10 | (2) |
Items that may be subsequently reclassified to the income statement | (301) | 101 |
Pension plan remeasurements: | ||
Pretax activity, net | 13 | 53 |
Tax effect | (4) | (16) |
Pension plan adjustments, net of tax | 9 | 37 |
Items that will not be subsequently reclassified to the income statement: | 9 | 37 |
Other comprehensive income/(loss) for the period, net of tax | (292) | 138 |
Total comprehensive income | 562 | 813 |
Comprehensive income attributable to shareholders | 562 | 798 |
Comprehensive income attributable to non-controlling interests | € 0 | € 15 |
Condensed Consolidated Interi_3
Condensed Consolidated Interim Statement of Financial Position (Unaudited) - EUR (€) € in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Non-current: | ||
Intangible assets | € 12,319 | € 12,505 |
Goodwill | 4,483 | 4,600 |
Property, plant and equipment | 5,077 | 5,201 |
Non-current derivative assets | 134 | 191 |
Deferred tax assets | 32 | 21 |
Other non-current assets | 292 | 252 |
Total non-current assets | 22,337 | 22,770 |
Current: | ||
Current derivative assets | 233 | 257 |
Current tax assets | 50 | 85 |
Inventories | 1,714 | 1,380 |
Amounts receivable from related parties | 88 | 139 |
Trade accounts receivable | 2,930 | 2,466 |
Other current assets | 415 | 479 |
Assets held for sale | 54 | 94 |
Short term investments | 862 | 256 |
Cash and cash equivalents | 1,112 | 1,387 |
Total current assets | 7,458 | 6,543 |
Total assets | 29,795 | 29,313 |
Non-current: | ||
Borrowings, less current portion | 9,332 | 10,571 |
Employee benefit liabilities | 110 | 108 |
Non-current provisions | 39 | 55 |
Non-current derivative liabilities | 227 | 187 |
Deferred tax liabilities | 3,448 | 3,513 |
Non-current tax liabilities | 71 | 82 |
Other non-current liabilities | 42 | 37 |
Total non-current liabilities | 13,269 | 14,553 |
Current: | ||
Current portion of borrowings | 2,425 | 1,336 |
Current portion of employee benefit liabilities | 8 | 8 |
Current provisions | 113 | 115 |
Current derivative liabilities | 102 | 76 |
Current tax liabilities | 269 | 241 |
Amounts payable to related parties | 373 | 485 |
Trade and other payables | 5,476 | 5,052 |
Total current liabilities | 8,766 | 7,313 |
Total liabilities | 22,035 | 21,866 |
EQUITY | ||
Share capital | 5 | 5 |
Share premium | 265 | 234 |
Merger reserves | 287 | 287 |
Other reserves | (808) | (507) |
Retained earnings | 8,011 | 7,428 |
Total equity | 7,760 | 7,447 |
Total equity and liabilities | € 29,795 | € 29,313 |
Condensed Consolidated Interi_4
Condensed Consolidated Interim Statement of Cash Flows (Unaudited) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Cash flows from operating activities: | ||
Profit before taxes | € 1,101 | € 898 |
Adjustments to reconcile profit before tax to net cash flows from operating activities: | ||
Depreciation | 324 | 336 |
Amortisation of intangible assets | 53 | 50 |
Share-based payment expense | 29 | 12 |
Gain on sale of sub-strata and associated mineral rights | (35) | 0 |
Finance costs, net | 63 | 63 |
Income taxes paid | (212) | (162) |
Changes in assets and liabilities: | ||
Increase in trade and other receivables | (385) | (429) |
Increase in inventories | (353) | (245) |
Increase in trade and other payables | 564 | 936 |
Increase in net payable receivable from related parties | 223 | 180 |
Increase/(decrease) in provisions | (18) | 59 |
Change in other operating assets and liabilities | (47) | (45) |
Net cash flows from operating activities | 1,307 | 1,653 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (264) | (178) |
Purchases of capitalised software | (40) | (22) |
Proceeds from sales of property, plant and equipment | 9 | 6 |
Proceeds from sales of intangible assets | 37 | 143 |
Proceeds from the sale of sub-strata and associated mineral rights | 35 | 0 |
Investments in equity instruments | (1) | (2) |
Proceeds from the sale of equity instruments | 0 | 13 |
Net proceeds/(payments) of short term investments | (638) | (181) |
Other investing activity, net | 1 | (1) |
Net cash flows used in investing activities | (861) | (222) |
Cash flows from financing activities: | ||
Changes in short-term borrowings | 543 | 237 |
Repayments on third party borrowings | (706) | (834) |
Payments of principal on lease obligations | (74) | (80) |
Interest paid, net | (88) | (98) |
Dividends paid | (308) | (256) |
Exercise of employee share options | 31 | 5 |
Acquisition of non-controlling interest | (282) | 0 |
Other financing activities, net | (9) | (8) |
Net cash flows used in financing activities | (893) | (1,034) |
Net change in net cash and cash equivalents | (447) | 397 |
Net effect of currency exchange rate changes on cash and cash equivalents | (16) | 15 |
Net cash and cash equivalents at beginning of period | 1,387 | 1,407 |
Net cash and cash equivalents at end of period | 924 | 1,819 |
Cash and cash equivalents | 1,387 | |
Bank overdrafts | (188) | 0 |
Net cash and cash equivalents at end of period | € 924 | € 1,819 |
Condensed Consolidated Interi_5
Condensed Consolidated Interim Statement of Changes in Equity Statement (Unaudited) - EUR (€) € in Millions | Total | Total equity | Share capital | Share premium | Merger reserves | Other reserves | Retained earnings | Non-controlling interest |
Equity beginning balance at Dec. 31, 2021 | € 7,210 | € 7,033 | € 5 | € 220 | € 287 | € (156) | € 6,677 | € 177 |
Profit after taxes | 675 | 667 | 8 | |||||
Other comprehensive income | 138 | 131 | 94 | 37 | 7 | |||
Total comprehensive income | 813 | 798 | 94 | 704 | 15 | |||
Issue of shares during the period | 5 | 5 | 5 | |||||
Equity-settled share-based payment expense | 12 | 12 | 12 | |||||
Dividends | (257) | (257) | (257) | |||||
Equity ending balance at Jul. 01, 2022 | 7,783 | 7,591 | 5 | 225 | 287 | (62) | 7,136 | 192 |
Equity beginning balance at Dec. 31, 2022 | 7,447 | 7,447 | 5 | 234 | 287 | (507) | 7,428 | 0 |
Profit after taxes | 854 | 854 | 854 | |||||
Other comprehensive income | (292) | (292) | (301) | 9 | ||||
Total comprehensive income | 562 | 562 | (301) | 863 | 0 | |||
Issue of shares during the period | 31 | 31 | 31 | |||||
Equity-settled share-based payment expense | 29 | 29 | 29 | |||||
Dividends | (309) | (309) | (309) | |||||
Equity ending balance at Jun. 30, 2023 | € 7,760 | € 7,760 | € 5 | € 265 | € 287 | € (808) | € 8,011 | € 0 |
GENERAL INFORMATION AND BASIS O
GENERAL INFORMATION AND BASIS OF PREPARATION | 6 Months Ended |
Jun. 30, 2023 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |
GENERAL INFORMATION AND BASIS OF PREPARATION | GENERAL INFORMATION AND BASIS OF PREPARATION Coca-Cola Europacific Partners plc (the Company) and its subsidiaries (together CCEP, or the Group) are a leading consumer goods group in Western Europe and the Asia Pacific region, making, selling and distributing an extensive range of primarily non-alcoholic ready to drink beverages. The Company has ordinary shares with a nominal value of €0.01 per share (Shares). CCEP is a public company limited by shares, incorporated under the laws of England and Wales with the registered number in England of 09717350. The Group’s Shares are listed and traded on Euronext Amsterdam, the NASDAQ Global Select Market, London Stock Exchange and on the Spanish Stock Exchanges. The address of the Company’s registered office is Pemberton House, Bakers Road, Uxbridge, UB8 1EZ, United Kingdom. These condensed consolidated interim financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. They have been reviewed but not audited by the Group’s auditor. The statutory accounts for the Company for the year ended 31 December 2022, which were prepared in accordance with U.K. adopted International Accounting Standards, International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB), have been delivered to the Registrar of Companies. The auditor’s opinion on those accounts was unqualified and did not contain a statement made under section 498 (2) or (3) of the Companies Act 2006. Basis of Preparation and Accounting Policies The condensed consolidated interim financial statements of the Group have been prepared in accordance with the U.K. adopted International Accounting Standard 34, "Interim Financial Reporting" and the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority, the International Accounting Standard 34, "Interim Financial Reporting" as adopted by the European Union, the International Accounting Standard 34, "Interim Financial Reporting" as issued by the International Accounting Standards Board and should be read in conjunction with our 2022 consolidated financial statements. The annual financial statements of the Group for the year ended 31 December 2023 will be prepared in accordance with U.K. adopted International Accounting Standards, International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). Except as described below, the accounting policies applied in these interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s consolidated financial statements as at and for the year ended 31 December 2022. The policy for recognising income taxes in the interim period is consistent with that applied in previous interim periods and is described in Note 11. International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) On 12 May 2023, the International Accounting Standards Board ( “the IASB”) issued International Tax Reform - Pillar Two Model Rules – Amendments to IAS 12 (“the Amendments”). The Amendments apply with immediate effect and introduce a mandatory temporary exception from the recognition and disclosure of deferred taxes arising from the implementation of the OECD’s Pillar Two Model Rules. On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum effective tax rate of 15%. The legislation implements a domestic top-up tax and a multinational top-up tax, effective for accounting periods starting on or after 31 December 2023. The Group has applied the exception under the IAS 12 amendment to recognising and disclosing information about deferred tax assets and liabilities related to top-up income in preparing its condensed consolidated interim financial statements as of the six month period ended 30 June 2023. Other amendments and interpretations also apply for the first time in 2023, but do not have a material impact on the condensed consolidated interim financial statements of the Group. Reporting periods Results are presented for the interim period from 1 January 2023 to 30 June 2023. The Group’s financial year ends on 31 December. For half-yearly reporting convenience, the first six month period closes on the Friday closest to the end of the interim calendar period. There is no change in selling days between the six months ended 30 June 2023 versus the six months ended 1 July 2022, and there will be equal selling days in the second six months of 2023 versus the second six months of 2022 (based upon a standard five-day selling week). The following table summarises the number of selling days, for the years ended 31 December 2023 and 31 December 2022 (based on a standard five-day selling week): Half year Full year 2023 130 260 2022 130 260 Change — — Comparability Operating results for the first half of 2023 may not be indicative of the results expected for the year ended 31 December 2023 as sales of the Group’s products are seasonal. In Europe, the second and third quarters typically account for higher unit sales of the Group’s products than the first and fourth quarters. In the Group’s Asia Pacific territories, the fourth quarter would typically reflect higher sales volumes in the year. The seasonality of the Group’s sales volume, combined with the accounting for fixed costs such as depreciation, amortisation, rent and interest expense, impacts the Group’s results for the first half of the year. Additionally, year-over-year shifts in holidays, selling days and weather patterns can impact the Group’s results on an annual or half-yearly basis. Exchange rates The Group’s reporting currency is the Euro. CCEP translates the income statements of non-Euro functional currency subsidiary operations to the Euro at average exchange rates and the balance sheets at the closing exchange rate as at the end of the period. The principal exchange rates used for translation purposes in respect of one Euro were: Average for the six month period ended Closing as at 30 June 2023 1 July 2022 30 June 2023 31 December 2022 British Pound 1.14 1.19 1.16 1.13 US Dollar 0.92 0.91 0.91 0.94 Norwegian Krone 0.09 0.10 0.09 0.10 Swedish Krone 0.09 0.10 0.08 0.09 Icelandic Krone 0.01 0.01 0.01 0.01 Australian Dollar 0.63 0.66 0.61 0.64 Indonesian Rupiah [1] 0.06 0.06 0.06 0.06 New Zealand Dollar 0.58 0.61 0.56 0.60 Papua New Guinean Kina 0.26 0.26 0.26 0.27 [1] Indonesian Rupiah is shown as 1000 IDR versus 1 EUR. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Operating Segments [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS Description of segments and principal activities The Group derives its revenues through a single business activity, which is making, selling and distributing an extensive range of primarily non-alcoholic ready to drink beverages. The Group’s Board continues to be its Chief Operating Decision Maker (CODM), which allocates resources and evaluates performance of its operating segments based on volume, revenue and comparable operating profit. Comparable operating profit excludes items impacting the comparability of period over period financial performance. The following table provides a reconciliation between reportable segment operating profit and consolidated profit before tax: Six Months Ended 30 June 2023 Six Months Ended 1 July 2022 Europe API Total Europe API Total € million € million € million € million € million € million Revenue 7,105 1,872 8,977 6,451 1,829 8,280 Comparable operating profit [1] 924 241 1,165 825 226 1,051 Items impacting comparability [2] 5 (84) Reported operating profit 1,170 967 Total finance costs, net (63) (63) Non-operating items (6) (6) Reported profit before tax 1,101 898 [1] Comparable operating profit includes comparable depreciation and amortisation of €272 million and €101 million for Europe and API respectively, for the six months ended 30 June 2023. Comparable depreciation and amortisation charges for the six months ended 1 July 2022 totalled €273 million and €114 million, for Europe and API respectively. [2] Items impacting the comparability of period-over-period financial performance for 2023 primarily include €53 million of other income related to the royalties arising from the ownership of certain mineral rights in Australia (€18 million) and the proceeds from the sale of sub-strata and associated mineral rights (€35 million), partially offset by restructuring charges of €51 million. Items impacting the comparability for 2022 primarily include restructuring charges of €95 million, partially offset by net insurance recoveries received of €12 million arising from the July 2021 flooding events. No single customer accounted for more than 10% of the Group’s revenue during the six months ended 30 June 2023 and 1 July 2022. Revenue by geography The following table summarises revenue from external customers by geography, which is based on the origin of the sale: Six Months Ended 30 June 2023 1 July 2022 Revenue € million € million Great Britain 1,570 1,463 Germany 1,458 1,296 Iberia [1] 1,541 1,371 France [2] 1,200 1,017 Belgium/Luxembourg 541 511 Netherlands 355 329 Norway 193 208 Sweden 207 213 Iceland 40 43 Total Europe 7,105 6,451 Australia 1,162 1,102 New Zealand and Pacific Islands 330 302 Indonesia and Papua New Guinea 380 425 Total API 1,872 1,829 Total CCEP 8,977 8,280 [1] Iberia refers to Spain, Portugal & Andorra. [2] France refers to continental France & Monaco. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is calculated by dividing profit after taxes by the weighted average number of Shares in issue and outstanding during the period. Diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities, principally share options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified market and/or performance conditions are included in the diluted earnings per share calculation based on the number of Shares that would be issuable if the end of the period was the end of the contingency period. The following table summarises basic and diluted earnings per share calculations for the periods presented: Six Months Ended 30 June 2023 1 July 2022 Profit after taxes attributable to equity shareholders (€ million) 854 667 Basic weighted average number of Shares in issue [1] (million) 458 457 Effect of dilutive potential Shares [2] (million) 1 1 Diluted weighted average number of Shares in issue [1] (million) 459 458 Basic earnings per share (€) 1.86 1.46 Diluted earnings per share (€) 1.86 1.46 [1] As at 30 June 2023 and 1 July 2022, the Group had 458,846,191 and 456,789,240 Shares, respectively, in issue and outstanding. [2] For the six months ended 30 June 2023 and 1 July 2022, there were no outstanding options to purchase Shares excluded from the diluted earnings per share calculation. The dilutive impact of the remaining options outstanding, unvested restricted stock units and unvested performance share units was included in the effect of dilutive securities. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL The following table summarises the movement in net book value for intangible assets and goodwill during the six months ended 30 June 2023: Intangible assets Goodwill € million € million Net book value as at 31 December 2022 12,505 4,600 Additions 40 — Amortisation expense (53) — Disposals — — Transfers and reclassifications (1) — Currency translation adjustments (172) (117) Net book value as at 30 June 2023 12,319 4,483 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2023 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table summarises the movement in net book value for property, plant and equipment during the six months ended 30 June 2023: Total € million Net book value as at 31 December 2022 5,201 Additions 279 Disposals (16) Depreciation expense (324) Transfers and reclassifications 1 Currency translation adjustments (64) Net book value as at 30 June 2023 [1] 5,077 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2023 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALEAssets classified as held for sale as at 30 June 2023 and 31 December 2022 were €54 million and €94 million, respectively. The decrease is due to the completion of the remaining portion of the sale of certain non-alcoholic ready to drink beverage brands to TCCC (See Note 10 for further details). |
FAIR VALUES AND FINANCIAL RISK
FAIR VALUES AND FINANCIAL RISK MANAGEMENT | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurement [Abstract] | |
FAIR VALUES AND FINANCIAL RISK MANAGEMENT | FAIR VALUES AND FINANCIAL RISK MANAGEMENT Fair Value Measurements All assets and liabilities for which fair value is measured or disclosed in the condensed consolidated interim financial statements are categorised in the fair value hierarchy as described in our 2022 consolidated financial statements. The fair values of the Group’s cash and cash equivalents, short term investments, trade accounts receivable, amounts receivable from related parties, trade and other payables, and amounts payable to related parties approximate their carrying amounts due to their short-term nature. The fair values of the Group’s borrowings are estimated based on borrowings with similar maturities and credit quality and current market interest rates. These are categorised in Level 2 of the fair value hierarchy as the Group uses certain pricing models and quoted prices for similar liabilities in active markets in assessing their fair values. The total fair value of borrowings as at 30 June 2023 and 31 December 2022, was €10.6 billion and €10.5 billion, respectively. This compared to the carrying value of total borrowings as at 30 June 2023 and 31 December 2022 of €11.8 billion and €11.9 billion, respectively. Refer to Note 8 for further details regarding the Group’s borrowings. The Group’s derivative assets and liabilities are carried at fair value, which is determined using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument taking into account credit risk. The fair value of our derivative contracts (including forwards, options, cross-currency swaps and interest rate swaps) are determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, the derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward, and discount rates. The standard valuation model for the option contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third-party resource. As at 30 June 2023 and 31 December 2022, the total value of derivative assets was €367 million and €448 million, respectively. As at 30 June 2023 and 31 December 2022, the total value of derivative liabilities was €329 million and €263 million, respectively. During the period, €38 million of losses have been recorded within Other Comprehensive Income, primarily related to decreases in fair value on commodity related hedging instruments. For assets and liabilities that are recognised in the condensed consolidated interim financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation at the end of each reporting period. There have been no transfers between levels during the periods presented. During the six month period ending 30 June 2023, the Group implemented a new gas and power hedging program to manage its exposure to changes in commodity prices in relation to its purchases of power and gas, by entering into financial swaps designated in a cash flow hedge relationship. As at 30 June 2023 the notional value of the swaps was €139 million and amounts of €1 million and €18 million were included in derivative assets and derivative liabilities respectively. Financial Instruments Risk Management Objectives and Policies The Group’s activities expose it to several financial risks including market risk, credit risk, and liquidity risk. Financial risk activities are governed by appropriate policies and procedures to minimise the uncertainties these risks create over the Group’s future cash flows. Such policies are developed and approved by the Group’s Treasury and Commodities Risk Committee through the authority provided to it by the Group’s Board of Directors. There have been no changes in the risk management policies since the year end. |
BORROWINGS AND LEASES
BORROWINGS AND LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
BORROWINGS AND LEASES | BORROWINGS AND LEASES Borrowings Outstanding The following table summarises the carrying value of the Group’s borrowings as at the dates presented: 30 June 2023 31 December 2022 € million € million Non-current: Euro denominated bonds [3] 7,689 8,176 Foreign currency bonds (swapped into Euro) [1] 455 1,074 Australian dollar denominated bonds 337 422 Foreign currency bonds (swapped into Australian dollar or New Zealand dollar) [1] 329 364 Lease obligations 522 535 Total non-current borrowings 9,332 10,571 Current: Euro denominated bonds 850 350 Foreign currency bonds (swapped into Euro) [1], [2] 594 797 Australian dollar denominated bonds 62 — Foreign currency bonds (swapped into New Zealand dollar) [1] 46 48 Euro commercial paper [4] 543 — Bank overdrafts [5] 188 — Lease obligations 142 141 Total current borrowings 2,425 1,336 [1] Cross currency swaps are used by the Group to swap foreign currency bonds into the required local currency. [2] In May the Group repaid on maturity the outstanding amount related to the US$850 million 0.50% Notes 2023. [3] Some bonds are designated in full or partially in a fair value hedge relationship. [4] During the 6 month period ending 30 June 2023, the Group issued €3,914 million and repaid €3,371 million Euro commercial paper. During the 6 month period ending 1 July 2022, the Group issued €2,394 million and repaid €2,157 million Euro commercial paper. The issuance net of repayments of Euro commercial paper is presented as changes in short-term borrowings in our condensed consolidated interim statement of cash flows. [5] Included within bank overdrafts is €188 million in relation to a notional pooling arrangement for which an offsetting agreement is in place but does not meet the criteria for net presentation on the condensed consolidated interim statement of financial position. A corresponding amount is also shown in cash and cash equivalents. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
EQUITY | EQUITY Share Capital As at 30 June 2023, the Company had issued and fully paid 458,846,191 Shares. Shares in issue have one voting right each and no restrictions related to dividends or return of capital. The share capital increased during the six months ended 30 June 2023 from the issue of 1,739,738 Shares, following the exercise of share-based payment awards. Dividends |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS For the purpose of these condensed consolidated interim financial statements, transactions with related parties mainly comprise transactions between subsidiaries of the Group and the related parties of the Group. Transactions with The Coca-Cola Company (TCCC) The principal transactions with TCCC are for the purchase of concentrate, syrup and finished goods. The following table summarises the transactions with TCCC that directly impacted the condensed consolidated interim income statement for the periods presented: Six Months Ended 30 June 2023 1 July 2022 € million € million Amounts affecting revenue [1] 68 51 Amounts affecting cost of sales [2] (2,099) (1,910) Amounts affecting operating expenses [3] 5 1 Total net amount affecting the consolidated income statement (2,026) (1,858) [1] Amounts principally relate to fountain syrup and packaged product sales. [2] Amounts principally relate to the purchase of concentrate, syrup, mineral water and juice as well as funding for marketing programmes. [3] Amounts principally relate to costs associated with new product development initiatives and reimbursement of certain marketing expenses. The following table summarises the transactions with TCCC that impacted the consolidated statement of financial position as at the dates presented: 30 June 2023 31 December 2022 € million € million Amount due from TCCC 75 130 Amount payable to TCCC 333 442 During the first half of 2023, the Group completed the remaining portion of the sale of certain non-alcoholic ready to drink beverage brands that were acquired as part of the business combination transaction consummated on 10 May 2021. The sale price approximated the fair value of the brands assessed at the acquisition. These brands were classified as assets held for sale in our consolidated statement of financial position as at 31 December 2022. On 15 February 2023, the Group completed the acquisition of the remaining 29.4% ownership interest of its subsidiary, PT Coca-Cola Bottling Indonesia, for a total consideration of €282 million. Transactions with Cobega companies The principal transactions with Cobega are for the purchase of juice concentrate and packaging materials. The following table summarises the transactions with Cobega that directly impacted the condensed consolidated interim income statement for the periods presented: Six Months Ended 30 June 2023 1 July 2022 € million € million Amounts affecting revenues [1] 1 2 Amounts affecting cost of sales [2] (40) (32) Amounts affecting operating expenses [3] (9) (8) Total net amount affecting the consolidated income statement (48) (38) [1] Amounts principally relate to packaged product sales. [2] Amounts principally relate to the purchase of packaging materials and concentrate. [3] Amounts principally relate to maintenance and repair services and transportation. The following table summarises the transactions with Cobega that impacted the consolidated statement of financial position as at the dates presented: 30 June 2023 31 December 2022 € million € million Amount due from Cobega 8 3 Amount payable to Cobega 31 24 Transactions with Other Related Parties For the six months ended 30 June 2023 and 1 July 2022 the Group recognised charges in cost of sales of €88 million and €83 million, respectively, in connection with transactions that have been entered into with joint ventures, associates and other related parties predominantly for the purchase of resin as well as container deposit scheme charges in Australia. Transactions with joint ventures, associates and other related parties that impacted the condensed consolidated interim statement of financial position as at 30 June 2023 include €5 million in amounts receivable from related parties and €9 million in amounts payable to related parties, respectively. As at 31 December 2022 amounts receivable from related parties and amounts payable to related parties included €6 million and €19 million respectively related to transactions with joint ventures, associates and other related parties. |
TAXES
TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax [Abstract] | |
TAXES | TAXES Taxes on income in interim periods are accrued using the tax rate that would be applicable to the expected total annual profit or loss. The effective tax rate (ETR) was 22% and 25% for the six months ended 30 June 2023 and 1 July 2022, respectively, and 22% for the year ended 31 December 2022. The ETR has been calculated by applying the weighted average annual ETR, excluding discrete items, of 25% to the profit before tax for the six months ended 30 June 2023 and 1 July 2022, respectively. The ETR of 22% which is lower than statutory UK rate of 23.5% reflects the impact of having operations outside the UK which are taxed at rates other than the statutory UK rate and adjustments made in respect of prior periods. The following table summarises the major components of income tax expense for the periods presented: 30 June 2023 1 July 2022 € million € million Current income tax: Current income tax charge 278 228 Adjustment in respect of current income tax from prior periods (9) 8 Total current tax 269 236 Deferred tax: Relating to the origination and reversal of temporary differences (2) (4) Adjustment in respect of deferred income tax from prior periods (20) (9) Relating to changes in tax rates or the imposition of new taxes — — Total deferred tax (22) (13) Income tax charge per the consolidated income statement 247 223 Tax Provisions The Group is routinely under audit by tax authorities in the ordinary course of business. Due to their nature, such proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, settlements between affected parties and/or governmental actions. The probability of outcome is assessed and accrued as a liability and/or disclosed, as appropriate. The Group maintains provisions for uncertainty related to these tax matters that it believes appropriately reflect its risk. As at 30 June 2023, €147 million (1 July 2022: €154 million) of these provisions is included in current tax liabilities and the remainder is included in non-current tax liabilities. The Group reviews the adequacy of these provisions at the end of each reporting period and adjusts them based on changing facts and circumstances. Due to the uncertainty associated with tax matters, it is possible that at some future date, liabilities resulting from audits or litigation could vary significantly from the Group’s provisions. When an uncertain tax liability is regarded as probable, it is measured on the basis of the Group’s best estimate. The Group has received tax assessments in certain jurisdictions for potential tax related to the Group’s purchases of concentrate. The value of the Group’s concentrate purchases is significant, and therefore, the tax assessments are substantial. The Group strongly believes the application of tax has no technical merit based on applicable tax law, and its tax position would be sustained. Accordingly, the Group has not recorded a tax liability for these assessments and is vigorously defending its position against these assessments. |
PROVISIONS, COMMITMENTS AND CON
PROVISIONS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
PROVISIONS, COMMITMENTS AND CONTINGENCIES | PROVISIONS, COMMITMENTS AND CONTINGENCIES The following table summarises the movement of provisions for the periods presented: Restructuring Provision Other Provisions [1] Total € million € million € million Balance as at 31 December 2022 137 33 170 Charged/(credited) to profit or loss: Additional provisions recognised 37 7 44 Unused amounts reversed (3) (3) (6) Utilised during the period (54) (2) (56) Balance as at 30 June 2023 117 35 152 [1] Other provisions primarily relate to decommissioning provisions, property tax assessment provisions and legal reserves. Guarantees During the 1st half of 2023, the Group has issued approximately €505 million of financial guarantees related to various tax matters. These guarantees have various terms and the amounts represent the maximum potential future payments we could be required to make under the guarantees. No significant additional liabilities requiring financial statement recognition are expected to arise from the guarantees issued. Commitments There have been no significant changes in the commitments of the Group since 31 December 2022. Contingencies |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of other income [Abstract] | |
OTHER INCOME | OTHER INCOME Other income for the six months ended 30 June 2023 totalled €53 million (1 July 2022: €0 million). The balance is attributable to the following activities. |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 6 Months Ended |
Jun. 30, 2023 | |
Events After Reporting Period [Abstract] | |
EVENTS AFTER THE REPORTING PERIOD | EVENTS AFTER THE REPORTING PERIOD On 7 July 2023, the Group completed the sale of property in Germany for a total consideration of €80 million. The property is classified as assets held for sale in our condensed consolidated interim statement of financial position as at 30 June 2023. |
GENERAL INFORMATION AND BASIS_2
GENERAL INFORMATION AND BASIS OF PREPARATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |
Basis of Preparation and Accounting Policies | Basis of Preparation and Accounting Policies The condensed consolidated interim financial statements of the Group have been prepared in accordance with the U.K. adopted International Accounting Standard 34, "Interim Financial Reporting" and the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority, the International Accounting Standard 34, "Interim Financial Reporting" as adopted by the European Union, the International Accounting Standard 34, "Interim Financial Reporting" as issued by the International Accounting Standards Board and should be read in conjunction with our 2022 consolidated financial statements. The annual financial statements of the Group for the year ended 31 December 2023 will be prepared in accordance with U.K. adopted International Accounting Standards, International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). Except as described below, the accounting policies applied in these interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s consolidated financial statements as at and for the year ended 31 December 2022. The policy for recognising income taxes in the interim period is consistent with that applied in previous interim periods and is described in Note 11. International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) On 12 May 2023, the International Accounting Standards Board ( “the IASB”) issued International Tax Reform - Pillar Two Model Rules – Amendments to IAS 12 (“the Amendments”). The Amendments apply with immediate effect and introduce a mandatory temporary exception from the recognition and disclosure of deferred taxes arising from the implementation of the OECD’s Pillar Two Model Rules. On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum effective tax rate of 15%. The legislation implements a domestic top-up tax and a multinational top-up tax, effective for accounting periods starting on or after 31 December 2023. The Group has applied the exception under the IAS 12 amendment to recognising and disclosing information about deferred tax assets and liabilities related to top-up income in preparing its condensed consolidated interim financial statements as of the six month period ended 30 June 2023. Other amendments and interpretations also apply for the first time in 2023, but do not have a material impact on the condensed consolidated interim financial statements of the Group. |
Reporting periods | Reporting periods Results are presented for the interim period from 1 January 2023 to 30 June 2023. The Group’s financial year ends on 31 December. For half-yearly reporting convenience, the first six month period closes on the Friday closest to the end of the interim calendar period. There is no change in selling days between the six months ended 30 June 2023 versus the six months ended 1 July 2022, and there will be equal selling days in the second six months of 2023 versus the second six months of 2022 (based upon a standard five-day selling week). |
Exchange rates | Exchange rates The Group’s reporting currency is the Euro. CCEP translates the income statements of non-Euro functional currency subsidiary operations to the Euro at average exchange rates and the balance sheets at the closing exchange rate as at the end of the period. |
GENERAL INFORMATION AND BASIS_3
GENERAL INFORMATION AND BASIS OF PREPARATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Corporate Information And Statement of IFRS Compliance [Abstract] | |
Schedule of number of selling days by quarter | The following table summarises the number of selling days, for the years ended 31 December 2023 and 31 December 2022 (based on a standard five-day selling week): Half year Full year 2023 130 260 2022 130 260 Change — — |
Schedule of exchange rates | The principal exchange rates used for translation purposes in respect of one Euro were: Average for the six month period ended Closing as at 30 June 2023 1 July 2022 30 June 2023 31 December 2022 British Pound 1.14 1.19 1.16 1.13 US Dollar 0.92 0.91 0.91 0.94 Norwegian Krone 0.09 0.10 0.09 0.10 Swedish Krone 0.09 0.10 0.08 0.09 Icelandic Krone 0.01 0.01 0.01 0.01 Australian Dollar 0.63 0.66 0.61 0.64 Indonesian Rupiah [1] 0.06 0.06 0.06 0.06 New Zealand Dollar 0.58 0.61 0.56 0.60 Papua New Guinean Kina 0.26 0.26 0.26 0.27 [1] Indonesian Rupiah is shown as 1000 IDR versus 1 EUR. |
OPERATING SEGMENT (Tables)
OPERATING SEGMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | The following table provides a reconciliation between reportable segment operating profit and consolidated profit before tax: Six Months Ended 30 June 2023 Six Months Ended 1 July 2022 Europe API Total Europe API Total € million € million € million € million € million € million Revenue 7,105 1,872 8,977 6,451 1,829 8,280 Comparable operating profit [1] 924 241 1,165 825 226 1,051 Items impacting comparability [2] 5 (84) Reported operating profit 1,170 967 Total finance costs, net (63) (63) Non-operating items (6) (6) Reported profit before tax 1,101 898 [1] Comparable operating profit includes comparable depreciation and amortisation of €272 million and €101 million for Europe and API respectively, for the six months ended 30 June 2023. Comparable depreciation and amortisation charges for the six months ended 1 July 2022 totalled €273 million and €114 million, for Europe and API respectively. [2] Items impacting the comparability of period-over-period financial performance for 2023 primarily include €53 million of other income related to the royalties arising from the ownership of certain mineral rights in Australia (€18 million) and the proceeds from the sale of sub-strata and associated mineral rights (€35 million), partially offset by restructuring charges of €51 million. Items impacting the comparability for 2022 primarily include restructuring charges of €95 million, partially offset by net insurance recoveries received of €12 million arising from the July 2021 flooding events. The following table summarises revenue from external customers by geography, which is based on the origin of the sale: Six Months Ended 30 June 2023 1 July 2022 Revenue € million € million Great Britain 1,570 1,463 Germany 1,458 1,296 Iberia [1] 1,541 1,371 France [2] 1,200 1,017 Belgium/Luxembourg 541 511 Netherlands 355 329 Norway 193 208 Sweden 207 213 Iceland 40 43 Total Europe 7,105 6,451 Australia 1,162 1,102 New Zealand and Pacific Islands 330 302 Indonesia and Papua New Guinea 380 425 Total API 1,872 1,829 Total CCEP 8,977 8,280 [1] Iberia refers to Spain, Portugal & Andorra. [2] France refers to continental France & Monaco. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per share [abstract] | |
Earnings per share | The following table summarises basic and diluted earnings per share calculations for the periods presented: Six Months Ended 30 June 2023 1 July 2022 Profit after taxes attributable to equity shareholders (€ million) 854 667 Basic weighted average number of Shares in issue [1] (million) 458 457 Effect of dilutive potential Shares [2] (million) 1 1 Diluted weighted average number of Shares in issue [1] (million) 459 458 Basic earnings per share (€) 1.86 1.46 Diluted earnings per share (€) 1.86 1.46 [1] As at 30 June 2023 and 1 July 2022, the Group had 458,846,191 and 456,789,240 Shares, respectively, in issue and outstanding. [2] For the six months ended 30 June 2023 and 1 July 2022, there were no outstanding options to purchase Shares excluded from the diluted earnings per share calculation. The dilutive impact of the remaining options outstanding, unvested restricted stock units and unvested performance share units was included in the effect of dilutive securities. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Summary of carrying amounts of intangible assets and goodwill | The following table summarises the movement in net book value for intangible assets and goodwill during the six months ended 30 June 2023: Intangible assets Goodwill € million € million Net book value as at 31 December 2022 12,505 4,600 Additions 40 — Amortisation expense (53) — Disposals — — Transfers and reclassifications (1) — Currency translation adjustments (172) (117) Net book value as at 30 June 2023 12,319 4,483 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | The following table summarises the movement in net book value for property, plant and equipment during the six months ended 30 June 2023: Total € million Net book value as at 31 December 2022 5,201 Additions 279 Disposals (16) Depreciation expense (324) Transfers and reclassifications 1 Currency translation adjustments (64) Net book value as at 30 June 2023 [1] 5,077 |
BORROWINGS AND LEASES (Tables)
BORROWINGS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of borrowings | The following table summarises the carrying value of the Group’s borrowings as at the dates presented: 30 June 2023 31 December 2022 € million € million Non-current: Euro denominated bonds [3] 7,689 8,176 Foreign currency bonds (swapped into Euro) [1] 455 1,074 Australian dollar denominated bonds 337 422 Foreign currency bonds (swapped into Australian dollar or New Zealand dollar) [1] 329 364 Lease obligations 522 535 Total non-current borrowings 9,332 10,571 Current: Euro denominated bonds 850 350 Foreign currency bonds (swapped into Euro) [1], [2] 594 797 Australian dollar denominated bonds 62 — Foreign currency bonds (swapped into New Zealand dollar) [1] 46 48 Euro commercial paper [4] 543 — Bank overdrafts [5] 188 — Lease obligations 142 141 Total current borrowings 2,425 1,336 [1] Cross currency swaps are used by the Group to swap foreign currency bonds into the required local currency. [2] In May the Group repaid on maturity the outstanding amount related to the US$850 million 0.50% Notes 2023. [3] Some bonds are designated in full or partially in a fair value hedge relationship. [4] During the 6 month period ending 30 June 2023, the Group issued €3,914 million and repaid €3,371 million Euro commercial paper. During the 6 month period ending 1 July 2022, the Group issued €2,394 million and repaid €2,157 million Euro commercial paper. The issuance net of repayments of Euro commercial paper is presented as changes in short-term borrowings in our condensed consolidated interim statement of cash flows. [5] Included within bank overdrafts is €188 million in relation to a notional pooling arrangement for which an offsetting agreement is in place but does not meet the criteria for net presentation on the condensed consolidated interim statement of financial position. A corresponding amount is also shown in cash and cash equivalents. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The following table summarises the transactions with TCCC that directly impacted the condensed consolidated interim income statement for the periods presented: Six Months Ended 30 June 2023 1 July 2022 € million € million Amounts affecting revenue [1] 68 51 Amounts affecting cost of sales [2] (2,099) (1,910) Amounts affecting operating expenses [3] 5 1 Total net amount affecting the consolidated income statement (2,026) (1,858) [1] Amounts principally relate to fountain syrup and packaged product sales. [2] Amounts principally relate to the purchase of concentrate, syrup, mineral water and juice as well as funding for marketing programmes. [3] Amounts principally relate to costs associated with new product development initiatives and reimbursement of certain marketing expenses. The following table summarises the transactions with TCCC that impacted the consolidated statement of financial position as at the dates presented: 30 June 2023 31 December 2022 € million € million Amount due from TCCC 75 130 Amount payable to TCCC 333 442 During the first half of 2023, the Group completed the remaining portion of the sale of certain non-alcoholic ready to drink beverage brands that were acquired as part of the business combination transaction consummated on 10 May 2021. The sale price approximated the fair value of the brands assessed at the acquisition. These brands were classified as assets held for sale in our consolidated statement of financial position as at 31 December 2022. On 15 February 2023, the Group completed the acquisition of the remaining 29.4% ownership interest of its subsidiary, PT Coca-Cola Bottling Indonesia, for a total consideration of €282 million. Six Months Ended 30 June 2023 1 July 2022 € million € million Amounts affecting revenues [1] 1 2 Amounts affecting cost of sales [2] (40) (32) Amounts affecting operating expenses [3] (9) (8) Total net amount affecting the consolidated income statement (48) (38) [1] Amounts principally relate to packaged product sales. [2] Amounts principally relate to the purchase of packaging materials and concentrate. [3] Amounts principally relate to maintenance and repair services and transportation. The following table summarises the transactions with Cobega that impacted the consolidated statement of financial position as at the dates presented: 30 June 2023 31 December 2022 € million € million Amount due from Cobega 8 3 Amount payable to Cobega 31 24 |
TAXES (Tables)
TAXES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax [Abstract] | |
Disclosure of income tax expense | The following table summarises the major components of income tax expense for the periods presented: 30 June 2023 1 July 2022 € million € million Current income tax: Current income tax charge 278 228 Adjustment in respect of current income tax from prior periods (9) 8 Total current tax 269 236 Deferred tax: Relating to the origination and reversal of temporary differences (2) (4) Adjustment in respect of deferred income tax from prior periods (20) (9) Relating to changes in tax rates or the imposition of new taxes — — Total deferred tax (22) (13) Income tax charge per the consolidated income statement 247 223 |
PROVISIONS, COMMITMENTS AND C_2
PROVISIONS, COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of provisions | The following table summarises the movement of provisions for the periods presented: Restructuring Provision Other Provisions [1] Total € million € million € million Balance as at 31 December 2022 137 33 170 Charged/(credited) to profit or loss: Additional provisions recognised 37 7 44 Unused amounts reversed (3) (3) (6) Utilised during the period (54) (2) (56) Balance as at 30 June 2023 117 35 152 [1] Other provisions primarily relate to decommissioning provisions, property tax assessment provisions and legal reserves. |
GENERAL INFORMATION AND BASIS_4
GENERAL INFORMATION AND BASIS OF PREPARATION - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 € / shares | |
Disclosure of changes in reporting period [Line Items] | |
Number of days in selling week | 5 days |
Ordinary shares | |
Disclosure of changes in reporting period [Line Items] | |
Par value per share (in EUR per share) | € 0.01 |
GENERAL INFORMATION AND BASIS_5
GENERAL INFORMATION AND BASIS OF PREPARATION - Schedule of Number of Selling Days (Details) - day | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of changes in reporting period [Line Items] | ||||
Number of days in selling week | 5 days | |||
Number of selling days in period | 130 | 130 | 260 | |
Forecast | ||||
Disclosure of changes in reporting period [Line Items] | ||||
Number of selling days in period | 260 |
GENERAL INFORMATION AND BASIS_6
GENERAL INFORMATION AND BASIS OF PREPARATION - Exchange Rates (Details) | 6 Months Ended | ||
Jun. 30, 2023 IDR (Rp) | Jul. 01, 2022 | Dec. 31, 2022 | |
British Pound | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 1.14 | 1.19 | |
Closing foreign exchange rate | 1.16 | 1.13 | |
US Dollar | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.92 | 0.91 | |
Closing foreign exchange rate | 0.91 | 0.94 | |
Norwegian Krone | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.09 | 0.10 | |
Closing foreign exchange rate | 0.09 | 0.10 | |
Swedish Krone | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.09 | 0.10 | |
Closing foreign exchange rate | 0.08 | 0.09 | |
Icelandic Krone | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.01 | 0.01 | |
Closing foreign exchange rate | 0.01 | 0.01 | |
Australian Dollar | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.63 | 0.66 | |
Closing foreign exchange rate | 0.61 | 0.64 | |
Indonesian Rupiah | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.06 | 0.06 | |
Closing foreign exchange rate | 0.06 | 0.06 | |
Foreign exchange rate, amount of currency obtained in exchange | Rp 1,000 | ||
New Zealand Dollar | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.58 | 0.61 | |
Closing foreign exchange rate | 0.56 | 0.60 | |
Papua New Guinean Kina | |||
Disclosure of Exchange Rates [Line Items] | |||
Average foreign exchange rate | 0.26 | 0.26 | |
Closing foreign exchange rate | 0.26 | 0.27 |
OPERATING SEGMENTS - Schedule o
OPERATING SEGMENTS - Schedule of Operating Results per Geographic Segment (Details) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | € 8,977 | € 8,280 |
Comparable operating profit | 1,165 | 1,051 |
Items impacting comparability | 5 | (84) |
Operating profit | 1,170 | 967 |
Total finance costs, net | (63) | (63) |
Non-operating items | (6) | (6) |
Profit before taxes | 1,101 | 898 |
Other income | 53 | 0 |
Royalty income | 18 | |
Cost of restructuring | (51) | (95) |
Net income from reimbursements under insurance policies | 12 | |
Europe | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 7,105 | 6,451 |
Comparable operating profit | 924 | 825 |
Including depreciation and amortisation (comparable) | 272 | 273 |
API | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,872 | 1,829 |
Comparable operating profit | 241 | 226 |
Including depreciation and amortisation (comparable) | € 101 | € 114 |
OPERATING SEGMENTS - Schedule_2
OPERATING SEGMENTS - Schedule of Revenue by Geography (Details) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | € 8,977 | € 8,280 |
Great Britain | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,570 | 1,463 |
Germany | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,458 | 1,296 |
Iberia | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,541 | 1,371 |
France | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,200 | 1,017 |
Belgium/Luxembourg | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 541 | 511 |
Netherlands | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 355 | 329 |
Norway | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 193 | 208 |
Sweden | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 207 | 213 |
Iceland | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 40 | 43 |
Total Europe | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 7,105 | 6,451 |
Australia | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,162 | 1,102 |
New Zealand and Pacific Islands | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 330 | 302 |
Indonesia and Papua New Guinea | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 380 | 425 |
Total API | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | € 1,872 | € 1,829 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Basic and Diluted Earnings Per Ordinary Share (Details) - EUR (€) € / shares in Units, € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Earnings per share [abstract] | ||
Profit attributable to shareholders | € 854 | € 667 |
Basic weighted average number of ordinary Shares in issue (million) (in shares) | 458,000,000 | 457,000,000 |
Effect of dilutive potential Shares (million) (in shares) | 1,000,000 | 1,000,000 |
Adjusted weighted average number of ordinary shares outstanding (in shares) | 459,000,000 | 458,000,000 |
Basic earnings per share (in EUR per share) | € 1.86 | € 1.46 |
Diluted earnings per share (in EUR per share) | € 1.86 | € 1.46 |
Number of shares issued and fully paid (in shares) | 458,846,191 | 456,789,240 |
Number of shares outstanding (in shares) | 458,846,191 | 456,789,240 |
Antidilutive options excluded from diluted earnings per share share (in shares) | 0 | 0 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Summary of the Carrying Amounts of Intangible Assets and Goodwill (Details) € in Millions | 6 Months Ended |
Jun. 30, 2023 EUR (€) | |
Intangible assets | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Balance at beginning of period | € 12,505 |
Additions | 40 |
Amortisation expense | (53) |
Disposals | 0 |
Transfers and reclassifications | (1) |
Currency translation adjustments | (172) |
Balance at end of period | 12,319 |
Goodwill | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Balance at beginning of period | 4,600 |
Additions | 0 |
Amortisation expense | 0 |
Disposals | 0 |
Transfers and reclassifications | 0 |
Currency translation adjustments | (117) |
Balance at end of period | € 4,483 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Movement (Details) € in Millions | 6 Months Ended |
Jun. 30, 2023 EUR (€) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Net book value as at 31 December 2022 | € 5,201 |
Additions | 279 |
Disposals | (16) |
Depreciation expense | (324) |
Transfers and reclassifications | 1 |
Currency translation adjustments | (64) |
Net book value as at 30 June 2023 | 5,077 |
Right-of-use assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Net book value as at 30 June 2023 | € 662 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - EUR (€) € in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | ||
Assets held for sale | € 54 | € 94 |
FAIR VALUES AND FINANCIAL RIS_2
FAIR VALUES AND FINANCIAL RISK MANAGEMENT - Narrative (Details) - EUR (€) € in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Disclosure of fair value measurement of assets [line items] | |||
Borrowings | € 11,800 | € 11,900 | |
Total assets | 29,795 | 29,313 | |
Liabilities | 22,035 | 21,866 | |
Pretax activity, net | (38) | € 8 | |
Cash flow hedges | Commodity price risk | Swap contract | |||
Disclosure of fair value measurement of assets [line items] | |||
Notional amount | 139 | ||
Swap contract | |||
Disclosure of fair value measurement of assets [line items] | |||
Derivative financial assets | 1 | ||
Derivative financial liabilities | 18 | ||
Level 2 | Fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Borrowings | 10,600 | 10,500 | |
Level 2 | Recurring | Derivative liability | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 329 | 263 | |
Level 2 | Recurring | Derivative asset | |||
Disclosure of fair value measurement of assets [line items] | |||
Total assets | € 367 | € 448 |
BORROWINGS AND LEASES - Schedul
BORROWINGS AND LEASES - Schedule of Borrowings Outstanding (Details) € in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 EUR (€) | Jul. 01, 2022 EUR (€) | May 31, 2023 USD ($) | Dec. 31, 2022 EUR (€) | |
Non-current: | ||||
Total non-current borrowings | € 9,332 | € 10,571 | ||
Current: | ||||
Total current borrowings | 2,425 | 1,336 | ||
Current commercial papers issued and current portion of non-current commercial papers issued | 3,914 | € 2,394 | ||
Euro denominated bonds | ||||
Non-current: | ||||
Total non-current borrowings | 7,689 | 8,176 | ||
Current: | ||||
Total current borrowings | 850 | 350 | ||
Foreign currency bonds (swapped into Euro) | ||||
Non-current: | ||||
Total non-current borrowings | 455 | 1,074 | ||
Current: | ||||
Total current borrowings | 594 | 797 | ||
Australian dollar denominated bonds | ||||
Non-current: | ||||
Total non-current borrowings | 337 | 422 | ||
Current: | ||||
Total current borrowings | 62 | 0 | ||
Foreign currency bonds (swapped into Australian dollar or New Zealand dollar) | ||||
Non-current: | ||||
Total non-current borrowings | 329 | 364 | ||
Current: | ||||
Total current borrowings | 46 | 48 | ||
Lease obligations | ||||
Non-current: | ||||
Total non-current borrowings | 522 | 535 | ||
Euro commercial paper | ||||
Current: | ||||
Total current borrowings | 543 | 0 | ||
Repayments of borrowings, classified as financing activities | 3,371 | € 2,157 | ||
Bank overdrafts | ||||
Current: | ||||
Total current borrowings | 188 | 0 | ||
Lease obligations | ||||
Current: | ||||
Total current borrowings | € 142 | € 141 | ||
0.5 Percent USD Notes due 2023 | ||||
Current: | ||||
Notional amount | $ | $ 850 | |||
Borrowings, interest rate | 0.50% |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) | May 25, 2023 € / shares | May 26, 2022 € / shares | Jun. 30, 2023 shares vote | Jul. 01, 2022 shares |
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding (in shares) | 458,846,191 | 456,789,240 | ||
Number of shares issued and fully paid (in shares) | 458,846,191 | 456,789,240 | ||
Dividend rate (in euros per share) | € / shares | € 0.67 | € 0.56 | ||
Ordinary shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of votes per share in issue | vote | 1 | |||
Number of shares issued (in shares) | 1,739,738 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Transactions with TCCC (Details) - TCCC - Entities with joint control or significant influence over entity - EUR (€) € in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | |||
Amounts affecting revenue | € 68 | € 51 | |
Amounts affecting cost of sales | (2,099) | (1,910) | |
Amounts affecting operating expenses | 5 | 1 | |
Total net amount affecting the consolidated income statement | (2,026) | € (1,858) | |
Amounts receivable, related party transactions | 75 | € 130 | |
Amounts payable, related party transactions | € 333 | € 442 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - EUR (€) € in Millions | 6 Months Ended | |||
Feb. 15, 2023 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
PT Coca-Cola Bottling Indonesia | ||||
Disclosure of transactions between related parties [line items] | ||||
Percentage of voting equity interests acquired | 29.40% | |||
Consideration paid (received) | € 282 | |||
Other related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Amounts affecting cost of sales | € 88 | € 83 | ||
Joint ventures, associates and other related parties | ||||
Disclosure of transactions between related parties [line items] | ||||
Amounts receivable, related party transactions | 5 | € 6 | ||
Amounts payable, related party transactions | € (9) | € (19) |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Schedule of Transactions with Cobega Companies (Details) - Cobega Companies - Entities with joint control or significant influence over entity - EUR (€) € in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | |||
Amounts affecting revenue | € 1 | € 2 | |
Amounts affecting cost of sales | (40) | (32) | |
Amounts affecting operating expenses | (9) | (8) | |
Total net amount affecting the consolidated income statement | (48) | € (38) | |
Amounts receivable, related party transactions | 8 | € 3 | |
Amounts payable, related party transactions | € 31 | € 24 |
TAXES - Narrative (Details)
TAXES - Narrative (Details) - EUR (€) € in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Income Tax [Abstract] | |||
Average effective tax rate | (22.00%) | (25.00%) | (22.00%) |
Discrete items excluded from average effective tax rate | 25% | ||
Current tax liabilities, audit provision | € 147 | € 154 |
TAXES - Components of Income Ta
TAXES - Components of Income Tax (Details) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Current income tax: | ||
Current income tax charge | € 278 | € 228 |
Adjustment in respect of current income tax from prior periods | (9) | 8 |
Total current tax | 269 | 236 |
Deferred tax: | ||
Relating to the origination and reversal of temporary differences | (2) | (4) |
Adjustment in respect of deferred income tax from prior periods | (20) | (9) |
Relating to changes in tax rates or the imposition of new taxes | 0 | 0 |
Total deferred tax | (22) | (13) |
Income tax charge per the consolidated income statement | € 247 | € 223 |
PROVISIONS, COMMITMENTS AND C_3
PROVISIONS, COMMITMENTS AND CONTINGENCIES - Disclosure of Provisions (Details) € in Millions | 6 Months Ended |
Jun. 30, 2023 EUR (€) | |
Reconciliation of changes in other provisions [abstract] | |
Beginning balance | € 170 |
Charged/(credited) to profit or loss: | |
Additional provisions recognised | 44 |
Unused amounts reversed | (6) |
Utilised during the period | (56) |
Ending balance | 152 |
Restructuring Provision | |
Reconciliation of changes in other provisions [abstract] | |
Beginning balance | 137 |
Charged/(credited) to profit or loss: | |
Additional provisions recognised | 37 |
Unused amounts reversed | (3) |
Utilised during the period | (54) |
Ending balance | 117 |
Other Provisions | |
Reconciliation of changes in other provisions [abstract] | |
Beginning balance | 33 |
Charged/(credited) to profit or loss: | |
Additional provisions recognised | 7 |
Unused amounts reversed | (3) |
Utilised during the period | (2) |
Ending balance | € 35 |
PROVISIONS, COMMITMENTS AND C_4
PROVISIONS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) € in Millions | 6 Months Ended |
Jun. 30, 2023 EUR (€) | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provision of guarantees or collateral by entity, third parties | € 505 |
OTHER INCOME (Details)
OTHER INCOME (Details) - EUR (€) € in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 01, 2022 | |
Disclosure of other income [Abstract] | ||
Other income | € 53 | € 0 |
Royalty income | 18 | |
Proceeds from the sale of sub-strata and associated mineral rights | € 35 | € 0 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) - EUR (€) € in Millions | 6 Months Ended | |||
Jul. 07, 2023 | Jun. 30, 2023 | Jul. 01, 2022 | Dec. 31, 2022 | |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Proceeds from sales of property, plant and equipment | € 9 | € 6 | ||
Intangible assets | 12,319 | € 12,505 | ||
Beam Suntory Distribution Rights | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Intangible assets | € 127 | |||
Other disposals of assets | Germany | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Proceeds from sales of property, plant and equipment | € 80 |