Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Coca-cola Europacific Partners Plc LSE:CCEP London Ordinary Share GB00BDCPN049 ORD EUR0.01 (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  1.25 2.48% 51.75 51.30 52.10 51.80 50.60 50.60 1,149 16:35:25
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Beverages 10,606.0 695.0 109.0 47.5 24,503

Coca-Cola Europacific Partners plc Investor event following acquisition of Amatil

11/05/2021 12:30pm

UK Regulatory (RNS & others)


Coca-cola Europacific Pa... (LSE:CCEP)
Historical Stock Chart


From Apr 2021 to Jul 2021

Click Here for more Coca-cola Europacific Pa... Charts.

TIDMCCEP

RNS Number : 2138Y

Coca-Cola Europacific Partners plc

11 May 2021

LONDON, 11(th) May 2021

COCA-COLA EUROPACIFIC PARTNERS

Coca-Cola Europacific Partners plc (CCEP) today hosts a virtual investor event

following implementation of the acquisition of Coca-Cola Amatil Ltd

Following the implementation of the Scheme of Arrangement to acquire Coca-Cola Amatil Ltd on 10 May 2021, CCEP is today hosting a virtual investor event for institutional investors and analysts. The meeting will be hosted by Sarah Willett, Vice President, Investor Relations & Corporate Strategy. Key speakers will include Chairman Sol Daurella, Chief Executive Officer Damian Gammell, Chief Financial Officer Nik Jhangiani, and General Manager for the newly named API (Australia, Pacific and Indonesia) business unit Peter West.

Sol Daurella, Chairman of CCEP, said:

"We are excited to welcome Coca-Cola Amatil's great colleagues to Coca-Cola Europacific Partners and look forward to a more diversified future with sustainability at the heart of everything we do. We have a proven track record in successfully bringing together talent, culture and best practice to create value. I truly believe that we can go further together, delivering great service and great beverages in all of our now 29 markets."

Damian Gammell, Chief Executive Officer of CCEP, added:

"This acquisition brings together two of the world's best bottlers whilst strengthening our strategic relationship with The Coca-Cola Company and our other brand partners. It brings an exciting diversity to our business, including exposure to the world's fourth most populous market, a wider portfolio including alcohol and hot coffee, and local in-market expertise. Together with our great business in Europe, we will unlock new, higher growth opportunities. In Australia, Pacific and Indonesia we will accelerate momentum by applying Europe's proven business model, and we will strengthen our European operations by applying learnings from our new markets. This is the start of a journey which will create significant value to shareholders and strengthen our profile as an attractive and sustainable total return investment opportunity."

Investor meeting highlights

   --               Structurally higher growth platform 

API's faster growing markets create a larger and higher growth addressable market for the combined business

-- Non-alcoholic ready to drink of c.EUR125 billion(1) and set to grow by around 3% per annum(2) (FY22-25)

   --       Hot Coffee of c.EUR75 billion(3) and set to grow by around 4% per annum(2) (FY22-25) 

This is supported by attractive long-term macro fundamentals. Australia and New Zealand are expected to see GDP and population growth ahead of Western Europe over the medium-term. Indonesia, the world's fourth most populous country, has a young population, and is undergoing rapid urbanisation with a growing, more affluent middle class. It is expected to grow GDP at over 5% over the medium-term(4) .

([1]) Global Data FY2019; rounded. Markets inc. BE, FR, DE, NL, NO, PT, SP, SE, UK, AUS, IND, NZ

([2]) CCEP internal estimates based on Global Data 2022-2025; rounded to nearest percent

([3]) Global Data, Euromonitor, European Vending and OCS Association & internal estimates; FY2019; rounded; Markets inc. BE, FR, DE, NL, NO, PT, SP, SE, UK, AUS, IND, NZ

([4]) 2025 real GDP year-on-year growth rate; source: IHS Markit

-- Significant performance improvement opportunities supported by best practice sharing and a strengthened relationship with The Coca-Cola Company (TCCC)

There is significant potential to improve performance, led by a strong local management team and supported by a wealth of developed and emerging market experience across Europe's senior management team.

-- Australia - business returned to revenue growth in 2019 after 6 years of decline, providing a solid base from which to further benefit from the reorientation of its portfolio with TCCC, winning with customers by focusing on joint value creation, accelerating in e-commerce and building on capabilities like revenue growth management

-- In Indonesia, where penetration of sparkling beverages is low but with proven demand, there exists significant headroom for growth

-- And the Pacific business, led by New Zealand, is a great business from which to leverage learnings

-- CCEP will go further together through building on the best of both businesses to drive growth and scale faster as one, from people to digital and of course sustainability - both businesses have a strong, shared focus in this area, each with leading credentials. Together they will align commitments to go further together and faster.

-- From an efficiency perspective, the two businesses will continue on their individual journeys to become ever more efficient and will be even leaner as one. The ongoing and pre-announced efficiency programmes - Accelerate Competitiveness in Europe and Fighting Fit in Australia - remain on track. In addition, the transaction will create further opportunities in areas such as procurement, supply chain and group functions. CCEP estimates that around EUR60-80 million of efficiency savings will be delivered over the next three years, weighted to FY22 onwards.

   --               Value creating for shareholders 

The transaction will create attractive value for shareholders, with immediate EPS accretion and an expectation that ROIC(1) will cover WACC(2) in around 5 years. CCEP also intends to maintain its c.50% dividend payout ratio(1) on a larger earnings base, thereby generating enhanced returns.

-- Focused on returning to target leverage within 3 years driven by stronger cash generation

CCEP entered into the transaction with both a strong balance sheet and an investment grade rating(3) , to which it remains fully committed. After acquisition related borrowings of EUR5.7 billion with balanced maturities and at a weighted effective average interest cost of c.40 basis points. Leverage(1) at close was at around 5 times adjusted EBITDA(1) .

CCEP has a balanced mix of debt maturities at an average of 6.5 years, with no financial covenants and an average interest cost of 1.3%. Driven by the stronger cash generation from the combined business, CCEP is focused on returning to target leverage(1) within 3 years, without affecting ongoing organic growth investments.

   --              Transaction underpins medium-term objectives 

The transaction underpins CCEP's medium-term annual objectives, which are as follows:

   --       Low single digit revenue growth 
   --       Mid-single digit operating profit growth 
   --       Mid-single digit diluted EPS growth (excluding share buybacks) 
   --       Return on invested capital improvement of c.40 basis points 

-- Free cash flow of at least EUR1.25 billion (after c.5% capital expenditure(4) as a % of revenue, excluding payments of principal on lease obligations)

   --       Dividend payout ratio of c.50% 
   --       Target leverage of 2.5 to 3.0 times net debt to adjusted EBITDA 

Growth and improvement measures are each comparable and FX-neutral. Mid-term annual financial objectives should be read in conjunction with the note regarding the presentation of alternative performance measures.

([1]) Refer to "Note Regarding the Presentation of Alternative Performance Measures" for further details.

([2]) WACC = Weighted average cost of capital

([3]) Moody's Baa1, stable outlook; Fitch BBB+, stable outlook

([4]) c6% capital expenditure as a % of revenue, including payments of principal on lease obligations

 
Pro Forma Financial Information 
 

Provided in the appendix to this release on a full year basis for FY20 and FY19, including quarterly revenues and volumes and updated (compared to the pro forma condensed combined financial information prepared in connection with proposed financings of the Coca-Cola Amatil Limited acquisition by CCEP and furnished on Form 6-K on 20 April 2021) to include the actual cost of financing. The proformas are also available in excel format on CCEP's website, www.cocacolaep.com , in the Investors section.

 
Webcast 
 

CCEP will webcast the main presentation live through its website today beginning at 13:00 BST, 14:00 CEST and 8:00 a.m. EDT. A presentation will be followed by a Q&A session and is expected to last approximately two hours. A replay and transcript will be made available post the event on the website as soon as possible.

 
Contacts 
 

Clare Wardle, General Counsel and Company Secretary: secretariat@ccep.com

Investor Relations: Sarah Willett: sarah.willett@ccep.com +44 7970 145 218

Media: Shanna Wendt: swendt@ccep.com +44 7976 595 168;

Peter Brookes: pbrookes@citadelmagnus.com +61 407 911 389; Brett Clegg: bclegg@citadelmagnus.com +61 487 436 985

 
About CCEP 
 

Coca-Cola Europacific Partners is one of the leading consumer goods companies in the world. We make, move and sell some 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 listed on Euronext Amsterdam, the New York Stock Exchange, 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 @CCEP.

 
Forward-Looking Statements 
 

This document contains statements, estimates or projections that constitute "forward-looking statements" concerning the financial condition, performance, results, strategy and objectives of Coca-Cola Europacific Partners plc and its subsidiaries, including Coca-Cola Amatil Limited and its subsidiaries (together "CCL", and CCL with Coca-Cola Europacific Partners plc and its subsidiaries together "CCEP" or the "Group"). Generally, the words "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, including with respect to the acquisition of CCL (the "Acquisition"). 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 2020 Annual Report on Form 20-F filed with the SEC on 12 March 2021, including the statements under the following headings: Business continuity and resilience (such as the adverse impact that the COVID-19 pandemic and related government restrictions and social distancing measures implemented in many of our markets, and any associated economic downturn, may have on our financial results, operations, workforce and demand for our products); Packaging (such as refillables and recycled plastics); Cyber and social engineering attacks and IT infrastructure; Economic and political conditions (such as the UK's exit from the EU, the EU-UK Trade and Cooperation Agreement, and uncertainty about the future relationship between the UK and EU); Market (such as disruption due to customer negotiations, customer consolidation and route to market); Legal, regulatory and tax (such as the development of regulations regarding packaging, taxes and deposit return schemes); Climate change and water (such as net zero emission legislation and regulation, and resource scarcity); Perceived health impact of our beverages and ingredients, and changing consumer buying trends (such as sugar alternatives and other ingredients); Competitiveness, business transformation and integration; People and wellbeing; Relationship with TCCC and other franchisors; Product quality; and Other risks;

2. those set forth in the "Business and Sustainability Risks" section of CCL's 2020 Financial and Statutory Reports including the statements under the following headings: COVID-19 related risks; The Coca-Cola Company (TCCC) and other brand partners relationship risk; Economic and political risks; Cyber risk; Foreign exchange risk; Key personnel risk; Beverage industry risk; Regulatory risk; Corporate social responsibility risk; Climate change risk; Supply chain risk; Litigation and legal disputes risk; Malicious product tampering risk; Workplace Health & Safety (WHS) risk; Business interruption risk; Product quality risk; Fraud risk; and

3. risks and uncertainties relating to the Acquisition, including the risk that the businesses will not be integrated successfully or such integration may be more difficult, time consuming or costly than expected, which could result in additional demands on CCEP's resources, systems, procedures and controls, disruption of its ongoing business and diversion of management's attention from other business concerns; the possibility that certain assumptions with respect to CCL or the Acquisition could prove to be inaccurate; burdensome conditions imposed in connection with any regulatory approvals; ability to raise financing; the potential that the Acquisition may involve unexpected liabilities for which there is no indemnity; the potential failure to retain key employees as a result of the Acquisition or during integration of the businesses and disruptions resulting from the Acquisition, making it more difficult to maintain business relationships; the potential for (i) negative reaction from financial markets, customers, regulators, employees and other stakeholders, (ii) litigation related to the Acquisition.

The full extent to which the COVID-19 pandemic will negatively 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.

Due to these risks, CCEP's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set out in forward-looking statements (including those issued by CCL prior to the Acquisition). 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. Furthermore, CCEP assumes no responsibility for the accuracy and completeness of any forward-looking statements. Any or all of the forward-looking statements contained in this filing and in any other of CCEP's or CCL's public statements (whether prior or subsequent to the Acquisition) may prove to be incorrect.

Note regarding the presentation of 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 measure.

For purposes of this document, the following terms are defined:

"As reported" are results extracted from our consolidated financial statements.

"Comparable" is defined as results excluding items impacting comparability, such as restructuring charges, out of period mark-to-market impact of hedges and net tax items relating to rate and law changes. Comparable volume is also adjusted for selling days.

"Fx-neutral" is defined as comparable 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 EBITDA" is calculated as Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), after adding back items impacting the comparability of year over year 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 less currency adjusted borrowing. 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" is defined as comparable operating profit after tax divided by the average of opening and closing invested capital for the year. Invested capital is calculated as the addition of borrowings and equity less cash and cash equivalents. 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%.

 
Pro Forma Financial Information 
 

The following Pro Forma Financial Information is presented for illustrative purposes only and does not necessarily reflect the results of operations or the financial position that actually would have resulted had the Acquisition occurred at the dates indicated, or project the results of operations or financial position for any future dates or periods. The Pro Forma Financial Information has not been prepared in accordance with the requirements of Regulation S-X of the US Securities Act of 1933, the Prospectus Regulation, or any generally accepted accounting standards.

 
    Pro forma and Comparable 
           Financials 
                 FY20     FY19 
==============  ======  ======== 
Revenue 
 ([1])          13,535  15,235 
Operating 
 Profit ([1])    1,492   2,038 
Adjusted 
 EBITDA ([2])    2,340   2,888 
Diluted 
 EPS ([1])        2.17    2.99 
Net Debt 
 to adjusted 
 EBITDA ([3])      5.3       - 
 
 
                 Historical Financial Notes 
  -------------------------------------------------------- 
  Financial basis   Assumes acquisition as at 
                     beginning of respective financial 
                     year. 
  Depreciation      Preliminary valuation of inventory, 
   & Amortisation    PPE and intangibles - to be 
                     revised. Impacts COGS and 
                     Operating Expenses. 
  Transaction       Removed as an adjusting item 
   costs             for comparable financial information. 
  Weighted average  c.0.40% relating to acquisition 
   cost of debt      related financing. 
  Income tax        Derived from historical actuals. 
   rate              Proforma adjustments tax effected 
                     based on blended 2020 actual 
                     rates. 
 

______________________

([1]) Refer to "Pro Forma Financial Information - Combined Pro Forma and Comparable Income Statement" section for a reconciliation to previously reported financial information.

([2]) Refer to "Pro Forma Financial Information - Pro Forma Adjusted EBITDA " sections for a reconciliation to previously reported financial information.

([3]) Net debt calculated in accordance with definition provided in "Note Regarding the Presentation of Alternative Performance Measures".

 
Pro Forma Financial Information - Combined Pro Forma and Comparable 
 Income Statement 
 

The following provides a reconciliation of CCEP Pro forma Combined to CCEP Combined Pro forma and Comparable for the periods presented. For 2020, CCEP Pro forma Combined has been extracted from the Unaudited pro forma condensed combined financial information, prepared in connection with proposed financings of the Coca-Cola Amatil Limited acquisition by CCEP and furnished on Form 6-K on 20 April 2021, and adjusted for a reduction in total finance costs, net of EUR11m, to reflect actual weighted average interest rate for acquisition financing of c.0.40%. For 2019, a separate reconciliation between historically reported consolidated income statements for CCEP and CCL and CCEP Pro forma Combined has been provided herein.

 
                                                              Items Impacting Comparability 
                  --------  --------------------------------------------------------------------------------------------------  ------------ 
Full-year 2020      CCEP    Mark-to-market  Restructuring  Impairment     Total     Inventory    Net     Other       Total          CCEP 
Unaudited,          Pro      effects([2])    Charges([3])     ([4])    Acquisition     step    tax([8])   ([9])      items        Combined 
in millions        forma                                                 Related     up costs                      impacting     Pro forma 
of EUR except     Combined                                                Costs       ([6])                      comparability      and 
per share data     ([1a])                                                 ([5])                                                  Comparable 
which is 
calculated 
prior to 
rounding 
                  ========  ==============  =============  ==========  ===========  =========  ========  ======  =============  ============ 
Revenue             13,535               -              -           -            -          -         -       -              -      13,535 
Cost of sales        8,646               -           (70)           -            -       (29)         -       -           (99)       8,547 
----------------  --------  --------------  -------------  ----------  -----------  ---------  --------  ------  -------------  ---------- 
Gross profit         4,889               -             70           -            -         29         -       -             99       4,988 
Operating 
 expenses            4,059             (2)          (325)       (116)        (107)          -         -    (13)          (563)       3,496 
----------------  --------  --------------  -------------  ----------  -----------  ---------  --------  ------  -------------  ---------- 
Operating profit       830               2            395         116          107         29         -      13            662       1,492 
Total finance 
 costs, net            175               -              -           -          (7)          -         -       -            (7)         168 
Non-operating 
 items                   9               -              -           -            -          -         -     (4)            (4)           5 
----------------  --------  --------------  -------------  ----------  -----------  ---------  --------  ------  -------------  ---------- 
Profit before 
 taxes                 646               2            395         116          114         29         -      17            673       1,319 
Taxes                  189               -            111          29           33          8      (45)       4            140         329 
----------------  --------  --------------  -------------  ----------  -----------  ---------  --------  ------  -------------  ---------- 
Profit after 
 taxes                 457               2            284          87           81         21        45      13            533         990 
 
Attributable 
 to: 
Shareholders           479                                                                                                 507         986 
Non-controlling 
 interests            (22)                                                                                                  26           4 
----------------  ========                                                                                       =============  ========== 
Profit after 
 taxes                 457                                                                                                 533         990 
 
Diluted earnings 
 per share (EUR)      1.00                                                                                                              2.17 
 
Diluted weighted average shares outstanding                                                                                            456 
 
 
 
                                                                Items Impacting Comparability 
================  --------   ----------------------------------------------------------------------------------------------------   ------------ 
Full-year 2019      CCEP     Mark-to-market  Restructuring     Total     Inventory  Disconti-nued    Net     Other      Total           CCEP 
Unaudited,          Pro       effects([2])    Charges([3])  Acquisition     step      operations   tax([8])  ([9])      items         Combined 
in millions        forma                                      Related     up costs      ([7])                         impacting      Pro forma 
of EUR except     Combined                                     Costs       ([6])                                    comparability       and 
per share data     ([1b])                                      ([5])                                                                 Comparable 
which is 
calculated 
prior to 
rounding 
================  ========   ==============  =============  ===========  =========  =============  ========  =====  =============   ============ 
Continuing 
 operations 
Revenue             15,235                -              -            -          -              -         -      -              -       15,235 
Cost of sales        9,312              (1)              -            -       (30)              -         -      -           (31)        9,281 
----------------  --------   --------------  -------------  -----------  ---------  -------------  --------  -----  -------------   ---------- 
Gross profit         5,923                1              -            -         30              -         -      -             31        5,954 
Operating 
 expenses            4,157                3          (147)         (92)          -              -         -    (5)          (241)        3,916 
----------------  --------   --------------  -------------  -----------  ---------  -------------  --------  -----  -------------   ---------- 
Operating profit     1,766              (2)            147           92         30              -         -      5            272        2,038 
Total finance 
 costs, net            164                -              -          (4)          -              -         -                   (4)          160 
Non-operating 
 items                 (1)                -              -            -          -              -         -    (4)            (4)          (5) 
----------------  --------   --------------  -------------  -----------  ---------  -------------  --------  -----  -------------   ---------- 
Profit before 
 taxes               1,603              (2)            147           96         30              -         -      9            280        1,883 
Taxes                  405              (1)             42           28          8              -       (2)      3             78          483 
----------------  --------   --------------  -------------  -----------  ---------  -------------  --------  -----  -------------   ---------- 
Profit after 
 taxes from 
 continuing 
 operations          1,198              (1)            105           68         22              -         2      6            202        1,400 
 
Discontinued operations 
Profit from 
 discontinued 
 operations, 
 net of tax              4                -              -            -          -            (4)         -      -            (4)            - 
----------------  --------   --------------  -------------  -----------  ---------  -------------  --------  -----  -------------   ---------- 
Profit after 
 taxes               1,202  -           (1)            105           68         22            (4)         2      6            198  -     1,400 
 
Attributable 
 to: 
Shareholders         1,193                                                                                                    198        1,391 
Non-controlling 
 interests               9                                                                                                      -            9 
----------------  ========                                                                                          =============   ========== 
Profit after 
 taxes               1,202                                                                                                    198        1,400 
 
Diluted earnings 
 per share (EUR)      2.56                                                                                                                  2.99 
 
Diluted weighted average shares outstanding                                                                                                469 
 
 

______________________

([1a]) Extracted from the Unaudited pro forma condensed combined financial information for the year ended 31 December 2020, prepared in connection with proposed financings of the Coca-Cola Amatil Limited acquisition by CCEP and furnished on Form 6-K on 20 April 2021, and adjusted for a reduction in total finance costs, net of EUR11m, to reflect actual weighted average interest rate for acquisition financing of c.0.40%.

([1b]) For 2019, refer to the reconciliation between historically reported consolidated income statements for CCEP and CCL and CCEP Pro forma Combined on page 9.

([2]) Amounts represent the net out of period mark-to-market impact of non-designated commodity hedges.

([3]) Amounts represent restructuring charges related to business transformation activities.

([4]) Amounts represent the charges recognised by CCL relating to the impairment of Indonesia and Fiji during H1 2020.

([5]) Amounts represent costs associated with the acquisition of CCL.

([6]) Amounts represent the impact of the preliminary acquisition accounting step-up in the fair value of finished goods.

([7]) Amounts represent the results of CCL discontinued operations relating to sale of SPC in 2019.

([8]) Amounts include the deferred tax impact related to income tax rate and law changes.

([9]) Amounts represent charges, other than restructuring, classified as non-trading items by CCL which are not expected to recur.

The unaudited pro forma income statement and related notes for 2019 (the "2019 Pro Forma Financial Information") is based on the historical consolidated income statement of CCEP and CCL and has been prepared to reflect the acquisition of CCL as if it had occurred on 1 January 2019. The 2019 Pro Forma Financial Information should be read in conjunction with, and reflects the same transaction accounting adjustments presented within, CCEP's 6-K dated 20 April 2021 which includes the Unaudited pro forma condensed combined financial information for the year ended 31 December 2020, except that the translation rate used to convert Australian Dollars to Euros is a 2019 average rate and is included within the notes herein. The 2019 Pro Forma Financial Information has not been prepared in accordance with the requirements of Regulation S-X of the US Securities Act of 1933, the Prospectus Regulation, or any generally accepted accounting standards.

The 2019 Pro Forma Financial Information is derived from and should be read in conjunction with the 2019 financial statements of CCEP and CCL for the year end 31 December 2019. The historical financial statements and related notes thereto of CCEP are filed with the US Securities and Exchange Commission as part of CCEP's Annual Report on Form 20-F for the year ended 31 December 2019. The historical financial statements and related notes thereto of CCL can be found on CCL's website at https://www.ccamatil.com/au/Investors/Financial-reporting.

 
                                                     Transaction accounting adjustments 
                                       --------------------------------------------------------------- 
Full-year 2019      CCEP    Adjusted      Fixed       Intangible   Inventory  Acquisition   Financing      Total         CCEP 
Unaudited,           As        CCL        asset         asset         step      Related    Adjustments  acquisition       Pro 
in millions       Reported    ([1])    depreciation  amortisation   up costs     Costs        ([4])     adjustments      forma 
of EUR except                           adjustment    adjustment     ([2])       ([3])                                 Combined 
per share data                            ([2])         ([2]) 
which is 
calculated 
prior to 
rounding 
                  ========  ========   ============  ============  =========  ===========  ===========  ===========   ========== 
Continuing 
 operations 
Revenue             12,017     3,218              -             -          -            -            -            -     15,235 
Cost of sales        7,424     1,849              9             -         30            -            -           39      9,312 
----------------  --------  --------   ------------  ------------  ---------  -----------  -----------  -----------   -------- 
Gross profit         4,593     1,369            (9)             -       (30)            -            -         (39)      5,923 
Operating 
 expenses            3,045       996              2            22          -           92            -          116      4,157 
----------------  --------  --------   ------------  ------------  ---------  -----------  -----------  -----------   -------- 
Operating profit     1,548       373           (11)          (22)       (30)         (92)            -        (155)      1,766 
Total finance 
 costs, net             96        41              -             -          -            4           23           27        164 
Non-operating 
 items                 (2)         1              -             -          -            -            -            -        (1) 
----------------  --------  --------   ------------  ------------  ---------  -----------  -----------  -----------   -------- 
Profit before 
 taxes               1,454       331           (11)          (22)       (30)         (96)         (23)        (182)      1,603 
Taxes                  364        93            (3)           (6)        (8)         (28)          (7)         (52)        405 
----------------  --------  --------   ------------  ------------  ---------  -----------  -----------  -----------   -------- 
Profit after 
 taxes from 
 continuing 
 operations          1,090       238            (8)          (16)       (22)         (68)         (16)        (130)      1,198 
 
Discontinued operations 
Profit from 
 discontinued 
 operations, 
 net of tax              -         4                                                                              -          4 
----------------  --------  --------   ------------  ------------  ---------  -----------  -----------  -----------   -------- 
Profit after 
 taxes               1,090       242  -         (8)          (16)       (22)         (68)         (16)        (130)  -   1,202 
 
Attributable 
 to: 
Shareholders         1,090       233                                                                          (130)      1,193 
Non-controlling 
 interests               -         9                                                                              -          9 
----------------  --------  --------                                                                    -----------   -------- 
Profit after 
 taxes               1,090       242                                                                          (130)      1,202 
 
Diluted earnings 
 per share (EUR)      2.32                                                                                                  2.56 
 
Diluted weighted average shares outstanding                                                                                469 
 
 

_____________________

([1]) Includes preliminary adjustments to present on a basis consistent with CCEP accounting policies. Translated from Australian Dollars to Euros using an average annual exchange rate of 0.6216.

([2]) Amounts represent 2020 transaction accounting adjustments, translated from Australian Dollars to Euros using an average annual exchange rate of 0.6216. Refer to the Unaudited pro forma condensed combined financial information for the year ended 31 December 2020, prepared in connection with proposed financings of the Coca-Cola Amatil Limited acquisition by CCEP and furnished on Form 6-K on 20 April 2021, for more details.

([3]) Amounts represent non-recurring costs associated with the acquisition of CCL.

([4]) Amounts represent total finance costs, reflecting a weighted average interest rate for acquisition financing of c.0.40%.

 
Pro Forma Financial Information - Pro Forma Revenue & Volume 
 
 
 
Pro forma 2020 Revenue       Q1     Q2     Q3     Q4     H1     H2      FY 
 by Geography in millions 
 of EUR 
==========================  =====                =====                ====== 
Iberia([1])                   529    388    739    517    917  1,256   2,173 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Germany                       517    497    670    586  1,014  1,256   2,270 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Great Britain                 495    531    612    565  1,026  1,177   2,203 
==========================  =====  =====  =====  =====  =====  =====  ====== 
France([2])                   413    395    500    401    808    901   1,709 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Total Northern Europe         524    548    658    521  1,072  1,179   2,251 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Belgium/Luxembourg            -      -      -      -    426    466     892 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Netherlands                   -      -      -      -    250    279     529 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Norway                        -      -      -      -    199    224     423 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Sweden                        -      -      -      -    162    175     337 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Iceland                       -      -      -      -     35     35      70 
                            =====  =====  =====  =====  =====  =====  ====== 
Total Europe                2,478  2,359  3,179  2,590  4,837  5,769  10,606 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Australia                     453    350    442    585    803  1,027   1,830 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Pacific([3])                  123     94    113    163    217    276     493 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Indonesia & Papua 
 New Guinea                   162    153    128    163    315    291     606 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Total API([4])                738    597    683    911  1,335  1,594   2,929 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Pro forma total Coca-Cola 
 Europacific Partners       3,216  2,956  3,862  3,501  6,172  7,363  13,535 
==========================  =====  =====  =====  =====  =====  =====  ====== 
 
Revenue per unit 
 case([5]) 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Europe                       4.77   4.59   4.80   4.59   4.68   4.70    4.69 
==========================  =====  =====  =====  =====  =====  =====  ====== 
API([6])                     4.81   4.70   4.98   5.02   4.76   5.00    4.89 
Pro forma total Coca-Cola 
 Europacific Partners        4.78   4.61   4.83   4.70   4.69   4.77    4.73 
 
 
 
Pro forma 2019 Revenue       Q1     Q2     Q3     Q4     H1     H2       FY 
 by Geography in millions 
 of EUR 
==========================  =====                =====                ======== 
Iberia([1])                   537    745    878    624  1,282  1,502   2,784 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Germany                       528    643    650    611  1,171  1,261   2,432 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Great Britain                 530    621    626    635  1,151  1,261   2,412 
==========================  =====  =====  =====  =====  =====  =====  ====== 
France([2])                   442    525    471    459    967    930   1,897 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Total Northern Europe         547    683    657    604  1,231  1,261   2,492 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Belgium/Luxembourg            -      -      -      -    493    509   1,002 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Netherlands                   -      -      -      -    295    307     602 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Norway                        -      -      -      -    218    219     437 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Sweden                        -      -      -      -    184    182     366 
==========================  =====  =====  =====  =====  =====  =====  ====== 
  Iceland                       -      -      -      -     41     44      85 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Total Europe                2,584  3,217  3,282  2,933  5,802  6,215  12,017 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Australia                     472    450    455    580    922  1,035   1,957 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Pacific([3])                  123    114    112    155    237    267     504 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Indonesia & Papua 
 New Guinea                   155    224    162    216    379    378     757 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Total API([4])                750    788    729    951  1,538  1,680   3,218 
==========================  =====  =====  =====  =====  =====  =====  ====== 
Pro forma total Coca-Cola 
 Europacific Partners       3,334  4,005  4,011  3,884  7,340  7,895  15,235 
==========================  =====  =====  =====  =====  =====  =====  ====== 
 
Revenue per unit 
 case([5]) 
==========================  =====  =====  =====  =====  =====  =====  ======== 
Europe                       4.71   4.84   4.75   4.76   4.78   4.75    4.77 
==========================  =====  =====  =====  =====  =====  =====  ====== 
API([6])                     4.82   4.59   4.87   4.82   4.70   4.84    4.77 
Pro forma total Coca-Cola 
 Europacific Partners        4.73   4.79   4.77   4.77   4.76   4.77    4.77 
 

___________________________

([1]) Iberia refers to Spain, Portugal & Andorra.

([2]) France refers to continental France & Monaco.

([3]) Pacific refers to New Zealand & the Pacific Islands.

([4]) Acquisition of Coca-Cola Amatil (CCL) completed on 10.May.21. API full year revenue measures for 2020 and 2019 provided by CCL management. Revenue includes preliminary adjustments to present on a basis consistent with CCEP accounting policies. Pro forma as if the acquisition of API occurred on 01.Jan.20 or 01.Jan.19 for illustrative purposes only. It is not intended to estimate or predict future financial performance or what actual results would have been.

([5]) To facilitate comparability revenue per unit case has been calculated on an fx-neutral basis for 2020 and on a reported basis for 2019; Refer to "Note Regarding the Presentation of Alternative Performance Measures" for further details.

([6]) Includes alcohol & coffee.

Note: Includes additional disclosure for API revenue by geography. This will be provided on a half-year and full-year basis going forward.

 
 
Pro Forma 2020 Volumes       Q1   Q2   Q3   Q4    H1     H2      FY 
 by Reporting Segment([1]) 
 In millions of Unit 
 cases 
 
Total Europe                 521  519  665  572  1,040  1,237  2,277 
===========================  ===  ===  ===  ===  =====  =====  ===== 
Total API([2])               156  133  142  187    289    329    618 
===========================  ===  ===  ===  ===  =====  =====  ===== 
Pro forma total Coca-Cola 
 Europacific Partners        677  652  807  759  1,329  1,566  2,895 
 
 
 
Pro Forma 2019 Volumes       Q1   Q2   Q3   Q4    H1     H2      FY 
 by Reporting Segment([1]) 
 In millions of Unit 
 cases 
 
Total Europe                 549  665  691  616  1,214  1,307  2,521 
===========================  ===  ===  ===  ===  =====  =====  ===== 
Total API([2])               155  172  150  197    327    347    674 
===========================  ===  ===  ===  ===  =====  =====  ===== 
Pro forma total Coca-Cola 
 Europacific Partners        704  837  841  813  1,541  1,654  3,195 
 

______________________

([1]) Reported volumes.

([2]) Includes alcohol & coffee.

 
Pro Forma Financial Information - Pro Forma by Segment 
 
 
 
Pro Forma 2020 by Segment                            Europe       API       Total 
=================================================  ==========  =========  ========== 
Pro forma Combined Revenue                         10,606      2,929      13,535 
Pro forma Combined Operating Profit (comparable)    1,194        298       1,492 
Items impacting comparability([1])                      -          -         662 
Pro forma Combined Operating Profit                     -          -         830 
 
Pro forma operating profit margin (comparable)       11.3%      10.2%       11.0% 
 
 
 
Pro Forma 2019 by Segment                            Europe       API       Total 
=================================================  ========== 
Pro forma Combined Revenue                         12,017      3,218      15,235 
Pro forma Combined Operating Profit (comparable)    1,676        362       2,038 
Items impacting comparability([1])                      -          -         272 
Pro forma Combined Operating Profit                     -          -       1,766 
 
Pro forma operating profit margin (comparable)       13.9%      11.2%       13.4% 
 

___________________________

([1]) Refer to reconciliation on page 7 for 2020 and page 8 for 2019.

 
Pro Forma Financial Information - Pro Forma Adjusted EBITDA 
 
 
                                Year Ended 
============================   ------------ 
     Pro Forma 2020 Adjusted    31 December 
                      EBITDA        2020 
          In millions of EUR 
============================    =========== 
Reported profit 
 after tax                              457 
Taxes                                   189 
Finance costs, net                      175 
Non-operating items                       9 
Reported operating 
 profit                                 830 
Depreciation and 
 amortisation([1])                      969 
Reported EBITDA                       1,799 
 
Items impacting 
 comparability 
Mark-to-market effects([2])               2 
Restructuring Charges 
 ([3])                                  274 
Impairment ([4])                        116 
Total Acquisition 
 Related Costs ([5])                    107 
Inventory step up 
 costs ([6])                             29 
Other ([7])                              13 
Pro Forma Adjusted 
 EBITDA                               2,340 
 
 
                                 Year Ended 
============================   -------------- 
     Pro Forma 2019 Adjusted     31 December 
                      EBITDA         2019 
          In millions of EUR 
============================    ============= 
Reported profit 
 after tax                            1,198 
Taxes                                   405 
Finance costs, net                      164 
Non-operating items                     (1) 
Reported operating 
 profit                               1,766 
Depreciation and 
 amortisation([1])                      888 
Reported EBITDA                       2,654 
 
Items impacting 
 comparability 
Mark-to-market effects([2])             (2) 
Restructuring Charges 
 ([3])                                  109 
Total Acquisition 
 Related Costs ([5])                     92 
Inventory step up 
 costs ([6])                             30 
Other ([7])                                 5 
Pro Forma Adjusted 
 EBITDA                               2,888 
 

______________________

([1]) Includes the depreciation and amortisation impact of the preliminary acquisition accounting step-up in the fair value of PPE and intangibles.

([2]) Amounts represent the net out of period mark-to-market impact of non-designated commodity hedges.

([3]) Amounts represent restructuring charges related to business transformation activities, excluding accelerated depreciation included in the depreciation and amortisation line.

([4]) Amounts represent the charges recognised by CCL relating to the impairment of Indonesia and Fiji during H1 2020.

([5]) Amounts represent costs associated with the acquisition of CCL.

([6]) Amounts represent the impact of the preliminary acquisition accounting step-up in the fair value of finished goods.

([7]) Amounts represent charges, other than restructuring, classified as non-trading items by CCL which are not expected to recur.

Note: calculations reflect CCEP's best estimates based upon the information currently available to CCEP and could be subject to change once more detailed information is obtained.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCGIGDUGXBDGBB

(END) Dow Jones Newswires

May 11, 2021 07:30 ET (11:30 GMT)

1 Year Coca-cola Europacific Pa... Chart

1 Year Coca-cola Europacific Pa... Chart

1 Month Coca-cola Europacific Pa... Chart

1 Month Coca-cola Europacific Pa... Chart
ADVFN Advertorial
Your Recent History
LSE
CCEP
Coca-cola ..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20210723 21:40:10