COCA-COLA EUROPACIFIC PARTNERS plc 6-K, filed Nov 1, 2023
COCA-COLA EUROPACIFIC PARTNERS plc (CCEP)
6-K
2023-11-01
For: 2023-09-29
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Added on
April 11, 2026
About this 6-K
COCA-COLA EUROPACIFIC PARTNERS plc filed this 6-K on November 1, 2023.
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the period ending 29 September 2023
Commission File Number 001-37791
COCA-COLA EUROPACIFIC PARTNERS PLC
Pemberton House, Bakers Road
Uxbridge, UB8 1EZ, United Kingdom
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F ý Form 40-F D ¨
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRANT’S
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-208556);
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-233695);
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-233697); AND
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-211764)
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
THIS REPORT ON FORM 6-K INCLUDES SUBSTANTIALLY THE SAME INFORMATION, EXCEPT FOR INCLUSION OF FULL YEAR GUIDANCE, AS THAT REPORTED IN THE REGISTRANT’S REPORT ON FORM 6-K PREVIOUSLY FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 1, 2023, AND IS BEING FILED SOLELY FOR THE PURPOSE OF INCORPORATING BY REFERENCE INFORMATION INTO THE ABOVE-REFERENCED REGISTRATION STATEMENTS AND ANY FUTURE REGISTRATION STATEMENTS IN WHICH THE REGISTRANT IDENTIFIES THIS REPORT ON FORM 6-K AS BEING INCORPORATED BY REFERENCE.
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1 November 2023
COCA-COLA EUROPACIFIC PARTNERS
Trading update for the third quarter ended 29 September 2023 & Interim Dividend Declaration
| Note Regarding the Presentation of Alternative Performance Measures | ||||||||||||||
We use certain alternative performance measures (non-IFRS 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 IFRS measures.
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, which include restructuring charges, income arising from the ownership of certain mineral rights in Australia, gain on sale of sub-strata and associated mineral rights in Australia, net impact related to European flooding and acquisition and integration related costs. Comparable volume is also adjusted for selling days.
‘‘Fx-neutral’’ or "FXN" is defined as period results excluding the impact of foreign exchange rate changes. Foreign exchange impact is calculated by recasting current year results at prior year exchange rates.
‘‘Dividend payout ratio’’ is defined as dividends as a proportion of comparable profit after tax.
Unless otherwise stated, percent amounts are rounded to the nearest 0.5%.
| Change vs 2022 | |||||||||||||||||||||||||||||
| Revenue | Volume (UC)[1] | Revenue per UC[1],[2],[3] | Comparable[2], [8] Volume | Revenue per UC[1],[2],[3] | FXN[2],[3] revenue | Revenue | |||||||||||||||||||||||
| Q3 2023 | Europe | €3,956m | 705m | €5.65 | (4.0)% | 9.0% | 4.5% | 3.5% | |||||||||||||||||||||
| API | €851m | 141m | €6.74 | (7.0)% | 10.5% | 3.0% | (8.0)% | ||||||||||||||||||||||
| CCEP | €4,807m | 846m | €5.83 | (4.5)% | 9.0% | 4.0% | 1.5% | ||||||||||||||||||||||
| YTD 2023 | Europe | €11,061m | 2,012m | €5.57 | 0.0% | 9.0% | 9.0% | 7.5% | |||||||||||||||||||||
| API | €2,723m | 465m | €6.25 | (6.0)% | 12.0% | 5.5% | (1.0)% | ||||||||||||||||||||||
| CCEP | €13,784m | 2,477m | €5.69 | (1.0)% | 9.5% | 8.5% | 6.0% | ||||||||||||||||||||||
Note: All footnotes included after the ‘Volume Performance by Category’ section
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Q3 & YTD HIGHLIGHTS[2] | ||||||||||||||
Revenue
Q3 Reported +1.5%; Fx-neutral +4.0%
•Delivered more revenue growth YTD for our retail customers than any of our FMCG peers in Europe & our NARTD peers in Australia & New Zealand (NZ)[6]
•NARTD YTD value share gains[6] across measured channels both in-store (+10bps) & online (+100bps), & increased household penetration in Europe (+50bps)[7]
•YTD transactions ahead of volume growth in Europe, Australia & NZ
•Q3 comparable volume -4.5%[8]
◦By geography:
▪Europe -4.0%[8] reflecting solid in-market execution offset by mixed summer weather & cycling strong comparables (Q3’22 comparable volume +12.0%)
▪API -7.0%[8] solid in-market execution driving continued volume growth in Australia & NZ offset by the strategic SKU portfolio rationalisation & softer consumer spending in Indonesia
◦By channel: Away from Home (AFH) -5.0%[8] & Home -4.5%[8] both in line with volumes
•Strong revenue per unit case +9.0%[1],[3] (Europe: +9.0%; API: +10.5%) driven by positive headline price increases & promotional optimisation alongside favourable brand mix
Dividend
•Declaring second half interim dividend per share of €1.17 (to be paid in December 2023)
•Resulting in full year dividend per share of €1.84, +9.5% vs 2022, maintaining annualised total dividend payout ratio of approximately 50%[9]
Proposal to jointly acquire Coca-Cola Beverages Philippines, Inc. with Aboitiz Equity Ventures Inc.
•On track to close early next year, updates to follow in due course
Other
•Recognised as Top Employer in Europe by the Top Employers Institute
•Appointed Deutsche Numis as house brokers to CCEP in September 2023
| SUSTAINABILITY HIGHLIGHTS | ||||||||||||||
•Received approval from the Science Based Targets initiative (SBTi) of CCEP's long-term 2040 net zero and 2030 greenhouse gas reduction targets
•Entered into CCEP Ventures partnership with Swansea University to explore CO₂ upcycling technology for the creation of ethylene, a key component of plastic bottle caps
•Achieved carbon neutral certification for a further six manufacturing sites (five in Iberia and one in NZ), now a global total of 13 sites
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Third-Quarter & Year-To-Date Revenue Performance by Geography[2] | ||||||||||||||
Note: All values are unaudited and all references to volumes are on a comparable basis. All changes are versus 2022 equivalent period unless stated otherwise
| Q3 | YTD | ||||||||||||||||||||||
| Fx-neutral | Fx-neutral | ||||||||||||||||||||||
| € million | % change | % change | € million | % change | % change | ||||||||||||||||||
| Great Britain | 853 | 3.0 | % | 3.0 | % | 2,423 | 5.5 | % | 8.5 | % | |||||||||||||
France[10] | 586 | 3.0 | % | 3.0 | % | 1,786 | 12.5 | % | 12.5 | % | |||||||||||||
| Germany | 800 | 9.0 | % | 9.0 | % | 2,258 | 11.5 | % | 11.5 | % | |||||||||||||
Iberia[11] | 1,029 | 6.0 | % | 6.0 | % | 2,570 | 10.0 | % | 10.0 | % | |||||||||||||
Northern Europe[12] | 688 | (4.5) | % | (1.0) | % | 2,024 | 0.0 | % | 3.5 | % | |||||||||||||
| Total Europe | 3,956 | 3.5 | % | 4.5 | % | 11,061 | 7.5 | % | 9.0 | % | |||||||||||||
API[13] | 851 | (8.0) | % | 3.0 | % | 2,723 | (1.0) | % | 5.5 | % | |||||||||||||
| Total CCEP | 4,807 | 1.5 | % | 4.0 | % | 13,784 | 6.0 | % | 8.5 | % | |||||||||||||
France
•Q3 volume decline reflects strong comps & mixed summer weather this year.
•Fuze Tea continued to perform well achieving double-digit volume growth (+26%). Monster, Sprite & Powerade also outperformed.
•Revenue/UC[14] growth driven by headline price increase implemented in the first quarter.
Germany
•Q3 volume growth reflects continued strong trading in the Home channel supported by great execution.
•Continued growth in Coca-Cola Zero Sugar & Fanta. Monster, Fuze Tea & Powerade achieved double-digit volume growth.
•Revenue/UC[14] growth driven by favourable price from the annualisation of the second headline price increase last year & further price implemented in Q3. Positive brand mix also contributed to the growth e.g. Monster volume +42.0%.
Great Britain
•Q3 volume decline reflects strong comps & mixed weather during key summer months (July & August).
•High single digit growth in Coca-Cola Zero Sugar & Monster achieved double-digit growth.
•Revenue/UC[14] growth driven by headline price increase implemented at the end of the second quarter. Positive brand mix also contributed to the growth e.g. Monster volume growth +10.0% & launch of Jack Daniel’s & Coca-Cola.
Iberia
•Q3 volume decline reflects strong comps & strategic de-listings within Spain’s bulk water portfolio. AFH benefiting from strong tourism, trending ahead of pre-pandemic levels.
•Coca-Cola Zero Sugar, Sprite & Monster performed well. Royal Bliss achieved double-digit growth (+43%), supported by launch in Portugal.
•Revenue/UC[14] growth driven by headline price, implemented in the first quarter & positive mix.
Northern Europe
•Q3 volume decline reflects strong comps (cycling double-digit volume growth) & mixed summer weather this year.
•Monster, Powerade & Aquarius outperformed achieving double-digit volume growth.
•Revenue/UC[14] growth driven by headline price increase implemented across the markets this year (Netherlands in Q3).
API
•Australia & NZ grew Q3 volumes despite strategic de-listings within Australia’s bulk water portfolio, supported by solid execution, including great Women’s World Cup activation. Overall volume decline reflects the strategic SKU rationalisation & softer consumer spending in Indonesia.
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•Coca-Cola Zero Sugar, Monster & Powerade outperformed.
•Encouraging start to the launch of Coca-Cola Zero Sugar & Sprite Zero in Indonesia.
•Revenue/UC[14] growth driven by headline price increase implemented across all markets during the first half.
Third-Quarter & Year-To-Date Volume Performance by Category[2],[8] | ||||||||||||||
Note: All values are unaudited and all references to volumes are on a comparable basis. All changes are versus 2022 equivalent period unless stated otherwise
| Q3 | YTD | ||||||||||||||||||||||
| % of Total | % Change | % of Total | % Change | ||||||||||||||||||||
| Sparkling | 84.0 | % | (3.5) | % | 84.5 | % | (0.5) | % | |||||||||||||||
Coca-Cola® | 58.0 | % | (4.0) | % | 58.5 | % | (0.5) | % | |||||||||||||||
| Flavours, Mixers & Energy | 26.0 | % | (3.0) | % | 26.0 | % | 0.0 | % | |||||||||||||||
| Stills | 16.0 | % | (10.0) | % | 15.5 | % | (6.0) | % | |||||||||||||||
| Hydration | 8.0 | % | (13.5) | % | 8.0 | % | (8.0) | % | |||||||||||||||
RTD Tea, RTD Coffee, Juices & Other[15] | 8.0 | % | (6.5) | % | 7.5 | % | (3.5) | % | |||||||||||||||
| Total | 100.0 | % | (4.5) | % | 100.0 | % | (1.0) | % | |||||||||||||||
Coca-Cola®
•Q3 Europe -4.5% reflecting tough comps & mixed summer weather. API growth +1.0% supported by strong in-market activation of Women’s World Cup across Australia & NZ.
•Q3 Coca-Cola Original Taste -4.0% reflecting tough comps & mixed summer weather in Europe.
•Coca-Cola Zero Sugar continued to grow (+1.0%) across our markets in Q3 & gained value share[6] of Total Cola +50bps, led by GB +140bps.
Flavours, Mixers & Energy
•Q3 Fanta -6.0% cycling tough comps (Q3’22 +20%[16]) & mixed summer weather in Europe.
•Q3 Energy +12.0% led by Monster, continuing to gain distribution & share through exciting innovation, e.g. launch of Monster Green Zero Sugar in GB.
Hydration
•Q3 Water -21.5% driven by strategic portfolio choices (SKU rationalisation in Indonesia, the exit of large PET packs in Germany (Vio) & Iberia (Aquabona), & Mount Franklin bulk pack in Australia). Mixed summer weather in Europe also contributing.
•Q3 Sports +5.5% growth in Powerade across all markets[17].
RTD Tea, RTD Coffee, Juices & Other[15]
•Q3 Juice drinks -12.0% reflecting strategic SKU rationalisation in Indonesia & mixed weather impacting Capri Sun in GB & France.
•Q3 RTD Tea/Coffee -2.0% reflecting strategic SKU rationalisation in Indonesia, partially offset by continued growth in Fuze Tea across Europe (+14.5%).
•Jack Daniel’s & Coca-Cola performing well, e.g. now #1 ARTD[18] value brand in GB[19] after launch 6 months ago.
___________________
1.A unit case equals approximately 5.678 litres or 24 8-ounce servings
2.Refer to ‘Note Regarding the Presentation of Alternative Performance Measures’ for further details & to ‘Supplementary Financial Information’ for a reconciliation of reported to comparable results; Change percentages against prior year equivalent period unless stated otherwise
3.Comparable & FX-neutral
4.Footnote not used
5.Footnote not used
6.External data sources: Nielsen & IRI Period 9 YTD
7.Increased households (+50bps) P9 YTD for GB, Germany, Spain, France, Netherlands, P8 YTD for Belgium
8.No selling day shift in Q3 or YTD; CCEP reported volume -4.5% in Q3 & -1.0% in YTD
9.Dividends subject to Board approval
10.Includes France & Monaco
11.Includes Spain, Portugal & Andorra
12.Includes Belgium, Luxembourg, the Netherlands, Norway, Sweden & Iceland
13.Includes Australia, New Zealand & the Pacific Islands, Indonesia & Papua New Guinea
14.Revenue per unit case
15.RTD refers to ready to drink; Other includes Alcohol & Coffee
16.Pro-forma & comparable basis
17.In all listed markets, Powerade not listed in Indonesia
18.ARTD refers to alcohol ready to drink
19.Combined portfolio of Jack Daniels & Coca-Cola and Jack Daniels & Coca-Cola Zero Sugar, external data source Nielsen last 4 weeks ending 9 September 2023
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Forward-Looking Statements | ||||||||||||||
This document contains statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, guidance and outlook, dividends, consequences of mergers, acquisitions, joint ventures, and divestitures, including the proposed joint venture with Aboitiz Equity Ventures Inc. (AEV) and acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI), strategy and objectives of Coca-Cola Europacific Partners plc and its subsidiaries (together CCEP or the Group). Generally, the words “ambition”, “target”, “aim”, “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. 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 2022 Annual Report on Form 20-F filed with the SEC on 17 March 2023 and as updated and supplemented with the additional information set forth in the “Principal Risks and Risk Factors” section of the H1 2023 Half-year Report filed with the SEC on 2 August 2023;
2. risks and uncertainties relating to the global supply chain and distribution, including impact from war in Ukraine and increasing geopolitical tensions and conflicts including in the Middle East and Asia Pacific region, such as the risk that the business will not be able to guarantee sufficient supply of raw materials, supplies, finished goods, natural gas and oil and increased state-sponsored cyber risks;
3. risks and uncertainties relating to the global economy and/or a potential recession in one or more countries, including risks from elevated inflation, price increases, price elasticity, disposable income of consumers and employees, pressure on and from suppliers, increased fraud, and the perception or manifestation of a global economic downturn;
4. risks and uncertainties relating to potential global energy crisis, with potential interruptions and shortages in the global energy supply, specifically the natural gas supply in our territories. Energy shortages at our sites, our suppliers and customers could cause interruptions to our supply chain and capability to meet our production and distribution targets;
5. risks and uncertainties relating to potential water use reductions due to regulations by national and regional authorities leading to a potential temporary decrease in production volume; and
6. risks and uncertainties relating to the proposed joint venture with AEV and acquisition of CCBPI, including the risk that the proposed transactions may not be consummated on the currently contemplated terms or at all, or that our integration of CCBPI’s business and operations may not be successful or may be more difficult, time consuming or costly than expected.
Due to these risks, CCEP’s actual future financial condition, results of operations, and business activities, including its results, dividend payments, capital and leverage ratios, growth, including growth in revenue, cost of sales per unit case and operating profit, free cash flow, market share, tax rate, efficiency savings, achievement of sustainability goals, including net zero emissions and recycling initiatives, capital expenditures, our agreements relating to and results of the proposed joint venture with AEV and acquisition of CCBPI, and ability to remain in compliance with existing and future regulatory compliance, may differ materially from the plans, goals, expectations and guidance set out in forward-looking statements. 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. Any or all of the forward-looking statements contained in this filing and in any other of CCEP’s public statements may prove to be incorrect.
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Supplemental Financial Information - Revenue | ||||||||||||||
Revenue
Revenue CCEP In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates. | Third-Quarter Ended | Nine Months Ended | |||||||||||||||||||||
| 29 Sept 2023 | 30 Sept 2022 | % Change | 29 Sept 2023 | 30 Sept 2022 | % Change | ||||||||||||||||||
| As reported and comparable | 4,807 | 4,745 | 1.5 | % | 13,784 | 13,025 | 6.0 | % | |||||||||||||||
| Adjust: Impact of fx changes | 129 | n/a | n/a | 317 | n/a | n/a | |||||||||||||||||
| Comparable and fx-neutral | 4,936 | 4,745 | 4.0 | % | 14,101 | 13,025 | 8.5 | % | |||||||||||||||
| Revenue per unit case | 5.83 | 5.35 | 9.0 | % | 5.69 | 5.20 | 9.5 | % | |||||||||||||||
Revenue Europe In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates. | Third-Quarter Ended | Nine Months Ended | |||||||||||||||||||||
| 29 Sept 2023 | 30 Sept 2022 | % Change | 29 Sept 2023 | 30 Sept 2022 | % Change | ||||||||||||||||||
| As reported and comparable | 3,956 | 3,820 | 3.5 | % | 11,061 | 10,271 | 7.5 | % | |||||||||||||||
| Adjust: Impact of fx changes | 28 | n/a | n/a | 134 | n/a | n/a | |||||||||||||||||
| Comparable and fx-neutral | 3,984 | 3,820 | 4.5 | % | 11,195 | 10,271 | 9.0 | % | |||||||||||||||
| Revenue per unit case | 5.65 | 5.19 | 9.0 | % | 5.57 | 5.11 | 9.0 | % | |||||||||||||||
Revenue API In millions of €, except per case data which is calculated prior to rounding. FX impact calculated by recasting current year results at prior year rates. | Third-Quarter Ended | Nine Months Ended | |||||||||||||||||||||
| 29 Sept 2023 | 30 Sept 2022 | % Change | 29 Sept 2023 | 30 Sept 2022 | % Change | ||||||||||||||||||
| As reported and comparable | 851 | 925 | (8.0) | % | 2,723 | 2,754 | (1.0) | % | |||||||||||||||
| Adjust: Impact of fx changes | 101 | n/a | n/a | 183 | n/a | n/a | |||||||||||||||||
| Comparable and fx-neutral | 952 | 925 | 3.0 | % | 2,906 | 2,754 | 5.5 | % | |||||||||||||||
| Revenue per unit case | 6.74 | 6.11 | 10.5 | % | 6.25 | 5.58 | 12.0 | % | |||||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorised.
| COCA-COLA EUROPACIFIC PARTNERS PLC | ||||||||
| (Registrant) | ||||||||
| Date: November 1, 2023 | By: | /s/ Manik Jhangiani | ||||||
| Name: | Manik Jhangiani | |||||||
| Title: | Chief Financial Officer | |||||||