Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Coca-Cola European (CCEP) and Coca-Cola (KO) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and ...

Operator Simon Hales Damian Gammell Simon Hales Damian Gammell And that was critical because as we've talked previously, we were trying to do too many things across too many categories. That led to SKU rationalization. So that 70% of our volume reduction in Indonesia has been on the back of that. So the remainder puts us on what you've called out, which is a bit of a weaker macro environment for the consumer. And that's really challenged the affordability. And that's really on the back of fuel rise, just ge ...

Done sustainably, | --- | --- | --- | --- | |-------|--------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Results for the | | | | | Six Months Ended 30 June 2023* | | | | | | | | | | 2 August 2023 *Unaudited | | | 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 Fac ...

Summary of Coca-Cola Europacific Partners PLC H1 2023 Earnings Conference Call Company Overview - **Company**: Coca-Cola Europacific Partners PLC (NASDAQ: CCEP) - **Date of Call**: August 2, 2023 - **Participants**: CEO Damian Gammell, CFO Nik Jhangiani, and various analysts from investment firms Key Points Financial Performance - **Revenue**: Total revenue reached €9 billion, an increase of 10.5% compared to the previous year [15] - **Operating Profit**: Comparable operating profit was €1.2 billion, up 13% [15] - **Earnings Per Share**: Comparable diluted earnings per share increased by 17% to €1.85 [15] - **Free Cash Flow**: Generated €850 million in free cash flow during the first half [16] - **Dividend**: Declared a first half interim dividend of €0.67 per share [16] Market Dynamics - **Volume Growth**: Overall reported volume increased by 1%, with strong performance in Europe (4% growth in away-from-home channel) [17] - **Pricing Strategy**: Revenue per unit case grew by 10%, driven by effective pricing strategies and promotional optimization [18] - **Geographic Performance**: Strong growth in Europe and Australia/New Zealand, while Indonesia faced a 5.5% volume decline due to SKU rationalization [17][18] Strategic Initiatives - **Acquisition**: Proposed acquisition of Coca-Cola Beverages Philippines for an enterprise value of approximately $1.8 billion, expected to enhance geographic footprint and market presence [25][33] - **Sustainability Focus**: Continued commitment to sustainability, including the use of 100% recycled PET bottles in Indonesia and clear bottles for Sprite [11][12] - **Innovation**: Ongoing investment in product innovation, particularly in low and no-calorie beverages and energy drinks [9] Future Guidance - **Revenue Growth**: Upgraded full-year revenue growth guidance to 8%-9%, up from 6%-8% [19] - **Operating Profit Growth**: Expected operating profit growth of 12%-13%, an increase from previous guidance of 6%-7% [23] - **Cost of Goods Sold**: Anticipated increase of around 8% in COGS per unit case, with commodity inflation expected to be around 8% [21][22] Market Opportunities - **Philippines Market**: The NARTD category in the Philippines is valued at around $8 billion, with a growth rate of approximately 10% per annum, presenting significant opportunities for CCEP [27][28] - **Consumer Trends**: Increasing consumer interest in low and no-sugar options, energy drinks, and alcoholic ready-to-drink products [27] Operational Insights - **Employee Engagement**: High employee engagement scores and commitment to diversity and inclusion initiatives [6] - **Supply Chain Investments**: Investments in state-of-the-art production lines and digital capabilities to enhance operational efficiency [7] Risks and Considerations - **Inflationary Pressures**: Ongoing inflation affecting margins, with a focus on maintaining affordability for consumers [20][52] - **Market Volatility**: The dynamic external environment requires continuous adaptation to consumer needs and preferences [21] Conclusion Coca-Cola Europacific Partners PLC demonstrated strong financial performance in H1 2023, with significant revenue and profit growth. The proposed acquisition of Coca-Cola Beverages Philippines is expected to enhance market presence and drive future growth. The company remains focused on sustainability, innovation, and operational efficiency while navigating inflationary pressures and market dynamics.

[FORM 6-K Filing Information](index=1&type=section&id=FORM%206-K%20Filing%20Information) Details the Form 6-K report filed by Coca-Cola Europacific Partners plc for Q1 2023 [Details of the Filing](index=1&type=section&id=Details%20of%20the%20Filing) This document is a Form 6-K report filed by Coca-Cola Europacific Partners plc with the United States Securities and Exchange Commission for the period ending March 31, 2023, indicating it is a report of a foreign private issuer - The filing is a Form 6-K report for Coca-Cola Europacific Partners plc, covering the period ending **March 31, 2023**[1](index=1&type=chunk)[32](index=32&type=chunk) - The company's principal executive office is located at Pemberton House, Bakers Road, Uxbridge, UB8 1EZ, United Kingdom[38](index=38&type=chunk) [Company Overview and Q1 2023 Performance Summary](index=2&type=section&id=Company%20Overview%20and%20Q1%202023%20Performance%20Summary) Summarizes the company's Q1 2023 performance, including CEO insights, financial highlights, and operational achievements [CEO Statement and Business Outlook](index=2&type=section&id=CEO%20Statement%20and%20Business%20Outlook) Damian Gammell, CEO, reported an encouraging start to the year with solid top-line growth, driven by strong in-market execution, recovery in the away-from-home channel, and effective revenue growth management. The company confidently reaffirmed its full-year 2023 guidance, emphasizing profitable revenue growth, solid free cash flow, and continued shareholder value - CEO Damian Gammell stated an encouraging start to the year with solid top-line growth, driven by consumer demand for leading brands and effective revenue growth management[39](index=39&type=chunk) - The company reaffirmed its full-year 2023 guidance, focusing on profitable revenue growth, solid free cash flow, and delivering continued shareholder value[4](index=4&type=chunk) [Q1 2023 Key Financial Highlights](index=2&type=section&id=Q1%202023%20Key%20Financial%20Highlights) Coca-Cola Europacific Partners (CCEP) reported a strong Q1 2023 with comparable volume growth of 4.0% and revenue per unit case increasing by 10.0%. Total revenue reached €4,154 million, reflecting a 12.0% reported growth and 14.0% on an Fx-neutral basis Q1 2023 Key Financial Highlights | Metric | CCEP (€ million) | Europe (€ million) | API (€ million) | | :----------------------------------- | :--------------- | :----------------- | :-------------- | | Revenue | 4,154 | 3,145 | 1,009 | | Q1 2023 Volume (million unit cases) | 768 | 590 | 178 | | Revenue per Unit Case (€) | 5.50 | 5.42 | 5.77 | | Comparable Volume Change | 4.0% | 5.0% | 0.0% | | Revenue per Unit Case Change | 10.0% | 8.5% | 13.5% | | vs 2022 Fx-neutral Revenue | 14.0% | 14.0% | 13.5% | | Reported Revenue Change | 12.0% | 12.0% | 11.5% | - Q1 reported revenue grew by **12.0%**, and Fx-neutral revenue grew by **14.0%**[36](index=36&type=chunk) [Q1 2023 Operational Highlights](index=4&type=section&id=Q1%202023%20Operational%20Highlights) CCEP achieved significant revenue growth for retail customers in Europe and NARTD in Australia & New Zealand, gaining value share in both in-store and online channels. Comparable volume increased by 4.0%, driven by strong in-market execution and demand, particularly in the Away from Home (AFH) channel (+5.5%). Revenue per unit case rose by 10.0% due to positive pricing and favorable pack & channel mix - Continued to deliver the largest revenue growth YTD for retail customers within FMCG in Europe and NARTD in Australia & New Zealand[6](index=6&type=chunk) - NARTD YTD value share gains across measured channels: in-store (**+10 basis points**) and online (**+40 basis points**)[6](index=6&type=chunk) - Comparable volume increased by **4.0%** (Europe: **+5.0%**; API: flat), reflecting solid in-market execution and underlying demand, with Away from Home (AFH) channel volume up **5.5%**[6](index=6&type=chunk) - Revenue per unit case grew by **10.0%**, driven by positive headline price across all markets and favorable pack & channel mix, led by the recovery of the AFH channel[6](index=6&type=chunk) [FY23 Financial Guidance](index=4&type=section&id=FY23%20Financial%20Guidance) Reaffirms the company's full-year 2023 financial outlook and dividend policy [Full-Year 2023 Outlook](index=4&type=section&id=Full-Year%202023%20Outlook) CCEP reaffirmed its FY23 guidance on a comparable and Fx-neutral basis, projecting revenue growth of 6-8% and operating profit growth of 6-7%. The company anticipates commodity inflation of approximately 10% and maintains a strong hedge coverage of ~90%. Free cash flow is expected to be at least €1.6 billion FY23 Guidance (Comparable & Fx-neutral) | Metric | Guidance (unchanged) | | :-------------------------- | :------------------- | | Revenue Growth | 6-8% | | Cost of Sales per Unit Case | ~8% growth | | Operating Profit Growth | 6-7% | | Comparable Effective Tax Rate | ~23% | | Capital Expenditure | 4-5% of revenue | | Free Cash Flow | at least €1.6 billion| - Commodity inflation is expected to be up **~10%**, with FY23 hedge coverage at **~90%** and low overall FX transactional exposure (**<10%**)[8](index=8&type=chunk) - Continued focus on delivering efficiency programmes and discretionary spend optimisation[8](index=8&type=chunk) [Dividend Policy](index=5&type=section&id=Dividend%20Policy) The company declared a first-half interim dividend of €0.67 per share, calculated as 40% of the full-year 2022 dividend, and reaffirmed its FY23 guidance for an annualised total dividend payout ratio of approximately 50% - Declared a first-half interim dividend per share of **€0.67**, representing **40%** of the full-year 2022 dividend[37](index=37&type=chunk) - Reaffirmed FY23 guidance for an annualised total dividend payout ratio of approximately **50%**[9](index=9&type=chunk)[37](index=37&type=chunk) [Detailed First Quarter Performance Analysis](index=6&type=section&id=Detailed%20First%20Quarter%20Performance%20Analysis) Analyzes Q1 revenue and volume performance across geographies and beverage categories [Revenue Performance by Geography](index=6&type=section&id=Revenue%20Performance%20by%20Geography) CCEP's total revenue grew by 12.0% (14.0% Fx-neutral) in Q1 2023, with Europe contributing €3,145 million and API contributing €1,009 million. Iberia and Germany showed the strongest Fx-neutral revenue growth at 20.5% and 17.5% respectively, driven by favorable pricing and recovery in the Away from Home channel First Quarter Revenue Performance by Geography (Unaudited, € million) | Geography | Q1 Revenue (€ million) | % Change | Fx-neutral % Change | | :-------------- | :--------------------- | :------- | :------------------ | | Great Britain | 689 | 4.5 % | 10.5 % | | France | 535 | 15.5 % | 15.5 % | | Germany | 659 | 17.5 % | 17.5 % | | Iberia | 655 | 20.5 % | 20.5 % | | Northern Europe | 607 | 4.5 % | 7.5 % | | Total Europe | 3,145 | 12.0 % | 14.0 % | | API | 1,009 | 11.5 % | 13.5 % | | Total CCEP | 4,154 | 12.0 % | 14.0 % | [Total Europe Revenue Performance](index=6&type=section&id=Total%20Europe%20Revenue%20Performance) Europe's revenue growth reflects trading momentum, AFH recovery, favorable pricing, and positive brand mix - Total Europe revenue grew by **12.0%** (**14.0%** Fx-neutral), with volume growth reflecting continued trading momentum in both channels and recovery of the AFH channel[11](index=11&type=chunk) - Revenue per unit case growth was driven by favorable underlying price from annualization of last year's headline price increases and further headline price implemented in Q1 2023, along with positive brand mix[11](index=11&type=chunk) [API Revenue Performance](index=6&type=section&id=API%20Revenue%20Performance) API's revenue growth is driven by strong trading, favorable pricing, and positive pack & channel mix - API revenue grew by **11.5%** (**13.5%** Fx-neutral), with flat volume reflecting strong trading in Australia & New Zealand offset by strategic SKU rationalisation in Indonesia[11](index=11&type=chunk) - Revenue per unit case growth was driven by favorable underlying price in all markets, promotional optimization in Australia, and positive pack & channel mix from the recovery of the AFH channel[11](index=11&type=chunk) [Specific European Markets Revenue Performance](index=6&type=section&id=Specific%20European%20Markets%20Revenue%20Performance) Iberia and Germany led European revenue growth due to pricing and Away from Home channel recovery - Iberia and Germany showed the highest Fx-neutral revenue growth at **20.5%** and **17.5%** respectively, largely due to favorable underlying pricing and AFH channel recovery[11](index=11&type=chunk) - Great Britain and Northern Europe reported lower Fx-neutral revenue growth at **10.5%** and **7.5%** respectively, with Great Britain's volume growth reflecting continued trading momentum and Northern Europe's volume growth reflecting AFH channel recovery[11](index=11&type=chunk) [Volume Performance by Category](index=8&type=section&id=Volume%20Performance%20by%20Category) Overall comparable volume grew by 4.0% in Q1 2023. Sparkling beverages, representing 85.0% of total volume, grew by 4.5%, with Coca-Cola® and Flavours, Mixers & Energy categories performing well. Stills declined by 1.5%, primarily due to a 3.5% decrease in RTD Tea, RTD Coffee, Juices & Other, despite growth in Hydration First Quarter Volume Performance by Category (Unaudited) | Category | % of Total | Q1 % Change | | :------------------------------------- | :--------- | :---------- | | Sparkling | 85.0 | 4.5 % | | Coca-Cola® | 58.5 | 4.5 % | | Flavours, Mixers & Energy | 26.5 | 5.0 % | | Stills | 15.0 | (1.5)% | | Hydration | 7.5 | 0.5 % | | RTD Tea, RTD Coffee, Juices & Other | 7.5 | (3.5)% | | Total | 100.0 | 4.0 % | [Sparkling Category Performance](index=8&type=section&id=Sparkling%20Category%20Performance) Sparkling beverages, including Coca-Cola® and Energy, showed robust volume growth - Coca-Cola® volume grew by **4.5%**, driven by Original Taste (**+5.5%**) and Lights (**+3.0%**), with Coca-Cola Zero Sugar achieving **8.0%** growth and gaining **20 basis points** of total Cola value share[19](index=19&type=chunk) - Flavours, Mixers & Energy volume increased by **5.0%**, with Fanta growing **6.5%** and Energy (led by Monster) growing **15.0%**[13](index=13&type=chunk) [Stills Category Performance](index=8&type=section&id=Stills%20Category%20Performance) Stills volume declined, with Hydration growth offset by decreases in RTD Tea, Coffee, Juices & Other - Hydration volume grew by **0.5%**, with strong performance in Sports (**+14.5%**) led by Aquarius and Powerade, offsetting a **5.0%** decline in Water due to strategic exits and SKU rationalization[49](index=49&type=chunk) - RTD Tea, RTD Coffee, Juices & Other declined by **3.5%**, primarily due to an **8.0%** decrease in Juice drinks from Indonesia SKU rationalization, partially offset by RTD Tea growth (**+2.0%**) led by Fuze Tea and Nestea in Europe[14](index=14&type=chunk) [Corporate Information and Disclosures](index=9&type=section&id=Corporate%20Information%20and%20Disclosures) Covers interim dividend, innovation, sustainability, investor relations, company profile, and disclosures [Interim Dividend Declaration](index=9&type=section&id=Interim%20Dividend%20Declaration) The CCEP Board of Directors declared a first-half interim dividend of €0.67 per share, payable on May 25, 2023, to shareholders of record on May 12, 2023. The dividend will be paid in euros to holders on Euronext Amsterdam, Spanish Stock Exchanges, and London Stock Exchange, with other publicly held shares converted to USD - The CCEP Board of Directors declared a first-half interim dividend of **€0.67** per share[50](index=50&type=chunk) - The interim dividend is payable on **May 25, 2023**, to shareholders of record on **May 12, 2023**[50](index=50&type=chunk) - Dividends will be paid in euros for shares on Euronext Amsterdam, Spanish Stock Exchanges, and London Stock Exchange, while other publicly held shares will be converted to an equivalent US dollar amount[50](index=50&type=chunk) [Innovation and Sustainability Highlights](index=4&type=section&id=Innovation%20and%20Sustainability%20Highlights) CCEP highlighted innovation in NARTD with new Monster Juice & Ultra flavors and Schweppes mixers, and in ARTD with the launch of Jack Daniel's & Coca-Cola RTD. Sustainability efforts included retaining inclusion on Carbon Disclosure Project's A List for Supplier Engagement, recognition as a Europe's Climate Leader, joining the UN Global Compact's 'Open Call to Accelerate Action on Water', and progress on a second PET recycling facility in Australia - Innovation highlights include new Monster Juice & Ultra flavour extensions, What the Fanta Purple in Europe, Schweppes Melon Watermelon & Peach Coconut Soda Mixers in GB, and Jack Daniel's & Coca-Cola ready-to-drink (RTD) launched in GB & the Netherlands[42](index=42&type=chunk) - Sustainability achievements include retaining inclusion on Carbon Disclosure Project's A List for Supplier Engagement for the fifth consecutive year and recognition as a Europe's Climate Leader for the third time[42](index=42&type=chunk) - Joined 'Open Call to Accelerate Action on Water' from the United Nations Global Compact and is on track to open a second industry partnership PET recycling facility in Australia, aiming to recycle the equivalent of **2 billion** PET bottles annually[42](index=42&type=chunk) [Conference Call and Investor Relations](index=9&type=section&id=Conference%20Call%20and%20Investor%20Relations) A conference call was held on April 25, 2023, with replay and transcript available on the company's website. Contact information for Investor Relations and Media Relations personnel is provided - A conference call was held on **April 25, 2023**, at **12:00 BST**, **13:00 CEST** & **7:00 a.m. EDT**, accessible via www.cocacolaep.com, where replay and transcript will be available[15](index=15&type=chunk)[50](index=50&type=chunk) - Contact details for Investor Relations (Sarah Willett, Claire Michael, Claire Copps, Awais Khan) and Media Relations (Shanna Wendt, Nick Carter) are provided[16](index=16&type=chunk) [About Coca-Cola Europacific Partners](index=9&type=section&id=About%20Coca-Cola%20Europacific%20Partners) Coca-Cola Europacific Partners is a leading global consumer goods company that manufactures, moves, and sells popular brands, serving 600 million consumers and 2 million customers across 29 countries. The company is listed on Euronext Amsterdam, NASDAQ Global Select Market, London Stock Exchange, and Spanish Stock Exchanges under the symbol CCEP - Coca-Cola Europacific Partners is one of the world's leading consumer goods companies, serving **600 million** consumers and **2 million** customers across **29** countries[51](index=51&type=chunk) - The company is listed on Euronext Amsterdam, the NASDAQ Global Select Market, London Stock Exchange, and the Spanish Stock Exchanges, trading under the symbol CCEP[20](index=20&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This document contains forward-looking statements subject to various risks that could cause actual results to differ materially from projections. These risks include the ongoing impact of COVID-19, global economic conditions (inflation, recession), global supply chain issues (including geopolitical tensions and war in Ukraine), potential global energy crises, and water use reductions due to regulations - Forward-looking statements are subject to risks that could cause actual results to differ materially from expectations, and undue reliance should not be placed on them[18](index=18&type=chunk)[22](index=22&type=chunk) - Key risks include the impact of COVID-19, global economic conditions (inflation, recession, price elasticity), global supply chain issues (war in Ukraine, geopolitical tension, raw material supply), potential global energy crisis, and water use reductions due to regulations[23](index=23&type=chunk)[54](index=54&type=chunk) - CCEP does not undertake any obligation to publicly update or revise any forward-looking statements, except as required by applicable rules, laws, and regulations[54](index=54&type=chunk) [Note Regarding Alternative Performance Measures](index=11&type=section&id=Note%20Regarding%20Alternative%20Performance%20Measures) CCEP uses certain alternative performance measures (non-GAAP) to evaluate and report performance, believing they provide useful information to investors. These measures exclude items impacting comparability, such as restructuring charges and acquisition-related costs. Key definitions include 'Comparable' (excluding comparability items and adjusted for selling days), 'Fx-neutral' (excluding foreign exchange rate changes), 'Capex' (purchases of property, plant and equipment, and capitalized software), 'Free cash flow' (net cash flows from operating activities less capital expenditures and interest paid), and 'Dividend payout ratio' (dividends as a proportion of comparable profit after tax) - Alternative performance measures (non-GAAP) are used to make financial, operating, and planning decisions and to evaluate and report performance, providing useful information to investors[25](index=25&type=chunk)[55](index=55&type=chunk) - Key definitions include 'Comparable' (excluding items impacting comparability), 'Fx-neutral' (excluding foreign exchange rate changes), 'Capex' (purchases of property, plant and equipment and capitalised software), 'Free cash flow' (net cash flows from operating activities less capital expenditures and interest paid), and 'Dividend payout ratio' (dividends as a proportion of comparable profit after tax)[25](index=25&type=chunk)[26](index=26&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - Forward-looking non-GAAP measures cannot be reconciled to reported measures without unreasonable efforts due to the unpredictability of comparability impacts[27](index=27&type=chunk) [Supplemental Financial Information](index=12&type=section&id=Supplemental%20Financial%20Information) Supplemental financial information provides a reconciliation of reported to comparable and Fx-neutral revenue for CCEP, Europe, and API for the first quarter ended March 31, 2023. CCEP's reported revenue of €4,154 million adjusted to €4,225 million on an Fx-neutral basis, representing a 14.0% increase CCEP Revenue Reconciliation (First-Quarter Ended) | Metric | 31 March 2023 (€ million) | 1 April 2022 (€ million) | % Change | | :----------------------------------- | :------------------------ | :----------------------- | :------- | | As reported and comparable | 4,154 | 3,709 | 12.0 % | | Adjust: Impact of Fx changes | 71 | n/a | n/a | | Comparable and Fx-neutral | 4,225 | 3,709 | 14.0 % | | Revenue per Unit Case (€) | 5.50 | 5.01 | 10.0 % | Europe Revenue Reconciliation (First-Quarter Ended) | Metric | 31 March 2023 (€ million) | 1 April 2022 (€ million) | % Change | | :----------------------------------- | :------------------------ | :----------------------- | :------- | | As reported and comparable | 3,145 | 2,805 | 12.0 % | | Adjust: Impact of Fx changes | 56 | n/a | n/a | | Comparable and Fx-neutral | 3,201 | 2,805 | 14.0 % | | Revenue per Unit Case (€) | 5.42 | 4.99 | 8.5 % | API Revenue Reconciliation (First-Quarter Ended) | Metric | 31 March 2023 (€ million) | 1 April 2022 (€ million) | % Change | | :----------------------------------- | :------------------------ | :----------------------- | :------- | | As reported and comparable | 1,009 | 904 | 11.5 % | | Adjust: Impact of Fx changes | 15 | n/a | n/a | | Comparable and Fx-neutral | 1,024 | 904 | 13.5 % | | Revenue per Unit Case (€) | 5.77 | 5.09 | 13.5 % | [Signature](index=13&type=section&id=Signature) Confirms the official signing of the report by the Chief Financial Officer [Report Sign-off](index=13&type=section&id=Report%20Sign-off) The report was duly signed on behalf of Coca-Cola Europacific Partners plc by Manik Jhangiani, Chief Financial Officer, on April 25, 2023, pursuant to the requirements of the Securities Exchange Act of 1934 - The report was signed by Manik Jhangiani, Chief Financial Officer of Coca-Cola Europacific Partners plc, on **April 25, 2023**[31](index=31&type=chunk)

[Strategic Report](index=4&type=section&id=Strategic%20Report) [Who We Are](index=5&type=section&id=Who%20we%20are) CCEP is a leading global consumer goods company focused on making, moving, and selling popular beverage brands, reporting €17.3 billion revenue and €2.1 billion comparable operating profit in 2022 - CCEP is one of the world's leading consumer goods companies, making, moving, and selling popular brands[13](index=13&type=chunk) 2022 Financial Performance | Metric | Value | | :--- | :--- | | Revenue | €17.3bn | | Comparable Operating Profit | €2.1bn | | Europe Revenue | €13.5bn | | API Revenue | €3.8bn | | Europe Operating Profit | €1,670m | | API Operating Profit | €468m | [Our Portfolio](index=6&type=section&id=Our%20portfolio) CCEP expands its quality drinks portfolio by growing core brands and launching new products, while committed to reducing environmental impact and offering low/no-calorie options - CCEP expands its portfolio by growing core brands and launching new products in categories such as alcohol and coffee[16](index=16&type=chunk) - The company is reducing the environmental impact of manufacturing, distribution, and packaging, and is committed to reducing sugar across its portfolio[17](index=17&type=chunk) 2022 Volume by Brand Category | Category | Percentage | | :--- | :--- | | Coca-Cola | 58.5% | | Flavours, mixers and energy | 26.0% | | RTD tea, coffee, juices and other | 8.0% | | Hydration | 7.5% | - Coca-Cola Zero Sugar continued strong performance in 2022 with volume growth of **10.0%**[21](index=21&type=chunk)[128](index=128&type=chunk) - In 2022, CCEP launched new Monster Reserve variants (White Pineapple and Watermelon) and Fanta Raspberry, and refreshed the Sprite brand with 'Heat Happens' platform[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - CCEP is prioritizing returnable glass bottles (RGB) in the HoReCa channel in France, aiming to reduce carbon footprint by using bottles refillable up to **25 times**[29](index=29&type=chunk)[30](index=30&type=chunk) [Our Operations](index=9&type=section&id=Our%20operations) CCEP maintains close relationships with customers, communities, and stakeholders across its European and API regions to provide excellent service and beverages sustainably, leveraging local market knowledge - Proximity to customers, communities, and stakeholders provides unique market knowledge, enabling great service and sustainable beverage delivery[34](index=34&type=chunk) [Our Business Model](index=10&type=section&id=Our%20business%20model) CCEP's business model, 'Great people, great service, great beverages, done sustainably,' involves partnering with franchisors, sourcing, manufacturing, distributing, and selling products, focusing on recycling and stakeholder value - The business model is founded on 'Great people, great service, great beverages, done sustainably,' encompassing partnerships with franchisors, raw material sourcing, manufacturing, distribution, and sales[36](index=36&type=chunk) - CCEP operates under bottler agreements with TCCC and other franchisors, purchasing concentrates and materials to produce and distribute packaged beverages[37](index=37&type=chunk) - The company aims for a circular economy for packaging, encouraging collection and recycling, with **99% of bottles and cans in Europe** being recyclable[37](index=37&type=chunk) - CCEP significantly reduced the number of SKUs in Indonesia, prioritizing sparkling and RTD tea for future growth, to enable greater focus on NARTD and ARTD and improve production efficiency[39](index=39&type=chunk) [Performance Indicators](index=12&type=section&id=Performance%20indicators) CCEP achieved strong 2022 financial performance with significant revenue and operating profit growth, driven by AFH recovery and effective pricing, while progressing sustainability targets like GHG emissions and sugar reduction 2022 Financial Performance (Pro Forma Comparable & FX Neutral) | Metric | Value | Change vs. Prior Year | | :--- | :--- | :--- | | Revenue | €17.3bn | +15.5% | | Volume | N/A | +9.5% | | Revenue per unit case | N/A | +6.0% | | Comparable Operating Profit | €2.1bn | +12.5% | - Revenue growth was driven by a solid recovery of the away-from-home (AFH) channel, return of travel and tourism, favorable weather in Europe, and resilient demand in the home channel[40](index=40&type=chunk) - Comparable operating profit growth was supported by strong revenue, ongoing efficiency programs, and discretionary spend optimization, despite inflationary pressures[41](index=41&type=chunk) 2022 Sustainability Performance | Metric | Target | 2022 Performance | | :--- | :--- | :--- | | Total Incident Rate (TIR) | <1 by 2025 | 0.87 (Group) | | GHG Emissions Reduction (vs. 2019) | 30% by 2030 | 9.4% (Group) | | Sugar Reduction (Europe vs. 2019) | 10% by 2025 | 5.2% | | Sugar Reduction (Australia vs. 2015) | 25% by 2025 | 16.8% | | Sugar Reduction (New Zealand vs. 2015) | 20% by 2025 | 15.9% | | Sugar Reduction (Indonesia vs. 2015) | 35% by 2025 | 31.6% | - CCEP submitted short-term and long-term Net Zero by 2040 targets to the Science Based Targets initiative (SBTi) for approval[48](index=48&type=chunk) [Chairman and CEO](index=14&type=section&id=Chairman%20and%20CEO) The Chairman and CEO highlighted CCEP's strong 2022 performance, driven by AFH channel recovery and resilient home channel demand, expressing excitement for API region opportunities and confidence in mid-term growth objectives - CCEP delivered strong performance in 2022 with top and bottom-line growth, driven by the recovery of the AFH channel and resilient demand in the home channel[51](index=51&type=chunk) - The API region, especially Indonesia, presents exciting growth opportunities, with strategic priorities moving at pace and CCEP increasing its ownership in the Indonesia business to **100%**[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - Mid-term objectives include **~4% revenue growth** and **~7% operating profit growth**, supported by brand strength, best-in-class capabilities, and annual free cash flow of **~€1.7 billion**[57](index=57&type=chunk)[58](index=58&type=chunk) - Digital transformation is a key focus, with approximately **85% of revenue captured digitally** and acceleration of B2B platforms (my.CCEP.com, myCCA.com) processing **~€2 billion in revenue in 2022**[60](index=60&type=chunk)[124](index=124&type=chunk) - Sustainability is fundamental, with 'This is Forward' commitments extended to API markets, investments in PET recycling facilities, and four more production facilities becoming carbon neutral in 2022[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - Key investments in 'Factory of the future' include 5G technology for safety, autonomous electric trucks, and augmented reality for line breakdowns[71](index=71&type=chunk) [Our Stakeholders](index=18&type=section&id=Our%20stakeholders) CCEP recognizes its stakeholders—people, shareholders, franchisors, consumers, customers, suppliers, and communities—as vital to its success, engaging with each group to create mutual value and inform business decisions - Stakeholders, including people, shareholders, franchisors, suppliers, customers, consumers, and communities, are integral to CCEP's success[72](index=72&type=chunk)[96](index=96&type=chunk) - Engagement with people includes an annual engagement plan, global ESPP, and programs like Healthy@CCEP, focusing on wellbeing and inclusion[73](index=73&type=chunk) - Shareholders are engaged through AGMs, roadshows, and capital markets events, with CCEP returning cash via dividends (**~50% payout ratio**) and share buybacks[75](index=75&type=chunk)[76](index=76&type=chunk) - Franchisors (like TCCC) are engaged through regular contact and meetings, with CCEP driving sales and gaining exclusive distribution rights[77](index=77&type=chunk)[79](index=79&type=chunk) - Consumers are engaged through insights, labelling, social media, and in-store activations, receiving diverse, high-quality, and safe products[82](index=82&type=chunk)[83](index=83&type=chunk) - Customers are engaged through general managers and sales teams, benefiting from CCEP's customer-centric model and product diversity[84](index=84&type=chunk)[85](index=85&type=chunk) - Suppliers are engaged through relationship management programs and collaborations, providing high-quality products and supporting sustainable practices[89](index=89&type=chunk)[90](index=90&type=chunk) - Communities are supported through skills development, environmental protection, and disaster relief, creating value through employment and local investment[91](index=91&type=chunk)[93](index=93&type=chunk) [Section 172(1) Statement from the Directors](index=22&type=section&id=Section%20172(1)%20statement%20from%20the%20Directors) The Directors confirm they acted in good faith to promote CCEP's long-term success, considering stakeholder interests, environmental impact, and high business standards, emphasizing balanced interests and integrated sustainability - Directors promote CCEP's long-term success by considering the likely consequences of decisions, fostering relationships with key stakeholders, and assessing the impact of operations on the environment[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The Board ensures maintaining high standards of business conduct, guided by the Group's purpose and governance framework[98](index=98&type=chunk) - CCEP launched an international safety and wellbeing campaign, 'Get home to what you love,' emphasizing physical and mental safety in the workplace[100](index=100&type=chunk)[101](index=101&type=chunk) [Our Market Drivers](index=24&type=section&id=Our%20market%20drivers) CCEP's business is influenced by consumer trends (demand for choice, health, at-home experiences), macroeconomic factors (inflation, geopolitical volatility), and evolving channel trends (digital acceleration, customer collaboration), adapting its strategy for sustainable growth - Consumer trends include increased demand for choice, healthier alternatives (low/no sugar), and at-home experiences, requiring strong brands and innovation[103](index=103&type=chunk)[104](index=104&type=chunk) - Macroeconomic factors like geopolitical volatility, high inflation, and regulatory pressures (climate, packaging) impacted business in 2022, but CCEP achieved **12.5% operating profit growth** through supply chain navigation and dynamic pricing[104](index=104&type=chunk)[105](index=105&type=chunk) - Channel trends show accelerated growth in digital platforms and a shift in consumption to at-home occasions, emphasizing customer collaboration and value creation[106](index=106&type=chunk)[107](index=107&type=chunk) [Our Strategy](index=25&type=section&id=Our%20strategy) CCEP's strategy aims to outperform the market in soft drinks by focusing on 'Great people, great service, great beverages, done sustainably,' fostering a diverse workforce, digital customer service, diversified products, and embedded sustainability - CCEP's strategy is to outperform the market in the **€130 billion soft drinks category**, creating value for customers and shareholders, and supporting people and communities[108](index=108&type=chunk) - The strategy is built on three pillars: Great people (diverse, inclusive workforce), Great service (customer-centric, digitally advanced), and Great beverages (diversified, innovative, low/no sugar options), all done sustainably[111](index=111&type=chunk) - In 2022, CCEP launched the Career Hub in Europe, was recognized as 'Employer of Choice' in New Zealand, and achieved an **80% response rate** in its global digital engagement survey with a **77% engagement score**[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - CCEP maintained high customer service levels, achieved record revenues with B2B platforms (**~€2bn processed, +50% vs 2021**), and grew online market share by **80 bps**[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - The company gained **10 bps of value share**, with Coca-Cola Zero Sugar volumes up **10.0%**, What The Fanta volumes up **15.5%**, and energy volumes up **18.5% in 2022**[128](index=128&type=chunk) - Sustainability achievements include a **9.4% reduction in value chain emissions** (vs. 2019), six carbon-neutral production facilities, and investments in new PET recycling plants in Australia and Indonesia[134](index=134&type=chunk) [Taking Action on Sustainability](index=30&type=section&id=Taking%20action%20on%20sustainability) CCEP's 'This is Forward' action plan, updated for all markets, outlines ambitious, time-bound sustainability commitments across climate, packaging, water, supply chain, drinks, and society, actively pursuing Net Zero and circularity - 'This is Forward' is CCEP's updated sustainability action plan, covering **29 markets** with ambitious, time-bound commitments aligned with UN Sustainable Development Goals (SDGs)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - CCEP submitted short-term (**30% absolute GHG reduction by 2030 vs. 2019**) and long-term (Net Zero by 2040) GHG emissions reduction targets to SBTi for approval[139](index=139&type=chunk)[188](index=188&type=chunk) - The plan is underpinned by principles of responsible advertising, transparency, and accountability, and is recognized by MSCI, Dow Jones Sustainability Indices, and FTSE4Good[140](index=140&type=chunk)[141](index=141&type=chunk) [This is Forward - Our Sustainability Action Plan](index=30&type=section&id=This%20is%20Forward%20-%20Our%20Sustainability%20Action%20Plan) This section details CCEP's headline sustainability commitments across six pillars: climate, packaging, water, supply chain, drinks, and society, with specific targets for Net Zero, GHG emissions reduction, recycled plastic use, water replenishment, sustainable sourcing, sugar reduction, and gender diversity CCEP Headline Sustainability Commitments | Pillar | Commitment | Target | | :--- | :--- | :--- | | Forward on climate | Net Zero GHG emissions | Net Zero GHG emissions by 2040 | | | GHG emissions reduction | Reduce absolute GHG emissions by 30% by 2030 (vs. 2019) | | | Renewable electricity | Use 100% renewable electricity by 2030 | | | Supplier engagement - GHG emissions | 100% of carbon strategic suppliers to set science-based targets by 2023 (Europe) and 2025 (API) | | | Supplier engagement - renewable electricity | 100% of carbon strategic suppliers to use 100% renewable electricity by 2025 (Europe) and 2030 (API) | | Forward on packaging | Design | 100% of our primary packaging to be recyclable or reusable by 2025 | | | Recycled plastic | 50% recycled plastic in our PET bottles by 2023 (Europe) and 2025 (API) | | | Virgin plastic | Stop using oil-based virgin plastic in our bottles by 2030 | | | Collection | Collect and recycle a bottle or can for every one we sell by 2030 | | Forward on water | Water stewardship | Set context-based water targets at all NARTD production facilities | | | Replenish | Replenish 100% of water used in beverages | | | Regenerative water use | 100% regenerative water use in 'leadership locations' by 2030 | | Forward on supply chain | Sustainable sourcing | 100% of main agricultural ingredients and raw materials to be sourced sustainably | | | Human rights | 100% of suppliers to be in compliance with our Responsible Sourcing Policy and human rights | | Forward on drinks | Sugar reduction | Reduce sugar: by 10% in Europe by 2025 (vs. 2019); by 20% in New Zealand, 25% in Australia, 35% in Indonesia by 2025 (vs. 2015) | | | Low and no calorie | Over 50% of sales to come from low or no calorie drinks by 2030 (Europe by 2025) | | Forward on society | Gender diversity management | 45% of management positions to be held by women by 2025 | | | Supporting skills development | Support the skills development of 500,000 people facing barriers in the labor market by 2030 | [Task Force on Climate-related Financial Disclosures (TCFD)](index=32&type=section&id=Task%20Force%20on%20Climate-related%20Financial%20Disclosures%20(TCFD)) CCEP is committed to TCFD recommendations, transparently disclosing climate-related risks and opportunities, with Board oversight and scenario modeling informing mitigation actions across physical and transition risks - CCEP is implementing TCFD recommendations to transparently disclose climate-related risks and opportunities, aiming for full alignment in the medium term[146](index=146&type=chunk) - Climate-related risks and opportunities are disclosed under three potential emission pathways: **>4℃**, **+2.5°C**, and **+1.5°C**, modeled on a gross-risk basis[149](index=149&type=chunk)[172](index=172&type=chunk) - The Board has primary oversight of climate-related risks, supported by the ESG Committee and Sustainability Steering Committee, with close collaboration across committees[152](index=152&type=chunk)[154](index=154&type=chunk) - CCEP uses science-based climate scenario modeling, in partnership with Risilience and Marsh Advisory, to quantify exposure and financial impacts from climate change events over a **20-30 year timeline**[159](index=159&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) Short-term (five years) Cumulative Gross Physical Risk Financial Impact Estimates (assuming no mitigation) | Physical Risk | What could be expected | >4℃ emissions pathway | | :--- | :--- | :--- | | Extreme weather events could cause disruption to facilities and logistics routes | Increasing severity and frequency of extreme weather events, such as floods, extreme heatwaves, windstorms or freezing, exposes us to the risk of our sites being damaged and/or key transportation routes being impacted. | Low | | Increasing water stress or water scarcity | Drought, causing an increase in water scarcity and a deterioration in the quality of available water sources in our territories, even if temporary, could result in increased production costs or capacity constraints, which could adversely affect our ability to produce and sell our beverages. | Low | | Changes to weather and precipitation patterns could cause disruption to supply of ingredients | Decreased agricultural productivity in some regions of the world as a result of changing weather patterns may impact the yield and/or quality of key raw ingredients (e.g. sugar beet, sugar cane, coffee or orange juice) that we use to produce our products. | Low | Short-term (five years) Cumulative Gross Transition Risk Financial Impact Estimates (assuming no mitigation) | Transition Risk | What could be expected? | >4ºC emissions pathway | | :--- | :--- | :--- | | Policy | Carbon pricing is used as a shadow mechanism through which governments can incentivise GHG emissions reductions. The scenarios assume the use of higher carbon prices across CCEP markets to price and penalise GHG emissions, including those linked to packaging materials, to drive decarbonisation. | Low | | Market | Consumer awareness of environmental impact drives a shift towards more sustainable, lower-emission alternative products and services. The scenarios assume that consumer preferences will shift towards packaging options that are perceived to be more sustainable, transforming market demand. | Low | | Technology | Regulation or market forces could result in the phasing out of fossil fuel and fossil fuel dependent equipment and vehicles. This could result in carbon-intensive assets becoming devalued and stranded, resulting in impairment and asset write-offs. CCEP has a limited proportion of equipment or assets that depend directly on fossil fuels, with our own fleet assets the primary driver of risk. | Low | | Reputation | Levels of consumer activism could be influenced by how much climate action is taken by the beverage sector and by CCEP. This assumes a potential gross risk if CCEP falls behind the beverage sector, causing increased consumer activism relative to our competitors. This assessment does not include packaging changes likely to be required by legislation across the sector. | Low | [Forward on Climate](index=38&type=section&id=Forward%20on%20climate) CCEP is committed to decarbonizing its entire business, aiming for Net Zero by 2040 with a 30% GHG emissions reduction by 2030, supported by a €300 million investment, low-carbon plans, supplier engagement, and renewable electricity - CCEP aims for Net Zero by 2040 and a **30% absolute GHG emissions reduction by 2030** (vs. 2019), supported by a **€300 million investment plan** (2020-2022)[192](index=192&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - The company is developing low-carbon transition plans, embedding carbon projections into business plans, and piloting an internal carbon price of **€100/tCO2e** in Europe[197](index=197&type=chunk)[198](index=198&type=chunk) - Over **90% of value chain GHG emissions** are from the supply chain; CCEP requires **~200 carbon strategic suppliers** to set science-based targets and use **100% renewable electricity**[200](index=200&type=chunk) - Packaging accounts for **38% of GHG emissions**; CCEP reduces this by lightweighting, increasing recycled content (**48.5% rPET in 2022**), and aiming to stop using oil-based virgin plastic by 2030[201](index=201&type=chunk) - Operations and commercial sites account for **12% of carbon footprint**; CCEP invested **~€24.8 million in 2022** in energy, logistics, and carbon-saving technologies, achieving **100% renewable electricity purchase in Europe since 2018**[203](index=203&type=chunk)[205](index=205&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) - CCEP is transitioning its car and van fleet to electric/ultra-low emission vehicles by 2030 (**20% in 2022**) and improving distribution networks through warehouse capacity, rail transport, and alternative fuels[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - Emissions from cold drink equipment (CDE) represent **19% of carbon footprint**; CCEP reduced CDE energy use by **3%** and fleet size by **8% in 2022**, with all new coolers using hydrofluorocarbon (HFC)-free refrigerants[218](index=218&type=chunk) [Forward on Packaging](index=42&type=section&id=Forward%20on%20packaging) CCEP's packaging strategy focuses on reducing waste, achieving 100% circularity, and lowering its carbon footprint through removing unnecessary packaging, innovating refillable solutions, increasing recycled content, and driving collection via DRS - CCEP's packaging strategy aims to reduce packaging use, ensure **100% collection, reuse, or recycling**, and lower the carbon footprint (**38% of total value chain carbon footprint**)[221](index=221&type=chunk) - Life cycle analysis (LCA) informs decisions, showing **100% rPET has up to ~70% lower carbon footprint** than virgin PET. CCEP aims for **100% recyclable or reusable primary packaging by 2025** (**98.7% in Europe in 2022**)[224](index=224&type=chunk)[227](index=227&type=chunk) - CCEP is innovating in refillable and packageless solutions; **~15% of packaging units in Europe were returnable/refillable in 2022**, and **9% of volumes were dispensed**[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk) - The company achieved its **>50% rPET target in Europe four years early** and aims to stop using oil-based virgin plastic in bottles by 2030. Group rPET usage was **48.5% in 2022**[240](index=240&type=chunk)[1324](index=1324&type=chunk) - Driving packaging circularity is central to TCCC's 'World Without Waste' strategy; CCEP supports Deposit Return Schemes (DRS) in Europe and Container Deposit Schemes (CDS) in Australia/New Zealand, achieving **71.8% primary packaging collection in 2022**[242](index=242&type=chunk)[245](index=245&type=chunk)[250](index=250&type=chunk) [Forward on Water](index=46&type=section&id=Forward%20on%20water) CCEP's water stewardship strategy, aligned with TCCC's global plan, addresses water stress through operational efficiency, context-based reduction targets, and replenishment projects, aiming for 100% regenerative water use in 'leadership locations' by 2030 - CCEP's water strategy aligns with TCCC's global plan, focusing on water efficiency, context-based reduction targets at production facilities, and protecting water sources[254](index=254&type=chunk) - The company aims for **100% regenerative water use in 'leadership locations' by 2030** and replenishes **100% of water used in beverages**[255](index=255&type=chunk) - Water risk is assessed using EWRA and FAWVAs; **24 of 66 NARTD production facilities** are in high baseline water stress areas, accounting for **49% of total production volumes in 2022**[257](index=257&type=chunk)[259](index=259&type=chunk) - CCEP invested **~€1.6 million in water efficiency technology in 2022**, saving **~125,000 m3/year**, and achieved a **5.4% improvement in water use efficiency since 2019**[262](index=262&type=chunk)[185](index=185&type=chunk) - In 2022, CCEP supported **21 water replenishment projects in Europe and 6 in API**, replenishing **19.7 million m3 of water**, representing **105.5% of total sales volume**[269](index=269&type=chunk) [Forward on Supply Chain](index=49&type=section&id=Forward%20on%20supply%20chain) CCEP is committed to ethical and sustainable procurement, ensuring 100% supplier compliance with its Responsible Sourcing Policy and Principles for Sustainable Agriculture, engaging strategic suppliers to reduce GHG emissions and transition to renewable electricity - CCEP is committed to **100% supplier compliance** with its Responsible Sourcing Policy (RSP) and Principles for Sustainable Agriculture (PSA), covering human rights and environmental protection[275](index=275&type=chunk)[276](index=276&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - Suppliers are responsible for **over 90% of Scope 3 emissions**; CCEP requires carbon strategic suppliers to set science-based targets (by 2023 in Europe, 2025 in API) and use **100% renewable electricity** (by 2025 in Europe, 2030 in API)[277](index=277&type=chunk)[288](index=288&type=chunk) - In 2022, **17% of carbon strategic suppliers had science-based targets**, and a further **42% committed to setting them**[200](index=200&type=chunk)[289](index=289&type=chunk) - CCEP spent **~€7.4 billion with over 17,000 suppliers in 2022**, with **85% of spend with local suppliers**[279](index=279&type=chunk) - The company launched a sustainability-linked supply chain finance program in 2022 to incentivize suppliers' ESG performance[291](index=291&type=chunk) [Forward on Drinks](index=53&type=section&id=Forward%20on%20drinks) CCEP is evolving its product portfolio to meet changing consumer preferences for low/no calorie options and sustainably sourced ingredients, committed to sugar reduction targets, responsible marketing, and ensuring high product quality and safety - CCEP is evolving its portfolio to offer more low/no calorie drinks and sustainably sourced ingredients, aligning with consumer demand[294](index=294&type=chunk) - The company supports UNESDA's commitment to reduce average added sugars in soft drinks by **10% by 2025 in Europe** and has specific sugar reduction targets for API markets (**20-35% by 2025**)[298](index=298&type=chunk)[305](index=305&type=chunk) - CCEP aims for **over 50% of sales to come from low or no calorie drinks by 2030** (Europe by 2025)[299](index=299&type=chunk) - Responsible marketing principles include not advertising to children under 13 and promoting responsible drinking for alcoholic products[308](index=308&type=chunk) - Product quality and safety are ensured by adhering to The Coca-Cola Operating Requirements (KORE) and FSSC 22000 standard for all production facilities[296](index=296&type=chunk)[311](index=311&type=chunk) [Forward on Society](index=56&type=section&id=Forward%20on%20society) CCEP's 'Forward on Society' pillar focuses on communities and people, aiming for positive impact through skills development, social inclusion, and disaster response, while promoting wellbeing, inclusion, diversity, and equity within its workforce - CCEP aims to make a positive difference in local communities through investment programs, promoting inclusion, supporting skills development (target: **500,000 people by 2030**), and environmental protection[316](index=316&type=chunk)[325](index=325&type=chunk) - Community initiatives include GIRA Mujeres (female entrepreneurs in Spain), IndigiGrow (Aboriginal youth in Australia), and disaster relief efforts (e.g., Ukraine, Tonga)[322](index=322&type=chunk)[323](index=323&type=chunk)[327](index=327&type=chunk) - The 'Me@CCEP' people strategy focuses on being valued, well, recognized, developed, connected, and inspired, fostering an inclusive culture and promoting physical/mental wellbeing[329](index=329&type=chunk)[330](index=330&type=chunk) - CCEP is committed to building a diverse workforce with a target of **45% women in management positions by 2025** and is recognized externally for diversity and inclusion (e.g., Bloomberg's Gender Equality Index)[332](index=332&type=chunk)[334](index=334&type=chunk)[64](index=64&type=chunk) - Safety is a top priority with a target to reduce the total incident rate (TIR) to **below 1 by 2025**. Tragically, two employee fatalities occurred in Indonesia in 2022, leading to ongoing safety procedure improvements[346](index=346&type=chunk) - The company offers competitive pay, comprehensive benefits (including a global Employee Share Purchase Plan with **38% participation**), and extensive training and development programs[352](index=352&type=chunk)[353](index=353&type=chunk)[356](index=356&type=chunk) - CCEP maintains a strong corporate governance framework, an Ethics & Compliance program, and a Code of Conduct (updated in 2022) to ensure lawful and ethical operations, with a zero-tolerance approach to modern slavery[362](index=362&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk)[372](index=372&type=chunk) [Principal Risks](index=64&type=section&id=Principal%20risks) CCEP's ERM framework identifies and manages principal and emerging risks across external, strategic, and operational categories, including packaging, legal/regulatory, business disruption, cyber attacks, economic/political, market, climate, health, transformation, people, and franchisor relationships - The Board oversees CCEP's ERM framework, which identifies, assesses, and manages principal and emerging risks through top-down and bottom-up assessments[374](index=374&type=chunk)[375](index=375&type=chunk)[377](index=377&type=chunk)[380](index=380&type=chunk) - Key risk categories include Packaging, Legal/Regulatory/Tax, Business Disruption, Cyber and Social Engineering Attacks, Economic and Political Conditions, Market, Climate Change and Water, Perceived Health Impact of Beverages, Business Transformation, People and Wellbeing, and Relationships with TCCC and other franchisors[392](index=392&type=chunk)[394](index=394&type=chunk)[396](index=396&type=chunk)[398](index=398&type=chunk)[400](index=400&type=chunk)[401](index=401&type=chunk) - CCEP uses AI for cognitive risk sensing (Resilinc) to identify emerging risks and strengthen its ability to convert threats into opportunities[384](index=384&type=chunk) - Internal control procedures are designed to manage, rather than eliminate, risk and are reviewed by the Audit Committee for adequacy and effectiveness[403](index=403&type=chunk)[404](index=404&type=chunk) [Viability Statement](index=72&type=section&id=Viability%20statement) The Directors assessed CCEP's viability over a three-year planning cycle, considering financial metrics and principal risks, with stress testing confirming the Group's ability to manage downsides and operate as a going concern - The Directors assessed CCEP's viability over a **three-year planning cycle**, considering revenue, operating profit, EBITDA, and free cash flow[408](index=408&type=chunk) - Stress testing included scenarios for business disruption, legal/regulatory intervention (plastic packaging), cyber attacks, economic/political uncertainty, and climate change/water risks[409](index=409&type=chunk)[411](index=411&type=chunk) - Based on stable cash generation and ability to manage downside impacts, Directors concluded CCEP is well-positioned to continue in operation over the assessment period[410](index=410&type=chunk) [Non-Financial and Sustainability Information Statement](index=73&type=section&id=Non-financial%20and%20sustainability%20information%20statement) This statement outlines where non-financial and sustainability information, as required by the Companies Act 2006, can be found within the Integrated Report, covering environmental, employee, social, human rights, anti-corruption, business model, risk, and performance indicators - The Integrated Report contains both financial and non-financial information, with specific sections dedicated to environmental, employee, social, human rights, and anti-corruption matters[412](index=412&type=chunk)[413](index=413&type=chunk) - Information on CCEP's business model, principal risks, and non-financial performance indicators, including climate-related financial information, is also provided[413](index=413&type=chunk) [Business and Financial Review](index=74&type=section&id=Business%20and%20financial%20review) CCEP, a leading consumer goods group in Western Europe and Asia Pacific, reported strong 2022 financial results with significant revenue and operating profit growth, driven by API operations and AFH recovery, detailing operational performance, liquidity, and capital management - CCEP is a leading consumer goods group in Western Europe and Asia Pacific, serving **600 million consumers** and **2 million customers** across **29 countries**[414](index=414&type=chunk) - The company uses alternative performance measures (non-GAAP) to evaluate and report performance, excluding items affecting comparability for better period-over-period analysis[417](index=417&type=chunk) 2022 Key Financial Measures (Pro Forma Comparable FX Neutral) | Metric | Value | % Change vs. Prior Year | | :--- | :--- | :--- | | Revenue | €17,320m | +15.5% | | Cost of Sales | €11,088m | +19.0% | | Operating Expenses | €4,094m | +9.0% | | Operating Profit | €2,138m | +12.5% | | Profit After Taxes | €1,564m | +13.0% | | Diluted EPS | €3.39 | +13.0% | - Reported revenue increased by **26.0% to €17.3 billion**, with pro forma comparable and FX neutral growth of **15.5%**, driven by a **9.5% increase in volume** and **6.0% increase in revenue per unit case**[425](index=425&type=chunk) - Volume growth of **9.5%** (pro forma comparable) was due to solid recovery in the away-from-home (AFH) channel (**+18.5%**) and continued growth in the home channel (**+4.0%**)[429](index=429&type=chunk) - Comparable operating profit increased by **12.5%** (pro forma comparable and FX neutral) to **€2.1 billion**, reflecting strong revenue growth, efficiency programs, and discretionary spend optimization[41](index=41&type=chunk) 2022 Revenue by Segment (Pro Forma Comparable FX Neutral) | Segment | Revenue (€m) | %

[Form 6-K Filing Announcement](index=1&type=section&id=Form%206-K%20Filing%20Announcement) This section announces the filing of Coca-Cola Europacific Partners' 2022 Integrated Report and Form 20-F, providing company details and contact information [Filing of 2022 Integrated Report and Form 20-F](index=2&type=section&id=Filing%20of%202022%20Integrated%20Report%20and%20Form%2020-F) CCEP announced the filing of its 2022 Integrated Report and Form 20-F with the SEC, containing audited financial results for the year ended December 31, 2022 - CCEP filed its 2022 Integrated Report and Form 20-F on **March 17, 2023**[3](index=3&type=chunk) - The report includes audited results for the year ended **December 31, 2022**, following unaudited results released on **February 16, 2023**[3](index=3&type=chunk) - The report is accessible on the CCEP website, www.sec.gov, and the UK's National Storage Mechanism[9](index=9&type=chunk)[4](index=4&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) CCEP is a leading global consumer goods company manufacturing and distributing beverages to 600 million consumers across 29 countries - CCEP is a leading global consumer goods company, serving **600 million consumers** and **2 million customers** across **29 countries**[5](index=5&type=chunk) - The company is listed on Euronext Amsterdam, NASDAQ Global Select Market, London Stock Exchange, and Spanish Stock Exchanges under the symbol **CCEP**[5](index=5&type=chunk) [Contact Information](index=2&type=section&id=Contact%20Information) The report provides contact details for the Company Secretariat, Investor Relations, and Media Relations Key Contacts | Department | Name | Phone Number | | :--- | :--- | :--- | | Company Secretariat | Clare Wardle | +44 20 7355 8406 | | Investor Relations | Sarah Willett | +44 7970 145 218 | | Media Relations | Shanna Wendt | +44 7976 595 168 |

Financial Data and Key Metrics Changes - The company reported total revenue of €17.3 billion, an increase of 15.5% year-over-year [43] - Adjusted free cash flow generation was €1.8 billion, enabling a record dividend payment of €1.68 per share, up 20% from 2021 [15][42] - COGS per unit case increased by 9%, slightly above the guidance of 8.5% [45] Business Line Data and Key Metrics Changes - Revenue per unit case grew by 6%, driven by strong growth in the away-from-home channel and effective revenue growth management initiatives [13][16] - The company successfully launched new flavors and products, including Fanta and Sprite, contributing to brand excitement and consumer engagement [11][40] Market Data and Key Metrics Changes - Great Britain and Iberia showed strong performance, with away-from-home volumes in double-digit growth compared to 2019 [44] - The home channel continued to grow, benefiting from increased at-home consumption, with volumes up 4% versus 2021 [44] Company Strategy and Development Direction - The company aims to maintain a focus on sustainability and innovation, with ongoing investments in digital tools and supply chain improvements [6][10] - A new efficiency program was announced, targeting €350 million to €400 million in incremental savings by 2028 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the NARTD category and the company's ability to maintain or grow market share despite inflationary pressures [51][52] - The company anticipates revenue growth of 6% to 8% for 2023, primarily driven by pricing strategies [49] Other Important Information - The company completed the acquisition of Coca-Cola Company's 29.4% minority stake in its Indonesia business, increasing ownership to 100% for €282 million [20] - The company was included in the 2023 Bloomberg Gender Equality Index, reflecting its commitment to diversity and inclusion [6] Q&A Session All Questions and Answers Question: Can you talk about progress in pricing so far year-to-date and the cadence of pricing through 2023? - Management noted that pricing strategies are being implemented across various markets, with some already completed in Iberia, Nordics, and Australia, while France is currently under negotiation [28][29] Question: How is the company managing consumer demand amidst inflation? - Management indicated that recent trading has not shown significant changes in underlying consumer demand, and they are focused on balancing pricing and affordability [91][92] Question: Are there any volume declines embedded in the 6% to 8% organic revenue guidance for 2023? - Management clarified that they expect volume growth and aim to maintain or grow market share, with the guidance reflecting a balanced approach [70][94]

Financial Data and Key Metrics Changes - The company reported total revenue of €8.3 billion, an increase of 17% compared to the previous year [21] - Comparable operating profit rose to €1.1 billion, up 29%, reflecting strong topline growth and efficiency programs [22] - Comparable diluted earnings per share increased by 32% to €1.61 [22] - Free cash flow generation reached €1.3 billion, significantly above the medium-term target of €1.25 billion [22][36] Business Line Data and Key Metrics Changes - The non-alcoholic ready-to-drink (NARTD) category grew by 5% in the first half, with the away-from-home channel recovering to 2019 levels [8][25] - The company achieved strong volume growth of 13% in the first half, supported by a rebound in tourism and the recovery of the HoReCa channel [16][25] - Revenue per unit case grew by 4.5%, reflecting strong growth in the away-from-home segment and effective revenue growth management initiatives [26] Market Data and Key Metrics Changes - The company gained approximately 30 basis points in NARTD value share both in-store and online [16] - The away-from-home channel, which accounts for about 40% of volumes, showed resilience in challenging times [9] - The company reported that its brands delivered more than twice the value to customers compared to the nearest competitor in Europe [9] Company Strategy and Development Direction - The company is focused on long-term profitable growth, emphasizing revenue growth management and efficiency [5][6] - There is a strong commitment to sustainability, with initiatives aimed at reducing emissions and improving packaging [14][15] - The company is strategically exiting non-core categories, such as beer and cider, to focus on sparkling and tea categories [19][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain economic environment, citing strong brand equity and a balanced revenue stream [39][42] - The company raised its full-year guidance for revenue, profit, and free cash flow, reflecting strong first-half performance [37] - Management acknowledged potential inflationary pressures but emphasized the importance of maintaining affordability for consumers [30][71] Other Important Information - The company is on track to deliver approximately 85% of its efficiency savings target by the end of 2022 [27][66] - The company is approximately 90% hedged for commodity inflation for the current year, with expectations of high single-digit inflation for 2023 [33][34] Q&A Session Summary Question: How is the business different in navigating potential consumer weakness? - Management highlighted stronger revenues from the away-from-home channel and a balanced pack architecture that allows for effective promotions [39][40][41] Question: What led to the acceleration in market share? - The acceleration was attributed to strong performance in sparkling beverages, continued investment in innovation, and improved execution during the pandemic [43][44][45] Question: How sensitive is the business to European gas prices? - Management discussed contingency plans for energy supply and the importance of maintaining service levels despite supply chain challenges [48][49] Question: What is the impact of working capital on cash flow guidance? - Management indicated that the impact on cash flow is primarily linked to inventory and CapEx phasing, with strong free cash flow performance overall [51][52] Question: How is gross margin affected by volume leverage? - Volume leverage has been beneficial, but broader commodity inflation pressures are also a significant factor [55][56] Question: What changes are being made to pricing strategies? - Management emphasized a surgical approach to pricing, focusing on affordability while maintaining brand equity [70][71] Question: How impactful has the portfolio rationalization been in Indonesia? - The rationalization has had a significant and quick impact, allowing for a more focused approach on core categories [72][73]

United States Securities and Exchange Commission Washington, D.C. 20549 FORM 20-F (MarkOne) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 ...