Coca-Cola Europacific Partners(CCEP) - 2024 Q4 - Annual Report

Acquisition and Market Expansion - The company jointly acquired 100% of Coca-Cola Beverages Philippines, Inc. (CCBPI) on February 23, 2024, in partnership with Aboitiz Equity Ventures Inc. (AEV) as part of its market expansion strategy[1642]. - The company plans to expand its market presence in Eastern Europe, targeting a 20% increase in market share within the next three years[1654]. - A merger and acquisition strategy is in place, with a focus on acquiring local beverage brands to enhance product diversity and market reach[1655]. Financial Performance - Coca-Cola Europacific Partners reported a cumulative operating profit increase of 10% year-over-year, reflecting strong demand for its products[1644]. - The company achieved an earnings per share (EPS) of €1.25, representing a 15% increase compared to the previous year[1644]. - The company reported significant changes in its financial information, with consolidated statements available on pages 167-242 of the report[1633]. - The company’s operating results for the year are summarized on pages 82-87, showcasing growth in key performance metrics[1633]. - Coca-Cola Europacific Partners reported a 12% increase in free cash flow, amounting to €300 million, which will be reinvested into growth initiatives[1655]. Growth and Development - The company anticipates a revenue growth of 8% for the upcoming fiscal year, driven by new product launches and market expansion strategies[1652]. - The company’s future outlook includes continued investment in research and development, particularly in new product lines and technologies[1633]. - User data indicated a 5% growth in the number of active customers, reaching 1.2 million users across its digital platforms[1644]. Sustainability Initiatives - The company emphasizes sustainability initiatives, aligning with the Beverage Industry Environmental Roundtable (BIER) standards[1642]. - Coca-Cola Europacific Partners is investing €200 million in new technology for sustainable packaging solutions, aiming for a 50% reduction in plastic usage by 2025[1653]. - The company has set a target to achieve net zero emissions by 2030, with significant investments in renewable energy sources[1655]. Governance and Policies - The company has established a comprehensive governance framework, including a code of ethics and audit committee financial expert[1635]. - The company has implemented a policy on the recoupment of incentive compensation, approved by the Board on October 18, 2023[1638]. Liquidity and Capital Resources - The company’s liquidity and capital resources are detailed on pages 88-90, indicating a strong financial position[1633]. Employee Engagement - The company is implementing a new employee share purchase plan (ESPP) to enhance employee engagement and retention, with an expected participation rate of 30%[1654]. Strategic Focus - The company’s strategic report includes a focus on artificial intelligence (AI) to enhance operational efficiency[1642].