Coca-Cola Europacific Partners(CCEP) - 2022 Q4 - Annual Report

Strategic Report Who We Are 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] 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 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] - The company is reducing the environmental impact of manufacturing, distribution, and packaging, and is committed to reducing sugar across its portfolio[17] 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][128] - 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][24][25] - 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][30] Our Operations 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] Our Business Model 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] - CCEP operates under bottler agreements with TCCC and other franchisors, purchasing concentrates and materials to produce and distribute packaged beverages[37] - The company aims for a circular economy for packaging, encouraging collection and recycling, with 99% of bottles and cans in Europe being recyclable[37] - 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] Performance Indicators 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] - Comparable operating profit growth was supported by strong revenue, ongoing efficiency programs, and discretionary spend optimization, despite inflationary pressures[41] 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] Chairman and CEO 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] - 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][55][56] - 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][58] - 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][124] - 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][66][67] - Key investments in 'Factory of the future' include 5G technology for safety, autonomous electric trucks, and augmented reality for line breakdowns[71] Our Stakeholders 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][96] - Engagement with people includes an annual engagement plan, global ESPP, and programs like Healthy@CCEP, focusing on wellbeing and inclusion[73] - Shareholders are engaged through AGMs, roadshows, and capital markets events, with CCEP returning cash via dividends (~50% payout ratio) and share buybacks[75][76] - Franchisors (like TCCC) are engaged through regular contact and meetings, with CCEP driving sales and gaining exclusive distribution rights[77][79] - Consumers are engaged through insights, labelling, social media, and in-store activations, receiving diverse, high-quality, and safe products[82][83] - Customers are engaged through general managers and sales teams, benefiting from CCEP's customer-centric model and product diversity[84][85] - Suppliers are engaged through relationship management programs and collaborations, providing high-quality products and supporting sustainable practices[89][90] - Communities are supported through skills development, environmental protection, and disaster relief, creating value through employment and local investment[91][93] Section 172(1) Statement from the Directors 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][96][97] - The Board ensures maintaining high standards of business conduct, guided by the Group's purpose and governance framework[98] - CCEP launched an international safety and wellbeing campaign, 'Get home to what you love,' emphasizing physical and mental safety in the workplace[100][101] Our Market Drivers 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][104] - 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][105] - Channel trends show accelerated growth in digital platforms and a shift in consumption to at-home occasions, emphasizing customer collaboration and value creation[106][107] Our Strategy 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] - 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] - 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][117][118] - 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][122][123][124] - 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] - 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] Taking Action on Sustainability 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][138][139] - 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][188] - The plan is underpinned by principles of responsible advertising, transparency, and accountability, and is recognized by MSCI, Dow Jones Sustainability Indices, and FTSE4Good[140][141] This is Forward - Our Sustainability Action Plan 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) 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] - 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][172] - The Board has primary oversight of climate-related risks, supported by the ESG Committee and Sustainability Steering Committee, with close collaboration across committees[152][154] - 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][161][162][163] 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 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][195][196] - 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][198] - 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] - 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] - 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][205][208][209] - 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][215][216][217] - 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] Forward on Packaging 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] - 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][227] - 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][235][236] - 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][1324] - 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][245][250] Forward on Water 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] - The company aims for 100% regenerative water use in 'leadership locations' by 2030 and replenishes 100% of water used in beverages[255] - 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][259] - 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][185] - 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] Forward on Supply Chain 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][276][281][282] - 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][288] - In 2022, 17% of carbon strategic suppliers had science-based targets, and a further 42% committed to setting them[200][289] - CCEP spent ~€7.4 billion with over 17,000 suppliers in 2022, with 85% of spend with local suppliers[279] - The company launched a sustainability-linked supply chain finance program in 2022 to incentivize suppliers' ESG performance[291] Forward on Drinks 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] - 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][305] - CCEP aims for over 50% of sales to come from low or no calorie drinks by 2030 (Europe by 2025)[299] - Responsible marketing principles include not advertising to children under 13 and promoting responsible drinking for alcoholic products[308] - Product quality and safety are ensured by adhering to The Coca-Cola Operating Requirements (KORE) and FSSC 22000 standard for all production facilities[296][311] Forward on Society 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][325] - Community initiatives include GIRA Mujeres (female entrepreneurs in Spain), IndigiGrow (Aboriginal youth in Australia), and disaster relief efforts (e.g., Ukraine, Tonga)[322][323][327] - 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][330] - 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][334][64] - 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] - The company offers competitive pay, comprehensive benefits (including a global Employee Share Purchase Plan with 38% participation), and extensive training and development programs[352][353][356] - 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][363][364][372] Principal Risks 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][375][377][380] - 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][394][396][398][400][401] - CCEP uses AI for cognitive risk sensing (Resilinc) to identify emerging risks and strengthen its ability to convert threats into opportunities[384] - Internal control procedures are designed to manage, rather than eliminate, risk and are reviewed by the Audit Committee for adequacy and effectiveness[403][404] Viability Statement 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] - Stress testing included scenarios for business disruption, legal/regulatory intervention (plastic packaging), cyber attacks, economic/political uncertainty, and climate change/water risks[409][411] - 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] Non-Financial and Sustainability Information Statement 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][413] - Information on CCEP's business model, principal risks, and non-financial performance indicators, including climate-related financial information, is also provided[413] Business and Financial Review 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] - The company uses alternative performance measures (non-GAAP) to evaluate and report performance, excluding items affecting comparability for better period-over-period analysis[417] 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] - 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] - 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] 2022 Revenue by Segment (Pro Forma Comparable FX Neutral) | Segment | Revenue (€m) | %