WINNING TODAY,
CREATING
TOMORROW
by combining the strength and scale
of our large multinational business
with an expert, local knowledge of the
customers we serve and communities
we support. Our success is built on great
brands, great people and great execution.
Done sustainably.
Visit our online Annual Report
at cocacolaep.com/investors/financial-
reports-and-results/latest-annual-report/
Throughout the report look out for these:
Reference to ESRS-linked
disclosure standard
number throughout the
report.
Reference to ESRS-linked disclosure located
outside the sustainability statement and
incorporated by reference consistent with
ESRS standards throughout the report.
Reference to other
pages within the report.
Reference to sustainability
information within the
report.
Strategic Report
1
Who we are
2
Our performance indicators
4
Our operations
5
Our business model
6
Our market drivers
7
Our strategy
8
Chairman’s letter
10
CEO’s letter
12
Great brands
14
Great people
18
Great execution
21
Done sustainably
22
This is Forward, our sustainability action plan
23
Sustainability statement
59
TCFD Compliance Statement
61
Our stakeholders and section 172 statement
66
Principal risks
78
Viability statement
79
Non-financial and sustainability
information statement
80
Business and financial review
Governance and Directors’ Report
95
Chairman’s introduction
96
Board of Directors
96
Directors’ biographies
103
Senior management
106
Corporate governance report
118
Nomination Committee Chairman’s letter
119
Nomination Committee report
122
Audit Committee Chairman’s letter
123
Audit Committee report
130
ESG Committee Chairman’s letter
131
ESG Committee report
132
Directors’ remuneration report
132
Statement from the Remuneration
Committee Chairman
134
Overview of remuneration policy
135
Remuneration at a glance
136
Annual report on remuneration
149
Directors’ report
153
Directors’ responsibilities statement
Financial Statements
155
Independent auditor’s reports
173
Consolidated financial statements
178
Notes to the consolidated financial
statements
243
Company financial statements
247
Notes to the Company financial statements
Further Sustainability Information
255
Key performance data related to ESRS
material topics
258
Key performance data related to other
This is Forward topics
260
ESRS methodology and appendices
Other Information
284
Risk factors
294
Other Group information
313
Form 20-F table of cross references
315
Exhibits
316
Signatures
317
Glossary
321
Useful addresses
322
Forward-looking statements
Strategic
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Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
In this year’s report
Coca-Cola Europacific Partners
is one of the world’s leading
consumer goods companies –
making, moving and selling the
world’s most loved drinks.
Everything we do is built on great brands, great
people and great execution. Done sustainably. And
our success is defined by the passion, hard work and
commitment of the 41,000 people who work here at
Coca-Cola Europacific Partners (CCEP).
We operate in categories that are growing,
supported by strong investment and plans
to drive growth. We have the momentum to
create sustainable growth, while continuing
to be a great partner for our customers and
a great place to work for our colleagues.
Key 2024 highlights include:
• Delivering consistently robust top
and bottom line growth
• Continuing to lead value creation, while
growing share ahead of market and
achieving our best-ever customer
satisfaction scores
• Leveraging our diversification into faster
growing markets, meaning we’re more
resilient than ever
• Supporting our people through leadership,
training, wellbeing and accessibility initiatives,
and achieving a high engagement score
• More investment than ever in sustainable
growth since the formation of CCEP,
alongside gains in productivity and
delivering impressive free cash flow
• Continuing shareholder value creation
Strategic
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Financial
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Further Sustainability
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Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
1
Who we are
Financial
Reported
revenue
€20.4bn
Adjusted comparable and
FX neutral revenue
€20.7bn
Reported revenue increased by 11.7%, or 3.5% on an
adjusted comparable and FX neutral basis. Volumes
were flat(A) and revenue per unit case increased by
2.7%(B). Volume remained resilient despite mixed
summer weather in Europe and strategic stock
keeping unit (SKU) rationalisation, with solid
underlying volume performance. Revenue per
case growth reflected positive headline pricing,
promotional optimisation and favourable brand
mix, partially offset by geographic mix.
Reported operating profit decreased by 8.8%,
reflecting higher business transformation costs and
non-cash impairment of our Indonesian business
unit. On an adjusted comparable and FX neutral basis,
operating profit increased by 8.0%, driven by top line
growth, delivery of efficiency programmes and
optimisation of discretionary spend.
Adjusted comparable volume, adjusted comparable and FX neutral revenue and
revenue per unit case, adjusted comparable operating profit, comparable diluted
EPS, comparable free cash flow, ROIC and adjusted comparable ROIC are non-IFRS
performance measures. Non-IFRS adjusted comparable financial information as if
the acquisition of Coca-Cola Beverages Philippines, Inc (CCBPI) occurred at the
beginning of the period presented for illustrative purposes only. Acquisition
completed on 23 February 2024. Prepared on a basis consistent with CCEP IFRS
accounting policies and includes acquisition accounting adjustments for the period
1 January to 23 February.
Refer to “Note regarding the presentation of adjusted financial information and
alternative performance measures” on pages 80-81 for the definition of our non-
IFRS performance measures and pages 91-93 for a reconciliation of reported to
comparable and reported to adjusted comparable results.
A.
On an adjusted comparable basis.
B.
On an adjusted comparable and FX neutral basis.
Reported
operating profit
€2.1bn
Adjusted comparable and
FX neutral operating profit
€2.7bn
Reported diluted
earnings per share (EPS)
€3.08
Comparable diluted
earnings per share
€3.95
Net cash flows from
operating activities
€3.1bn
Comparable
free cash flow
€1.8bn
Return on invested
capital (ROIC)
8.1%
Adjusted
comparable ROIC
10.8%
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
2
Our performance indicators
Non financial(A)
Safety(B)
Climate
Water
Packaging
Total incident rate
Number per 100 full
time equivalent
employees
0.84
Percentage greenhouse
gas (GHG) emissions
reduction across our
entire value chain
versus 2019
13.6%
Water replenished
as a percentage of total
sales volume(C)
110%
Percentage of PET
that is rPET
46%
We are working towards world
class safety standards. Our Health,
Safety and Mental Wellbeing policy
helps to make sure that we are
adopting best practices.
In 2024, we developed a 2030
carbon reduction plan, aligned to
our business growth, Capex and
Opex plans. This includes an
investment plan of approximately
€405 million for emissions
reduction initiatives.
Together with The Coca-Cola
Company (TCCC) and The
Coca-Cola Foundation (TCCF), we
continue to support replenishment
programmes across our territories.
In 2024, we supported 34 water
replenishment projects in Europe
and 24 in APS(D).
We reached 46% recycled PET
(rPET) across the Group in 2024.
We continued to exceed our
target to use >50% rPET in Europe,
reaching 63.2%(E). In APS, 23%
of the plastic used in our PET
bottles was rPET.
Note: Our 2024 data is included in the sustainability statement. See detail regarding restatement of our baseline GHG figures in our methodology statement on page 260.
A.
All metrics are reported at CCEP Group level unless stated otherwise.
B.
Excludes the Philippines.
C.
Based on the volume of water replenished through replenishment projects versus the sales volume of our ready to drink (RTD) litres of finished beverages.
D.
Investment split varies per project, we claim replenishment benefit as a Coca-Cola system.
E.
Since 2021, our rPET use in Europe has been >50%.
For more information about our
sustainability commitments see
page 22
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
3
Our performance indicators continued
Our markets
Location of our
shared service
centres
Remaining close to our customers, communities
and stakeholders gives us unique knowledge of our
markets, enabling us to provide great execution and
great brands, done sustainably.
Region
Revenue by
geography(A)
Production
facilities
Europe
FBN (France, Monaco, Belgium, Luxembourg, the
Netherlands, Norway, Sweden and Iceland)
24.8%
13
Germany
15.5%
16
Great Britain
16.3%
5
`
`
Iberia (Spain, Portugal and Andorra)
16.6%
11
Region
Revenue by
geography(A)
Production
facilities
Australia, Pacific and Southeast Asia (APS)
Australia/Pacific (Australia, New Zealand, the
Pacific Islands and Papua New Guinea)
16.7%
25
```
South East Asia (Indonesia and the Philippines)
10.1%
27
A. Revenue shown is percentage of total reported revenue as at 31 December 2024.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
4
Our operations♦.
ESRS 2 SBM-1
ESRS
From developing close relationships with The Coca-Cola Company (TCCC)
and other franchisors to sourcing raw materials, our great people make,
move and sell our great brands with great execution, done sustainably.
Great brands
Great people
Great execution
Done sustainably
Forward on
climate
Forward on
packaging
Forward on
water
Forward on
supply chain
Forward on
drinks
Forward on
society
For a better shared future
Creating value and driving
sustainable returns for our:
People
Shareholders
Franchisors
Consumers
Customers
Suppliers
Communities
We partner
We operate under bottler
agreements with TCCC and
other franchisors, and
purchase the concentrates,
beverage bases and syrups
to make, sell and distribute
packaged beverages to our
customers and vending
partners.
We source
We use ingredients such as
water, sugar, coffee, juices and
syrup to make our drinks. We
also rely on materials like glass,
aluminium, PET, pulp and paper
to produce packaging. On
average in 2024, 84% of our
spend was with suppliers based
in our countries of operation.
We make
Our production facilities make
and bottle the wide range of
drinks that consumers love.
Over 90% of the drinks we sell
are produced in the country in
which they are consumed.
We recycle
Although 99.7% of our
bottles and cans are
recyclable, they don’t always
end up being recycled. That
needs to change. Working
with partners, we are taking
action to make sure that
more of our packaging is
recycled and to lead the way
towards a circular economy.
We sell
Our 13,000 strong commercial
team works with a wide range of
customers, from small local
shops, supermarkets and
wholesalers to restaurants, bars
and sports stadiums, so
consumers can enjoy our great
drinks. We also provide cold drink
equipment (CDE) and supply
vending machines.
We distribute
We distribute our products to
customers and vending
partners directly, by working
closely with logistics partners.
This ensures consumers are
able to buy the drink they want,
when and where they want it.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
5
Our business model♦
ESRS 2 SBM-1
ESRS
Our business remains
agile to adjust to a range of
macroeconomic and market
trends – from consumer and
sustainability factors to the
impact of new technology.
Our collaborative business model
and culture means we can adapt
and thrive in a changing environment,
while our strategy enables us to
respond to both current and
future dynamics.
Consumer trends
Today’s consumers are demanding
more choice, and our evolving portfolio
offers drinks for a wide variety of
occasions. Demand for healthier
alternatives continues to grow, which is
reflected in the low and no calorie
choices across our brands.
We believe strong brands supported by
innovation are the key to meeting
changing consumer needs. Ensuring
that we remain price relevant for all
consumers and all occasions remains a
key focus in addition to supporting
shopping more online and the desire
for more drink choices.
Read more in Our strategy on page 7
Macroeconomic factors
Geopolitical volatility and legislative
changes continue to evolve, with the
potential for impact in our markets and
on our business. We work effectively
with our customers to execute
appropriate pricing across our markets
to offset the inflationary pressures we
face, while maintaining focus on
productivity.
The economic environment continues
to impact consumer sentiment in
multiple markets, so we remain
focused on price relevance,
particularly in retail, offering price
points across the spectrum of
consumer needs, balancing value
with premium offerings and smarter
price promotion through our broad
price pack architecture.
Despite the mixed macroeconomic
environment, we remain well placed
within resilient categories and continue
to grow volume and value share,
maintaining our position as the number
one fast moving consumer goods
(FMCG) value creator in Europe and
non-alcoholic ready to drink (NARTD)
in APS.
Sustainability focus
Sustainability remains a key area of
focus across our markets. Government
commitments to new climate change
targets, as well as evolving regulations
for ingredients and packaging, continue
to impact our business.
Read more about This is Forward on
page 22
Impact of technology
With the adoption of new digital
channels now a firmly established
trend, both consumers and customers
are seeking to do more online and
through these channels. We continue
to win through online channels, building
on our value share growth, and are
accelerating our system capabilities
to engage the digital shopper. For
example, our online B2B platform,
myccep.com reached more than €2.3
billion worth of revenue this year and is
available in 13 of the 31 CCEP markets.
As consumer and channel trends are
changing, the technology we use, and
specifically the unique data insights
we gain through our in-house and
partner digital platforms, are crucial.
We continue to invest in our broader
digital capabilities such as key account
and revenue growth management
tools alongside adopting artificial
intelligence (AI) across our
organisation, from back office to
supply chain.
These investments will collectively
support our journey towards becoming
the world’s most digitised bottler.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
6
Our market drivers
Our aim is to create value for our
customers and shareholders and
refresh consumers, all done in the
most sustainable way possible.
Our strategy – Great brands,
great people, great execution,
done sustainably – is core to
delivering on our aim.
Great brands
pages 12-13
Our diverse portfolio is built on our core
brands like Coca-Cola, Fanta, Sprite and
Monster, as well as targeted expansion
into categories like hydration, coffee
and alcohol ready-to-drink (ARTD).
We’re bringing new products in different
packaging sizes to a new generation of
consumers based on clear insights,
while developing the classic brands
our consumers know and love.
Done sustainably
pages 21-60
Our ambition to create a better future,
for people and the planet, sits at the
heart of how we do business, and the
decisions we take. Central to this are our
science based targets to reduce GHG
emissions by 30% by 2030 (versus 2019),
and to reach Net Zero by 2040.
We want every bottle or can we sell
to be recycled or reused and we are
working on improving collection and
driving circularity.
We have adopted a value chain approach
to water stewardship, focusing on water
efficiency within our own operations and
working to protect the sustainability of
the water sources that our business, our
communities and our suppliers rely upon.
Great people
pages 14-17
We take care of our talented,
passionate and committed people
who make our business successful,
and support our suppliers, customers
and communities.
We want CCEP to be a great, engaging
place to work, where everyone is
welcome, has the opportunity to
grow and can make a difference.
Great execution
pages 18-20
We support the growth of our four
million customers through the quality
of the service we provide, our
understanding of their businesses,
the strength of our sales force and
the value our products create.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
7
Our strategy♦
ESRS 2 SBM-1
ESRS
2024 was another solid year for
CCEP, underscored by continued
top and bottom line growth, and our
unwavering commitment to
long-term value creation for our
customers, partners, colleagues
and shareholders.
A number of highlights really stand out,
starting with our people and their
passion for making a difference. The
care and energy they put into our great
brands and delivering great execution
every day and with every customer
drives our success.
I am proud our colleagues rated CCEP
so highly in our engagement survey,
placing our company among the best
of its peers as a great place to work.
Recently the Top Employers Institute
also recognised CCEP as a top
employer across many of our markets.
We continued to invest in our people’s
growth and capabilities through a
growing range of training and
development programmes and
wellbeing initiatives, including our
partnership with the London Business
School to upskill leaders in our
company strategy and culture. This is a
significant investment in both time and
resource. Having seen it first hand,
I know it will empower our leaders and
their teams to play a critical role in our
growth. We will be rolling this out to
more colleagues across CCEP during
2025.
Investing for growth
In addition to our investment in the
Philippines business, our Board
supported our largest ever annual
investment of around €1 billion in 2024.
This was used to deliver new
capabilities – including new production
lines to increase capacity and new
technology to be more competitive and
more sustainable, now and in the
future.
While the fundamentals of our
business remain unchanged – making,
moving, and selling the world’s most
loved drinks – the application of
technology, including AI, is key to our
long-term sustainable growth.
It is already helping our business.
We’re using it to produce better
insights to grow with our customers,
increasing our coverage and enhancing
pricing and promotions to reach more
consumers. It’s also improving the
efficiency and effectiveness of our
customer service and supply chain in
planning and operations.
We are also investing in sustainability
focused technology through our
Ventures arm, across ingredients,
manufacturing, and packaging to
support our decarbonisation journey.
One of our Ventures partners, Avalo, is
using AI to develop a low-carbon sugar
crop with higher yields and improved
drought resistance.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
8
Chairman’s letter
I was proud to see our progress and
efforts on sustainability being
recognised again. CCEP was included
on CDP’s ‘A’ List for Climate for the
ninth year, and we maintained our
MSCI AAA environmental, social and
governance (ESG) rating. We were also
included in Sustainalytics’ list of ESG
top-rated companies for 2025.
A stronger, more diverse CCEP
It was a privilege to join our colleagues
in welcoming the Philippines to CCEP in
2024 in a joint venture with Aboitiz
Equity Ventures Inc. The integration of
the Philippines – with attractive
underlying growth – strengthens our
geographic diversification and
supports the acceleration of growth
across CCEP through exchanging best
practice and talent.
It was also fantastic to see how our
colleagues created a great experience
for consumers and customers at iconic
events in 2024, including the UEFA
EURO 2024TM in Germany, the Olympic
and Paralympic Games in Paris, and the
America’s Cup in Barcelona.
I would like to thank my fellow
Directors, whose collective wisdom
and experience is an asset and
strength.
It was also fantastic to see
how our colleagues created a
great experience for consumers
and customers at iconic events
last year, including the UEFA
EURO 2024™ in Germany, the
Olympic and Paralympic Games
in Paris, and the America’s Cup
in Barcelona.”
I would also like to recognise Damian
Gammell and his executive team, who
continue to drive the strategy and
foster the right culture to create value.
Finally, I would like to thank all of our
shareholders for their support in our
ability to deliver long-term sustainable
growth. We will have the opportunity to
share more at our Capital Markets
Event in May 2025 in the Philippines.
We have more to look forward to in
2025 and beyond. As a bigger and more
diverse business, this is an exciting
time to be a part of CCEP. l look
forward to seeing our colleagues,
customers and partners across
our markets.
Sol Daurella
Chairman
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
9
Chairman’s letter continued
CONSISTENT
LONG-TERM GROWTH
Our strategy – great brands, great
people, great execution, done
sustainably – continues to deliver
growth and create value. 2024 was
another solid year for CCEP,
demonstrating we have the
ambition and capabilities to deliver
solid top line performance and
underlying volume growth.
We have the ability and know-how to
ignite and scale growth in both
emerging markets and developing
categories, while also growing our core
brands in mature markets.
The Philippines became a part of CCEP
just over a year ago, a great addition to
our higher growth markets including
Indonesia, Papua New Guinea and the
Pacific Islands.
I am grateful for the trust placed in us
by our brand partners, including TCCC
and Monster Beverage Corporation,
and the support of our experienced
Board of Directors and leadership
team.
This gives us a strong platform for
sustainable growth. Also critical to that
are our great people, our continued
investment and our ability to deliver
great execution for our customers and
reach more consumers. I want to
thank our 41,000 colleagues, who make
this possible each and every day.
Great brands
We are extremely privileged to make,
move and sell the world’s most loved
drinks. We also operate in resilient and
growing categories.
We are driving growth with our core
brands, like Coca-Cola Original Taste
and Coca-Cola Zero Sugar, which also
gained share through great activation
and engaging innovation. This included
the well received collaboration
between Coca-Cola Zero Sugar and
OREOTM and limited edition packaging
for the UEFA EURO 2024TM in Germany.
Our flavours portfolio performed well,
led by Sprite and Fanta, which was
supported by reformulation, refreshed
marketing and exciting Halloween
activations centred around the
Beetlejuice sequel movie partnership.
Powerade, with great activation and
innovation, also drove growth in the
sports category. It also played a
central role in the European summer
sporting calendar.
In Energy, Monster had another strong
year with multiple flavour innovations
like Green Zero, Bad Apple and Ultra
(zero sugar) extensions including Ultra
Violet in Australia and Ultra Peachy
Keen in Europe. In smaller but faster
growing categories, we are building a
platform for future growth. In alcohol
ready to drink (ARTD), we launched
Absolut Vodka & SPRITE following the
successful roll out of Jack Daniel’s &
Coca-Cola RTD.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
10
CEO’s letter
Great execution
We continued to create leading value
for our category, adding well over a
billion euros of retail sales value for our
retail customers. And in the Advantage
Group survey of our customers, CCEP
was recognised as a top tier supplier in
90% of our markets.
Our colleagues seek to drive
distribution and visibility every day, and
2024 was a stand out year. We had a
summer of iconic sporting events in
Europe, which not only reinforced our
position as a leading beverage partner
for our existing customers, but also
contributed to winning new customers
as well. We increased our share of cold
drinks space with even more cooler
placements.
All of which has helped our brands to
reach more households and to improve
our share across categories. We also
have a well planned calendar of
activation for 2025, especially around
key holiday events.
Our value share in both the home and
away from home channels, and
critically online, has also grown. We
added even better functionality to our
B2B portal, myCCEP.com, which
accounted for more than €2.3 billion
worth of revenue in 2024.
Profitable, sustainable growth
We maintain a disciplined approach to
create profitable, sustainable growth.
In 2024, our strong top line
performance, together with our
continued focus on efficiency and
productivity, drove solid operating
profit growth with operating margin
expansion in both Europe and APS(A).
We grew transactions ahead of volume
and made solid gains in revenue per unit
case. This was driven by revenue and
margin growth management initiatives
and our continued focus on price and
promotion strategies. Together with our
world class key account management,
these capabilities will support our
continued growth.
Earnings per share grew, and we
delivered healthy dividend growth,
alongside generating impressive
comparable free cash flow of
€1.8 billion. And we recently announced
our €1 billion share buyback
programme.
We are reinvesting over €1 billion this
year across our portfolio and supply
chain. This will add capacity into key
areas such as the Philippines, new can
lines in Europe and Australia, aseptic
lines to support the growth of sports
and Fuze Tea, and the addition of over
100,000 energy efficient coolers.
Increasingly, we are also using
technology, including AI, at scale
across our 31 markets. Benefits include
reducing complexity in our operations,
providing a more consistent and
predictable service and real time and
enhanced insights.
A. On an adjusted comparable basis
Over time, this will make it easier for
our customers to do business with us,
and help us unlock even more growth
together.
And we will continue to grow more
sustainably through our action plan,
This is Forward, by supporting local
community initiatives and working with
industry and stakeholders to reduce
packaging waste, improve water
security and decrease emissions.
We are very well placed for 2025 and
beyond. I am confident we have the
right strategy to deliver on our mid-
term growth objectives. We have
the platform and momentum to
go even further while continuing
to be a great partner for our
customers and a great place
to work for our colleagues.
Damian Gammell
CEO
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2024 Annual Report and Form 20-F
11
CEO’s letter continued
We make, move and sell
the world’s most loved
drinks. From global icons
to local favourites, we
have a drink for every
taste and occasion.
Key focus area for CCEP
We are focused on our Coca-Cola
brands - Coca-Cola Original Taste,
Coca-Cola Zero Sugar and Diet Coke -
and our other core brands to drive
growth for our business. And we are
looking to the future with products in
sports, ARTD and coffee.
We want to excite our existing
consumers and at the same time,
attract more people to pick up our
drinks.
Refreshing customers
and consumers♦
We have great brands across
multiple categories. With strong
core brands like Coca-Cola,
Sprite, Fanta and Monster and
products in emerging categories
like Costa Coffee, Jack Daniel's
& Coca-Cola RTD and Powerade
– we refresh consumers and
create value for our customers.
Our ambitions
To grow our brands, and the soft
drinks category as a whole, with
more people buying more of our
drinks, more often. To achieve
that, we are investing in:
• strong and aligned brand
partnerships
• producing and delivering high
quality and great tasting drinks
• addressing new consumer
needs by entering new
product categories
• a broad price pack architecture
• quality customer and consumer
insights that drive growth
• offering consumers low and
no calories options, including
more convenient and smaller
packaging sizes
Achievements in 2024
We explored new and exciting
partnerships, including a new
limited edition partnership
between Coca-Cola and
OREOTM: Coca-Cola OREOTM
Zero Sugar Limited Edition.
We created €19.7 billion in value
across the NARTD category for
our customers, a year on year
increase of €1.3 billion.
Our sales volume within the
energy category increased by
over 6% versus 2023(A),
supported by solid distribution
and exciting innovation. For
example, we successfully
launched Monster Green Zero,
meeting consumer demand for
more zero sugar energy drinks.
We extended our presence in the
ARTD category with the launch of
Absolut Vodka & SPRITE
A. On an adjusted comparable basis.
The plan for the year ahead
Grow Coca-Cola Original Taste,
Coca-Cola Zero Sugar and Diet
Coke. We have a huge
opportunity to take these three
iconic brands further, supported
by engaging brand campaigns
and activations.
Drive continuous growth from a
combination of new flavour
extensions from Monster.
Capture further opportunities in
sports, in particular Powerade,
where we feel we can derive
more value.
Extract actionable insights from
our data in order to meet the
growing consumer demand
today and in the future.
Continue to actively manage our
pricing and promotional spend to
remain affordable and relevant to
our consumers.
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Great brands
ESRS 2 SBM-1
ESRS
Coca-Cola®
Coca-Cola continued to be a favourite
with consumers, and remains the
biggest FMCG brand in Europe(A).
Coca-Cola Zero Sugar volumes grew
3.6%, and saw some great innovation,
including becoming “Besties” with
OREOTM, to create Coca-Cola OREOTM
Zero Sugar. Coca-Cola Original Taste
volumes grew 0.9%, reflecting strong
demand in the Philippines.
Flavours and mixers
Fanta was once again the focus for our
Halloween campaign. In partnership
with Warner Bros, we launched Fanta
Zero Afterlife, inspired by the
Beetlejuice sequel film.
Thanks to robust consumer demand
and great execution across all key
markets, Sprite volumes grew 3.7%.
Royal Bliss went from strength to
strength, with double digit growth led
by the Netherlands.
Water, sports, RTD tea and coffee
The sports category was a winner in
2024 and saw 4.1% volume growth and
new flavour innovations.
Taking advantage of the major sporting
events of 2024, we launched Powerade
Golden Mango, with the Olympic rings
featuring on the packaging.
A. Source: Nielsen IQ Strategic Planner.
B. All volume figures are on an adjusted comparable basis.
Other including Energy(B)
Monster continued its flavour packed
innovation with MonsterJuiced Bad
Apple, and Monster Nitro Cosmic Peach
and Monster Ultra Strawberry Dreams
in Great Britain. This contributed to
another strong year for the energy
category, with volumes growing 6.3%.
We grew our portfolio in the ARTD
category. The rollout of Absolut Vodka
& SPRITE continued, and Jack Daniel’s
& Coca-Cola Zero Sugar RTD was rolled
out in more markets including the
Philippines.
Find out more about
our drinks data
on page 259
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Portfolio highlights♦
ESRS 2 SBM-1
ESRS
At CCEP our unique
culture, driven by 41,000
talented team members
across 31 markets, creates
a welcoming environment
where everyone can grow
and make a difference.
Key focus area for CCEP
We have an engaging workplace
that empowers our people to be the
best for our customers, today and
tomorrow.
Our dedication to wellbeing, inclusion,
and continuous development drives
innovation and impactful results.
This, combined with our commitment
to operational efficiency, creates
lasting value for all stakeholders.
We aim to positively impact our
people and their communities by
supporting economic mobility and
building resilience. Our volunteering
policy encourages employees to
engage with their communities.
Our ambitions
Continue to make the wellbeing
and safety of our people a
priority.
Talented, passionate and
committed people who can
deliver success for CCEP with
winning capabilities, agility, and a
growth and performance mindset.
To organise ourselves for
success by leading through
change, productivity
improvements and expanding
our digital people experience.
An open, inclusive and
respectful workplace.
135+
nationalities
155+
languages spoken
Achievements in 2024
We invested in developing
leadership, commercial,
customer service and supply
chain capabilities through
our learning academies and
strategic investments.
We upskilled our top 500 leaders
on our Company Strategy and
culture through the London
Business School programme.
Our focus on enhancing employee
engagement resulted in a strong
overall engagement score,
reflecting continued progress.
We successfully integrated the
Philippines and accelerated
leadership, talent, and key
initiatives in Indonesia to drive
our strategy forward.
We launched our Global
Accessibility Matrix, a step by
step guide to help us and other
organisations improve disability
inclusion in the industry.
We were recognised as Top
Employer in Europe, Australia
and the Philippines.
The plan for the year ahead
In 2025, we are going further to
prioritise our people’s physical
and mental wellbeing through
providing a inclusive, safe and
healthy work environment.
We will invest further in
developing our people,
strengthening our leadership,
commercial, customer service,
and supply chain capabilities.
We will focus on improving the
consistency of our people’s
experience across our digital
platforms and ways of working.
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Great people
We are a people company
At CCEP, we celebrate teamwork, our
passionate people and our
entrepreneurial spirit. We are proud to
be a top employer. We take care of
each other’s safety and wellbeing,
supporting and engaging our people so
we can all get back to what we love.
Everyone’s welcome to be themselves,
belong and bring their expertise and
ideas to the table.
Safety
Our employees receive health and
safety training aligned with The
Coca-Cola Company Operating
Requirements (KORE) and local
regulations.
In case of injuries or health issues, we
make reasonable adjustments to our
employees’ duties and working
environment to support their recovery
and continued employment. We
measure our safety performance using
total incident rate (TIR) and lost time
incident rate (LTIR). This covers everyone
working for us, including contractors and
temporary workers. We aim to reduce our
TIR to below 1 by 2025.
Find out more about our safety data
on page 259
Wellbeing
Our 24/7 Employee Assistance
Programme provides free, independent
and confidential support for a wide
range of challenges, such as managing
stress, family dynamics and navigating
legal and financial matters.
In 2024, we continued to roll out our
Wellbeing Leadership training
programme. We have helped around
2,100 leaders across CCEP to
understand their own wellbeing needs
and develop the skills and confidence
needed to keep their teams safe and
well. Over the year, we hosted more
than 69 webinars, providing leaders
with the tools to create a supportive
environment and promote wellbeing
across the organisation.
External recognition
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Great people continued
Supporting and engaging our people
We want our people to feel engaged
about our business aims and strategy.
We communicate clearly and
transparently with our people and their
representatives in local languages.
We engage in forums to hear the voice
of our employees and meet regularly
with the European Works Council,
national and local works councils, and
trade unions that represent our people
across our territories. Our employees
are represented by over 100 different
unions.
We continue to innovate and extend
our digital solutions for our people to
make it easier for them to access what
they need, such as policies, training
and key data on pay and performance.
Our policies are easy to understand
and are reviewed annually to align with
legal requirements.
This commitment to supporting our
people is reflected in our engagement
score, with a 79 employee satisfaction
(eSat) rating for “Are you happy working
at CCEP”, marking a 2-point increase
compared to 2023 and 5 points above
the Glint Global 2024 Benchmark.
Find out more about our Board
engagement with our people
on page 61
Workforce diversity as at
31 December 2024
Women
Men
Total employees
41,000(A)
10,000
31,000
Leadership
(senior management
grade including ELT)(B)(C)
4,110
1,650
2,460
Board of Directors ♦
17
6
11
35.3%
64.7%
Directors of subsidiary
companies ♦
101
25
76
24.8%
75.2%
A. CCEP full time, part time and temporary corporate
employees. Full time equivalent employees as at
31 December 2024.
B. The members of the ELT and their direct reports consist
of 73 women and 90 men.
C. Directors of subsidiary companies comprising 24 women
and 68 men are also included in the workforce diversity
statistic under leadership.
Inclusion, diversity and equity
We are an equal opportunities
employer. We recruit and promote our
employees based on ability,
achievement, expertise and conduct,
guided by our Inclusive Recruitment
Principles and Candidate Charter.
We are a signatory of the LEAD Network
pledge and the Valuable 500 pledge to
accelerate gender parity and disability
inclusion. We also support the United
Nations (UN) Women’s Empowerment
Principles, promoting gender equality
and women’s empowerment. We
partner with the Business Disability
Forum and are a member of
Stonewall's Diversity Champions
programme and the Social Mobility
Index.
We continue to provide training on
important topics such as inclusive
leadership and allyship and monitor pay
equity within our territories, offering line
managers the support they need to
make appropriate pay decisions.
We invest in an accessible workplace
to ensure that colleagues with visible
and non-visible disabilities have equal
opportunities, can thrive in their roles
and have access to career
development.
Find out more about our diversity
data on page 259
Employee benefits
An important part of looking after our
people is through rewards and
benefits. We pay our people fairly and
in line with appropriate market rates.
Around 70% of our employees
participate in annual variable
remuneration plans, including annual
bonus, sales incentive plans and local
incentive plans. We also offer pension
plans, life insurance and medical plans,
as well as many other flexible benefits,
including packages to cover sickness,
post-natal childcare, bereavement or
long-term family illness.
Employee training, development
and leadership
When our people learn and grow, our
business grows too. Our learning strategy –
The Way We Grow – guides our investment
in skills development across CCEP through
our Academies: The Way We Sell, The
Way We Lead, and The Way We Serve.
Further training opportunities are
offered through our digital learning
platforms Juice and Academy. In 2024,
we introduced dedicated Sustainability
and Digital Academies, equipping
everyone at CCEP to play their part in
our sustainability agenda and providing
essential cybersecurity training.
Our Supply Chain & Customer Service
Academy boosts operational and
manufacturing excellence, enabling our
teams to deliver exceptional service
and maintain supply chain efficiency.
Our people can create their objectives
and receive feedback using our
MyPerformance@CCEP platform. Our
digital Career Hub allows them to create
their own talent profile and
development plans, while also providing
personal recommendations for
vacancies, career paths and networking
opportunities. It also works as a talent
data platform providing information that
supports succession planning, cross
functional and cross country moves and
gives insights into critical learning needs.
We value and invest in our early career
talent and support initiatives that help
young people gain employability, skills
and confidence, vacancies, career paths
and networking opportunities.
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Great people continued
ESRS GOV-1
ESRS
Respecting human rights♦
Human and workplace rights are
inviolable and fundamental to our
sustainability as a business across our
entire value chain.
We support the 10 principles of the
UN Global Compact. These principles
are reflected in our Human Rights
policy and our Code of Conduct (CoC).
We are committed to ensuring everyone
working for CCEP and in our supply chain
is treated with dignity and respect.
In 2024, CCEP updated its Human
Rights policy. The changes were made
in line with changes to the Human
Rights policy of TCCC, best practices of
industry peers and the requirements of
the German Act on Corporate Due
Diligence Obligations in Supply Chains.
Changes to the policy increased
transparency on our human rights
process and procedures. In February
2025, the updated policy was approved
by the Board.
Our Supplier Guiding Principles
(SGPs) and Principles for Sustainable
Agriculture (PSA) set out the
requirements of our suppliers related
to business ethics, human and
workplace rights, the environment, and
providing benefits to communities.
See our modern slavery statements
at cocacolaep.com/who-we-are/
governance
Human rights risk assessment
All our employees and supply partners
have a role in identifying and mitigating
human rights risks across our business.
Employees and managers are
empowered to recognise and address
human rights risks and issues as they
conduct their work, and this extends to
our agreements with workers and
trade unions.♦
In 2024, we continued to provide
human rights training to our employees,
with specific training for procurement
managers focused on the Corporate
Sustainability Due Diligence Directive,
as well as training on Freedom of
Association and Collective Bargaining
and our Human Rights Restructuring
Guidelines for the heads of our Labour
Relation teams in Europe and APS.♦
We have mapped human rights-related
laws, regulatory requirements and risks
identified in human rights reports in
each of our countries. Through our
human rights risks assessments
(HRRA), completed in Europe and APS,
we identified 12 areas as priority issues
for CCEP.
We conducted human rights risk
assessments in Bulgaria and Germany
during 2024 and we published our
second annual report for Norway under
the Norwegian Transparency Act.
We also published our first annual
report for Germany under the Act on
Corporate Due Diligence Obligations in
Supply Chains. This defines the
requirements for a robust governance
framework across CCEP for human
rights-related actions.
In 2024, we had no cases of non-
respect of the UN Guiding Principles on
Business and Human Rights connected
to affected communities.♦
As a result of human rights risk
assessments undertaken during 2023
and 2024, we have identified the
following 12 priority areas for CCEP:
• Migrant and temporary workers
• Data protection
• Right to privacy
• Wages
• Equality and non-discrimination
• Forced labour
• Health, safety and security
• Freedom of association
• Working hours
• Freedom from bribery and corruption
• Cultural rights of minorities
• Children and young people’s
protection from exploitation
Find out more about our approach
to human rights in our supply chain
in E2 on page 47
Ethics and compliance
Our Ethics and Compliance Programme is
designed to make sure all our employees
and Directors conduct operations in a
lawful and ethical manner. It also
supports how we work with our
customers, suppliers and third parties.
Modern slavery
We have a zero tolerance approach
to modern slavery of any kind, including
forced labour, and any form of human
trafficking within our operations, and
by any company that directly supplies
or provides services to our business.
Our Modern Slavery Statement
complies with the UK Modern Slavery
Act 2015 and the Australian Modern
Slavery Act 2018. It sets out the steps
taken by CCEP to prevent, identify and
address modern slavery risks across
our business and supply chain.
Preventing bribery and corruption
We aim to prevent all forms of bribery and
corruption in our business dealings. Our
CoC sets out our principles and standards
to prevent bribery and corruption,
including conflicts of interest and the
exchange of gifts and entertainment.
Our Gifts, Entertainment and Anti-Bribery
Policy applies to all employees, and we
conduct mandatory training for a targeted
audience in our European business
units (BUs) and the shared service
centre organisation with two locations
in Bulgaria, and for all employees in APS
including the third shared service
centre location in the Philippines.
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Great people continued
S3-1 | S3-3 | S3-4
ESRS
We bring our great brands
to life and create value for
our customers.
Key focus area for CCEP
We’re driving growth, creating value and
delivering results through close support
and collaboration, while identifying new
channels to sell, and implementing
transformative new ways to do business.
We work closely with our customers to
secure space in store or online, to place
coolers to offer the added benefit of a
cool beverage at the point of purchase,
and to maximise visibility for our
consumers at every opportunity.
Our ambitions
Deliver great execution, with
every customer, in every store
or venue outlet, every day.
Create value for customers,
supported by digital tools and
category and consumer insights.
Use our knowledge and
experience of sustainability to
support our customers in
delivering their own
sustainability priorities.
Give customers the products
they want on time, every time
using data and technology to
accurately predict consumer
demand and trends.
Achievements in 2024
We pride ourselves on great
execution every day, particularly
during major events and key
selling moments. Throughout
2024 we brought Coca-Cola to
life during a summer of iconic
events. We marked UEFA EURO
2024TM in Germany with
promotions and in store
displays.
To celebrate the Paris 2024
Olympic and Paralympic Games,
our colleagues at TCCC rolled
out limited edition cans and we
supported customers with
exciting in-store displays.
We invested significantly in our
supply chain, adding capacity to
make more of our great drinks.
This included investment in new
production lines at our facilities
in Great Britain, Germany, Papua
New Guinea, Indonesia, Australia
and New Zealand.
The plan for the year ahead
We will support marketing
campaigns and activations for
Coca-Cola Original Taste with
great execution in store, online
and away from home. Our
leading insights will help us
create value for customers.
Accelerating cooler placements
in more locations is a key part of
the execution plan. The
combination of well placed
coolers and engaging in store
displays will continue to be at
the heart of our great execution.
Through the continued
development of our digital tools,
we are able to make it even
easier for our customers to do
business with us by providing
timely and insightful data on the
best execution and sales
solutions that will work for them.
Continue to invest in our supply
chain to add further capacity and
continue to use technology and
digital tools to bring our drinks to
customers accurately, efficiently
and sustainably.
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Great execution
Bringing key moments to life
Major events and annual celebrations
offer an opportunity to attract even
more people to our great brands. With
big sporting events taking place across
our markets, 2024 was a huge year for
execution. We ended the year with
engaging Christmas campaigns and
promotions to mark the holiday season.
Customers at the heart of our business
As the world’s largest Coca-Cola
bottler by revenue, we have built long-
standing and supportive relationships
with our customers.
We are committed to delivering great
execution and creating value for them.
We do this not just by focusing on
An example of great in store activation from the Netherlands
growing our own portfolio of products,
but by considering how we can grow
the soft drinks category as a whole.
We have made strong progress in our
bespoke capabilities, enabling a step
change in our ability to win in the
marketplace. It is the interconnection
of data, insights and analytics that
feeds our revenue and margin growth
management strategy, which allows us
to personalise execution down to
outlet level.
Much of our ability to create value for
our customers depends on
understanding their needs and their
relationship with the consumer, in
addition to the quality of the service
we provide.
We aim to be as close as possible to
our customers, maintaining continuous
relationships at every level and across
multiple functions in order to better
understand their business. In turn,
this enables us to continually identify
opportunities for growth.
By harnessing the output of these
multiple contact points, we work with
our customers to deliver world class
activations across a broad range of
themes during the calendar year-
from sports to music to cultural
celebrations and many more.
Driving digital growth
As part of our ambition to become the
most digitised bottler, we continue to
invest in technology and data.
We are making it easier for our
customers to do business with us, and
easier for our colleagues to sell, to
ensure that our shoppers can access
our offers online and supporting this by
the development of world class data
and analytics capabilities.
We continue to support our smart
execution agenda through the ongoing
development of our customer portals,
the tools that our frontline colleagues
use to drive in-store execution and
market leading omni contact capabilities.
In the revenue and margin growth
area we are using data and analytics to
better plan, execute and optimise our
significant promotional investments
and deploying a broader set of levers
to drive profitable growth.
We continue to develop tools and
reporting that support our key
account teams as they build world
class commercial and sustainability
plans with our customers. All this work
is underpinned by an ongoing focus on
building strong data foundations, data
assets and capabilities in our people
that are key to further progress in
this space.
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Great execution continued
The deployment of AI remains a key
area of focus for us as we build our
future plans with a number of solutions
already implemented at scale across
the business. A fast-track AI incubator
programme is in place to accelerate
the development and adoption of
opportunities in this space.
Read more in Our market drivers
on page 6
Driving stronger capabilities
across our commercial teams
To accelerate our journey to deliver
great execution for our customers,
we are enhancing the capabilities of
our people.
Find out more about training
programmes for our people
on page 16
Partnering with customers to drive value
At CCEP, we are committed to creating
value for our customers. Considering
exactly what consumers need helps
us identify opportunities for category
growth, which is key to a successful
commercial strategy.
We work with NielsenIQ and IRI3,
retail and consumer data and insight
providers, to measure how much value
we create for our customers and how
our individual brands support this
value creation.
In 2024, highlighting the strength
of our customer relationships, we
created more value than any other
NARTD business.
Across all our territories in Europe and
APS, we created €19.7 billion in value
across our NARTD categories for our
customers, a year on year increase
of €1.2 billion.
In Europe, Coca-Cola is the highest
value brand within FMCG (€9.5 billion)
and Monster is the third fastest
growing brand at 11% versus previous
year.
Winning with customers♦
Our retail customers include
supermarkets and hypermarkets,
which sell our drinks to consumers for
consumption at home. They represent
a significant amount of our volume, and
we measure their satisfaction through
the Advantage Group Survey.
The survey covers key retail
customers, asking them to rank
CCEP’s performance across a variety
of critical partnership areas including
strategy, operations, customer service,
marketing, innovation, people and
sustainability.
We measure ourselves against our
ambition to be our customers’ number
one supplier within the beverage
industry and FMCG.
CCEP had 10 out of its 12 markets
surveyed in the top tier ranking in 2024,
and secured the number one position
within FMCG in three of our markets.
Belgium and the Netherlands have
maintained the number one position
for the last three years.
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Great execution continued
ESRS 2 SBM-1
ESRS
We take our responsibility
seriously.
We want to deliver sustainable growth,
create value for all our stakeholders and
build a better future for our business, our
communities and the planet.
From our suppliers and investors, to the
communities where we operate and the
people who make and sell our products, our
stakeholders have high expectations of us to
address many of today’s social and
environmental challenges.
Their views and priorities play an integral role
in the development of our sustainability
action plan This is Forward.
Our ambitions
This is Forward sits at the heart
of our long-term business
strategy.
It sets out the actions we are
taking on six key social and
environmental topics, where we
know we can make a difference:
• Climate action
• Sustainable packaging
• Water stewardship
• Promoting the wellbeing of our
people and those working
across our value chain
• Offering consumers more
choice, with less sugar
• Contributing to our local
communities
Achievements in 2024
We developed a 2030 carbon
reduction plan, aligned to our
business growth, Capex and
Opex plans. This includes an
investment plan of
approximately €405 million for
emissions reduction initiatives
between 2024 and 2026.
We joined the Business Coalition
for a Global Plastics Treaty, a
global movement of the plastic
value chain, financial institutions
and NGOs aligned on a shared
vision, actively advocating at
negotiations for an ambitious
global plastics treaty across the
full lifecycle of plastic.
We secured water replenishment
partnerships and projects in the
minor river basin of two of our
high water risk locations. This
included a Seine riverbank
restoration project near our site
in Grigny, France, and a project to
address shared water challenges
in the Upper Brisbane catchment
near our Richlands production
facility in Australia.
We supported more than 40
social impact programmes
across our markets.
The plan for the year ahead
We will update This is Forward to
include the Philippines.
We will continue to develop 2030
roadmaps on climate, water,
packaging and community.
We will work to secure water
replenishment projects at all new
high water risk locations.
We will continue to engage with
customers on our packaging
strategy and explore new
packaging solutions which meet
changing consumer trends and
comply with legislation.
We will work to deepen our
relationships within our
communities and expand our
community partnerships to build
skills and resilience.
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Done sustainably
Pillar
Commitment
Target
Forward on
drinks
(see page 259)
Sugar reduction
Reduce sugar by 2025: by 10% in Europe(B), by 20% in New Zealand(C), by 25% in Australia(C), by 35% in Indonesia(C)
Low or no calorie
Over 50% of sales to come from low or no calorie drinks by 2030 (Europe by 2025)(D)
Forward on
society
(see page 56, 259)
Gender diversity – management
45% of management positions to be held by women by 2030
Gender diversity – workforce
A third of our workforce to be women by 2030
Disabilities
10% of our workforce represented by people with disabilities by 2030(E)
Supporting skills development
Support the skills development of 500,000 people facing barriers in the labour market by 2030
Forward on
climate
(see pages 32-45, 255-256, 258)
Net Zero
Net Zero GHG emissions (Scope 1, 2 and 3) by 2040(F)
GHG emissions reduction
Reduce absolute GHG emissions (Scope 1, 2 and 3) by 30% by 2030(F)(G)
Renewable electricity
Use 100% renewable electricity across all markets by 2030
Supplier engagement – GHG emissions
100% of carbon strategic suppliers to set science based targets by 2023 (Europe) and 2025 (APS)
Supplier engagement – renewable electricity
100% of carbon strategic suppliers to use 100% renewable electricity by 2025 (Europe) and 2030 (APS)(H)
Forward on
supply chain
(see pages 17, 47, 51-52, 256, 258)
Sustainable sourcing
100% of main agricultural ingredients and raw materials sourced sustainably(I)
Human rights
100% of suppliers to be covered by our Supplier Guiding Principles – including sustainability, ethics and human rights(I)
Forward on
water
(see pages 48-50, 257, 258)
Water efficiency
10% water use ratio reduction(J) by 2030(G)
Replenish
Replenish 100% of the water we use in our beverages(I)
Forward on
packaging
(see pages 53-55, 257, 258)
Design
100% of our primary packaging to be recyclable by 2025
Recycled plastic
50% recycled plastic in our PET bottles by 2023 (Europe) and 2025 (APS)
Virgin plastic
Stop using oil-based virgin plastic in our bottles by 2030
Collection
Collect and recycle a bottle or a can for each one we sell by 2030
Note: For details on our approach to reporting and
methodology, see our 2024 sustainability reporting
methodology document on cocacolaep.com/sustainability/
download-centre.
A. This is Forward covers all our activities in Europe and APS,
excluding the Philippines. In 2025, we will review and
update our sustainability action plan to include the
Philippines.
B. Reduction in average sugar per litre in soft drinks portfolio
versus 2019. Sparkling soft drinks, non-carbonated soft drinks
and flavoured water only. Does not include plain water or juice.
C. Reduction in average sugar per litre in NARTD portfolio
versus 2015. Including dairy. Does not include coffee,
alcohol, beer or Freestyle.
D. Does not include coffee, alcohol, beer or Freestyle.
Low calorie beverages ≤20kcal/100ml.
Zero calorie beverages <4kcal/100ml.
E. Calculated based on the total number of employees
responding to our 2023 voluntary inclusion survey and the
number of employees self-declaring as having a disability.
F. Our GHG emissions reduction and Net Zero targets have
been validated by the Science Based Targets initiative
(SBTi) as being in line with climate science. Using market
based approach. Excludes the Philippines. We will update
our SBTi target to include the Philippines in 2025.
G. Versus 2019.
H. No metric currently reported against this target as data
from suppliers not available.
I. No target year, this is an ongoing target.
J. Water use ratio: litres of water per litre of finished
product produced.
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Done sustainably – This is Forward, our sustainability action plan(A)♦
.
Our headline commitments
ESRS 2 MDR-T | ESRS 2 SBM-1
ESRS
SUSTAINABILITY
STATEMENT
This sustainability statement provides an overview of CCEP’s governance and
performance related to material sustainability topics. It includes CCEP’s double
materiality assessment (DMA) and resulting disclosures in line with the European
Sustainability Reporting Standards (ESRS) structural guidance, (excluding references
to EU taxonomy) which we are disclosing against on a voluntary basis.
ESRS 2 General information
24
ESRS structure and requirements
25
Statement on due diligence
26
ESG governance framework
27
Our double materiality assessment
28
Material ESG-related impacts and risks
30
Policies and procedures
E1 Climate change
32
Metrics and targets
32
Our strategy
32
Our actions
33
Stakeholder engagement
34
Our climate transition roadmap
37
Climate risk
E2 Pollution
46
Metrics and targets
46
Our strategy
46
Our actions
47
Stakeholder engagement
E3 Water and marine resources
48
Metrics and targets
48
Our strategy
49
Our actions
50
Stakeholder engagement
E4 Biodiversity and ecosystems
51
Metrics and targets
51
Our strategy
51
Our actions
52
Stakeholder engagement
E5 Resource use and circular
economy
53
Metrics and targets
53
Our strategy
53
Our actions
55
Stakeholder engagement
S3 Affected communities
56
Metrics and targets
56
Our strategy
56
Our actions
57
Stakeholder engagement
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ESRS structure and requirements
This is CCEP’s first year reporting in
accordance with ESRS. We have aimed to
maintain an integrated report, and have
included topics found material by our
DMA within this sustainability
statement. To maintain readability, we
incorporated some ESRS disclosures
by reference to information within the
Annual Report, which sit outside the
sustainability statement; listed on page
58. A full list of ESRS disclosures is
provided in ESRS Appendix A, on pages
273-276.
All disclosed ESRS metrics are
reported at a Group level, including the
Philippines, following the acquisition of
CCBPI, unless otherwise indicated. As
our This is Forward targets were set
prior to the Acquisition, we have
disclosed progress against these
targets both including and excluding
the Philippines. Our This is Forward
targets will be updated in 2025,
including target years and
incorporation of the Philippines.
Our material pollution and biodiversity
impacts occur in our value chain and
are managed through supplier
programmes. Because of this, they
share a metric, disclosed in E2 on
pages 46-47 and E4 on pages 51-52.
Basis for preparation and transition
This statement has been prepared for
the year ended 31 December 2024 and
covers the period from 1 January 2024
to 31 December 2024. This is aligned
with our previous sustainability reports.
Data is consolidated on the same basis
as the financial statements.
Our DMA and sustainability statement
cover our own operations in all regions,
our upstream and downstream value
chain and includes potentially affected
communities. Upstream operations
include ingredient production and
distribution, packaging material
sourcing and manufacturing. Sourcing
and production of inputs used in
agricultural processes are excluded.
Downstream operations include retail
and consumer sales, consumption and
packaging end of life management.
We use an operational control
approach for GHG emissions. We have
restated 2019 baseline data and prior
years 2020-2023 to include the
Philippines for GHG emissions and, as
needed, to reflect updated data, such
as ingredients and plastic packaging
emissions factors, and updated
packaging collection rates, particularly
in Europe. This increased our previous
baseline and subsequent year
emissions by approximately 2 million
tCO2e. Of this, the full value chain
emissions of our Philippines business
added approximately 1.25 million tCO2e
to our baseline.
Throughout our statement we
considered time horizons aligned with
our financial statements: short (up to 1
year), medium (> 1 to 5 years), long term
(over 5 years). As this is our first year
reporting to ESRS standards, we have
no changes to previous statements. As
guidance is developed, we will refine
our processes, disclosures, and
controls. Areas of uncertainty remain,
including measuring impacts on nature
and quantifying supply chain impacts.
We have documented all calculations,
including estimates, in our 2024
methodology.
Sources of estimation
In applying reporting guidance for the
sustainability statement, management
made judgements, estimates and
assumptions, including monetary
amounts, that may affect the reported
information. The estimates and
assumptions are based on industry
standards, experience and various
other factors that are believed to be
reasonable. The use of estimates and
indirect data sources, such as sector-
average data or proxies, is explained in
our 2024 methodology and is
incorporated by reference in our
sustainability statement.
Approximately 1% of our value chain
carbon footprint uses estimated data.
Our climate scenario analysis is based
on external climate models. We have
estimated the cumulative operating
profit impact of our climate scenarios
over the short, medium and long term
(without mitigation measures), see
page 27. Packaging collection rates are
based on weighted averages of
national collection rates, collected for
recycling rates(A), recycling rates(B) or
refillable rates. Water replenishment
project volumes are either measured
or estimated using the Volumetric
Water Benefit Accounting (VWBA)
methodology, based on data available.
Find more details on our
methodology on pages 260-272
Other relevant information
We continue to disclose information on
topics important to our business,
related to our principal risks and parts
of our This is Forward sustainability
action plan not covered in the
sustainability statement. This includes
reduction of sugar in our drinks, safety
incident rates, diversity metrics and
community investment. The related
metrics are incorporated by reference
in this sustainability statement and
presented in our This is Forward data
tables on pages 258-259. These are
not reported in line with ESRS.
We report against other sustainability
standards, including the UK Listing Rule
6.6.6R (8) on climate-related
disclosures, outside this sustainability
statement. A cross reference table is
on page 60. Our reporting to voluntary
standards, such as the Global
Reporting Initiative (GRI), is available
on our website.
A. Collection for recycling rate – measures packaging that is
collected in a market to then be sorted for recycling.
B. Recycling rate – measures packaging at the point in the
sorting process where it does not need to undergo any
further processing before it is turned into recycled
content, as defined by the EU Packaging and Packaging
Waste Regulation (PPWR).
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Done sustainably – Sustainability statement
ESRS 2 – General information
ESRS 2 BP-1 | ESRS 2 BP-2
ESRS
Sustainability governance
Board-level governance
Our Board oversees sustainability
impacts, risks and opportunities,
including climate-related topics, and is
supported by the ESG and Audit
Committees. At CCEP ESG and
sustainability are used interchangeably.
The Board oversees and assesses
CCEP’s Group wide strategy, including
sustainability-related considerations,
targets, commitments and plans to
reduce GHG emissions.
In 2024, we shared our 2030 carbon
reduction plan. Sustainability metrics
were considered as part of the capex
requests presented to the Audit
Committee. The Board receives ESG
topic updates. In 2024, this included
packaging collection and upcoming
European packaging legislation (PPWR).
The Remuneration Committee
reviewed performance against CCEP’s
GHG emissions reduction targets to
inform vesting outcomes for the Long-
Term Incentive Plan (LTIP).
Statement on due diligence
The following provides a mapping of the main aspects of due diligence as reflected in our sustainability statement:
Core elements of due diligence
Location in the Annual Report
a) Embedding due diligence in governance, strategy and business model
Pages 25-26, 28-29, 134
b) Engaging with affected stakeholders in all key steps of the due diligence
Pages 25-26, 33, 47, 50, 52, 55, 57, 61-64
c) Identifying and assessing adverse impacts
Page 27
d) Taking actions to address those adverse impacts
Pages 32-36, 46-47, 48-50, 51-52, 53-55, 56-57
e) Tracking the effectiveness of these efforts and communicating
Pages 32, 46-47, 48, 52, 53, 56, 255-259
Management supports the Board
Committees throughout the year.
The annual Board session on risk
includes a review of climate and other
ESG-related risks. The ESG Committee
report on page 131 sets out the key
topics considered by the Committee,
including updates related to our
2030 carbon reduction plan and
GHG emissions.
Management-level governance
Ownership and governance for
sustainability-related risks and
opportunities, and driving progress
against our commitments, is
embedded throughout our business.
Risk management is a key responsibility
for all senior leadership, who are
assigned ownership of specific risks,
including climate-related risks.
Principal risks are evaluated annually,
with additional quarterly assessments
for associated sub-risks, as part
of our enterprise risk management
(ERM) process, see page 66.
Key leadership and management with
responsibility for our material risks and
impacts are outlined in the ESG
governance framework on the
following page. The main discussion
forum for the Executive Leadership
Team (ELT) on ESG and climate matters
is the Sustainability Steering
Committee (SSC). Modern slavery,
human rights, other policy and CoC
matters are considered by the
Compliance and Risk Committee (CRC).
Multiple cross functional working groups
are focused on developing the strategy
and delivering against our This is
Forward targets. Working groups, led by
key management, meet regularly and
bring items for information, review and
decision making to the SSC and
Board Committees. In 2024, the SSC
reviewed CCEP’s progress against its
2030 carbon reduction plan, and
agreed next steps.
The SSC will continue to review the
development of our climate transition
plan against relevant guidance.
Sustainability is embedded into
the operations of the Board and its
Committees as well as the key
management-level committees.
Further information about the duties,
composition, diversity of the Board, its
Committees and management, as well
as internal control and risk
management can be found in the
Corporate Governance Statement on
page 164 and on pages 96-105. This
includes the skills and experience of
the Board and ELT.
Risk management and internal controls
over sustainability
A general description of our risk and
internal control processes, is in the
principal risks and internal control and
risk management sections in this
report, see pages 66 and 76. CCEP has
implemented clear ownership of
metrics published in the sustainability
statement, up to Board oversight of
material topics. Controls, established
methodologies and policies are in place
to support accurate and complete
reporting on ESG-related metrics.
In 2024, CCEP developed additional
internal controls related to material
environmental metrics and enhanced
processes for identifying, disclosing
and managing material topics. This
includes implementing new technology
to better track and document external
reporting. We will continue to develop a
roadmap for our ESG internal control
framework in 2025, in order to continue
improving our assurance process. Our
methodology for material topic metrics
is on pages 260-272.
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Done sustainably – Sustainability statement
ESRS 2 – General information continued
ESRS 2 GOV-2 | ESRS 2 GOV-4 | ESRS 2 GOV-5
ESRS
ESG governance framework
The Board
Met seven times in 2024
•
Sets the sustainability strategy
•
Has primary oversight of sustainability-related impacts, risks and opportunities (including climate-related risks and opportunities)
•
Receives feedback on ESG-related issues from Committee Chairs and via CEO report
ESG Committee
Met six times in 2024(A)
•
Responsible for overseeing performance
against This is Forward strategy and goals
•
Reviews environmental and social-related risks
and opportunities, including climate-related
risks and GHG emissions reduction targets
•
Oversees ESG reporting, disclosures
and assurance
Nomination Committee
Met six times in 2024
•
Reviews the size, structure, composition
and skills of the Board to make sure it remains
effective
•
Ensures there is sufficient expertise on the
Board in areas such as risk and ESG matters
Remuneration Committee
Met five times in 2024
•
Aligns the Group’s remuneration policy to
reinforce the achievement of sustainability
aims
•
Oversees performance outcomes from
the LTIP, which has a 15% performance
weighting allocated to the reduction
of GHG emissions
Audit Committee
Met eight times in 2024(A)
•
Makes sure that climate-related risks and
opportunities are managed across the Group
•
Oversees risk management process, including
our annual enterprise risk assessment to
identify principal risks, including climate risk
•
Oversees the Group’s financial and reporting
obligations, including ESG reporting
•
Has oversight over sustainability metrics
for capital expenditure proposals
Executive Leadership Team (ELT)
Meets regularly throughout the year
Climate responsibility lies with the Chief Executive Officer, Chief Customer Service and Supply Chain Officer
and Chief Public Affairs, Communications and Sustainability Officer who are responsible for providing
management updates on climate-related topics to the Board and its Committees
Sustainability Steering
Committee
Meets at least quarterly
Includes ELT members
•
Chief Executive Officer
•
Chief Financial Officer
•
General Counsel and
Company Secretary
•
Chief Customer Service
and Supply Chain Officer
•
Chief Commercial Officer
•
Chief Public Affairs,
Communications and
Sustainability Officer
Provides opportunity to review:
•
This is Forward targets and our
progress against these
•
Climate-related risks and scenario
analysis, including Task Force on
Climate-related Financial Disclosures
(TCFD)
•
Outputs raised as required to the ESG
Committee (including on climate-
related topics)
•
2024 topics included DMA and
alignment with ESRS, 2030 carbon
reduction plan, review of climate and
water-related risks, and our updated
GHG emissions
Sustainable Packaging Office (SPO)
•
Overseen by Chief Public Affairs, Communications and
Sustainability Officer and VP Sustainability
•
Responsible for ensuring a sustainable packaging strategy
can be implemented across our business, including pack
mix, recycled content and improving packaging collection
ESG disclosure working group
•
Overseen by General Counsel and Company Secretary
and VP Sustainability
•
Oversight of our work on ESRS, DMA and climate-related
risks, as well as our broader ESG reporting and disclosure
approach
Other working groups
• Overseen by Chief Public Affairs, Communications and
Sustainability Officer and VP Sustainability
• Includes groups focused on sustainable packaging,
climate and water resilience
A.
One meeting was a joint meeting of the Audit Committee and ESG Committee held in February 2024.
Further information on the governance framework and
Committee activities can be found on page 106
Compliance and Risk
Committee (CRC)
Meets every quarter
•
Management committee
chaired by the Chief
Compliance Officer
•
Reviews risk developments,
including climate change
risks and opportunities
•
Reviews policy changes and
policy implementation
•
Monitors compliance
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Done sustainably – Sustainability statement
ESRS 2 – General information continued
ESRS 2 GOV-1 | ESRS 2 GOV-2 | E1-1
ESRS
In 2024, in line with ESRS requirements,
we conducted a DMA. Based on
European Financial Reporting Advisory
Group (EFRAG) guidelines, the DMA
considers CCEP's impacts on the
environment and society and includes
a financial assessment of our exposure
to related risks and opportunities. This
process built on our 2016 materiality
assessment, which focused on CCEP’s
impacts only, and informed our This is
Forward sustainability action plan,
based on stakeholders’ input.
Our DMA focused on actual and
potential impacts, risks and
opportunities (IROs) associated with
ESRS defined topics, as well as entity-
specific IROs. We have two material
social impacts that are specific to
CCEP. We considered IROs over the
short (up to 1 year), medium (> 1 to 5
years), and long term (over 5 years).
To complete the impact analysis, we
engaged with internal and external
stakeholders. The evaluation of
financial risks and opportunities was
informed by our broader ERM
approach, though our ERM framework
evaluates a wider range of topics and
includes mitigation strategies.
To assess risk, we took into account
the current (inherent) state of how we
do business, but excluded measures
dependent on future actions or
behavioural aspects, e.g. the execution
of policies and procedures.
Determination of materiality included
the consideration of global factors
down to regionally specific
circumstances. Through stakeholder
input, we included information from
countries across our territories.
Each material IRO is presented in the
table on pages 28-29. Within the
sustainability statement we have
disclosed information related to
relevant sub- and sub-sub-topics
based on the results of the DMA. In
addition to our material topics, we take
action in other areas, as outlined in our
This is Forward strategy on page 22.
Determining thresholds
Impact materiality
Using ESRS criteria, we scored potential
impacts considering severity (scale,
scope and irremediability) and likelihood.
For positive impacts, irremediability was
excluded. Potential impacts were scored
between 1 and 10.5, with a materiality
threshold of 8, indicating a high level of
importance to stakeholders, high
likelihood, scale and scope.
Financial materiality
We scored potential financial effects
using a matrix approach, considering
magnitude and likelihood. Magnitude
was evaluated as the size of the
unmitigated effect of each risk or
opportunity at three levels, expressed
as a percentage of cumulative
operating profit: low (<3%), medium
(3-5%) and high (>5%), with a materiality
threshold of 5%. Likelihood was scored
between 0% (unlikely) and 100% (actual
effect), with a threshold of 25%
(possible).
Impact
materiality
inputs
Create CCEP's ESG topic universe
Pulling from ESRS, GRI sector standards and existing
stakeholder engagement, we considered 70 actual
and potential impacts across our value chain.
Impact and
financial
assessment
Initial impact assessment
Using our CCEP records, sector knowledge, external research
and understanding of our business environment, we followed
ESRS requirements considering scope, scale, irremediability
and likelihood to create the long-list of impacts.
Assess risks and opportunities
In alignment with our enterprise risk assessment process,
we assessed potential risks and opportunities based on the
results of the initial assessment. Risks and opportunities
were assessed in relation to agreed thresholds considering
quantitative and qualitative evidence.
Stakeholder engagement
Through a combination of in-depth interviews and surveys we
used stakeholder input from customers, suppliers, investors
and shareholders, industry associations, international institutions
and NGOs to refine our initial impact assessment.
Finance team validation
Using the results of the initial risk and opportunity assessment,
members of CCEP’s finance, risk and sustainability teams
conducted sessions to review, challenge and validate
financial materiality draft outcomes.
Validation
sessions
Once stakeholder inputs were used to adjust scoring,
IROs were aggregated and shared with internal experts for
finalisation. Areas of uncertainty were evaluated further,
with final materiality decisions agreed upon by management
and documented for external assurance.
Final materiality
decisions agreed
DMA results
Outputs from validation sessions shared
with and approved by the Board.
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Done sustainably – Sustainability statement
Our double materiality assessment
ESRS 2 IRO-1 | ESRS 2 IRO-2 | ESRS 2 BP-2 | ESRS 2 SBM-3
ESRS
ESRS sub-topic
Impact, risk or opportunity detail
Location in
value chain
Actual or
potential impact
Time horizon
Section
E1 Climate change
Climate change adaptation
CCEP is helping to build resilience to climate change within its value chain and communities by
supporting climate adaptation measures.
Upstream,
downstream and
own operations
Actual
Medium and long
term
E1
Climate change mitigation
CCEP has Scope 1 and 2 GHG emissions from its operations, commercial sites, fleet and power
usage, which contribute to climate change.
Own operations
Actual
Short, medium
and long term
CCEP has Scope 3 GHG emissions from ingredients, packaging, CDE and third party transportation
of its products, which contribute to climate change.
Upstream and
downstream
Actual
Short, medium
and long term
Climate transition risks associated with CCEP’s Scope 1, 2 and 3 GHG emissions. This includes the
regulatory risk of an increase in carbon taxes, which could result in increased energy and raw
material costs.
Upstream,
downstream and
own operations
N/A (Risk)
Long term
Energy
CCEP uses energy, including heat, steam, fuel and electricity within its own operations and value
chain, including through third party distribution and CDE. If not from renewable sources, emissions
associated with energy use contribute to climate change.
Upstream,
downstream and
own operations
Actual
Short, medium
and long term
E2 Pollution
Pollution of water
CCEP uses key agricultural ingredients such as sugar beet, sugar cane, citrus and coffee which
use fertilisers and pesticides. These could cause water pollution. Wastewater from downstream
recycling and end of life packaging processing could pollute waterways if not treated correctly.
Upstream and
downstream
Potential
Short, medium
and long term
E2
Pollution of soil
CCEP uses key agricultural ingredients such as sugar beet, sugar cane, citrus and coffee which
use fertilisers and pesticides. These could contaminate soil and degrade soil health over time.
Upstream
Potential
Short, medium
and long term
E3 Water and marine resources
Consumption of water by CCEP’s
operations impacting on water scarcity
CCEP's manufacturing processes consume water, which could negatively impact local
ecosystems and communities, especially in areas of high water stress.
Own operations
Potential
Short, medium
and long term
E3
Consumption of water in CCEP’s supply
chain impacting on water scarcity
CCEP's value chain consumes water, which could negatively impact local ecosystems and
communities, especially in areas of high water stress.
Upstream
Potential
Short, medium
and long term
The DMA has identified climate change mitigation and waste as material financial risks over a long-term time horizon
and on a gross basis. Both have been consistently recognised and reported as principal risks through our enterprise risk
assessment and CCEP has been implementing mitigations to manage these risks effectively during the past few years.
For more details about risk mitigation
actions see the Principal risks section
on pages 66-77
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Done sustainably – Sustainability statement
Material ESG-related impacts and risks
ESRS 2 SBM-3
ESRS
ESRS sub-topic
Impact, risk or opportunity detail
Location in
value chain
Actual or
potential
Time horizon
Section
E4 Biodiversity and ecosystems
Impacts on the extent and condition
of ecosystems
CCEP relies on key agricultural ingredients and raw materials such as sugar, coffee, citrus, and pulp
and paper. Agricultural operations could disrupt the health of ecosystems if land is converted or
degraded resulting in an impact to biodiversity.
Upstream
Potential
Short, medium
and long term
E4
E5 Resource use and circular economy
Resource inflows, including
resource use
CCEP uses packaging to deliver products to customers and consumers. The production of
packaging uses energy, water and both renewable and non-renewable resources. This could result
in negative environmental impacts if resources are not managed sustainably.
Upstream and
own operations
Actual
Short, medium
and long term
E5
Resource outflows related to products
and services
Waste from single use packaging used to deliver our products to customers and consumers could
enter and disrupt ecosystems where it is not collected for reuse or recycling.
Downstream
Actual
Short, medium
and long term
Waste
Although the vast majority of our packaging is fully recyclable, it is not always collected for
recycling and could end up as land or marine litter.
Downstream
Actual
Short, medium
and long term
CCEP could face the risk of increased regulation related to plastic packaging, including restrictions
on the use of single use plastic, taxation on the use of virgin plastic or the introduction of extended
producer responsibility regulation. We also face additional reputational risk as a result of being
targeted by media and NGO campaigns associated with plastic waste.
Downstream
N/A (Risk)
Long term
S3 Affected communities
Access to labour markets
CCEP works with local communities to deliver programmes designed to increase employment
opportunities. These include employment and training opportunities for those working in the value
chain.
Upstream and
downstream
Actual
Short, medium
and long term
S3
Socioeconomic impact
CCEP delivers economic benefits to the communities in which it operates and increases
opportunities for workers in the value chain.
Upstream and
downstream
Actual
Short, medium
and long term
The DMA has identified climate change mitigation and waste as material financial risks over a long-term time horizon
and on a gross basis. Both have been consistently recognised and reported as principal risks through our enterprise risk
assessment and CCEP has been implementing mitigations to manage these risks effectively during the past few years.
For more details about mitigation
actions see the Principle risks section
on pages 66-77
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Financial
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Other
Information
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2024 Annual Report and Form 20-F
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Done sustainably – Sustainability statement
Material ESG-related impacts and risks continued
ESRS 2 SBM-3
ESRS
Through our policies we aim to manage
our material risks and impacts in a
consistent manner throughout our
value chain. Several of our policies
address more than one material topic.
Our policies cover multiple countries
with differing local laws, regulations,
Policy
Description
Scope
Approved by
Alignment to international
policies and principles
Stakeholders
ESRS
reference
Coca-Cola Operating
Requirements (KORE)
Click here for policy
KORE defines the policies, standards and requirements for managing
quality, food safety, the environment (including climate change mitigation
through energy efficiency and renewable energy deployment, minimising
carbon emissions and amount of resources used), water management,
minimising resources used, and health and safety throughout our
operations. KORE mandates compliance with globally recognised
frameworks like OHSAS 18001 and ISO 45001, defines operational controls
and prioritises sustainable sourcing of ingredients. Audits are conducted
internally and are unannounced to verify compliance.
Worldwide
TCCC
• UN Guiding Principles on Business
and Human Rights
• UN Global Compact CEO Water
Mandate
CCEP (all operating
entities)
E1
E2
E3
E5
Code of Conduct
(CoC)
Click here for policy
The CoC sets out business principles that people working for CCEP are
required to follow and provides information about where to find help if
needed. We recognise our impact on the communities in which we operate
and are committed to engaging with stakeholders in those communities to
listen to, learn from and take their views into account as we conduct our
business.
CCEP territories The Board
Not applicable
CCEP employees and
third parties including
suppliers, vendors,
contractors,
consultants,
distributors and agents
who work on our behalf
S3
Human rights policy
Click here for policy
Respect for human rights is fundamental to CCEP and the sustainability of
the communities in which we operate. Our Human Rights policy is designed
to make sure human rights are respected in our own workplaces, our
communities, affected communities, and requires our suppliers to do the
same.
CCEP territories The Board
• Universal Declaration of
Human Rights
• UN Guiding Principles on Business
and Human Rights
• International Labour Organization’s
Declaration on Fundamental
Principles and Rights at Work
• UN Global Compact
• UN Declaration on Rights of
Indigenous People
CCEP
Suppliers
E2
S3
cultures and traditions, but we have
common standards and aim to run
our business in a law-abiding, ethical
and practical way everywhere.
Our growth and long-term sustainable
success is only possible with
consistently high standards of
corporate governance. The aim of
our policies is to help everyone in
CCEP to manage risks, support
compliance with the law and do the
right thing for the business, for each
other, for our communities and for
the environment.
CCEP has created policies, procedures
and policy guidance to support our
purpose, strategy and ways of working.
Non-compliance with our policies
exposes CCEP to additional levels of
risk and may result in corrective actions.
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Done sustainably – Sustainability statement
ESRS 2 – Policies and procedures
ESRS 2 MDR-P | ESRS 2 GOV-1 | E1-2 | E2-1 | E3-1 | E4-2 | E5-1 | S3-1
ESRS
Policy
Description
Scope
Approved by
Stakeholders
ESRS
reference
Speak Up policy
Click here for policy
Our Speak Up policy supports employees in raising concerns regarding
misconduct, impropriety or wrongdoing without fear of retaliation or
detrimental treatment.
CCEP territories The Board
Employees, former employees, customers, contractors,
suppliers, joint ventures, friends/relatives of employees and
others
E2
S3
Responsible sourcing
policy (RSP)
Click here for policy
Our RSP reflects our commitment to sustainable practices. It is included in
new contracts and sets out the mandatory guidelines that our direct and
indirect suppliers must comply with in order to do business with CCEP. This
includes our SGPs, PSA and no-deforestation policy.
CCEP territories Chief
Procurement
Officer
All direct and indirect suppliers (sub-contractors)
E1
E2
E3
E4
E5
S3
Supplier guiding
principles (SGPs)
Click here for principles
The SGPs set out the minimum requirements we expect of all our suppliers
and approved sub-contractors in areas such as workplace policies and
practices, health and safety, environmental protection, business integrity
and human rights. We expect all our suppliers to constantly monitor their
own and their sub-contractors’ compliance with these standards and they
are encouraged to promptly notify us if they become aware of any potential
risk of non-compliance.
CCEP territories TCCC
All direct and indirect suppliers (sub-contractors)
E1
E2
E3
E4
E5
S3
Principles for
sustainable
agriculture (PSA)
Click here for principles
Our PSA set out mandatory requirements for suppliers of agricultural
products and packaging materials of agricultural origin, to support
traceability of our product. The PSA cover criteria including human and
workplace rights, forest, habitat and biodiversity conservation, climate
change resilience, energy management, GHG reduction, animal health and
welfare, agrochemical, soil and farm management systems. We expect our
suppliers to constantly monitor their own and their sub-contractors’
compliance and are encouraged to promptly notify us if they become
aware of any potential risk of non-compliance. PSA compliance is monitored
through third party organisations such as Bonsucro, Sustainable Agriculture
Initiative Platform (SAI), Forest Stewardship Council (FSC) and the
Programme for the Endorsement of Forest Certification (PEFC).
CCEP territories TCCC
All direct and indirect suppliers (sub-contractors)
E1
E2
E3
E4
E5
S3
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Done sustainably – Sustainability statement
ESRS 2 – Policies and procedures continued
ESRS 2 MDR-P | ESRS 2 GOV-1 | E1-2 | E2-1 | E3-1 | E4-2 |
E5-1 | S3-1 | S3-3
ESRS
Forward on climate
Our risk and impacts
We acknowledge our role in addressing
climate change, and are committed to
decarbonising our business in line with
climate science and the goals of the Paris
Climate Agreement.
Our Scope 1, 2 and 3 GHG emissions come
from energy use within our operations, and
from throughout our value chain. While
climate change does pose financial and
regulatory risks, we can have a positive
impact within our value chain by
supporting climate change adaptation
measures which build climate resilience.
For more details on our material
climate-related impacts and risks
see page 28
Metrics and targets
We have both short- and long-term
GHG emissions reduction targets,
which cover our Scope 1, 2 and 3 GHG
emissions, excluding the Philippines.
These targets were validated by the
SBTi as being in line with climate
science, and the goals of the Paris
Climate Agreement. They are aligned
with our material impacts and risks
related to climate change.
In 2025, we will work to update both
our short- and long-term GHG
emissions reduction targets to include
the Philippines and Forest, Land and
Agriculture (FLAG) targets, in line with
the latest SBTi guidance.
CCEP measures its GHG emissions in
line with the GHG Protocol. In 2024, our
value chain emissions were 7.4 million
tCO2e, including the Philippines(A).
Our strategy
We are committed to decarbonising
each area of our value chain, in line
with our 2040 Net Zero target. Since
2019, we have reduced our absolute
carbon footprint by 13.6%(A). We are
proud of the progress that we have
made, but know we have more work to
do.
Our actions
We have built a climate transition
roadmap which includes a 2030 carbon
reduction plan, aligned to our business
growth, Capex and Opex plans.
Our 2024 progress
KPI
This is Forward target
Group
excl. the Philippines
Absolute reduction in GHG emissions (Scope 1, 2 and 3) since 2019
30% by 2030(B)
Net Zero by 2040(B)
13.6%
–
20.0%
–
Percentage of electricity consumed that comes from renewable
sources
100% by 2030
60.2%
79.0%
Percentage of carbon strategic suppliers(C) having targets approved
by SBTi
100% (EU by 2023 / APS by 2025)
–(D)
45%
(EU 68% / APS 23%)
A.
We have updated our 2019 baseline and prior year emissions, increasing these by approximately 2 million tCO2e, of which the Philippines business has added approximately 1.25 million tCO2e to
our baseline year.
B.
Our GHG emissions reduction and Net Zero targets have been validated by the SBTi as being in line with climate science, excluding the Philippines. Scope 2 is market based.
C.
Carbon strategic suppliers account for ~80% of our Scope 3 GHG emissions (~185 suppliers in total).
D.
Data for Group including the Philippines not available for 2024. We aim to integrate in 2025.
For full details on our metrics, our reporting approach and methodology related to climate see pages 255-256, 258, 260-266
Through this work, we allocated over
€400 million between 2021-2023 to
support the ongoing decarbonisation of
our operations and value chain.
We plan to invest approximately €405
million for emissions reduction
initiatives between 2024-2026. This
includes €340 million of Opex, primarily
related to our cost of sales, to support
our continued investment in rPET which
has a significant carbon reduction
impact. It also includes €65 million in
Capex investment, for other energy,
logistics and carbon reduction
technologies.
Our sustainability strategy and
investments are embedded in the way
we operate. The resources to support
our decarbonisation are part of our
regular business planning and resource
allocation. The investments associated
with our decarbonisation plan are not
segmented and can be found as part of
additions to intangible assets and
goodwill and property, plant and
equipment for Capex (Note 7 and Note 8
to the consolidated financial
statements) and cost of sales in our
consolidated income statement for
rPET. Other costs which support our
emissions reduction, such as
investment in more efficient CDE,
electric vehicles and purchased
renewable electricity are captured as
part of our broader cost allocation
framework. The achievement of our This
is Forward targets is supported by our
Business Resilience strategy. More
information on the availability of
resources to support our sustainability
plan can be found in our viability
statement, see page 78.
We provide updates to our SSC and
ESG Board Committee on our 2030
carbon reduction plan and progress
against sustainability targets.
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Environment – Climate change (E1)
ESRS 2 MDR-M | ESRS 2 MDR-A | E1-1 | E1-2 | E1-4
ESRS
We also support this work through the
application of an internal shadow
carbon price of €100/tCO2e. This
shadow price is based upon the likely
cost for us to reduce GHG emissions,
currently focused on future Scope 1
and 2 GHG emissions. We use this
internal carbon price to support the
business case for future Capex
investments to reduce our Scope 1
and 2 GHG emissions.
We know that more will be required to
reach our 2040 Net Zero target. While
the long-term nature of these targets
makes it difficult to provide detailed
long-term investment plans, we are
clear on where we can accelerate
progress across our value chain, and are
already taking action.
In 2024, we initiated Climate
Accelerator groups, cross-functional
teams focused on providing guidance
and finding solutions for hard to
abate areas across each area of
our value chain.
Our CCEP Ventures team also helps to
find, fund and foster transformative
solutions to support our 2040 Net Zero
target. CCEP Ventures partners with
start-ups to support our
decarbonisation journey either by
accelerating our current business
initiatives or by utilising breakthrough
technology. In 2024, we invested in
three new start-ups which could help
us meet our waste and emissions
challenges.
Supplier engagement
Our suppliers are responsible for
approximately 80% of the GHG
emissions in our value chain, and we
can only meet our own GHG emissions
reduction targets by working with
them. That is why we have asked
approximately 185 carbon strategic
suppliers, which represent about 80%
of our Scope 3 GHG emissions, to set
their own science based targets.
In 2024, 45% of our carbon strategic
suppliers (Europe 68%, APS 23%), had
SBTi validated targets.
We know that some of our suppliers
will need support to measure their
emissions and set targets. We are
working with TCCC to engage suppliers
in the Supplier Leadership on Climate
Transition (S-LOCT) programme, a cross
industry collaboration that aims to
provide suppliers with the resources,
tools and knowledge they need to
make progress on their own climate
journeys. In 2024, 35 CCEP suppliers
participated in the programme, and we
continue to encourage and support
more of our suppliers to join.
We also incentivise and reward
suppliers for improving their ESG
performance through our sustainability
supply chain finance programme,
which provides competitive financing
linked to a number of sustainability-
driven KPIs.
In 2024, this multi-award winning
programme continued to grow
significantly, achieving a 26% increase
in supplier participation versus 2023.
The programme supports the delivery
of funding to two Rabo Foundation
projects in Indonesia, focused on
improving the sustainable production
capabilities of smallholder farmers.
We also continue to grow a similarly
structured supply chain finance
programme in partnership with
Citibank, offering Indonesian suppliers
incentives on financing interest
rates. In 2024, 36% more suppliers
participated in the programme
versus 2023.
For further details on our
engagement with suppliers
see page 47
Stakeholder engagement
We advocate for policies and private
sector initiatives that support rapid
and sustained decreases in GHG
emissions.
In particular, regulatory shifts that
support an expansion of renewable
electricity capacity, shifts to a circular
economy and rapid phase out of fossil
fuels will be critical, and we are focused
on supporting these shifts as part of our
external advocacy.
Cross industry collaboration on these
initiatives will be key. In 2024, together
with TCCC and other beverage industry
companies, we joined the REfresh
Alliance, an industry wide collaboration
which aims to combine the expertise
and resources of its members to
improve access to renewable energy
across the supply chain.
Case study
Working with customers
towards Net Zero emissions
Across our territories we partner
with our customers to support
them in their journey to reduce
their carbon footprint. This
includes our Net Zero Pubs, Bars,
and Restaurants initiative in Great
Britain, the #PorElClima platform in
Spain and Horeca Footprint in
Portugal.
See TCFD cross industry climate-
related and agriculture, food and
forest products group metrics table
on page 59
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Environment – Climate change (E1) continued
ESRS 2 MDR-A | E1-1 | E1-8
ESRS
Our climate transition roadmap includes a 2030 carbon reduction plan, aligned to our business growth, Capex and Opex plans. We allocated over €400 million between 2021-2023
to support the ongoing decarbonisation of our operations and value chain, and we plan to invest approximately €405 million in emissions reduction initiatives between 2024-2026.
We are clear on where we can accelerate progress across our value chain, and are already taking action through 2040. We will need continued engagement with suppliers, customers,
industry and peers to support our ongoing decarbonisation. In 2025, we will work to update our SBTi target and carbon roadmap to include the Philippines.
Key actions and anticipated time horizons:
Actions are ongoing. Time horizons reflect when we anticipate that the majority of the reduction could be achieved.
Ingredients
Supplier engagement
Portfolio sugar reduction
Sustainable agriculture
CCEP Ventures (e.g. Avalo, Airhive)
Packaging
Increasing recycled content
Increasing packaging collection
Supplier engagement
Lightweighting
CCEP Ventures (e.g. CuRe Technologies)
Packaging mix shifts
Manufacturing
Increasing renewable electricity
Improving energy efficiency
Decreasing fugitive CO2
Switching to alternative fuels
CCEP Ventures (e.g. Pipeline Organics)
Transport
Alternative fuels
Electric vehicles (own fleet)
Road to Rail
Network route optimisation
Electric and alternative fuel vehicles (3PL)
CCEP Ventures (e.g. Rainions)
CDE
Improving CDE mix and energy efficiency
Greening of the grid
CCEP Ventures (e.g. Vorte Technologies)
Suppliers and
partners
Supplier engagement including:
— 100% of our carbon strategic suppliers to set science based targets by 2023
(Europe) and 2025 (APS).
Through CCEP Ventures, we are committed to seeking out and funding
solutions designed to drive innovation and sustainability progress in line with
CCEP’s 2040 Net Zero target.
Advocacy and
memberships
We are committed to fostering collaborative efforts within our industry,
actively engaging with peer companies, industry associations and government
bodies. To facilitate a rapid, fair transition to a low-carbon economy, we are
engaging with key stakeholders to accelerate the following:
— Fossil fuel phase out
— Rapid shift to a circular economy
— Renewable electricity across all markets
A. For illustrative purposes only.
B. Excluding the Philippines.
C. Including the Philippines.
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Environment – Climate change (E1) continued
E1-1 | E1-3
ESRS
2030 decarbonisation levers
We have identified the key levers that will help decarbonise our business and our value chain, in line with our 2030
emission reduction target. We plan to invest approximately €405 million for emissions reduction initiatives between
2024-2026. This includes €340 million of Opex, primarily related to our cost of sales, to support our continued investment
in rPET which has a significant carbon reduction impact. Our plan also includes €65 million in Capex investment for other
energy, logistics and carbon reduction technologies. In 2025, we will work to update our SBTi target and carbon roadmap
to include the Philippines.
Projected emissions reduction (tCO2e) from decarbonisation levers
Ingredients
28%
of our carbon footprint comes from
Scope 3 emissions from farming,
processing and transportation.
Decarbonisation levers:
• Supplier engagement
• Reducing sugar across our portfolio
• Sustainable agriculture
2024 actions:
• Collecting carbon data from our
carbon strategic suppliers.
• Initiating a regenerative agriculture
pilot with sugar beet suppliers in
France.
CCEP Ventures:
Supporting the development of Airhive's
direct air capture technology. We aim to
pilot the use of direct air captured CO2 ,
captured on site at one of our production
facilities, as an ingredient in our drinks.
We are also working with Avalo to develop
sustainable sugar cane varieties using
machine learning and AI.
For more details on our ingredients
see E2 on page 46 and E4 on page 52
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E1-1 | E1-3 | E1-4 | E2-2 | E4-3
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Packaging
35%
of our carbon footprint comes from
Scope 3 emissions from materials used,
supplier production and transportation,
and packaging collection.
Decarbonisation levers:
• Increasing recycled content
• Increasing packaging collection
• Supplier engagement
• Lightweighting
2024 actions:
• Increasing the amount of recycled
content in our packaging and
improving packaging collection rates
across our markets.
• Reducing the use of packaging where
possible.
• Endeavouring that the equivalent of
all packaging we use is collected,
reused or recycled so that it does
not end up as litter.
CCEP Ventures:
Investing and piloting the use of CuRe
Technology, a chemical recycling process
which creates high quality PET with a
carbon footprint approximately 65% lower
than virgin PET.
For more details on our actions on
packaging see E5 on pages 53-55
Manufacturing
13%
of our carbon footprint comes from
Scope 1, 2 and 3 emissions from our
operations and commercial sites.
Decarbonisation levers:
• Increasing renewable electricity
• Switching to alternative fuels
• Decreasing fugitive CO2
• Improving energy efficiency
2024 actions:
• We are a member of the Climate
Group’s RE100 initiative, and
committed to using 100% renewable
electricity in our markets by 2030.
• Investing in on-site and power
purchase agreements (PPAs) for solar,
wind, combined heat and power (CHP),
district heating and hydropower.
• Making our processes more energy
efficient. In 2024, we invested €18
million in energy efficiency
improvements, including replacing
a liquefied petroleum gas boiler with
an electric boiler.
CCEP Ventures:
Pipeline Organics: this climate tech
start-up uses technology to convert
wastewater into renewable electricity,
which could power essential processes
at CCEP's production facilities.
Transportation
9%
of our carbon footprint comes from
emissions from our own fleet (Scope 1),
as well as third party logistics and
business travel (Scope 3).
Decarbonisation levers:
• Switching to alternative fuels
• Electric vehicles (EVs)
• Route optimisation
• Shifting from road to rail
2024 actions:
• As part of the Climate Group’s EV100
initiative, we increased our use of
hybrid and electric cars, vans and
trucks to 44.4% in Europe in 2024.
• We are working with third party
logistics suppliers to reduce
emissions through the use of route
optimisation and alternative fuels.
Alternative fuels made up around 9%
of the total kilometres driven by our
third party logistics hauliers in Europe
in 2024.
CCEP Ventures:
Rainions has developed a coating for
truck exhausts that has the potential to
reduce emissions by 50%. We are
piloting and testing this technology with
five CCEP owned trucks in Australia.
CDE
13%
of our carbon footprint comes from
Scope 3 emissions from the grid
electricity used by the coolers,
vending, fountain and coffee machines
in our customer outlets. CDE can be
carbon intensive in markets which have
fossil fuel intensive electricity grids.
Decarbonisation levers:
• Improving our CDE mix and energy
efficiency
• Greening of the grid
2024 actions:
• Improving the energy efficiency of
our fleet.
• Supporting a shift to renewable
electricity across our markets.
• Ensuring new coolers are HFC-free.
Approximately 56% of our cooler
fleet across our territories is HFC-
free.
• Recycling and safe disposal of old
equipment.
CCEP Ventures:
Investing in Vorte Technologies, which
uses a vortex tube to cool, without
traditional refrigerants.
The remaining 2% of our carbon
footprint comes from emissions from
employee commuting, and IT and
marketing spend.
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Climate adaptation
Our climate transition roadmap
primarily focuses on decarbonising our
business. Through our climate risk
scenario analysis, we are also working
to identify the areas of our operations
or value chain which may require
investment to support adaptation to
climate change.
Between 2021-2024, we invested €3.7
million in Capex to support climate
adaptation in our own operations.
In 2025, we will work to further
prioritise the climate adaptation
activities required to manage our
identified climate-related risks.
Residual emissions
Our primary focus is on decarbonising
our business in line with a 1.5˚C
reduction pathway. However, we do
support a limited amount of carbon
offsetting outside of our value chain in
the short term.
We follow SBTi Net Zero guidance,
purchasing a limited amount of high
quality carbon credits to offset GHG
emissions where we can no longer
reduce emissions. For example, to
offset remaining emissions from our
carbon neutral production facilities.
In 2024, we retired 20,484 tCO2e from
the VCS-certified Rimba Raya
Biodiversity Reserve Project in
Indonesia. These credits offset
remaining emissions from 12 production
facilities that have been PAS 2060
carbon neutral certified in 2024. Over
the longer term, we will work to
address our residual emissions by
directly investing in nature based
solutions that remove carbon from the
atmosphere.
Risk management
Climate-related risks have been
identified as a principal risk category
for CCEP for many years. The
probability that climate change will
affect our existing business model, and
require proactive mitigation strategies
is high. Our ERM framework (see page
66) includes climate risks. The principal
risks section of this report further
outlines the various types of loss
impacts and the potential influence of
climate risks on our strategic
objectives.
We assess and identify climate risks
across business, functional and project
levels, following our ERM process,
including local compliance reviews and
annual enterprise risk assessments.
We also review opportunities as part of
our risk framework, and as part of our
management routines. Our approach
drives progress towards meeting our
GHG emissions reduction targets and
helps manage impacts from physical,
transition and regulatory climate risks.
Our commitment to this
comprehensive risk management
strategy underscores our dedication to
long-term business resilience and
sustainability.
Business planning
We integrate climate-related
considerations into our business
strategy, planning and risk
management processes.
Our climate risk analysis helps inform
our strategic business planning and
investment decisions and supports the
delivery of our climate targets.
We have assessed the impact of
climate change on multiple aspects of
our business and financial planning,
including on our supply chain and value
chain, our products, operations, and
investment in research and
development.
As we continue to evolve our climate
scenario analysis, we aim to expand
climate risk assessments across the
areas recommended within the TCFD
Annex. We are committed to mitigating
climate-related risks through our This is
Forward sustainability targets. Tracking
progress against these KPIs also
allows us to identify gaps and
opportunities for improvement.
Climate scenario modelling
We partner with Risilience, a
specialised climate analytics company
which uses technology pioneered by
the Centre for Risk Studies at the
University of Cambridge Judge
Business School, to co-develop a
digital twin platform, enabling the
modelling of both physical and
transition risks across our value chain
over a 20 to 30-year time horizon.
In 2024, we furthered this work with a
pilot assessment of the risk of reduced
production yields from sugar beet due
to chronic climate change impacts,
such as drought and changing weather
patterns.
We work in close collaboration with
TCCC to assess climate-related risks
and opportunities, driving innovation as
a system to meet consumer demands
for sustainable products and address
climate change. The knowledge gained
from these initiatives helps to inform
our strategic business planning and
investment decisions, and supports
the delivery of our climate targets.
While the transition to a low-carbon
economy may impact the carrying
value and remaining useful lives of the
Group’s property, plant and equipment,
we continue to invest in more efficient,
cleaner and more technologically
advanced assets. For more information
on how climate scenarios are
considered in our financial statements,
refer to Note 1, Note 7 and Note 8 of
the consolidated financial statements.
For more details on the emissions
pathways and risks assessed see
pages 39-45
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Environment – Climate change (E1) continued
E1 IRO-1 | E1 SBM-3 | E1-1 | E1-3 | E1-7
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Climate risk management
Our climate scenario modelling is
aligned with five global warming
scenarios (including >4°C, +2.5°C and
+1.5°C), using shared socioeconomic
pathways (SSPs). We also worked with
external physical climate specialists
Marsh Advisory to establish how
climate change could impact the
frequency and severity of climate-
related weather events on our
manufacturing and operations, under
RCP 2.6 and 8.5 scenarios (~1.6°C and
~4.3°C respectively). This covers all
major climate-induced threats (coastal
inundation, river flooding, surface
water flooding, extreme heat, extreme
Emissions
pathway
>4°C emissions
pathway
+2.5°C emissions
pathway
+1.5°C emissions
pathway
SSP
No Policy
SSP 5-8.5
Stated Policy
SSP 2-4.5
Paris Ambition
SSP 1-1.9
Temperature
rise by 2100
>4°C
+2.5°C
+1.5°C
Global CO2
emissions
200% by 2100
-75% by 2100
Net Zero by 2050
Global action
against climate
change
Few or no steps taken
to limit emissions.
Current GHG emissions
levels roughly double
by 2050. The global
economy is fuelled
by exploiting fossil
fuels and energy-
intensive lifestyles.
Reliance on existing/
planned policies (not
commitments). GHG
emissions plateau
around current levels
before starting to fall
mid-century, but do
not reach Net Zero
by 2100.
Coordinated action
leads to reduced
emissions and social
shifts towards
sustainability. While
extreme weather
increases, the most
severe climate impacts
are avoided.
Likelihood
Low
High
Low
wind, wildfire and others) to 2100. We
evaluated physical and transition risks
and opportunities over the short (up to
1 year), medium (>1 to 5 years) and long
term (> 5 years). This is in line with a
slight extension of our business
planning timeframes, and our short-
(2030) and long-term (2040) GHG
emissions reduction targets. We
conducted a financial impact
assessment of the identified risks and
opportunities across the short-,
medium- and long-term time horizon.
We assessed all of the physical and
transition risks outlined by the TCFD.
Out of the risks and opportunities
assessed, seven were determined to
be significant based upon the
quantitative and qualitative impact to
our business. Some risks, for example,
exposure to litigation or investor
market risk, were assessed, but were
not deemed critical.
The financial assessment of our
climate scenario analysis was
completed on a gross risk basis,
without mitigation. We have grouped
the anticipated cumulative operating
profit impact estimations into low,
medium and high bands, with each
risk and opportunity assessed
independently over the short,
medium and long term.
Scope and methodology to assess key climate-related risks and opportunities
Physical
Transition
What are
physical
and transition
risks and
opportunities?
Includes risk of both acute weather
events (e.g. floods) and chronic
long-term climate shifts (e.g. rising
sea levels). Acute physical risks are
already occurring – however, the
frequency and severity of these is
expected to increase.
Transitioning to a low-carbon
economy presents risks and
opportunities, with impacts varying
by transition speed and nature.
Opportunities arise as consumers
increasingly prefer products with
lower GHG emissions and reduced
use of water and resources.
CCEP scope
• CCEP sites and operations
• Key areas of our supply chain
• Downstream products
Quantification
Estimation of the cumulative operating profit impact over short, medium
and long term (without mitigation measures), aligned with our DMA
methodology, see page 27. This was completed independently per risk
type, including operational disruption and asset damage (physical); and
loss of revenue, increased cost implications (transition). Risks have been
prioritised in line with our ERM process, see page 66.
These bands are defined consistently
with our double materiality thresholds.
In 2025, we will continue to refine our
climate scenario modelling, as we
develop and refine our carbon
reduction strategy, and identify
opportunities to mitigate climate-
related risks to our business.
This will help us to assess the
resilience of our climate transition plan,
and make sure we are able to mitigate
risks and take advantage of the
opportunities arising from shifting to a
low-carbon economy.
For details on our governance see
page 26
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Financial
Statements
Further Sustainability
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Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
38
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1-1 | E1-3
ESRS
Physical risk
We modelled how extreme weather events and chronic changes to weather patterns could pose a physical risk to our operations and supply chain. Our climate
scenario modelling identified potential risks from extreme weather, such as drought or flooding at our production facilities or key suppliers. Chronic changes in
temperature and precipitation patterns could have an impact on agricultural yields of key ingredients. Mitigating actions against these risks are reviewed as part of
our business planning processes.
Cumulative gross risk financial impact estimates (assuming no mitigation) over the short, medium and long term
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Physical risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(5+ years)
How are we addressing these risks?
(Our mitigation strategy)
Extreme weather
events could cause
disruption to facilities
and logistics routes
Manufacturing
and operations
• Increased risk of site damage due
to more frequent and severe
extreme weather, including riverine
and surface water flooding.
Impacts could result in business
interruption and asset damage to
our production facilities.
• Compromised infrastructure and
logistics channels could hinder our
manufacturing and delivery.
• We anticipate flooding as a
persistent physical risk across all
emissions scenarios. For example,
severe flooding in Valencia in 2024
impacted our distribution network,
employees and customers.
+1.5°C emissions
pathway
• Our proactive measures against
climate-related physical risks from
extreme-weather include
continued investment in our climate
transition roadmap, including
energy and water savings projects,
and developing and refining our
business continuity plans.
• In 2024, we invested approximately
€18 million in energy, logistics and
carbon saving technologies.
• Between 2021-2024, we invested
€3.7 million in Capex for climate
adaptation within our own
operations.
• We have also developed climate
and water resilience guidebooks
and held workshops in multiple
markets to support adaptation to
increasing extreme weather events.
• In 2025, we will work to further
prioritise the climate adaptation
activities required to manage our
identified climate-related risks.
+2.5°C emissions
pathway
>4°C emissions
pathway
We modelled how extreme weather events could pose a risk
to our operations:
• Acute weather events such as extreme heat or flooding
could limit our ability to produce and cause damage to our
facilities.
• Insurance premiums could increase to cover such events.
• A review of 27 critical facilities revealed increased
frequency and severity of long-term flooding risks,
especially in Belgium, Spain and Indonesia. However, the
anticipated financial effects on CCEP’s operating profit
are estimated to be low.
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2024 Annual Report and Form 20-F
39
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 IRO-1 | E1 SBM-3 | E1-1 | E1-3
ESRS
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Physical risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(5+ years)
How are we addressing these risks?
(Our mitigation strategy)
Increasing water stress
or water scarcity
Manufacturing
and operations
• Water scarcity could lead to
regulatory constraints on water
usage or temporary water
shortages. This could result in
increased production expenses or
limitations in production capacity,
impacting our beverage production
and sales, and elevating costs.
+1.5°C emissions
pathway
• In 2024, we invested
approximately €2.2 million in water
initiatives, saving approximately
91,900m3 per year, and annual
water and waste treatment
expenses of about €260,000 per
year.
• In 2024, together with TCCC and
TCCF(A), we supported 34 water
replenishment projects across
Europe, and 24 in APS, replenishing
24.7 million m3 of water across our
territories.
• These investments have helped to
mitigate water scarcity impacts
when they have occurred. In 2024,
due to drought, local authorities in
some of our markets in Europe
(France and Spain) escalated
water risk levels, which could have
resulted in limits on industrial
water usage. These restrictions did
not directly affect our sites. Our
water targets and demonstrated
progress on improving water
efficiency helped to mitigate
potential water restrictions being
imposed on our facilities to
mitigate regulatory risks.
A.
Investment split varies per project, we claim
replenishment benefit as a Coca-Cola system.
+2.5°C emissions
pathway
>4°C emissions
pathway
The likelihood of this impact occurring is considered to be
low and therefore not financially material.
We modelled how increased water scarcity could pose a risk
to our operations:
• 31 of our NARTD production facilities are currently in
regions of high baseline water stress (World Resources
Institute’s (WRI) Aqueduct 4.0 analysis).
• Potential limitations on water usage across different
jurisdictions could affect our sites and production
volumes, assuming these restrictions impact various river
basins and become more stringent over time.
• Our modelling suggests that, in the absence of any
mitigations, the risk magnitude may increase substantially
post 2040.
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2024 Annual Report and Form 20-F
40
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 SBM-3 | E1 IRO-1 | E3 SBM-3 | E3 IRO-1 | E1-1 | E1-3 | E4-1
ESRS
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Physical risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(>5 years)
How are we addressing these risks?
(Our mitigation strategy)
Changes to weather and
precipitation patterns
could cause disruption
to supply of ingredients
Supply chain
• Changing weather patterns and/or
changes to precipitation patterns
could impact the yield and/or
quality of our key ingredients and
raw materials, such as sugar beet,
sugar cane, orange juice or coffee.
• This could reduce the availability
and quality, or increase the cost of
ingredients. Our primary sugar beet
sourcing regions, including France,
Great Britain, the Netherlands and
Spain, are all potentially vulnerable
to climate-related water scarcity
issues, based upon the WRI
Aqueduct 4.0 water risk analysis,
which could be exacerbated by
changes to weather and
precipitation patterns.
+1.5°C emissions
pathway
• We have asked approximately 185
carbon strategic suppliers
(including ingredients suppliers) to
set their own science based GHG
emissions reduction targets. For
more information, see page 33.
• We aim for 100% of our key
agricultural ingredients and raw
materials to be sourced in
compliance with our PSA, see page
46.
• Investment in water
replenishment programmes in our
key sourcing regions. For more
information, see pages 49-50.
• We aid our suppliers in measuring
and setting emission reduction
targets and enhancing their
emission reduction capabilities
through initiatives such as S-LOCT.
For more information, see page
33.
+2.5°C emissions
pathway
>4°C emissions
pathway
We modelled how changes to weather and precipitation
patterns could pose a risk to our supply chain:
• Sugar yields could be negatively impacted across all
emissions pathways.
• Sugar beet, as our modelling suggests, is the ingredient
most vulnerable to climate shifts.
• France is projected to have the most significant yield
reduction due to expected increased rainfall.
• Our modelling indicated that orange and coffee yields are
unlikely to be significantly impacted.
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2024 Annual Report and Form 20-F
41
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 SBM-3 | E1 IRO-1 | E2 SBM-3 | E1-1 | E1-3 | E4-1
ESRS
Transition risk
Our scenario analysis focused on the transition risks across our value chain, under three emissions pathways. The level of exposure to transition risks is driven by the
warming scenario, with a +1.5°C scenario showing the highest potential transition risk. Mitigating actions against these risks are determined as part of our business
planning processes.
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Transition risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(>5 years)
How are we addressing these risks?
(Our mitigation strategy)
Policy
Operations and
supply chain
• Carbon pricing is used as a
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. Such mechanisms
could result in increased energy or
raw material costs.
+1.5°C emissions
pathway
• We are mitigating the risk to our
own operations and supply chain
by reducing our GHG emissions,
introducing carbon strategic
supplier targets and through our
2030 carbon reduction plan.
• We plan to invest approximately
€405 million for emissions
reduction initiatives between
2024-2026. This includes €340
million of Opex, primarily related to
our cost of sales, to support our
continued investment in rPET
which has a significant carbon
reduction impact. It also includes
€65 million in Capex investment,
for other energy, logistics and
carbon reduction technologies.
• Continued investment in recycled
content (including rPET) and
increased collection, provides us
with an opportunity to increase
recycled content in specific
markets, mitigating potential
carbon taxes, and also mitigating
potential risks of marketing
constraints or bans on single use
plastic bottles which do not
contain recycled plastic.
+2.5°C emissions
pathway
>4°C emissions
pathway
We modelled how increased carbon taxes could be used to
price and penalise GHG emissions.
• Baseline GHG emission projections include Scope 1, 2 and
3 up to 2040.
• The geography of the emissions footprint influences the
carbon price projections for the beverage industry under
each emission pathway.
• Carbon pricing legislation is assumed to be introduced
between 2030 and 2035, depending on the emission
pathway.
• Our modelling suggests that, assuming no mitigation, over
the long term this risk could result in a high financial
impact under the +1.5°C and +2.5°C emissions pathways.
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2024 Annual Report and Form 20-F
42
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 SBM-3 | E1 IRO-1 | E1-1 | E1-3
ESRS
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Transition risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(>5 years)
How are we addressing these risks?
(Our mitigation strategy)
Market (consumer)
Brands and
portfolio
• Consumer awareness of
environmental impact could drive
a shift towards more sustainable,
lower-emission alternative
products and services. If CCEP is
not able to meet these consumer
preference shifts, it could miss
potential growth and additional
revenue opportunities.
+1.5°C emissions
pathway
• We continue to update our ability
to measure and forecast product
carbon footprints, helping us
prioritise our efforts to reduce the
GHG emissions of our products,
and our packaging. In 2024, we
used the information from our
product carbon footprint and
carbon roadmap to inform our
business planning, and support our
customers.
• Our investment in rPET and our
target to eliminate the use of oil-
based virgin plastic in our bottles
by 2030, could also support an
opportunity to provide lower
carbon and lower waste options to
consumers.
+2.5°C emissions
pathway
>4°C emissions
pathway
We modelled how changes in consumer preference would
impact the demand for our products:
• The percentage of consumers who choose to shift
towards packaging options that are perceived to be more
sustainable was modelled over time and is emissions
pathway dependent.
• Consumers’ purchasing habits are influenced by various
climate-related trends simultaneously, including the shift
to sustainable purchasing and reduced packaging.
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Statements
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2024 Annual Report and Form 20-F
43
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 SBM-3 | E1 IRO-1 | E1-1 | E1-3 | E5 SBM-3 | E5 IRO-1
ESRS
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Transition risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(>5 years)
How are we addressing these risks?
(Our mitigation strategy)
Technology
Operations
• Regulatory or market shifts could
phase out fossil fuels and related
equipment, for example gas boilers
and diesel or petrol vehicles. This
could lead to a devaluation of
carbon-intensive assets and
potential impairment or write offs.
• CCEP's exposure is limited,
primarily focused on our owned
fossil-fuel powered fleet (cars,
vans, motorbikes, trucks) and
machinery and equipment.
• While we continue to invest in more
efficient, cleaner and more
technologically advanced assets,
the significant majority of the
Group’s assets currently in
operation are likely to be
substantially depreciated ahead of
our 2040 Net Zero target.
+1.5°C emissions
pathway
• We are mitigating the risk through
our carbon reduction plan, which
has allocated over €400 million
between 2021-2023 to support the
ongoing decarbonisation of our
operations and value chain.
• In 2024, we invested €18 million in
carbon, energy and logistics
savings initiatives, saving
approximately 3,500 MWh and
34,000 tonnes of CO2e annually.
This investment includes a shift to
renewable energy within our own
production facilities.
• We also aim to transition all of our
own car and van fleet to electric
or ultra-low emissions vehicles by
2030, and to use renewable
electricity across all of our own
operations by 2030.
• Other costs which support our
emissions reduction, such as
investment in more efficient CDE,
EVs and purchased renewable
electricity are captured as part of
our broader cost allocation
framework.
+2.5°C emissions
pathway
>4°C emissions
pathway
We modelled the potential impacts on CCEP’s carbon-
intensive assets, for example fossil-fuel powered owned
fleet (cars, vans, motorbikes, trucks) and machinery and
equipment, assuming that:
• As policies and regulations aim to reduce carbon
emissions, the use of fossil fuel is likely to decrease, and
the cost of using it could increase, leading to a
devaluation of the fossil-intensive assets.
• The adoption of green technologies is driven by the rate of
technological innovation and facilitates the
decarbonisation. Assumptions are pathway dependent
with little/no innovation in the No Policy scenario and a
rapid shift to renewable energy within the Paris Ambition
scenario.
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2024 Annual Report and Form 20-F
44
Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 SBM-3 | E1 IRO-1 | E1-1 | E1-3
ESRS
Anticipated cumulative operating profit impact
Low <3%
Medium 3%-5%
High >5%
How could this impact our business?
(assuming no mitigation)
Cumulative gross risk (assuming no mitigation)
Time horizon
Transition risks
Value chain
Emission
pathway
Short term
(1 year)
Medium term
(> 1-5 years)
Long term
(>5 years)
How are we addressing these risks?
(Our mitigation strategy)
Reputation
Brands and
portfolio
• Loss of revenue and/or missed
growth opportunities due to
consumer activism against our
sector and/or our products.
+1.5°C emissions
pathway
• We are mitigating the risk through
our GHG reduction targets, our
carbon roadmap and supporting
investment plan, as well as
focusing on improving recycled
content and collection rates
across our markets.
• Our anticipated €340 million
investment in rPET between
2024-2026, and our target to
eliminate the use of oil-based
virgin plastic in our bottles by
2030, could also support an
opportunity to provide lower
carbon and waste options to
consumers.
+2.5°C emissions
pathway
>4°C emissions
pathway
We modelled the potential impacts on CCEP’s revenue and
operating profit due to sector and company-specific
activism, assuming:
• 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 level of consumer activism in the No Policy scenario.
• Moderate climate activism in the Stated Policy scenario,
assuming CCEP is perceived to be in line with the beverage
sector.
• CCEP does not keep pace with the beverage sector in the
Paris Ambition scenario, causing increased consumer
activism.
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2024 Annual Report and Form 20-F
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Done sustainably – Sustainability statement
Environment – Climate change (E1) continued
E1 SBM-3 | E1 IRO-1 | E1-1 | E1-3
ESRS
Forward on supply chain
Our impact
CCEP is reliant on agricultural inputs
for key ingredients and raw materials,
including sugar beet, sugar cane, citrus and
coffee. The agricultural processes used by
our suppliers to grow our ingredients use
fertilisers and pesticides which could
pollute water and soil in our value chain.
We are committed to sustainably sourcing
our ingredients to reduce agricultural
impacts and encourage our suppliers to
manage water responsibly. We are working
to better understand our downstream
impact from recycling and will update our
strategy as necessary.
For more details on our material
pollution-related impacts see page 28
Our strategy
We are committed to proactively
managing the potential upstream
impact from our agricultural supply
chain, and downstream from end of life
processing of our packaging.
Our pollution management strategy
addresses the potential pollution of
Metrics and targets
We manage potential impacts through our
This is Forward sustainability action plan.
These voluntary targets are critical to
managing our supply chain impacts and
progress is measured on an annual basis.
Our 2024 progress
KPI
This is Forward target
Group
excl. the Philippines
Percentage of supplier spend covered by our SGPs
100%
98.6%
98.5%
Percentage of sugar sourced in compliance with our PSA
80.1%
99.9%
Percentage of pulp and paper sourced in compliance with our PSA
97.8%
99.9%
A.
All outstanding production facilities are located in Papua New Guinea where we are actively working towards certification.
water and soil in our value chain
through rigorous internal standards,
supplier collaboration and programmes
targeting pollution prevention and
ecosystem preservation.
Although not identified as material in
our DMA, managing waste and
wastewater from our direct operations
continues to be critical, and we have
provided further information below.
Our actions
Upstream
Potential pollutants impacting water
quality could include ammonia, nitrates
and chlorine from the use of fertiliser
and pesticides in agriculture.
Petroleum near vehicles and boilers
could also be a pollutant risk.
We aim to minimise the potential
impact of fertiliser and pesticides in
our supply chain by encouraging
suppliers to comply with our SGPs and
PSA.
These include water management
requirements (including pollutants) and
requirements which minimise water
quality impacts from wastewater
discharges, erosion, and nutrient/
agrochemical run off.
As part of the Coca-Cola system, we
rely on independent third party audits
commissioned by TCCC to monitor
supplier compliance with our SGPs. If a
supplier fails any aspect of the SGPs or
a significant risk is identified, they are
expected to implement corrective
actions before a follow-up audit is
performed. TCCC conducts
unannounced audits at its discretion
and we reserve the right to terminate
an agreement with any supplier that
cannot demonstrate it upholds the
SGPs’ requirements.
PSA compliance is verified through
adherence to a limited set of third
party sustainable agriculture
standards approved by TCCC.
Downstream
We also recognise recycling processes
can pollute waterways if not properly
managed. We are using the Science
Based Targets Network (SBTN)
methodology to understand nature
and biodiversity risks throughout our
value chain. As we gain a better
understanding of these risks we will
develop management strategies,
metrics and targets as necessary.
Direct operations
Before our wastewater is discharged
we apply high testing and treatment
standards, meeting local regulations
and KORE, which promotes responsible
water use, treatment and disposal.
Discharged water is measured,
including pH, through flow and
temperature monitoring systems.
Samples are taken at least weekly to
analyse organic load and total
suspended solids. In 2024, we
discharged 14 million m3 of wastewater.
Most of our production facilities pre-
treat wastewater before sending it to
municipal treatment plants. 80 of our
NARTD production facilities are certified
under the ISO 14001 environment
management standard(A).
We follow our global incident
management and crisis response
process, as well as our emergency
planning and response standard to
manage incidents. Every country and
site has its own incident procedures in
place and regularly practises them.
For more details on KORE, SGPs and
PSA see our policy table on pages 30-31
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2024 Annual Report and Form 20-F
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Done sustainably – Sustainability statement
Environment – Pollution (E2)
ESRS 2 MDR-M | ESRS 2 MDR-A | E2-1 | E2-2 | E2-3 | E4-5
ESRS
Supplier compliance requirements
Supplier
identification
Definition
Specific requirements
Requirements for all suppliers
Strategic
suppliers
• Directly managed and
influenced by our procurement
teams
• Represent about 80% of our
addressable spend
• Engagement on sustainability
extends to approximately 355
suppliers
• Undergo an EcoVadis(A)
assessment and have a
minimum score of above 50
overall and above 35 on each
criteria
• Sustainability integrated
in procurement processes
and strategies
• All direct and indirect suppliers need to
comply with our Responsible Sourcing
Policy (RSP) which sets out mandatory
guidelines, including our SGPs and PSA. In
2024, we updated the RSP to include our
no-deforestation policy and updated
strategic and carbon strategic suppliers
criteria.
• The SGPs apply to all suppliers and set
minimum requirements in areas such as
workplace policies, health and safety,
business integrity, environmental
protection and human rights.
• Our PSA apply to agricultural ingredient
and raw material suppliers and cover
human and workplace rights,
environmental protection and
sustainable farm management.
Carbon strategic
suppliers
• Subset of strategic suppliers
• Approximately 185 suppliers
• Represent about 80% of our
Scope 3 GHG emissions
In addition to strategic supplier
requirements, carbon strategic
suppliers are encouraged to:
• set science based targets
• transition to 100% renewable
electricity
A.
Provides a leading solution for monitoring sustainability in global supply chains. Suppliers that have a low score are asked to develop an action plan and improve their performance.
If suppliers do not improve their performance within a set timeframe, they may not be used in the future.
Supplier risk management
Understanding what we buy and taking
action when we encounter a risk is key
to managing potential supply chain-
related impacts, including water and
soil pollution. In 2024, we continued to
work with our technology partners to
increase supply chain visibility and
supplement existing controls to
proactively identify risks in our supply
chains.
We assess suppliers across multiple
criteria such as financial value, efficiency,
innovation and risk.
For our strategic suppliers, we
proactively manage their sustainability
performance and ethical, social and
environmental-related risks in our
supply chain using data gathered
through EcoVadis. The assessment
includes questions related to soil and
water pollution management, including
implementation of environmental
management systems. We use
EcoVadis IQ for non-strategic
suppliers. These tools help us profile
and map our entire supply base for risk
and provide predictive intelligence to
help us understand sustainability
risks by country and industry. By the
end of 2024, 90% of our strategic
suppliers in Europe, 89% of our
strategic suppliers in APS and 98% of
our global strategic suppliers had
undertaken an EcoVadis assessment
and shared their scorecard with us.
Based on the results of a location-
based risk assessment and the
EcoVadis assessment, we identify
priority areas that will require a deeper
level of investigation.
We continue to use Resilinc software,
an AI tool which helps us to proactively
identify potential risks in our supply
chain. Having used the software to map
our tier 1 suppliers in 2022, we now also
use the platform to map our tier 2
suppliers, expanding our monitoring
deeper into our global supply chain.
Our monitoring scope increases each
year. In 2024, we monitored
approximately 1,000 suppliers, and an
additional 1,200 sub-tier suppliers using
the tool.
In 2024, we continued using FRDM, a
supply chain risk management tool, to
monitor and mitigate human rights and
climate-related risks in our supply
chain.
Stakeholder engagement
We engage with suppliers across our
value chain to address common
challenges on human rights, water,
biodiversity, pollution and
decarbonisation.
We source products from over 16,000
suppliers, and spent approximately
€7 billion with our suppliers. 84% was
spent with suppliers based in our
countries of operation.
We hold regular meetings with
suppliers to assess key issues such as
performance, innovation and
sustainability. We also collaborate with
NGOs, businesses, local authorities and
communities to protect the health of
our watersheds.
Read about how we work with
suppliers to reduce their
emissions in E1 on page 33
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Information
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47
Done sustainably – Sustainability statement
Environment – Pollution (E2) continued
ESRS 2 MDR-A | E1 IRO-1 | E2 IRO-1 | E2-3 | S3-1
ESRS
Forward on water
Our impact
Climate change is exacerbating water stress
and scarcity in many parts of the world. We
are witnessing water shortages, droughts
and floods in regions, including Belgium,
France, Great Britain, the Netherlands, Spain
and Indonesia, where we manufacture our
products or source our ingredients.
Our manufacturing processes and supply
chain both consume water, which could
negatively impact local ecosystems and
communities, especially in areas of high
water stress.
For more details on our material
water-related impacts see page 28
Metrics and targets(A)
Water is critical to our business. It is
the main ingredient in our products,
essential to our manufacturing
processes and critical to ensuring a
sustainable supply of the agricultural
ingredients we depend upon.
To address water scarcity and water
quality challenges, we adopt a value
chain approach to water stewardship,
focusing on water efficiency within our
own operations, which we measure
through improvements in our
manufacturing water use ratio.
We also work to protect the future
sustainability of the water sources
upon which our business, communities
and suppliers rely, through our water
replenishment targets. Our progress
against our 100% replenish target is
measured on an annual basis.
Our strategy
Assessing water risk in our operations
Water-related risks continue to
increase globally as watershed health
continues to deteriorate.
We map our water risks using a series
of risk assessments in line with TCCC.
All our production facilities have their
baseline water risk assessed through a
global Enterprise Water Risk
Assessment (EWRA) using the WRI
Aqueduct 4.0 tool. 31 of our NARTD
production facilities are located in
areas of high baseline water stress. In
2024, 8.5 million m³ of our production
volumes were sourced from areas of
baseline water stress.
Our 2024 progress
KPI
This is Forward target
Group
excl. the Philippines
Percentage reduction in manufacturing water use ratio(B) since 2019
10% by 2030
-1.3%
4.3%
Water replenished as a percentage of total sales volumes(C)
100%
109.8%
113.1%
A. Targets were not developed following specific ecological threshold.
B. Litres of water per litre of finished product produced. Target excludes the Philippines. Group progress including the Philippines shown for comparability. Negative value is an increase vs. 2019.
C. Based on the volume of water replenished through replenishment projects versus the sales volume of our RTD litres of finished beverages.
For full details of our metrics, our reporting approach and methodology related to water see pages 257, 260 and 268-269
This represented 41.9% of our total
production volumes, a 3.8% decrease
compared to 2023.
We complete Facility Water
Vulnerability Assessments (FAWVAs)
every three to five years, assessing
further physical, regulatory and social
risks at the production facility level. In
2024, we updated this assessment
across all of our NARTD production
facilities.
We also assess potential risks in water
quality and future availability to our
business, the local community and the
wider ecosystem through Source
water Vulnerability Assessments
(SVAs), which we aim to complete every
five years.
Our production facilities address these
risks through facility Water
Management Plans (WMPs). These are
used to manage site targets, enhance
climate resilience, and enable data
sharing and reporting. In 2024, all our
NARTD production facilities had SVAs
and WMPs in place.
All our production facilities are
required to comply with TCCC’s KORE
requirements to promote effective and
responsible water use, treatment and
disposal, and reduce risk of adverse
effects on water ecosystems.
Water is our main ingredient and is
critical to CCEP, our local communities
and ecosystems. Measuring and
monitoring our water consumption is
central to our focus on becoming more
water efficient and reducing the
amount of water we use. All our sites
measure and monitor total water
consumption.
Read more about our procedures
related to water discharge in E2 on
page 46
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2024 Annual Report and Form 20-F
48
Done sustainably – Sustainability statement
Environment – Water and marine resources (E3)
ESRS 2 MDR-M | E3 IRO-1 | E3-3
ESRS
Water usage within our supply chain
We manage the potential impact of
water consumption throughout our
supply chain by encouraging suppliers
to comply with the SGPs and PSA.
We require our suppliers to support
long-term sustainability of water
resources in balance with community
and ecosystem needs by measuring
their water use where crops are
irrigated, and maximising water
efficiency.
Through the SGPs and PSA, we ask
suppliers with farms located in water
stressed areas to actively manage
their farm’s source water to the
highest standards and build resilience
to climate change.
For more details on the SGPs and PSA
see our policy table on page 31
Our actions
Setting context based targets
We use the insights from the risk
assessments we conduct to
categorise our sites, and set water
efficiency and replenishment targets
that are appropriate for the watershed
our sites operate in.
We categorise our sites as follows:
High risk locations: sites which rely on
vulnerable water sources or have a
high level of water dependency. These
sites have the highest water use
reduction targets, and must achieve
100% replenishment by 2030.
Advanced efficiency locations: sites which
operate in a water stressed context.
These sites will be focused on
achieving advanced water efficiency
and best in class water reduction
targets.
Contributing locations: sites which
operate in the lowest water risk areas.
These sites have water use ratio
targets which meet industry
benchmark standards.
Image: Misión Posible, Guadalquivir, Spain
Priority watersheds
Our priority watersheds include high
risk watersheds that are located in key
sourcing regions or where there is
limited access to water, sanitation and
hygiene (WASH) in the community.
We refer to the Water Resilience
Coalition’s 100 priority basins to identify
key watersheds for opportunities to
engage in collective action for
watershed health.
Priority watersheds are located in
France, Spain, Australia, Indonesia and
the Philippines.
Case study
Indonesia: Safewater gardens
In 2024, we launched our
WAWASAN Nusantara Programme
WASH project in West Java,
Indonesia, together with Water
Stewardship Indonesia, delivering
safe water garden systems, latrines,
clean water supply and household
waste management facilities.
Image: Toilet infrastructure
Improving water efficiency
We work to improve our water
efficiency across our operations and
measure progress through our water
use ratio (WUR) – the amount of water
needed to produce a litre of product.
Across our 31 high water risk sites, we
withdrew 14.3 million m3 of water, and
discharged 5.5 million m3 of
wastewater in 2024.
We continue to invest in water-saving
technologies to make our cleaning and
manufacturing processes more water
efficient. In 2024, we invested
approximately €2.2 million in water
efficiency technology and processes
and wastewater treatment technology
in our sites.
We estimate that our 2024 investment
in water efficiency projects could
result in savings of approximately
91,900 m³ per year and help us avoid
annual water and wastewater
treatment costs of approximately
€260,000 per year.
In 2025, we will work to develop
replenishment projects at all new high
water risk locations and implement
new replenishment projects across our
markets.
Through CCEP Ventures, our
investment platform for sustainability
initiatives, we will continue reviewing
and investing in emerging technologies
to improve water efficiency at our
sites.
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Done sustainably – Sustainability statement
Environment – Water and marine resources (E3) continued
ESRS 2 MDR-A | E3-1 | E3-2 | E3-3
ESRS
Water replenishment
Replenishment projects involve
interventions that restore natural
hydrology as well as those that provide
water access and irrigation supply.
We aim to replenish 100% of the water
we use in our beverages. Our water
replenishment projects are managed
with local NGOs and community groups
and are funded together either with
TCCC or with TCCF(A).
We focus our replenishment efforts on
three priorities:
• Operations: projects in the minor river
basin of our high water risk locations.
• Communities: investment in climate
resilient WASH projects in our priority
communities.
• Watersheds: water stewardship
projects in our priority sourcing regions.
In 2024, in collaboration with TCCC and
TCCF, we supported 34 water
replenishment projects across Europe,
and 24 in APS, replenishing 24.7 million
m3 of water across our territories,
including 18.2 million m3 in Europe, and
6.5 million m3 in APS. This represents
109.8% of our total sales volume (123.1%
in Europe, and 84.5% in APS).
At our production and distribution
facility in Antwerp, Belgium, we
invested €3.5 million in a water buffer
which collects rainwater and returns it
to the soil and to our neighbours at
A. Investment split varies per project, we claim
replenishment benefit as a Coca-Cola system.
ecofarm Wilrijk. In order to reuse the
collected water, we expanded the
water buffer system with infiltration
ditches to a new nature park where it is
stored and can seep back into the
subsurface. This counteracts water
scarcity and soil drought.
Case study
Spain: Regenerative citrus
fruit farming
In 2024, together with TCCC, we
funded a project with AILIMPO, the
Interprofessional Lemon and
Grapefruit Association in Murcia,
Spain, to embed regenerative
agriculture practices into the
citrus fruit sector in south-west
Spain.
Image: Citrus farm in Spain
Stakeholder engagement
At our production facilities, as part of
the SVAs, we actively engage with
water providers, wastewater treatment
facilities, local governments and NGOs.
As part of our commitment to
responsible water stewardship,
together with TCCC, in 2024, we joined
the CEO Water Mandates’ Water
Resilience Coalition. The aim of the
coalition is to achieve positive water
impacts in 100 vulnerable water basins
globally by 2030.
We also gained Alliance for Water
Stewardship (AWS) platinum certification
at our Ghent and Antwerp production
facilities in Belgium, adding to our
Chaudfontaine site’s platinum status
and our Dongen production facility’s
gold certification.
In 2024, we maintained our AWS
membership, actively participating as a
guest speaker and by attending
stakeholder sessions at the 2024 AWS
Global Water Stewardship Forum in
Edinburgh, Scotland. We engaged with
stakeholders from the private and
public sectors, as well as civil society
organisations working on water
stewardship.
In 2024, in the Netherlands, we held a
stakeholder roundtable on water,
gathering experts, NGOs, customers
and institutions to share insights and
confirm we are focused on the correct
water-related priorities.
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Done sustainably – Sustainability statement
Environment – Water and marine resources (E3) continued
ESRS 2 MDR-A | E3-2 | E3-3
ESRS
Our impact
We recognise that the agricultural
operations from the cultivation and
production of our key agricultural
ingredients and raw materials could
disrupt the health of ecosystems and
contribute to biodiversity loss. To reduce
potential negative impacts, we are
committed to promoting sustainable forest
management to help protect woodlands
from deforestation and illegal harvesting.
For more details on our material
biodiversity-related impacts see
page 29
Metrics and targets
Our This is Forward commitments
• 100% of our main agricultural
ingredients and raw materials
sourced sustainably
Our 2024 Group progress
See table on page 46
We track our targets through
compliance with third party standards
and our PSA. We measure and report
our progress against this target on an
annual basis.
For more details on our progress
against our targets see our
ingredients table on the following
page
Our strategy
CCEP is dependent on key services
provided by nature, such as access to
clean water and key agricultural
commodities including sugar, fruits and
coffee.
CCEP’s main impact on biodiversity is
due to upstream activities. The
agricultural practices used to grow our
raw materials could increase
conversion of natural ecosystems and
water withdrawals as well as pollute
waterways through runoff of
agricultural inputs.
We aim to minimise this potential
impact by encouraging all our suppliers
to implement responsible growing
practices by complying with the SGPs
and PSA, which include requirements
on conservation of natural habitats,
biodiversity and ecosystems, and by
purchasing third party certified priority
ingredients.
For more details on the SGPs and
PSA see our policy table on page 31
Our actions
Aligning to the Science Based Targets
Network
In 2024, we carried out a nature and
biodiversity risk assessment across our
value chain in line with Steps 1 and 2 of
the SBTN methodology.
SBTN has developed a framework to
foster corporate action to stop the
loss of nature from a 2020 baseline
and support its full recovery by 2050.
In Step 1, we identified our impacts on
nature and biodiversity and our
dependencies on ecosystem services.
In Step 2, we prioritised locations
across our value chain and operations
where we can take action to restore
nature. The data used in this analysis
was country-level. This assumes
impacts are similar throughout
individual countries.
Steps 1 and 2 of our risk assessment
used data from the Intergovernmental
Science-Policy Platform on Biodiversity
and Ecosystem Services (IPBES).
IPBES incorporates knowledge from a
wide range of stakeholders, including
indigenous and local communities.
In 2025, we will aim to align with the
Taskforce on Nature-related Financial
Disclosures (TNFD) and continue to
invest in nature-based solutions
through our replenishment projects.
Our current biodiversity targets are
focused on sustainable sourcing. As
different measures of biodiversity
impacts continue to mature and our
understanding of our impacts on
biodiversity increases, we will consider
the use of ecological thresholds in
setting future targets.
As additional guidance becomes
available we will work to assess our
resilience and dependency beyond our
water and supply chain resilience and
set targets on our forest, land and
agriculture emissions, and finalise and
embed a no-deforestation policy, in
line with SBTi guidance. We will also
consider any social impacts of our
biodiversity-related impacts and if any
related updates are necessary to our
biodiversity policy and strategy.
We do not use biodiversity offsets, but
will evaluate their effectiveness in
relation to our biodiversity strategy.
Priority ingredients
As climate change leads to more
extreme weather and increased water
stress, more sustainable agricultural
practices will be vital to building
resilience across our supply chain and
for the communities that produce
these ingredients.
Together with TCCC, we have identified
12 priority agricultural ingredients and
bio-based packaging materials we rely
on to make and package our beverages.
These include sugar cane, sugar beet,
high fructose corn syrup, orange,
lemon, apple, grape, mango, coffee,
tea, soy, pulp and paper.
For more details on our actions and
progress with suppliers see E1 on page
33
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Done sustainably – Sustainability statement
Environment – Biodiversity and ecosystems (E4)
ESRS 2 MDR-A | E4 SBM-3 | E4-1 | E4-2 | E4-3 | E4-4 | E4-5
ESRS
Forward on supply chain
Our priority ingredients
The following are the priority ingredients that CCEP procures directly from suppliers. We procure other priority ingredients
(e.g. juice) through TCCC. We manage the purchase of these ingredients together with TCCC and other Coca-Cola bottlers,
which helps us manage the challenges we face in our supply chain as a joint Coca-Cola system.
Raw
material
Procurement
method
Quantity
and brands
PSA aligned third
party standards
Compliance
Beet and
cane sugar
Directly by CCEP
• Approximately 700k tonnes
of beet sugar
• Approximately 500k tonnes
of cane sugar
• Bonsucro
• FSA Gold and Silver
• Redcert 2
• Europe: 99.9% third
party standard and
PSA compliant
• APS: 46.9% third party
standard and PSA compliant
Pulp and paper(A) Directly by CCEP
• Europe: approximately 80k
tonnes of board for
secondary and tertiary
packaging, and marketing
materials
• APS: approximately 50k
tonnes of board for
secondary and tertiary
packaging(A)
• FSC
• PEFC
• Europe: 99.9% FSC
or PEFC certified
and PSA compliant
• APS: 94.7% FSC or
PEFC certified
and PSA compliant
Coffee
Directly by CCEP
• Approximately 1.7 tonnes of
Grinders brand
• Rainforest Alliance
• Fairtrade
• 42.7% compliance for this
CCEP owned brand in APS
A.
We aim to expand reporting on this category to include additional areas such as printed and point of sale material in the future.
Stakeholder engagement
In 2024, we hosted four successful
Supplier Days, bringing together
European, APS and global suppliers
both in person and online. These
events highlighted the critical role our
suppliers play in enabling our growth,
through the timely supply of goods and
services to the highest quality on a
consistent basis and also in supporting
us achieving our sustainability goals.
We continue to monitor upcoming
legislation related to deforestation and
human rights across our markets, and
are partnering with suppliers to
support greater collaboration and
transparency in sourcing. We are
reviewing compliance with European
regulation related to deforestation-
linked commodities, with a primary
focus on pulp and paper, and coffee.
We will continue to implement and
improve our systems to understand
and anticipate potential risks
associated with our suppliers and their
supply chains.
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Environment – Biodiversity and ecosystems (E4) continued
E4-1 | E4-4
ESRS
Forward on packaging
Our risk and impacts
Production of the packaging we use,
including PET bottles, cans and glass bottles,
uses energy, water and both renewable
and non-renewable natural resources.
This could result in negative environmental
impacts if not managed sustainably. Waste
from single use packaging could also lead
to negative environmental impacts,
regulatory risks and reputational risks
where it is not collected for recycling.
Waste is a financially material topic,
mainly due to the potential impact of
future regulation regarding the use of
single use packaging.
Metrics and targets
We are taking action to reduce the
footprint of our packaging as part of our
journey to eliminate waste and reduce
both our GHG emissions and water
usage. Packaging targets are directly
linked to our packaging strategy.
Our 2024 progress
KPI
This is Forward target
Group
excl. the Philippines
Percentage of all primary packaging that is recyclable (% based on unit case) 100% by 2025
99.7%
99.8%
Percentage of PET used which is rPET (% based on tonnes of material)(A)
50% by (EU by
2023/APS by 2025)
46.0%
(EU 63%/APS 23%)
56.0%
(EU 63%/APS 35%)
Primary packaging collected for recycling as a percentage of total primary
packaging (% based on individual units)
100% by 2030
75.7%
78.7%
A.
Excluding labels and caps.
Our strategy
Resource related to our products and
services
Waste and pollution, particularly from
plastic packaging, are significant global
challenges.
We are evolving the way we do
business to progressively move away
from a linear model and the waste it
creates, towards a full circular model.
Our packaging strategy is focused on
four key pillars:
(1) Removing unnecessary packaging
(2) Working to collect 100% of our
packaging so that it can be recycled
or reused
(3) Increasing the amount of recycled
material we use
(4) Innovating in returnable, refillable
and dispensed solutions
For more details on our material
packaging-related impacts and
risks see page 29
For full details of our packaging
metrics, our reporting approach and
methodology to calculate our KPIs
see pages 257-258, 260, 270-272
Our Sustainability Packaging Office
(SPO) streamlines all the technical and
exploratory sustainable packaging
work across our territories,
accelerates our innovation and
supports progress towards our goals.
Waste from our operations
Within our production facilities, we
have policies in place to limit the
amount of waste we produce.
All our production facilities are
required to comply with TCCC’s KORE
requirements on waste which define
control measures to minimise
environmental impacts.
KORE requires hazardous waste to be
separated and distinguished from non-
hazardous waste and requires records
to be maintained of all waste
classifications, the results of any
analytical testing and documented
waste management procedures.
What we expect from our suppliers
In addition to sourcing recycled
packaging materials, we aim to source
100% of our pulp and paper used in
secondary packaging and point of sale
material, through suppliers which
comply with our PSA. We track
compliance with our PSA through third
party certification standards. For our
pulp and paper suppliers this includes
FSC and PEFC.
For more details on KORE and PSA
see our policy table on pages 30-31
Our actions
Reducing GHG emissions
We use lifecycle analysis to assess the
carbon footprint of our packaging,
allowing us to make informed decisions
that help reduce GHG emissions.
In 2024, we developed an internal tool
to calculate the carbon footprint of
our drinks. It enables us to explore the
impact of different packaging types
across each area of our value chain.
Read more about our climate
activities in E1 on pages 32-33
Removing unnecessary packaging
We have a long-standing programme to
reduce the weight of our packaging and
optimise the materials we use. One key
area of focus in 2024 was completing
our multi-year transition from steel to
aluminium cans in Europe.
For more details on packaging
investment see our climate
transition roadmap on pages 34-36
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Done sustainably – Sustainability statement
Environment – Resource use and circular economy (E5)
ESRS 2 MDR-M | ESRS 2 MDR-A | E2 IRO-1 | E5 IRO-1 | E5-1 | E5-2 | E5-3 | E5-4 | E5-5
ESRS
Recyclability
Recyclability is one of the principles of
the circular economy. For packaging to
retain its value it must be recyclable.
For more information, see our
methodology on pages 270-272. We
aim to design our packaging to be
technically recyclable so it can be
reused or recycled to make new
packaging.
Although our primary focus is on making
our bottles and cans recyclable, we are
working to use recyclable materials for
all our packaging, preferably in a closed
loop system. To achieve this, we are
taking steps to make sure our
secondary packaging, including shrink
wrap, is recyclable.
Recycled and renewable materials
Using recycled material in our bottles
and cans keeps valuable resources in
the circular economy and helps us move
away from the use of new materials
including virgin fossil based plastic.
We aim to achieve this by using
recycled aluminium in our cans and
rPET in our plastic bottles, and
continue to work with our suppliers to
increase the recycled content in all of
our packaging.
Through CCEP Ventures we continue to
drive innovation in sustainable
packaging and we have invested in
recycling start-up CuRe Technology,
which is working to convert hard to
recycle plastics into high quality rPET.
Case study
The Netherlands: Iconic red
crates made from rPET
As part of our transition towards a
circular economy, in 2024, in the
Netherlands, we launched crates
made from 97% rPET.
Image: Crates made from 97% rPET
Collecting our packaging
Collecting our packaging for recycling
is critical to creating a low-carbon,
circular economy and keeping plastic
out of the environment. That is why we
support packaging collection across all
of our markets, working in partnership
with national and local governments
and stakeholders.
Enhancing collection and recycling
infrastructure is often complex, and
solutions vary by market. They include
extended producer responsibility and
beverage packaging return schemes
which are driven by legislation, and
voluntary collection schemes which
require direct investment in local
collection infrastructure.
Efforts to increase collection rates
benefit all packaging and collection,
not solely our own waste. We calculate
our collection data based on a
weighted average of national collection
rates, collected for recycling rates(A)
recycling rates(B) or refillable rates.
In markets where collection
infrastructure is well developed, like
Europe and Australia, we support
industry-led, well designed, beverage
packaging return schemes, unless a
proven alternative exists.
In less developed markets, such as
Indonesia, the Pacific Islands and
Papua New Guinea, we are committed
to proactive voluntary action, directly
funding collection solutions to
promote a circular economy. We have
various collection programmes in place
funded by CCEP and TCCC.
For example, in 2024, we have been
working in Fiji to increase consumer
recycling by using a pop up collection
caravan at local community events. In
the Cook Islands, working with the
government, we have purchased over
80 tonnes of PET collected through
their kerbside programme and
arranged for the material to be shipped
for recycling. In Fiji, Papua New Guinea
and Samoa we have installed
equipment to process PET bottles
which have been collected and
granulate the material ready for
shipment and recycling. This helps to
create local jobs and supports bottle-
to-bottle recycling. In Tonga, in 2024,
we launched a successful local trial of
PET collection and have installed baling
equipment to facilitate easy
transportation.
Across our territories we have invested
directly in PET recycling infrastructure
through a variety of joint ventures.
In Indonesia, in partnership with
Dynapack, we have established
Amandina, a PET recycling facility
located in West Java. In the Philippines,
in partnership with Indorama Ventures,
we formed a similar PET recycling joint
venture, PET Value. Both facilities turn
post-consumer PET bottles into new
food-grade rPET using the most
advanced PET recycling technology.
Within Indonesia, the current fit for the
future set-up and infrastructure that
has been installed through Coca-Cola
system efforts has allowed us to
effectively collect more PET bottles
than what CCEP sold into the market
within the same year.
A. Collection for recycling rate – measures packaging that is
collected in a market to then be sorted for recycling.
B. Recycling rate – measures packaging at the point in the
sorting process where it does not need to undergo any
further processing before it is turned into recycled
content, as defined by the EU PPWR.
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Further Sustainability
Information
Other
Information
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2024 Annual Report and Form 20-F
54
Done sustainably – Sustainability statement
Environment – Resource use and circular economy (E5) continued
ESRS 2 MDR-A | E5 IRO-1 | E5-1 | E5-2 | E5-3 | E5-4 | E5-5
ESRS
We have a similar joint venture with
Plastipak in France, alongside a visitor
centre which promotes recycling and
the circular economy. In Australia,
Circular Plastics Australia has
established two bottle-to-bottle PET
recycling facilities which play a critical
role in recycling PET bottles from
Australia’s container deposit schemes.
The initiative is a joint venture between
Pact Group, Cleanaway Waste
Management, Asahi Beverages and
CCEP.
We continue to use the power of our
brands and on-pack recycling
messaging to encourage consumers to
recycle our packaging. We also support
a wide range of anti-litter and clean up
initiatives through local community
partnerships and employee
volunteering. As well as removing and
preventing litter, these activities
influence consumer behaviour and
raise awareness about littering and
recycling.
In 2024, in Sweden, we launched the
“Every Bottle Counts” campaign to
increase consumer awareness of
packaging and recycling.
Future pack mix
Returnable and refillable
We continue to invest in refillable
packaging across our markets and in
2024 we launched a trial of refillable
glass bottles in central and South
Jakarta, Indonesia.
In the Philippines, 100% of the glass we
use is refillable, and in Germany we
have a well established returnable
glass and returnable PET business. In
France, we are working in partnership
with Carrefour to offer Coca-Cola
Regular and Coca-Cola Zero Sugar
brands in 1L returnable glass bottles.
In 2024, this pilot was extended to 300
stores.
Dispensed solutions
Dispensing solutions allow consumers
to enjoy our drinks in reusable cups or
bottles and we are working closely with
our equipment suppliers to develop
new innovative digital dispensing
equipment. In 2024, at the Paris 2024
Olympic and Paralympic Games in
France, we installed over 700 drink
fountains and provided refillable and
reusable cups at venues across the
city. Across our markets, we are testing
consumer behaviour to better
understand the potential to expand
the use of dispensing equipment with
reusable cups in the future.
Stakeholder engagement
We recognise the important role that
public policy plays in supporting a
circular economy and we monitor all
upcoming legislation, which in select
markets will require us to reduce the
use of single use plastic or introduce
reusable packaging. We also regularly
engage with customers, suppliers and
NGOs about packaging collection,
recycling and circularity.
CCEP is a member of the Ellen MacArthur
Foundation’s Network, which brings
together businesses, policymakers,
financial institutions, innovators and
academia to accelerate the transition
to a circular economy.
In Indonesia, we actively support the
Global Plastic Action Partnership, a
multi-stakeholder platform dedicated
to translating commitments to reduce
plastic pollution and waste into action.
In Australia, CCEP is a member of
Circular Australia and in the UK we are
a member of the UK Plastic Pact.
In 2024, we actively engaged with the
European Commission on PPWR, and
support EU legislation which introduces
well designed deposit return schemes
and helps beverage producers to
enhance packaging circularity.
CCEP is also a member of the Business
Coalition for a Global Plastics Treaty,
and we support the development of
legally binding global rules across the
whole lifecycle of plastic products to
accelerate the transition to a circular
economy.
Case study
Australia: National recycling
week
In 2024, in Australia, we supported
and participated in Planet Ark’s
annual National Recycling week,
building credibility and awareness
of recycling, including the
recyclability of our bottles and
cans via Container Deposit
Schemes (CDS), which will be
available across all states in
Australia in 2025.
Image: ”Refresh, Recycle, Repeat” consumer activation
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2024 Annual Report and Form 20-F
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Done sustainably – Sustainability statement
Environment – Resource use and circular economy (E5) continued
ESRS 2 MDR-A | E5 IRO-1 | E5-2 | E5-3 | E5-4 | E5-5
ESRS
Forward on society
Our impacts
Within our own operations and across
our value chain we create positive socio-
economic impacts through direct and
indirect employment opportunities. By
investing in local partnerships we support
the skills development of people and
contribute to sustainable livelihoods. We
are committed to having a positive impact
by supporting economic mobility and
building resilience in our local communities.
For more details on our material
affected community-related
impacts see page 29
Metrics and targets
We aim to enhance skills development
through our This is Forward
sustainability action plan.
We measure our contribution to
communities through volunteer hours,
financial contributions and product
donations.
We manage the impact of our
community programmes through our
Social Impact Framework. Launched in
2024, it provides guidance on the types
of strategic partnerships our local
teams can engage with and how to
measure impact. This metric does not
currently include the Philippines.
For more details on our
methodology used see page 272
For more details on our progress
against our community targets
see page 259
Our strategy
Our three-pillar community strategy is
focused on:
• Supporting skills development and
social inclusion to enhance access to
labour markets
• Supporting local communities
• Protecting the environment and
enhancing community wellbeing
This section contains information
covering material topics related to
ESRS S3 – Affected communities, as
well as non-material topics related to
our community programmes.
Our actions
Supporting skills development and social
inclusion to enhance access to labour
markets
Throughout our markets, we know
many communities face significant
social and environmental challenges.
We support a wide variety of local
community programmes and
partnerships that promote inclusion
and diversity, equipping people with the
Our 2024 progress
KPI
This is Forward target
excl. the Philippines
Number of people supported in skills development (current year number)
500,000 by 2030
35,500
Number of people supported in skills development (cumulative since base year 2023)
51,900
skills and confidence to succeed in life
and employment. In 2024, we
supported more than 40 social impact
programmes across our markets.
Through our Skills for Impact
programme, we aim to drive the
economic empowerment of under-
represented or underprivileged people.
The programme focuses on women,
people with disabilities, people from
minority ethnic groups or lower
socioeconomic backgrounds, by
providing employability skills and
removing barriers to the workplace.
As part of this programme, in 2024, we
continued to support UK Youth’s
Building Connections programme,
which supports youth workers to build
local partnerships with employers and
give youth workers the essential
support needed to pursue future goals.
In Australia, we support the Young
Warrior programme, which supports
vulnerable women between 17 and 25
years old from under-represented
groups.
In 2025, we will also continue to roll
out online Skills for Impact training
across our territories.
Case study
Indonesia: Responsible
Sourcing Initiative
In 2024, The Circulate Initiative
launched its Responsible Sourcing
Initiative in Indonesia in which we
partner with the Mahija Foundation
to support the implementation of
responsible sourcing and improve
the livelihoods of the informal
waste sector workers in the value
chain of our Amandina PET
recycling plant.
Image: Launch event of Responsible Sourcing Initiative,
Indonesia
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2024 Annual Report and Form 20-F
56
Done sustainably - Sustainability statement
Social - Affected communities (S3)
ESRS 2 MDR-M | ESRS 2 MDR-A | S3 SBM-3 |S3-4 | S3-5
ESRS
€15m
Total value of our community
contribution in 2024
Supporting local communities
Through our volunteering policy we
empower our employees to take part in
a wide range of volunteering activities
connected to our sustainability
commitments and our local communities.
In 2024, we supported a number of
projects to help local communities
affected by natural disasters, including
Typhoon Carina in the Philippines,
ensuring local people were out of
danger and had access to relief
supplies. In Spain, we provided
financial, wellbeing and practical aid to
those affected by flooding in Valencia.
In 2024, we celebrated the fifth
anniversary of our Support My Cause
initiative. Through the programme,
employees nominate local charities
that they are passionate about to
receive a donation from CCEP. Since
2019, we have donated €1.5 million to
over 240 local charities and community
groups across our territories. In 2024,
we continued to financially support
grassroots charitable and community
partnerships located close to our sites.
We also help address community
needs by donating surplus products
and working with food banks. For
example, in 2024, in Great Britain, we
supported the opening of a new
Community Shop in Hoyland, providing
local people with access to deeply
discounted food and household
products.
With TCCC, we are a long-standing
supporter of the Special Olympics, the
world’s largest sports organisation for
children and adults with intellectual
and physical disabilities. Our support in
Europe includes volunteering, financial
support and product donations. In
2024, more than 400 colleagues across
our territories in Europe volunteered
locally at the Special Olympics Games.
Protecting the environment and enhancing
community wellbeing
Increasingly, environmental issues
related to water, waste, climate and
biodiversity loss are also affecting
people’s lives and communities. We
support programmes, projects and
initiatives that drive economic
empowerment, help protect local
environments, address climate
adaptation and improve community
wellbeing.
For details on our community-
based water replenishment
projects see E4 on page 50
Case study
Belgium: Tree planting
volunteering initiative
In Belgium, we joined forces with
Alken-Maes, a Belgian brewer, and
Natuurpunt, to plant a new forest
near the production facility of the
brewer in Limburg, Belgium.
Image: Tree planting by CCEP and Alken-Maes volunteers
41,800
Number of hours volunteered
by our employees in 2024.
Stakeholder engagement
We recognise our impact on the
communities in which we operate and
are committed to engaging with
stakeholders in those communities to
listen to, learn from and take their
views into account as we conduct our
business.
Across our territories, we partner
with NGOs, academic institutions,
associations and networks, and
private sector organisations to
deploy programmes to make a lasting
positive contribution within our local
communities.
We meet directly with community
leaders and community partners when
establishing and evaluating our skills
development programmes, including
setting our skills development target.
Through this engagement we make
sure our programmes meet local
needs and continue to be effective
over time. Community partners provide
us with programme data on an annual
basis to support programme evaluation
and reporting.
Find out more about Board
engagement with communities
on page 64
Find out more about our engagement
with our people on pages 14-16
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Done sustainably - Sustainability statement
Social - Affected communities (S3) continued
ESRS2 MDR-A | ESRS 2 SBM-2 | S3 IRO-1 | S3-2
ESRS
Disclosure
Page
ESRS 2 SBM-1 40
Significant markets and/or customer groups served, including changes in the reporting period
4, 20, 62-63
ESRS 2 SBM-1 40
Sustainability-related goals
22
ESRS 2 SBM-1 40
Significant group of products offered, including changes in the reporting period
12-13
ESRS 2 SBM-1 40
Headcount of employees by geographical areas
257
ESRS 2 SBM-1 40
Breakdown of total revenue
256
ESRS 2 SBM-1 40
Elements of strategy that relate to sustainability matters
5, 7
ESRS 2 SBM-1 42
Description of the business model and value chain
5
ESRS 2 SBM-2 45
Interests and views of stakeholders
61-64
ESRS 2 GOV-5 36
Risk management and internal controls over sustainability reporting
76
ESRS 2 GOV-1 21
Composition and diversity of the members of the administrative, management and supervisory bodies
96, 98
ESRS 2 GOV-1 21 b
Information about representation of employees and other workers
16, 98
ESRS 2 GOV-1 21 d
Board's gender diversity: percentage by gender and other aspects of diversity
16
ESRS 2 GOV-1 22
Roles and responsibilities of the administrative, management and supervisory bodies
106
ESRS 2 GOV-1 23
Administrative, management and supervisory bodies’ skills and expertise developed to oversee sustainability matters
112
ESRS 2 GOV-3
Integration of sustainability-related performance in incentive schemes
132, 134-135, 138
MDR-M 77 a
Metrics in relation to material sustainability matters - Methodology (E1, E2, E3, E4, E5, S3)
260-272
E4 IRO-1
Consultations with affected communities on sustainability assessments of shared biological resources
64
S3-1 16, 17, AR 9
Policies related to affected communities
17
S3-2
Processes for engaging with affected communities about impacts
64
S3-3
Processes to remediate negative impacts and channels for affected communities to raise concerns
17
S3-4 36
Human rights issues and incidents connected to affected communities
17
E1, E2, E3, E4, E5, S3
Key performance data related to ESRS material topics
255-257
Entity Specific
Key performance data related to other This is Forward topics
258-259
TCFD Statement
UK Listing Rule 6.6.6R(8) - TCFD Compliance Statement
59-60
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2024 Annual Report and Form 20-F
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Sustainability statement
The following information is incorporated by reference consistent with ESRS standards to other parts of the Annual Report
TCFD-related metrics and targets
Through our sustainability reporting
and disclosure, we track, measure and
manage our sustainability targets and
related metrics.
We have considered the TCFD cross
industry climate-related metrics, and
agriculture, food and forest products
group metrics. Progress against these
targets include these listed here, as
well as in other sections of our 2024
Annual Report.
• Climate targets: see ESRS E1 -
Climate change, page 32.
• Water targets: see ESRS E3 - Water
and marine resources, page 48.
• Packaging targets: see ESRS E5 -
Resource use and circular economy,
page 53.
A full list of our sustainability metrics,
our reporting approach and GHG
emissions calculation methodology
can be found on pages 255-267.
Further TCFD cross references can be
found on the following page.
Our targets are aligned with our
material impacts and risks related to
climate change.
In 2025, we will work to update both
our short- and long-term GHG
emissions targets to include the
Philippines and FLAG targets, in line
with the latest SBTi guidance.
Cross industry climate-related and agriculture, food and forest products group metrics.♦
Group
UK and UK
Offshore(C)
Tonnes of CO2e
2019(A)
2023
2024(B)
2023
2024(B)
Scope 1
Direct emissions (e.g. fuel used by own vehicles)
426,017
362,494
357,043
31,430
30,959
Scope 2 (market based)
Indirect emissions (e.g. electricity)
389,265
361,492
360,940
2
3
Scope 2 (location based)
Indirect emissions (e.g. electricity)
550,847
514,895
540,652
17,920
18,652
Scope 3
Biological processes, third party emissions (e.g. ingredients, packaging, CDE, third party
transportation)
7,691,794 6,766,069
6,636,384 744,383
753,161
GHG emissions Scope 1, 2 and 3 (full value chain)(D)
8,507,076
7,490,054
7,354,367
775,816
784,122
Emissions from biologically sequestered carbon
117,126
104,239
Intensity ratio
Full value chain GHG emissions per litre (gCO2e/litre)
393.9
336
327.2
234.1
240.8
GHG emissions (Scope 1 and 2) per euro of revenue (tCO2e/€)(E)
19.8
24.0
35.1
9.7
9.3
Energy use
Direct energy consumption (Scope 1) (MWh)
1,582,075
1,384,962
1,354,168
116,738
107,798
Direct energy consumption (Scope 2) (MWh)
1,205,682
1,206,247
1,244,811
90,143
96,146
Direct energy consumption (Scope 1 and 2) (MWh)
2,787,757
2,591,209
2,598,979 206,881
203,944
Agriculture, food and forest products group metrics
Total water withdrawn (1,000m3)
35,042
36,740
Total water consumed (1,000m3)
21,970
22,703
Total production volumes from areas of baseline water stress (1,000m3)
8,619
8,460
Note: For details on our approach to reporting and methodology, see our 2024 Sustainability reporting methodology document on cocacolaep.com/sustainability/download-centre.
A.
The acquisition of CCBPI completed on 23 February 2024; however, the baseline metrics above are presented on a full year basis for 2019 to allow for better period over period comparability. 2019 baseline
has been restated – as described in our Key performance data summary on pages 255-259.
B.
Metrics included in the sustainability statement.
C.
Equates to Great Britain for CCEP.
D.
Scope 2 is market based approach only.
E.
Data for Group 2019 only includes Europe (this was prior to CCL acquisition and for Group 2023 excludes the Philippines).
For more details on our This is Forward
sustainability action plan see page 22
For more details on our progress against
This is Forward see pages 258-259
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Done sustainably
UK Listing Rule 6.6.6R(8) – TCFD Compliance Statement
Entity specific
ESRS
TCFD alignment overview
Below is a table providing the specific page references to where information that is consistent with the TCFD recommendations and recommended disclosures is set
out, in accordance with UK Listing Rule 6.6.6R (8). Further details are provided in other parts of the report in the Strategic Report and sustainability statement.
Recommendation Recommended disclosures and disclosure level
References and notes
Governance
a. Describe the Board’s oversight of climate-related risks and opportunities
Governance: pages 25-26
Corporate governance report: pages 106-117
Audit Committee report: pages 122-129
ESG Committee report: pages 130-131
b. Describe management’s role in assessing and managing climate-related risks and
opportunities
Strategy
a. Describe the climate-related risks and opportunities the organisation has identified over
the short, medium and long term
Strategy and Metrics and targets: pages 25 and 59
Our strategy: page 7
ERM framework and Principal risks: pages 66-77
Note 1, 7 and 8 to the consolidated financial statements:
pages 178-180 and pages 186-193
Viability statement: page 78
Climate transition roadmap: pages 34-45
b. Describe the impact of climate-related risks and opportunities on the organisation’s
businesses, strategy and financial planning
c. Describe the resilience of the organisation’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario
Risk
management
a. Describe the organisation’s processes for identifying and assessing climate-related risks
Risk management: page 37
ERM framework and Principal risks: pages 66-77
Audit Committee report: pages 122-129
b. Describe the organisation’s processes for managing climate-related risks
c. Describe how processes for identifying, assessing and managing climate-related risks are
integrated into the organisation’s overall risk management framework
Metrics
and targets
a. Disclose the metrics used by the organisation to assess climate-related risks
and opportunities in line with its strategy and risk management process
TCFD, Metrics and targets: page 59
Forward on climate: pages 32-33
Long-term incentives within Annual report on remuneration:
pages 138-140
b. Disclose Scope 1 and 2, and if appropriate, Scope 3 GHG emissions, and the related risks
TCFD, Metrics and targets: page 59
c. Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets
Our sustainability headline commitments: page 22
Key performance data summary: pages 255-259
Notes 1, 7 and 8 to the consolidated financial statements:
pages 178-180 and pages 186-193
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Done sustainably
UK Listing Rule 6.6.6R(8) – TCFD Compliance Statement continued
Our stakeholders play a vital role in our success.
Our people
are our greatest strength. Our success
depends on those who make,
move and sell our products to
customers every day.
What matters to our people?
• Being rewarded, valued and
recognised
• Development opportunities
• Safety at work
• Inclusion and diversity
How the Company engages:
• Regular townhalls, Speak Up
channels and our annual employee
engagement survey
• Employee communications and
campaigns on topics including mental
health, safety and inclusion
• Online platforms, listening groups
and training and development
programmes
• Constructive dialogue with social
partners to address workplace
matters and drive continuous
improvement
• In 2024, employees from several
functions were involved in the DMA
process, determining our material
risks, opportunities and impacts
How the Board engages:
• Met CCEP’s new employees in the
Philippines at an employee townhall,
as well as plant and market tours in
Manila in March 2024
• Reviews the results of workforce
engagement surveys and factors
those views into decision making
What do we measure and monitor?
• Total incident rate
• Employee Share Purchase Plan
enrolment
• Percentage of women in
management and total workforce
• People Dashboard (absenteeism and
attrition)
• Percentage of workforce represented
by people with disabilities, based on
voluntary declaration
Outcomes of engagement in 2024:
• Increased employee engagement by
2 points compared to 2023 with an
overall score of 79 in the Company
wide engagement survey (2023: 77)
Detail on how the Board
monitors culture can be found
on pages 115 - 116
Our shareholders
provide the equity capital for our
business and hold management to
account.
What matters to our shareholders?
• Financial performance and
sustainable long-term value creation
How the Company engages:
• The CEO, CFO and Investor Relations
Team (IR) team engage with
shareholders and analysts at each
key milestone in the financial
calendar listed below, alongside
other ad hoc investor conferences,
roadshows and analyst meetings
• In 2024, shareholders were involved
in the DMA process, determining our
material risks, opportunities and
impacts
Annual results
presentations
and webcasts
Q1 trading
update
Annual General
Meeting
Half year results
presentations
and webcasts
Q3 trading
update
How the Board engages:
• The CEO and Chairman engage
directly with investors and analysts
at regular intervals throughout the
year
• The CFO updates the Board on
shareholder views, share price
performance, investor sentiment and
the share register
What do we measure and monitor?
• Number of shareholder meetings and
percentage of equity investors
covered by these interactions
• Analyst notes and equity investor
perceptions of strategy
Outcomes of engagement in 2024:
• Continued to strengthen
engagement and dialogue with
shareholders through a series of
roadshows and investor meetings
ensuring that CCEP’s strategy was
understood including plans in
respect of the integration of the
Philippines
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Our stakeholders♦
ESRS 2 SBM-1 | ESRS 2 SBM-2 | S1 SBM-2
ESRS
Our franchisors
generally give us exclusive rights to make,
sell and distribute beverages in
approved packaging in specified
territories.
What matters to our franchisors?
• Profitable growth and value share
in our markets
• Alignment of strategy and incentives
• Sustainable supply chains
• Continued constructive engagement
How the Company engages:
• Management-level engagement
across various functions including
people and culture, technology,
public affairs, legal, communications,
sustainability, supply chain, sales and
marketing
• Franchisors are invited to present
annual business plans to our
employees and in some cases to our
customers in collaboration with CCEP
How the Board engages:
• The Chairman and CEO engage
directly with key franchisors,
including TCCC, regularly throughout
the year
• The Board receives regular updates
from the CEO and Chief Commercial
Officer via the Affiliated Transaction
Committee (ATC) on key franchisor
topics such as performance,
relationships and other issues
What do we measure and monitor?
• Joint investment
• Successful innovation
• Category performance
• Market share
Outcomes of engagement in 2024:
• Deepened CCEP’s relationship with
TCCC through further strategic
alignment on ARTD expansion
Our consumers
drink the products we make,
sell and distribute.
What matters to our consumers?
• Product quality and food safety
• Environmental impact
• Affordability
• Evolving product portfolio to meet
customers’ needs for healthy
options, convenience and great
tasting products
How the Company engages:
• Gathers consumer insights through
dedicated market research and
discussions with franchisors and
customers
• Collects feedback from consumers
via social media, consumer hotlines
and our dedicated contact centres
• Sales teams interact with consumers
on day to day outlet visits
How the Board engages:
• In March 2024, the Board met with
consumers directly on its market
visits in the Philippines
• At the September 2024 strategy
meeting, Board members received
deep dive sessions on the consumer
landscape
• The Board engages indirectly by
reviewing customer and franchisor
feedback and receiving
presentations on trends and
behavioural patterns
What do we measure and monitor?
• Low and no calorie drinks as a
percentage of sales
• Via TCCC technology tool, consumer
sentiment on brands, including
awareness, affinity, relevance and
price
Outcomes of engagement in 2024:
• Launched a range of new products to
increase the strength and depth of
our portfolio offering
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
62
Our stakeholders continued♦
ESRS 2 SBM-1 | ESRS 2 SBM-2
ESRS
Our customers
sell our products to consumers.
What matters to our customers?
• Ease to do business and trust
• High quality products and products
that meet consumers’ needs
• CCEP’s support of customers’
strategy
• Category growth and value creation
• Customer service
• Shopper and marketing programme
(to drive sales or behaviour change)
• Profitability
How the Company engages:
• General managers engage directly
with our customers on strategy and
planning
• Account managers are in regular
contact with our customers via
business development initiatives
• Sales teams call on our customers
every day in the market
• In 2024, several customers were
involved in the DMA process,
determining our material risks,
opportunities and impacts
How the Board engages:
• In March 2024, the Board engaged
with CCEP’s customers directly
through market visits in the
Philippines
• The CEO provides regular updates to
the Board on pricing, negotiations,
joint value creation and customer
satisfaction metrics
What do we measure and monitor?
• Volume and revenue growth
• Customer big data and advanced
analytics, e.g. NielsenIQ and IRI3
• Compliance with our execution
standards
• Advantage Group results and Ipsos
research (EU only)
Outcomes of engagement in 2024:
• Refreshed MyCCEP.com, our online
customer portal, to make it easier for
customers to use
• Launched our Customer Connect
newsletter to increase customer
engagement
Our suppliers
provide a wide range of commodities and
services from ingredients, packaging,
utilities, equipment, to facilities
management, fleet, logistics and
information technology.
What matters to our suppliers?
• Exposure to variability in the
marketplace such as pricing and
consumer behaviours
• Driving progress on sustainable
supply chains
• Long-term collaborative relationships
and ability to grow long-term revenue
streams
How the Company engages:
• We have a supplier relationship
management programme through the
Coca-Cola system’s procurement
consortium
• We partner and collaborate with
suppliers in areas such as business
continuity, sustainability or innovation
in order to foster strategic
relationships
• We run CCEP wide or regional
supplier days
• In 2024, several of our suppliers
were involved in the DMA process,
determining our material risks,
opportunities and impacts
How the Board engages:
• The CEO and CFO provide updates to
the Board on key supplier
relationships
• The Board receives training on
strategic topics such as carbon
reduction and supply risk
What is measured and monitored?
• Quality standards and delivery times
• TCCC audits to support adherence to
SGPs and PSA
• Commitment to set science based
targets and to transition to 100%
renewable electricity
Outcomes of engagement in 2024:
• Rolled out our RSP to the Philippines
• Launched the “REfresh Alliance”,
a beverage industry wide consortium
designed to remove commercial
barriers, and help suppliers
accelerate their adoption of
renewable energy and transition
supply chain to Net Zero
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2024 Annual Report and Form 20-F
63
Our stakeholders continued♦
ESRS 2 SBM-1 | ESRS 2 SBM-2
ESRS
Our communities
are where we operate and where our
employees live and work.
What matters to our communities?
• Employment and social inclusion
• Environmental impact
• Corporate citizenship
How the Company engages:
• Boosts skills development and social
inclusion for people facing barriers in
the labour market, through impact
partnerships, youth development
programmes, apprenticeships and
collaboration with food banks
• Protects the local environment
through water replenishment and
litter clean-up programmes
• Supports local communities through
grassroots initiatives and disaster
relief programmes
• In 2024, community association
representatives were involved in the
DMA process, determining our
material risks, opportunities and
impacts
How the Board engages:
• Board members engage with local
projects and at CCEP events
• The Board receives regular updates
via the ESG Committee on CCEP’s
relationship with its communities
• The Board engages indirectly by
reviewing reports on employee
volunteering and partnerships to
support local communities
What is measured and monitored?
• Community investment contribution
• Employee volunteering hours
• Number of direct beneficiaries from
skills programme
Outcomes of engagement in 2024:
• Supported a number of targeted
environmental and social projects
including the Special Olympics, BORA
Mulheres entrepreneurship training
programme and Community Shop
foodbank in Great Britain
For further details on our DMA-
related stakeholder engagement
see ESRS 2 on page 27
Section 172(1) statement
from the Directors
During 2024, we promoted CCEP’s long-
term success in our discussions and
decision making for the benefit of CCEP’s
shareholders as a whole, considering
stakeholders and the matters set out in
section 172 of the Companies Act:
The likely consequences of any decision in
the long term
The Board recognises its decisions
impact CCEP’s long-term success. All
decisions consider the impact to long-
term, sustainable growth while
balancing stakeholder interests.
The interests of our people, and the need to
foster business relationships with our key
stakeholders♦
We identify key stakeholders as those
significantly interacting with our
business model. We describe these
interactions and impacts on pages
61-64. The Board seeks stakeholder
perspectives through direct
engagement, where feasible, and
regular communication with senior
management.
The impact of the Company’s operations on
the community and the environment
To deliver our strategy sustainably, we
consider commercial, social and
environmental impacts, and we
monitor and challenge CCEP’s progress
against our annual business plan and
sustainability action plan. Information
on our sustainability action plan and
how we are implementing TCFD
recommendations and ESRS
requirements can be found on pages
22, 24 and 59-60. Our corporate
governance framework guides Board
decisions, as set out on page 26.
The desirability of the Company maintaining
a reputation for high standards of business
conduct
Responsible operation is key to long-
term success. The Board monitors the
Group’s culture to support alignment
with its purpose, values and strategy.
Our governance framework set out on
page 106, including the CoC and Chart
of Authority, ensures the right
decisions are made by the right people
at the right time.
Read our CoC at view.pagetiger.com/
code-of-conduct-policy
The need to act fairly as between CCEP’s
shareholders
The Board aims to maximise CCEP’s
long-term equity value, without regard
to the individual interests of any
shareholder. A minority of our Non-
executive Directors (NEDs) were
appointed by major shareholders of
CCEP, but all Directors understand
their duty to promote the Company’s
long-term success for all shareholders.
During 2024, the CEO, CFO, Chairman
and our IR team met with shareholders
and updated the Board with
shareholder feedback.
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2024 Annual Report and Form 20-F
64
Our stakeholders continued♦
ESRS 2 SBM-2 | E4 IRO-1 | S3-2
ESRS
The Board considers the matters required
by section 172 in all the decisions it makes
and below are two examples of decisions
taken by the Board during the year and how
the relevant matters in section 172(1)(a)-(f)
of the UK Companies Act 2006 were
considered.
Transfer to the ESCC
Following changes to the UK Listing Rules
(UKLRs) that came into effect on 29 July
2024, the Company was placed into the
Equity Shares (Transition) category of the
Official List. The Board approved the
submission of an application to the FCA for
CCEP to join the ESCC category. The
Company announced its intention to
transfer on 18 October 2024 and following
a successful application and approval by
the FCA, the transfer of CCEP’s ordinary
shares took effect on 15 November 2024.
To aid the Board in its decision making,
management presented papers to the
Board setting out the application
process and key considerations,
including the impact on CCEP’s
stakeholder groups below.
Shareholders
In line with CCEP’s commitment to
create sustainable long-term value for
our shareholders, it is expected that
transferring to the ESCC category will
increase the Company’s profile and
provide exposure to a wider potential
investor base.
Transfer to the ESCC category allows
the Company to be considered for the
FTSE UK Index Series, potentially
improving passive investment flows
and investability. FTSE indexation is
expected to enhance CCEP's capital
markets profile and accessibility for
shareholders.
While ESCC companies must meet
additional governance, regulatory and
reporting standards, CCEP already
complied with most of these
voluntarily, including the UK Corporate
Governance Code.
The Company will retain its listings on
Nasdaq, Euronext Amsterdam and
Spanish Stock Exchanges, offering euro
and US-denominated trading. The ESCC
transfer is not expected to affect
CCEP’s Nasdaq-100 indexation.
Other stakeholder considerations
The Board noted that transferring to
the ESCC category wouldn’t impact the
Company’s operations or directly
affect other stakeholders. However, it
is expected to raise the Company's
profile and support long-term growth,
indirectly benefiting CCEP’s people,
franchisors, suppliers and customers.
Taking the above into consideration,
the Board concluded that proceeding
with the application would be in the
best interests of the Company’s
stakeholders.
Strategic portfolio choices
During the year the Board approved a
number of strategic portfolio choices as
part of TCCC’s ongoing ARTD strategy,
including Absolut Vodka & SPRITE, Jack
Daniel’s & Coca-Cola Zero Sugar RTD and
Bacardi & Coca-Cola RTD.
The Board was supportive of expanding
CCEP’s ARTD portfolio globally across
this growing category. In reaching
these decisions, the Board received
reports from the ATC which included
strategic and financial information and
allowed the ATC to determine the
impact on the Company’s stakeholders
below.
Shareholders
The decision to expand CCEP’s ARTD
offering was deemed to be in the best
interests of shareholders. It further
builds CCEP’s footprint within this
emerging category and unlocks
additional sources of growth beyond
the Company’s core range of products.
The addition of new brands to CCEP’s
portfolio is expected to generate
incremental value, possibly enhancing
shareholder return.
Franchisors
Expansion in the ARTD category
provided the opportunity for CCEP to
collaborate with new strategic
partners, including Pernod Ricard and
Bacardi, while further strengthening its
relationship with existing partners such
as Brown-Forman, the producer of
Jack Daniel’s. Strategic alignment on
ARTD reinforces CCEP’s partnership
with TCCC and supports the long-term
success of these brands.
Customers
ARTD is the fastest-growing alcoholic
segment and one of the fastest overall
in the global beverages sector. The
addition of strategic new choices to
CCEP’s ARTD portfolio is expected to
boost retailer sales, especially during
the warmer months and the festive
end-of-year season, while also helping
customers generate additional
revenue by attracting new consumers
who may not usually purchase soft
drinks. In addition, a diversified
product offering reinforces the
Company’s commitment to providing a
wide range of beverages to meet all
consumption occasions.
Consumers
The addition of new brands to CCEP’s
portfolio expands the Company’s
product offering and enhances the
range of options available for adult
consumers who value ARTD products
for their combination of taste,
innovation and convenience.
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2024 Annual Report and Form 20-F
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Section 172(1) statement from the Directors
Principal decisions
Our strategy key
Great brands
Great people
Great execution
Done sustainably
CCEP identifies, assesses and
manages the principal risks
we face as a business through
strong risk management across
the organisation, mitigating risk
and pursuing the benefits of related
opportunities.
To support this, CCEP has developed
an Enterprise Risk Management (ERM)
framework to embed risk management
within our key functions, activities and
decision making.
Our internal ERM framework is fully
aligned with the guidance provided by
the globally recognised COSO ERM
Framework, as shown on the diagram
to the right.
Governance & Culture
The Board has overall responsibility for
risk management at CCEP. Oversight
and monitoring is provided by the Audit
Committee with regular reports from
management.
At the ELT, the risk agenda is led by the
General Counsel and Company
Secretary, working with management’s
CRC.
CCEP Enterprise Risk Management Framework aligned with COSO*
1
Governance
& Culture
2
Strategy &
Objective Setting
* COSO stands for Committee of
Sponsoring Organisations. The
COSO ERM Framework defines ERM
as “the culture, capabilities and
practices, integrated with strategy
setting and performance, that
organisations rely on to manage
risk in creating, preserving and
realising value.”
5
Communication
& Reporting
CCEP Strategy,
Business Objectives,
Performance*
3
Performance
4
Review
& Revision
The CRC is composed of several ELT
members and is responsible for approval
and oversight of CCEP’s risk management
policies and procedures and their
appropriate execution, to provide
challenge and guidance to the risk
management functions, and to escalate
material risks to the Audit Committee.
Each principal risk has a risk owner at
ELT level who is responsible for
determining whether the risk has been
appropriately assessed and mitigated.
ESG risk management is integrated into
our ERM framework and aligns with our
ERM governance structure. For detailed
information refer to the ESG
governance framework on page 26.
Our One Risk Office is a forum that
brings together first, second and third
line of defence representatives
several times a year to embed our risk
culture and share risk management
knowledge across our functions and
business units.
We discuss emerging risk themes and
external factors that could impact our
business. We invite external risk
experts to inform us about geopolitical
developments and risk leaders from
other organisations to help us broaden
our understanding of risk.
Strategy and Objective Setting
To enhance strategic decision making
and linkage to objective setting, risk
management is integrated into our
Long Range Planning (LRP) and Annual
Business Planning (ABP) processes.
To further support the business with
decision making and resource
allocation we have developed risk
appetite statements. In 2024, we
started to implement key risk
indicators for each principal risk. The
KRIs help to translate our risk appetite
statements into objective and
actionable metrics and have
thresholds assigned to them.
The risk appetite statements are
reviewed annually by the CRC and the
Audit Committee.
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2024 Annual Report and Form 20-F
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Principal risks
Performance
We use insights and data from internal
and external sources to analyse
incidents to improve the way we
manage risks, for example risk sensing
technology in supplier management or
learnings from a crisis such as a
pandemic.
Horizon scanning helps us to identify
global strategic and emerging risks,
which are new or rapidly evolving
threats that have the potential to
significantly impact our organisation,
industry, or society but are not yet fully
understood or quantified. We monitor
the evolution of such threats to ensure
we are able to anticipate and manage
potential impacts to our business.
Examples include geopolitical conflicts
and their impacts on the supply chain,
macroeconomic conditions and impact
on consumer sentiments, or
disruptions from AI.
We work with external partners like
Risilience to develop and analyse risk
scenarios for a wide range of
sustainability risks, including physical
and transition climate change risks, and
to help deliver our sustainability
reporting requirements. More details
are on pages 37-45.
CCEP has a Business Continuity and
Resilience programme in place that
enables us to manage and prepare for
an incident or crisis relating to a wide
range of business disruption events.
Optimising our response capabilities
protects our employees, our
customers, our revenue and our brand
value.
These capabilities are enabled by the
Coca-Cola System-wide Incident
Management and Crisis Resolution
(IMCR) process, our central business
resilience team, our central and local
Incident Management teams, and an
extensive training and exercising
programme.
A Business Continuity and Resilience
(BCR) Governance Framework is in
place to ensure business continuity
plans at our sites and Shared Service
Centre (which has ISO 22301: 2019
certification for Business Continuity)
are regularly updated and tested,
through a network of business
continuity champions.
Review & Revision
On an annual basis an Enterprise Risk
Assessment (ERA) is undertaken to
analyse our principal risks and
understand the likelihood, impact and
velocity of the risk and the
effectiveness of our mitigations and
actions in place. The ERA provides a top
down strategic view of risks. The
members of the Board, ELT and over
100 senior leaders carry out a risk
survey and interviews to discuss
current risks, opportunities and
emerging risks.
Key focus areas for 2024 were
mitigation effectiveness and the
identification of opportunities to
improve our forward planning and
management of controls.
Risk assessments are also carried out
at business unit, functional and
programme level and follow our
central methodology and taxonomy.
The local and functional leadership
teams review and update risk
assessments, ensuring that risk
management is incorporated into our
business routines. All risk information is
maintained in a central repository to
allow for analysis and best practice
sharing across the organisation.
The table on the following pages
provides an overview of the principal
risks based on the findings of our most
recent ERA.
In 2024, an external benchmarking and
internal review of CCEP’s principal risk
taxonomy and categorisation was
undertaken. This review resulted in a
number of principal risks being
renamed or recategorised to better
align with our organisational and
leadership structure.
Communication & Reporting
An internal risk report is created and
shared on a regular basis with
leadership, highlighting key risks,
emerging trends and mitigation
activities to support decision making.
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2024 Annual Report and Form 20-F
67
Principal risks continued
The following pages set out a summary
of each principal risk, showing how each
risk links to our strategic objectives and
material matters, the key mitigations
CCEP has in place to manage the risks
and the focus areas for 2025. The
Board has carried out a robust
assessment of these principal risks.
This summary is not intended to
include all risks and mitigations that
could impact our business. Beyond
principal risks, CCEP faces other
operational risks which are managed
as part of our daily routines.
Great brands
Great people
Great execution
Done sustainably
The following table identifies each principal risk and how they align to our strategic objectives.
Risk Category
Principal Risk
Link to strategic objectives
Market and
Products
Market
Economic and Tax
Packaging
Category Perception
Geopolitical and Global
Operations
Cyber & IT/OT Resilience
Business Transformation & Digital Capability
Key Supplier
Product Quality
Health, Safety & Security
Licence to
Operate
Climate & Water
Legal, Regulatory & Compliance
Talent & Corporate Social Responsibility
System
TCCC and Strategic Partners
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2024 Annual Report and Form 20-F
68
Principal risks continued
Market
Trend during 2024
Economic and tax
Trend during 2024
Risk description
The risk that CCEP fails to identify and
effectively respond to changes in the
competitive environment, including
access to customers and consumers,
and pricing terms and conditions
resulting in a loss of market share,
revenue and reduction in shareholder
value.
Key mitigations to manage risk
• International marketing services
agreement guidelines
• Affordability plans in several
European markets
• Shopper insights
• New route to market opportunities
• Pack and product innovation
Link to strategic objectives
Understanding the change in trend
Risk decreased in 2024 due to the effectiveness of our key mitigations in countering
adverse market developments.
Focus areas for 2025
• Development of eB2B capability as
part of our overall digital strategy
• Roll out of our eB2B platform in Spain
and Portugal
• Focus on Coca-Cola Original Taste to
further accelerate the growth of our
biggest brand
• Recruiting consumers into our great
brands by offering affordable
propositions for shoppers searching
for value
Opportunities arising from risk
• Improving operational performance
and decision making through the use
of AI and digital technology, product
innovation and reducing our response
times to changes in consumer habits
and market conditions
Related information
• Our market drivers (page 6)
• Great brands (pages 12-13)
• Great execution (pages 18-20)
Risk description
The risk that an inability to anticipate
and effectively manage fluctuations in
foreign exchange and commodity prices,
balance our capital allocation for
reinvestment and effectively manage
our tax positions leads to a reduction in
revenue, profitability, and shareholder
value.
Key mitigations to manage risk
• Hedging policy
• Maintain a strong level of liquidity
and back up credit lines for working
capital purposes as well as
unexpected cash flow swings
• CCEP controls framework
• Regular updates on the Group’s tax
position to the Chief Accounting
Officer, Chief Financial Officer and
the Audit Committee
• Group’s tax strategy
Link to strategic objectives
Understanding the change in trend
Risk decreased in 2024 due to the effectiveness of our key mitigations in addressing
the challenging cost and price developments.
Focus areas for 2025
• Implement a global treasury
management system that will
standardise and automate exposure
and hedge management for FX and
commodities
Opportunities arising from risk
• Improving our financial and business
performance by working with
governments on consultation
processes for tax regulation,
continuing to build strong macro-
economic capabilities and effectively
hedging commodities and managing
debt
Related information
• Our market drivers (page 6)
• Notes to the consolidated financial
statements (pages 178-253)
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2024 Annual Report and Form 20-F
69
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Packaging
Trend during 2024
Category perception
Trend during 2024
Risk description
The risk that an inability to deliver
environmentally sustainable packaging
solutions for our products may lead to
increased taxes and regulations relating
to packaging (e.g. limits on single use
plastics) and a shift in consumer and
customer preferences towards more
sustainable alternatives resulting in
reduced revenue or market share,
increases to the cost of production and
compliance, an inability to achieve our
GHG emissions reduction targets
causing reputational damage and a loss
of our social licence to operate.
Key mitigations to manage risk
• Roadmap to support collection
including advocacy for container
deposit and return schemes and EPR
• rPET roadmap
• Packaging design and innovation
• CCEP Ventures investment in new
recycling technologies and packaging
innovation
• Continued investment in refillable
packaging in multiple markets
Link to strategic objectives
Focus areas for 2025
• Strengthen our 2030 collection
roadmaps with a focus on DRS
implementation in European markets
and self-funded collection in
emerging markets and continue to
invest in recycled PET
Opportunities arising from risk
• Reducing the amount of waste going
to landfill by leveraging the strength
of our portfolio mix, increasing
collection rates, investment in
recycling technologies and promoting
recycling
For further details on our
initiatives related to packaging
see ESRS E5 on pages 53-55
Risk description
The risk that CCEP is unable to
effectively identify and respond to
changes in customer, consumer and
regulatory perception and preferences
for our products leading to a loss of
market share, revenue, increased
regulatory scrutiny, higher taxes and
damage to brand and reputation.
Key mitigations to manage risk
• Support TCCC, EU or national
associations in their consultation
with governments regarding no and
low-calorie sweeteners
• Category management capabilities
• Customer engagement
Link to strategic objectives
Focus areas for 2025
• Customer category management
• Consumer information on the wide
range of products in our portfolio
including low and no calorie
sweetened beverages
Opportunities arising from risk
• Improving financial performance and
market share through portfolio
diversification and working with local
governments on taxation and
regulations that impact marketing,
labelling, packaging and ingredients
such as sugar and sweeteners
Related information
• Great brands (pages 12-13)
• Forward on drinks (pages 22 and 259)
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2024 Annual Report and Form 20-F
70
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Geopolitical and global
Trend during 2024
Cyber and IT/OT resilience
Trend during 2024
Risk description
The risk that an inability to anticipate
and respond to geopolitical instability
and global events (e.g. regional conflicts
or wars, global pandemics, natural
disasters) leads to disruptions to global
supply chains, a reduction in profitability
and shareholder value, and damage to
reputation and brand.
Key mitigations to manage risk
• CCEP Incident Management and
Crisis Response (IMCR) process
• TCCC Business Resilience Framework
• CCEP Business Continuity and
Resilience (BCR) Framework
• Early warning indicators to identify
potential risks early and increase the
reaction time needed to implement
adequate countermeasures
• Monitoring of global issues and
tracking of political elections and
corporate positions including within
the Coca-Cola system
Link to strategic objectives
Understanding the change in trend
Risk increased in 2024 due to growing political uncertainty and instability, and
escalation of global conflicts.
Focus areas for 2025
• Enhance community management
capabilities for digital communication
platforms
• Review of CCEP digital monitoring and
alert tools solutions and develop
stronger ways of working with TCCC
and other bottlers in Europe and APS
to anticipate and prepare
Opportunities arising from risk
• Improving business resilience and
financial performance through
supplier diversification and protecting
consumer loyalty and sentiment
about our brands by thoughtfully
addressing the challenges of social
media influence and differing
viewpoints
Related information
• Our market drivers (page 6)
Risk description
The risk that cloud concentration and/or
an inability to protect information
systems and data from unauthorised
access, misuse, software update
incidents, or physical destruction results
in disruption to operations, regulatory
intervention, financial losses or damage
to our company’s reputation.
Key mitigations to manage risk
• Cyber strategy
• Information security and data
privacy training and awareness
• BCP and disaster recovery
programme
• Threat vulnerability management and
threat intelligence
• Global Security Operations Centre
Link to strategic objectives
Focus areas for 2025
• Embed asset management
• New campaigns for operational
technology (OT) training and
awareness
• Back up tool migration and recovery
exercises
• Secure remote access of third
parties
• Vulnerability management for OT and
obsolescence programme
• IT/OT programme for the Philippines
• NIS2 compliance
Opportunities arising from risk
• Driving operational and technological
efficiencies by modernising
equipment, applications, and
processes to address technology
debt and prevent potential entry
points for threats and by upgrading
systems and the OT organisation
Related information
• Cybersecurity (pages 76-77)
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
71
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Business transformation and digital capability
Trend during 2024
Key supplier
Trend during 2024
Risk description
The risk that a failure to successfully
execute the business transformation
agenda leads to a diversion of
management's focus away from our
core business, an inability to execute our
business plans effectively, possible
disruption to our operations, and not
delivering the expected value or
benefit to the business.
Key mitigations to manage risk
• Competitiveness steering committee
and governance model for enterprise
wide digital transformation
• CCEP project management
methodology and dedicated
programme management office
• Analysis and review of acquisition-
related activities including enterprise
valuation and capital allocation,
business performance risk indicators
and integration planning
Link to strategic objectives
Focus areas for 2025
• Continue developing the existing
competitiveness and digital
transformation initiatives
Opportunities arising from risk
• Improved business growth and
performance by embracing change to
drive innovation and deliver
operational efficiencies
Related information
• Great execution (pages 18-20)
Risk description
The risk that critical suppliers are unable
to provide the raw materials and
services needed to produce CCEP's
products leading to an inability and/or
delay in the delivery of our products to
our customers, financial losses and
reputation damage.
Key mitigations to manage risk
• Supply risk and contingency process
• Cross Enterprise Procurement Group
(CEPG) to leverage global
collaboration
• Digital risk management and sensing
technology
Link to strategic objectives
Focus areas for 2025
• Third party due diligence (TPDD)
across non-supplier third parties and
customers (e.g. charities, NGOs,
Iberian distributors)
• Integration of risk management
processes into new territories
Opportunities arising from risk
• Improved financial performance and
supply chain resilience through
scenario planning, the development
of alternatives and a more
sustainable supplier base
Related information
• Done sustainably (pages 30-31)
• Forward on climate (pages 32-45)
• Forward on supply chain (pages 46-47
and 51-52)
• Forward on water (pages 48-50)
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Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
72
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Product quality
Trend during 2024
Health, safety and security
Trend during 2024
Risk description
The risk of CCEP products failing to meet
food safety, regulatory and quality
requirements could harm consumers,
lead to litigation, regulatory fines,
damage our brand and reputation, and
jeopardise our franchise agreements.
Key mitigations to manage risk
• Franchisor standards and
governance
• ISO 9001 and FSSC 22000
certification
• Customer and consumer complaint
management
• Incident management and crisis
resolution
Link to strategic objectives
Focus areas for 2025
• Drive food safety culture
• Governance of action plans from
lessons learnt
• Strengthen hazard analysis and
critical control points
Opportunities arising from risk
• Improving business and financial
performance through reduction of
product quality incidents, product
recalls and liabilities, by focusing on
First Time Right (FTR) and the
investment in our systems and
people
Related information
• Great brands (pages 12-13)
• Done sustainably (pages 30-31)
Risk description
The risk of harm to the mental and
physical health, safety and security of
our employees, contractors and third
parties, and the risk of theft, damage or
fraudulent loss of organisational assets
and financial integrity.
Key mitigations to manage risk
• Safety strategy
• Security and integrity training and
communication
• Travel security programme
• CCEP wide fraud risk assessment
• Anti-fraud policy
Link to strategic objectives
Focus areas for 2025
• Implementation of the travel security
programme across CCEP
• Pilot of fraud detection software
• Implementation of mandatory online
fraud training module
• Focus on strength of defences
assessments to eliminate the
potential for serious injuries
• Global implementation of new
contractor management system
• Machinery safety technology using
radar to fail-safe
Opportunities arising from risk
• Improved business performance
through the removal of hazards and
reduction of risks by continuing the
roll out of our safety strategy and
establishing an internal intelligence
service to provide actionable
intelligence and monitor geopolitical
risks, emerging threats, and market
trends
Related information
• Great people (pages 14-17)
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Other
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
73
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Climate and water
Trend during 2024
Legal, regulatory and compliance
Trend during 2024
Risk description
The risk that an inability to manage the
physical and transition risks associated
with climate change results in supply
chain disruption, damage to our brand
and reputation, regulatory fines and
penalties, litigation, a reduction in
shareholder value and ultimately
damage to the environment and the
broader community.
Key mitigations to manage risk
• Roadmap to reduce GHG emissions
by 30% versus 2019
• Supplier GHG emissions reduction
targets and engagement programme
• FAWVAs
• EWRA
• CCEP Ventures investment in low-
carbon technologies and innovation
Link to strategic objectives
Focus areas for 2025
• Launch six climate accelerators to
identify low carbon technologies and
solutions to support our climate
roadmap
• Review and update our water
reduction roadmap focusing on
plants with the highest water risk and
prioritising water-intensive processes
to maximise benefits
• Improve capital allocation by
applying prioritisation formulas to
maximise return on investments
Opportunities arising from risk
• Improving energy efficiency and
reducing operating costs and
reliability through the investment in
new technology, engaging in
partnerships with other industries,
customers and partners and focusing
on water security and long-term
water rights
Related information
• Forward on climate (pages 32-45)
• Forward on water (pages 48-50)
For further details on our
initiatives related to climate see
ESRS E1 on pages 32-45 and water
see E3 on pages 48-50
Risk description
The risk that an inability to identify,
advocate for, and comply with new and/
or changes to existing legal, regulatory
and compliance requirements results in
new or higher taxes, stricter sales and
marketing controls, other punitive
actions from regulators or legislative
bodies, or litigation that negatively
impacts our financial results, business
performance and licence to operate.
Key mitigations to manage risk
• Compliance processes and training
programmes
• Monitoring and implementation of
new or changing laws and regulations
• Dialogue with government
representatives and input to public
consultations on new or changing
regulations
• Records and information
management programme
Link to strategic objectives
Understanding the change in trend
Risk increased in 2024 due to greater amount of regulations and differences in their
execution across countries, and scrutiny from regulators.
Focus areas for 2025
• Deep dive risk assessments into
bribery and corruption
• CCEP digital regulatory monitoring and
alert capability including collaboration
with TCCC and other bottlers
• Continue awareness and change
management for improved adoption
of compliance procedures
• Harmonise data protection training
and maturity, enable global inter-
company transfers
Opportunities arising from risk
• Driving a culture of respect and
compliance and continuing to share
our local value model and positive
impact in the communities we
operate in with stakeholders and, in
particular, regulators to have the right
regulatory environment for all
Related information
• Done sustainably (pages 30-31)
For further details see ESRS E1 on
pages 32-33 and E5 on pages 53-55
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
74
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Talent and corporate social responsibility
Trend during 2024
TCCC and strategic partners
Trend during 2024
Risk description
The risk that CCEP is unable to attract,
develop, retain and motivate existing and
future employees through its internal
people and culture processes, and social
commitments which may result in a
failure to achieve our strategic
objectives, increased turnover rates, a
decline in employee engagement and
overall business performance. A failure
to act responsibly towards social
commitments and corporate citizenship
(including human rights) may also lead to
reputational damage and/or litigation.
Key mitigations to manage risk
• CoC, CCEP Human Rights policy and
Restructuring Guidelines, and
Responsible Sourcing policy
• Annual Modern Slavery Statement
and country specific human rights
risk assessments in Bulgaria and
Germany
• Anti-harassment and Inclusion,
Diversity & Equity Policy
• Community Investment programmes
• Business for Societal Impact
Framework
Link to strategic objectives
Focus areas for 2025
• Implementation of the Corporate
Sustainability Due Diligence Directive
(CS3D)
• Implement the Global Inclusion
Survey and follow up action plan
• Further embed the Accessibility
Matrix across CCEP
• Create a global workplace
adjustments framework
• Implement a new Employee
Assistance Programme provider
Opportunities arising from risk
• Driving sustainable growth and
maintaining our competitive edge as
an employer of choice through the
investment in our workforce
development programmes and
platforms like the Career Hub for
talent attraction and retention
Related information
• Great people (pages 14-17)
• Great execution (pages 18-20)
• Done sustainably (pages 56-57)
Risk description
The risk that the incentives and strategy
of TCCC and other strategic partners is
misaligned with that of CCEP leading to
actions and decisions that could
negatively impact on CCEP’s business
relationships, licence to operate and
ability to deliver on its own strategic
objectives.
Key mitigations to manage risk
• Clear agreements govern the
relationships
• Long range planning and annual
business planning processes
• Routines between CCEP and
franchisors
Link to strategic objectives
Focus areas for 2025
• Focus on the innovation pipeline with
TCCC and Monster to further
accelerate the growth of our brands
Opportunities arising from risk
• Improving market share and financial
performance through research and
development with TCCC and Monster
into new products, reformulation and
portfolio diversification, and
equipment innovation
Related information
• Great brands (pages 12-13)
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Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
75
Principal risks continued
Trend during 2024
Increased
Stable
Decreased
Strategic objectives
Great brands
Great people
Great execution
Done sustainably
Internal control procedures
and risk management♦
The Board has overall responsibility for
risk management and internal control
procedures, including determining the
nature and extent of the risks the
Company is willing to take, and ensuring
that risk is managed effectively.
CCEP’s internal controls aim to mitigate
financial, operational, reporting and
compliance risk. They are designed to
manage risk rather than eliminate it.
To discharge its responsibility in a manner
that complies with law and regulation and
promotes effective and efficient
operation, the Board has established
clear operating procedures, lines of
responsibility and delegated authority.
The Audit Committee has specific
responsibility for reviewing the internal
control policies and procedures
associated with the identification,
assessment and reporting of principal
and emerging risks to check they are
adequate and effective.
Our internal control processes include:
• Board approval for significant
projects, transactions and
corporate actions
• Either senior management
or Board approval for all major
expenditure at the appropriate
stages of each transaction
• Regular reporting covering both
technical progress and our financial
affairs
• Board review, identification,
evaluation and management
of significant risks
Read more about our approach to internal
control and risk management in the
Audit Committee report on page 129
Cybersecurity
Risk management and strategy
Our management and Board recognise
the critical importance that a robust
cybersecurity programme and
processes play in maintaining the
integrity of CCEP’s business applications
and data. Our Chief Information Officer
(CIO), and Chief Information Security
Officer (CISO) lead our cybersecurity
programme and regularly report to our
Audit Committee and Board on
cybersecurity matters, through which
we assess, identify, and manage material
risks from cybersecurity threats. We
seek to promote a cybersecurity culture
in which everyone feels a responsibility
to prevent cyber attacks.
Our cybersecurity policies, standards,
processes and practices are integrated
into our risk management framework,
which addresses the principal risks we
face as a business and how we identify,
assess and manage them. In addition,
our CISO and his team utilise a risk
analysis standard from the
Information Security Forum (ISF),
which is aligned with industry best
practice standards to identify and
assess IT security risks as well as
numerous ISF controls and checks.
Our processes for detecting, monitoring, and addressing cybersecurity
threats and incidents, and for ensuring timely compliance with applicable
reporting requirements, include the following:
• Established risk-based cyber
strategy. Regular reporting of
cyber risks and risk mitigation to
the ELT, Audit Committee and
Board;
• Conducting regular training and
awareness on information security
and data privacy for employees,
including regular phishing
exercises. This is in addition
to simulations run with the ELT and
local leadership teams on their
ability to respond to cyber
incidents;
• Continuous development,
constant testing and ongoing
improvement of Business
Continuity Planning (BCP) and
disaster recovery programmes,
including internal and external
testing of security controls to
identify vulnerabilities;
• Threat vulnerability management
and threat intelligence: proactive
monitoring of cyber threats and
events and implementation of
preventative measures is
executed by operating a 24/7
security event logging and
management system through a
Global Security Operations Centre;
• Implementation of a hardware
and software lifecycle;
• Third party risk assessments for
certain key vendors to support
third party risk management;
• Data Privacy Office including data
governance and information
classification and handling;
• IT change management processes
to provide reasonable assurance
that only appropriate, tested and
approved changes are
implemented into our IT
landscape;
• Monthly Information Security
Committee meetings which bring
IT experts and governance teams
together into a single forum to
review, prevent, detect and
monitor threats, incidents, and
responses thereto; and
• Internal audit performs
independent risk-based audits to
assess governance and oversight
and test effectiveness of controls
over critical cyber activities.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
76
Principal risks continued
ESRS 2 GOV-5
ESRS
Relevant cybersecurity incidents and
threats are escalated to the corporate
Incident Management Team (IMT) and
communicated in a timely manner to
our Disclosure Committee, consisting
of the Chairman, CEO, CFO, Group
Company Secretary and General
Counsel, and VP Investor Relations
& Corporate Strategy. The Disclosure
Committee is responsible for reviewing
and making the determination
regarding materiality and public
disclosures pursuant to the SEC
and exchange listing rules.
We use third party experts to support
on certain aspects of our
cybersecurity programme but maintain
internal leadership and oversight of all,
including in connection with our risk
processes. We work with other bottlers
and partners such as TCCC to share
insights on potential threats.
We also monitor third party service
providers, through:
• An internal controls assessment of
our third party control framework
• Governance and performance
through reporting requirements
for major vendors
• Procurement third party risk
management processes
• Identification and oversight by
our CISO, supported by our Business
Continuity and Resilience team, of
risks associated with those third
party service providers that are
relevant to our Business Process and
Technology (BPT) function
• Improvements in researching the
emerging threat landscape
• Improving the security of our
external attack surface
• Conducting due diligence into peers
and trading partners
As at the date of this report, we are not
aware of any risks from cybersecurity
threats, including as a result of any
previous cybersecurity incidents, that
have materially affected us, our
business strategy, results of operation
or financial condition. For additional
information concerning the
cybersecurity risks we face, refer to
the risk factor subsection titled, “Cyber
and IT resilience” on page 288.
Governance
In addition to having a dedicated
cybersecurity team concerned with
day to day cybersecurity operations,
cybersecurity is also a critical area of
focus at both our executive and Board
levels, which helps ensure that the
Board executes its oversight of cyber
risks and that we consider security
risks in our business strategy.
Our cybersecurity processes for
managing and assessing cybersecurity
risks, as described above, are managed
and overseen by our Information
Security Committee, which comprises
the CIO, CCO, Chief Data Privacy
Officer and other senior management
members, and is coordinated by our
CISO who has been in situ for the past
seven years, with 20 years’ experience
in cybersecurity and information
security management. In addition, our
CIO chairs the Information Security
Committee, helping to steer it in
implementing effective processes
in response to information security
threats and risks. Our Information
Security Committee meets at least
monthly to oversee, discuss and
manage cybersecurity including topics
such as but not limited to data privacy,
(IT) business continuity and resilience
based on internal and external sources
of information. Through these processes
and ongoing communications, the
Board via the Audit Committee are
informed about and monitor the
prevention, detection, mitigation and
remediation of cybersecurity threats
and incidents in real time.
As part of its general risk oversight
function, the Audit Committee
oversees CCEP’s management of
cybersecurity risk on behalf of the
Board. The Committee receives
regular updates from management
on cybersecurity risks and our efforts
to manage those risks, including
reports on a biannual basis and more
frequently as deemed appropriate by
our CIO and regular receipt of
feedback on the effectiveness of
implementing cybersecurity awareness
within Company culture as a whole,
such as the results of implementing
employee training and phishing
simulations.
Information regarding cyber risks
and cyber risk management is
reported to the Audit Committee,
and subsequently communicated to
the whole Board during the summary of
Committee reports. One member
of the Board who sits on the Audit
Committee has specific responsibility
for cybersecurity. In 2024, the Audit
Committee has been presented with
detailed information on cybersecurity
and internal controls, including
improvements made in researching the
emerging cyber risk landscape.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
77
Principal risks continued
In accordance with provision 31
of the 2018 UK Corporate
Governance Code (the Code),
the Directors have assessed
the prospects for the Group.
The Directors have made this
assessment over a period of
three years, which corresponds
to the Group’s planning cycle.
The assessment considered the
Group’s prospects related to revenue,
operating profit, EBITDA and
comparable free cash flow. The
Directors considered the maturity
dates of the Group’s debt obligations
and its access to public and private
debt markets, including its committed
multi currency credit facility. The
Directors also carried out a robust
review and analysis of the principal
risks faced by the Group, including
those risks that could materially
and adversely affect the Group’s
business model, future performance,
solvency and liquidity.
Stress testing was performed on
a number of scenarios, including
different estimates for operating
profit and comparable free cash flow.
Among other considerations, these
scenarios incorporated the potential
downside impact of the Group’s
principal risks, including those
related to:
• Business disruption events
• Legal and regulatory intervention,
including in relation to plastic
packaging
• Risk of cyber and social engineering
attacks
• Economic and political uncertainty
• Climate change and water
Based on the Group’s current financial
position, stable cash generation and
access to liquidity, the Directors
concluded that the Group is well
positioned to manage principal risks
and potential downside impacts of
such risks materialising, to ensure
solvency and liquidity over the
assessment period.
From a qualitative perspective, the
Directors also took into consideration
the Group’s past experience of
managing through adverse conditions
and the Group’s strong relationship
and position within the Coca-Cola
system. The Directors considered the
extreme measures the Group could
take in the event of a crisis, including
decreasing or stopping non-essential
capital investment, decreasing or
stopping shareholder dividends,
renegotiating commercial terms with
customers and suppliers or selling
non-essential assets.
Based upon the assessment
performed, the Directors confirm that
they have a reasonable expectation
the Group will be able to continue in
operation and meet all liabilities as
they fall due over the three year period
covered by this assessment.
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2024 Annual Report and Form 20-F
78
Viability statement
This Annual Report contains a
combination of financial and non-
financial reporting throughout.
As required by sections 414CA
and 414CB of the Companies
Act 2006 (the Companies Act),
the following non-financial and
sustainability information can
be found as stated in the
following table.
These pages contain, where
appropriate, details of our
policies and approach to
each matter.
Non-financial and sustainability information
Page(s)
Environmental matters
Forward on supply chain on pages 47 and 51-52
Forward on climate on pages 32-45
Forward on packaging on pages 53-55
Forward on water on pages 48-50
Environmental due diligence page 25
TCFD compliance statement on pages 59-60
Employee matters
Great people on pages 14-17
Employee-related due diligence on pages 31, 116, 129
Our stakeholders on pages 61-64
Social matters
Forward on society on pages 56-57
Human rights
Respecting human rights on page 17
Anti-corruption and anti-bribery matters
Human rights due diligence on page 17
Respecting human rights on page 17
Our business model
Our business model on page 5
Risk and principal risks
Principal risks on pages 66-77
Risk factors on pages 284-293
Non-financial performance indicators
Sustainability performance indicators on page 3
Climate-related financial information
Key performance data summary on pages 32, 255-256
Principal risks on pages 66-77
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
79
Non-financial and sustainability information statement
Our business
CCEP is a leading consumer goods group in Western Europe and the Asia Pacific
region, making, selling and distributing an extensive range of primarily NARTD
beverages. We make, move and sell some of the world’s most loved brands –
serving nearly 600 million consumers and helping over four million customers
across 31 countries grow. We combine the strength and scale of a large,
multinational business with an expert, local knowledge of the customers
we serve and communities we support.
On 23 February 2024, the Group together with Aboitiz Equity Ventures Inc. (AEV)
jointly acquired 100% of Coca-Cola Beverages Philippines, Inc. (CCBPI)
(the Acquisition), a wholly owned subsidiary of The Coca-Cola Company (TCCC).
Note regarding the presentation of adjusted financial information and alternative
performance measures
Adjusted financial information
Non-IFRS adjusted financial information for selected metrics has been provided
in order to illustrate the effects of the acquisition of CCBPI on the results of
operations of CCEP and to allow for greater comparability of the results of the
combined group between periods. The adjusted financial information has been
prepared for illustrative purposes only, and because of its nature addresses a
hypothetical situation. It does not intend to represent the results had the
Acquisition occurred at the dates indicated, or project the results for any future
dates or periods. It is based on information and assumptions that CCEP believe
are reasonable, including assumptions as at 1 January of the period presented
relating to transaction accounting adjustments. No cost savings or synergies
were contemplated in these adjustments.
The non-IFRS adjusted financial information has not been prepared in
accordance with the requirements of Regulation S-X Article 11 of the US
Securities Act of 1933 or any generally accepted accounting standards, may not
necessarily be comparable to similarly titled measures employed by other
companies and should be considered supplemental to, and not a substitute for,
financial information prepared in accordance with generally accepted accounting
standards.
The Acquisition completed on 23 February 2024 and the non-IFRS adjusted
financial information provided reflects the inclusion of CCBPI as if the Acquisition
had occurred at the beginning of the period presented. It has been prepared on
a basis consistent with CCEP IFRS accounting policies and includes transaction
accounting adjustments for the periods presented.
Alternative performance measures
We use certain alternative performance measures (non-IFRS performance
measures) to make financial, operating and planning decisions and to evaluate
and report performance. We believe these measures provide useful information
to investors and as such, where clearly identified, we have included certain
alternative performance measures in this document to enable investors to
better analyse our business performance and allow for greater comparability.
To do so, we have excluded items affecting the comparability of period over
period financial performance as described below. The alternative performance
measures included herein should be read in conjunction with and do not replace
the directly reconcilable IFRS measures.
For purposes of this document, the following terms are defined:
‘As reported’ are results extracted from our consolidated financial statements.
‘Adjusted’ includes the results of CCEP as if the CCBPI acquisition had occurred
at the beginning of the period presented, including acquisition accounting
adjustments, accounting policy reclassifications and the impact of debt financing
costs in connection with the Acquisition.
‘Comparable’ is defined as results excluding items impacting comparability, which
include restructuring charges, impairment charges, accelerated amortisation
charges, acquisition and integration related costs, inventory fair value step up
related to acquisition accounting, expenses related to certain legal provisions,
net impact related to European flooding, gains on the sale of property, income
arising from the ownership of certain mineral rights in Australia and gain on sale
of sub-strata and associated mineral rights in Australia. Comparable volume is
also adjusted for selling days.
‘Adjusted comparable’ is defined as adjusted results excluding items impacting
comparability, as described above.
‘FX neutral’ or ‘FXN’ is defined as period results excluding the impact of foreign
exchange rate changes. Foreign exchange impact is calculated by recasting
current year results at prior year exchange rates.
‘Capex’ or ‘Capital expenditures’ is defined as purchases of property, plant and
equipment and capitalised software, plus payments of principal on lease
obligations, less proceeds from disposals of property, plant and equipment.
Capex is used as a measure to ensure that cash spending on capital investment
is in line with the Group’s overall strategy for the use of cash.
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2024 Annual Report and Form 20-F
80
Business and financial review
‘Comparable free cash flow’ is defined as net cash flows from operating activities
less capital expenditures (as defined above) and net interest payments, adjusted
for items that are not reasonably likely to recur within two years, nor have
occurred within the prior two years. Comparable free cash flow is used as a
measure of the Group’s cash generation from operating activities, taking into
account investments in property, plant and equipment, non-discretionary lease
and net interest payments while excluding the effects of items that are unusual
in nature to allow for better period over period comparability. Comparable free
cash flow reflects an additional way of viewing our liquidity, which we believe is
useful to our investors, and is not intended to represent residual cash flow
available for discretionary expenditures.
‘Comparable EBITDA’ is calculated as Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA), after adding back items impacting the comparability
of period over period financial performance. Comparable EBITDA does not
reflect cash expenditures, or future requirements for capital expenditures or
contractual commitments. Further, comparable EBITDA does not reflect
changes in, or cash requirements for, working capital needs, and although
depreciation and amortisation are non-cash charges, the assets being
depreciated and amortised are likely to be replaced in the future and
comparable EBITDA does not reflect cash requirements for such replacements.
‘Net Debt’ is defined as borrowings adjusted for the fair value of hedging
instruments and other financial assets/liabilities related to borrowings, net of
cash and cash equivalents and short-term investments. We believe that
reporting net debt is useful as it reflects a metric used by the Group to assess
cash management and leverage. In addition, the ratio of net debt to comparable
EBITDA is used by investors, analysts and credit rating agencies to analyse our
operating performance in the context of targeted financial leverage.
‘ROIC’ or ‘Return on invested capital’ is defined as reported profit after tax
attributable to shareholders divided by the average of opening and closing
invested capital for the year. Invested capital is calculated as the addition of
borrowings and equity attributable to shareholders less cash and cash
equivalents and short-term investments.
‘Comparable ROIC’ adjusts reported profit after tax for items impacting the
comparability of period-over-period financial performance and is defined as
comparable operating profit after tax attributable to shareholders divided by the
average of opening and closing invested capital for the year. Comparable ROIC is
used as a measure of capital efficiency and reflects how well the Group
generates comparable operating profit relative to the capital invested in the
business.
‘Dividend payout ratio’ is defined as dividends as a proportion of comparable profit
after tax.
Forward-looking alternative performance measures
Within this report, we provide certain forward-looking non-IFRS financial
information, which management uses for planning and measuring performance.
We are not able to reconcile forward-looking non-IFRS measures to reported
measures without unreasonable efforts because it is not possible to predict with
a reasonable degree of certainty the actual impact or exact timing of items that
may impact comparability throughout year.
All financial information presented in this Business and financial review is
unaudited.
Key financial measures(A)
Reported to adjusted
comparable.
FX impact calculated by
recasting current year
results at prior year
rates
31 December 2024
€ millions
% change vs prior year
As reported
Adjusted
comparable
Adjusted
comparable
FX impact
As reported
Adjusted
comparable
Adjusted
comparable
FX impact
Adjusted
comparable
FX Neutral
Revenue
20,438
20,706
(37)
11.7%
3.3%
(0.2%)
3.5%
Cost of sales
13,227
13,369
(26)
14.2%
3.2%
(0.2%)
3.4%
Operating profit
2,132
2,673
1
(8.8%)
8.1%
0.1%
8.0%
Profit after
taxes
1,444
1,854
2
(13.5%)
7.0%
0.1%
6.9%
Diluted earnings
per share (€)
3.08
3.96
0.01
(15.3%)
6.1%
0.3%
5.8%
A. See Supplementary financial information - Items impacting comparability on pages 91-93 for a reconciliation of reported
to comparable and reported to adjusted comparable results.
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Financial highlights
During 2024, we successfully acquired CCBPI, while delivering our growth
objectives for revenue, profit, and diluted earnings per share. As we worked to
integrate our business in 2024, our focus on great brands, great execution and
great people as well as strong relationships with our brand partners and
customers continued to drive top and bottom-line growth on an adjusted
comparable basis. Adjusted comparable volumes remained resilient, despite
mixed weather in Europe and strategic SKU rationalisation, with solid underlying
volume performance. We grew revenue per unit case on an adjusted comparable
and FX neutral basis, driven by the successful implementation of our revenue and
margin growth management initiatives, along with our dynamic price and
promotion strategies across a broad pack offering. We also benefited from
ongoing efficiency programmes and continued to focus efforts on discretionary
spend optimisation, successfully offsetting higher concentrate costs,
manufacturing inflation and consumption tax increase. This translated into strong
comparable free cash flow generation and enabled us to continue to return cash
to shareholders, as demonstrated by the dividend paid in the year.
The net impact of 2024 performance on our key financial measures(A) can be
summarised as follows:
• Reported revenue totalled €20.4 billion, up 11.7% on a reported basis and 3.5%
on an adjusted comparable and FX neutral basis.
• Volume increased 17.8% on a reported basis. Adjusted comparable volume was
flat and adjusted comparable and FX neutral revenue per unit case increased
2.7%.
• Reported operating profit was €2.1 billion, down 8.8%, or up 8.0% on an adjusted
comparable and FX neutral basis.
• In its preliminary results for fiscal year 2023, CCEP had full-year guidance (in
respect of fiscal year 2024) of 7% operating profit growth on an adjusted
comparable and FX neutral basis.
• Reported diluted earnings per share were €3.08 or €3.96 on an adjusted
comparable basis, up 5.8% on an adjusted comparable and FX neutral basis.
• Net cash flows from operating activities were €3.1 billion. Comparable free cash
flow(B) was €1.8 billion.
A. See Supplementary financial information - Items impacting comparability on pages 91-93 for a reconciliation of reported
to comparable and reported to adjusted comparable results.
B. See Liquidity and capital management on pages 88-90 for a reconciliation between net cash flows from operating
activities and comparable free cash flow.
Operational review
Revenue
Revenue totalled €20.4 billion, up 11.7% versus prior year on a reported basis, and
11.8% on an FX neutral basis, reflecting the inclusion of CCBPI in 2024. Adjusted
comparable revenue was €20.7 billion, up 3.3% vs prior year, or up 3.5% on an
adjusted comparable and FX neutral basis. Revenue per unit case increased by
2.7% in 2024, on an adjusted comparable and FX neutral basis.
Revenue
in millions of €
31 December 2024
As reported
Adjusted
comparable
Reported %
change
FX neutral %
change
Adjusted
comparable %
change
Adjusted
comparable FXN
% change
Europe
14,971
14,971
2.9%
2.3%
2.9%
2.3%
APS
5,467
5,735
45.8%
48.8%
4.4%
6.6%
Total CCEP
20,438
20,706
11.7%
11.8%
3.3%
3.5%
Adjusted comparable volume – selling day shift CCEP
In millions of unit cases, prior period volume recast using current year
selling days(A)
Year ended 31 December
2024
2023
% change
Volume
3,864
3,279
17.8%
Impact of selling day shift
—
26
n/a
Comparable volume – selling day shift adjusted
3,864
3,305
16.9%
Add: Adjusted volume impact
101
660
n/a
Adjusted comparable volume
3,965
3,965
0.0%
A. A unit case equals approximately 5.678 litres or 24 eight ounce servings, a typical volume measure used in our industry.
Volumes were up 17.8% on a reported basis and 16.9% on a comparable basis,
driven by the inclusion of CCBPI in 2024. Adjusted comparable volume was flat
versus 2023. In Europe, strong in-market execution was offset by the strategic
delisting of Capri-Sun, mixed summer weather and softer demand in the AFH
channel, driving volume decline of 2.4%. APS volumes were up 4.9% versus 2023
on an adjusted comparable basis, mainly driven by strong underlying momentum
in Australia/Pacific and strong growth driven by increased demand in the
Philippines.
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Year ended 31 December
Adjusted comparable volume by category
Change versus prior period
2024
% of total
2023
% of total
% change
Coca-Cola®
59.3%
58.8%
1.0%
Flavours & Mixers
21.8%
22.0%
(0.5%)
Water, Sports, RTD Tea & Coffee(A)
11.8%
11.6%
0.8%
Other inc. Energy
7.1%
7.6%
(7.3%)
Total
100.0%
100.0%
0.0%
A. RTD refers to ready to drink.
On a brand category basis in 2024, Coca-Cola trademark volume was up 1.0%
versus 2023 on an adjusted comparable basis. This reflected volume growth (up
0.9%) of Coca-Cola Original Taste driven by strong demand in the Philippines,
partially offset by mixed summer weather in Europe. Coca-Cola Zero Sugar
volumes increased versus 2023 (up 3.6%), with growth in both Europe and APS driven
by great execution and innovation.
Flavours & Mixers volume decreased by 0.5% versus 2023 on an adjusted
comparable basis. Sprite volumes were up 3.7% versus 2023, driven by robust
consumer demand and strong execution across all key markets. Fanta volumes
declined slightly reflecting flavours extensions and growth in APS, offset by
adverse weather in Europe. Royal Bliss performed strongly with double digit
growth led by the Netherlands.
Water, Sports, RTD Tea & Coffee volume increased by 0.8% versus 2023 on an
adjusted comparable basis. Water volume grew driven by the Philippines offset
by mixed summer weather in Europe and strategic delistings within Europe and
Australia. Sports volume increased by 4.1%, reflecting growth in Powerade driven
by continued favourable consumer trends, great activation and innovation.
Other inc. Energy volume decreased by 7.3% versus 2023 on an adjusted
comparable basis. Energy volume increased by 6.3% versus 2023, led by Monster,
driven by distribution and share gains through innovation. Juice volume declined
resulting from the strategic delisting of Capri-Sun in Europe. Alcohol volumes
were down reflecting excise increases in Australia, partly offset by good growth
in Europe.
Revenue by segment: Europe
Revenue Europe
In millions of €, except per case data which is calculated
prior to rounding. FX impact calculated by recasting
current year results at prior year rates.
Year ended 31 December
2024
2023
% change
As reported
14,971
14,553
2.9%
Adjust: Impact of FX changes
(83)
n/a
n/a
FX neutral
14,888
14,553
2.3%
Revenue per unit case
5.72
5.50
4.0%
Revenue in Europe totalled €15.0 billion, up 2.9% versus prior year on a reported
basis, and 2.3% on an FX neutral basis. Revenue per unit case in Europe increased
by 4.0% in 2024, on a comparable and FX neutral basis, reflecting positive headline
price increases and promotional optimisation alongside favourable mix.
Revenue by geography
In millions of €
31 December 2024
As reported
Reported
% change
FX neutral
% change
Great Britain
3,327
2.8%
0.1%
Germany
3,179
5.3%
5.3%
Iberia(A)
3,398
2.2%
2.2%
France(B)
2,322
0.0%
0.0%
Belgium and Luxembourg
1,070
(0.7%)
(0.7%)
Netherlands
785
9.3%
9.3%
Norway
398
5.9%
7.7%
Sweden
410
3.0%
2.5%
Iceland
82
(2.4%)
(2.4%)
Total Europe
14,971
2.9%
2.3%
A. Iberia refers to Spain, Portugal and Andorra.
B. France refers to continental France and Monaco.
Reported revenue in Great Britain was up 2.8% versus 2023. Foreign exchange
translation positively impacted revenue growth by 2.7%. The increase in revenue
was mainly driven by revenue per unit case growth reflecting the headline price
increase implemented at the end of the second quarter and positive brand mix,
resulting from growth in Monster, Powerade and the delisting of Capri-Sun.
From a category perspective, Coca-Cola Zero Sugar, Monster, Dr Pepper and
Powerade showed strong volume growth.
Reported revenue in Germany was up 5.3% versus 2023. Volume was negatively
impacted mainly by softer AFH demand with the home channel broadly flat.
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Additionally, revenue per unit case growth was driven by the headline price
increase implemented in the third quarter, as well as positive pack and brand mix,
driven by volume growth in Monster and Powerade. From a category perspective,
Coca-Cola Zero Sugar and Fuze Tea also showed strong volume growth.
Reported revenue in Iberia was up 2.2% versus 2023. Volume was slightly down
reflecting adverse weather, mitigated by strong execution. Additionally, revenue
per unit case growth was positively impacted by the headline price increase.
From a category perspective, Sprite and Aquarius showed strong volume growth.
Reported revenue in France, Benelux and the Nordics (Belgium, Luxembourg, the
Netherlands, Norway, Sweden and Iceland) was up 1.8% versus 2023. Foreign
exchange translation negatively impacted revenue growth by 0.1%. Volume was
negatively impacted by the strategic delisting of Capri-Sun, adverse weather and
the consumption tax increase in the Netherlands. The increase in revenue was
mainly driven by revenue per unit case growth as a result of the headline price
increase implemented across our markets. From a category perspective,
Monster, Powerade, Sprite and Fuze Tea showed strong volume growth, mainly in
France.
Revenue by segment: APS
Adjusted revenue APS(A)
In millions of €, except per case data which is calculated
prior to rounding. FX impact calculated by recasting
current year results at prior year rates.
Year ended 31 December
2024
2023
% change
As reported
5,467
3,749
45.8%
Add: Adjusted revenue impact
268
1,756
n/a
Adjust: Total items impacting
comparability
—
(12)
n/a
Adjusted comparable
5,735
5,493
4.4%
Adjust: Impact of FX changes
120
n/a
n/a
Adjusted comparable and FX neutral
5,855
5,493
6.6%
Adjusted revenue per unit case
4.29
4.26
0.9%
A. See Supplementary financial information - Items impacting comparability on page 91-93 for a reconciliation of reported
to comparable and reported to adjusted comparable results.
Revenue in APS totalled €5.5 billion on a reported basis. Adjusted comparable
revenue was €5.7 billion, up 4.4% vs prior year, or up 6.6% on an adjusted
comparable and FX neutral basis. Revenue per unit case increased by 0.9% in
2024, on an adjusted comparable and FX neutral basis. Volume increased 4.9% on
an adjusted comparable basis driven by solid underlying momentum in Australia/
Pacific and strong growth in Southeast Asia driven by increased demand in the
Philippines.
Year ended 31 December 2024
Adjusted revenue by geography
In millions of €
As reported
Adjusted
Comparable
Adjusted
Comparable
% change
Adjusted
Comparable FXN
% change
Australia
2,475
2,475
3.8%
4.5%
New Zealand and Pacific Islands
694
694
2.2%
3.7%
Indonesia
403
403
(12.0%)
(8.5%)
Papua New Guinea
243
243
7.0%
15.0%
Philippines
1,652
1,920
10.1%
13.4%
Total APS
5,467
5,735
4.4%
6.6%
Revenue in the Australia, Pacific & Southeast Asia territories was up 4.4% versus
2023 on an adjusted comparable basis. Foreign exchange translation negatively
impacted revenue growth by 2.2%. The underlying increase in revenue was mainly
driven by volume growth reflecting great in-market activation, strong underlying
market demand and growth in the Philippines. In Australia/Pacific, Coca-Cola Zero
Sugar, Fanta and Monster showed strong volume growth, supported by great
activation, execution and innovation. In Southeast Asia, volumes grew strongly in
both channels, with double digit growth in the Philippines, driven by Coca-Cola
Original Taste, Sprite and Water. This was partially offset by a weaker volume
performance in Indonesia impacted by the geopolitical situation in the Middle
East. Unaffected areas showed encouraging growth in sparkling volumes.
Revenue per unit case grew on an adjusted comparable and FX neutral basis, as a
result of the headline price increase implemented across all our markets and
promotional optimisation.
Cost of sales
Reported cost of sales totalled €13.2 billion, up 14.2% versus prior year on a
reported basis, and 13.8% on a comparable and FX neutral basis, reflecting the
impact of the newly acquired CCBPI operations in 2024. Adjusted comparable
cost of sales was €13.4 billion, up 3.2% vs prior year, or up 3.4% on an adjusted
comparable and FX neutral basis. Cost of sales per unit case increased by 2.6%
on an adjusted comparable and FX neutral basis.
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Adjusted cost of sales
In millions of €, except per case data which is calculated
prior to rounding. FX impact calculated by recasting current
year results at prior year rates
Year ended 31 December
2024
2023
% change
As reported
13,227
11,582
14.2%
Add: Adjusted cost of sales impact(A)
213
1,378
n/a
Adjust: Acquisition accounting(B)
1
17
Adjust: Total items impacting
comparability
(72)
(19)
Adjust: Restructuring charges(C)
(10)
(9)
Adjust: European flooding(D)
(1)
9
Adjust: Inventory step-up(E)
(5)
(5)
Adjust: Litigation(F)
(2)
(6)
Adjust: Impairment(G)
(54)
—
Adjust: Other(H)
—
(8)
Adjusted comparable
13,369
12,958
3.2%
Adjust: Impact of FX changes
26
n/a
n/a
Adjusted comparable & FX neutral
13,395
12,958
3.4%
Adjusted cost of sales per unit case
3.38
3.29
2.6%
A. Amounts represent unaudited cost of sales of CCBPI as if the Acquisition had occurred on 1 January, including acquisition
accounting adjustments and CCEP IFRS accounting policy reclassifications.
B. Amounts represent transaction accounting adjustments as if the Acquisition had occurred on 1 January. These include the
depreciation impact relating to fair values for property, plant and equipment and the non-recurring impact of the fair value
step-up of CCBPI finished goods.
C. Amounts represent restructuring charges related to business transformation activities.
D. Amounts represent the incremental expense incurred as a result of the July 2021 flooding events, which impacted the
operations of our production facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December 2024 and the
incremental expense incurred offset by the insurance recoveries collected for the year ended 31 December 2023.
E. Amounts represent the non-recurring impact of fair value step-up of CCBPI inventories.
F. Amounts relate to the increase in a provision established in connection with an ongoing labour law matter in Germany.
G. Amounts represent the expense recognised in relation to the impairment of the Group’s Indonesia cash generating unit
and the impairment of the Feral brand, which was sold during the year ended 31 December 2024.
H. Amounts represent one-time items identified by CCBPI which are not expected to recur, and mainly include the impact
from the reversal of certain provisions partially offset by charges related to business transformation activities.
Cost of sales in Europe reflected lower volumes, down 2.4% versus 2023 on a
comparable basis. Cost of sales per unit case increased, primarily driven by an
increase in the Netherlands consumption tax and continued levels of commodity
inflation. Sugar was the main driver of the increase in commodities, partially
offset by lower aluminium and PET price levels as well as strong hedge coverage
throughout the year. Concentrate costs also increased, driven by higher revenue
per unit case reflecting the headline price increases implemented across our
markets.
Cost of sales in APS increased reflecting higher volume, which grew 4.9% versus
2023 on an adjusted comparable basis. Cost of sales per unit case also
increased, due to similar inflationary pressures on commodities, increased
manufacturing costs and increased revenue per unit case resulting in higher
concentrate costs, partially offset by the mix effect from strong growth in the
Philippines which has a lower cost of sales per unit case.
Operating expenses
Reported operating expenses totalled €5.1 billion, up 13.2% versus prior year
on a reported basis, and 6.4% on a comparable and FX neutral basis, reflecting
the impact of the newly acquired CCBPI operations in 2024. Adjusted
comparable operating expenses were €4.7 billion, up 1.1% vs prior year, or up 1.3%
on an adjusted comparable and FX neutral basis.
Adjusted operating expenses
In millions of €. FX impact calculated by recasting current
year results at prior year rates.
Year ended 31 December
2024
2023
% change
As reported
5,079
4,488
13.2%
Add: Adjusted operating expenses
impact(A)
43
257
n/a
Adjust: Acquisition accounting(B)
1
4
Adjust: Total items impacting
comparability
(459)
(134)
Adjust: Restructuring charges(C)
(254)
(85)
Adjust: Acquisition and integration
related costs(D)
(14)
(12)
Adjust: Litigation(E)
(1)
(11)
Adjust: Impairment(F)
(135)
—
Adjust: Accelerated amortisation(G)
(55)
(27)
Adjust: Other(H)
—
1
Adjusted comparable
4,664
4,615
1.1%
Adjust: Impact of FX changes
12
n/a
n/a
Adjusted comparable and FX neutral
4,676
4,615
1.3%
A. Amounts represent unaudited operating expenses of CCBPI as if the Acquisition had occurred on 1 January, including
acquisition accounting adjustments and CCEP IFRS accounting policy reclassifications.
B. Amounts represent transaction accounting adjustments as if the Acquisition had occurred on 1 January. These include the
depreciation and amortisation impact relating to fair values for intangibles and property, plant and equipment and
acquisition and integration related costs.
C. Amounts represent restructuring charges related to business transformation activities.
D. Amounts represent cost associated with the acquisition and integration of CCBPI.
E. Amounts relate to the increase in a provision established in connection with an ongoing labour law matter in Germany.
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F. Amounts represent the expense recognised in relation to the impairment of the Group’s Indonesia cash generating unit
and the impairment of the Feral brand, which was sold during the year ended 31 December 2024.
G. Amounts represent accelerated amortisation charges associated with the discontinuation of the relationship between
CCEP and Beam Suntory upon expiration of the current contractual agreements.
H. Amounts represent one-time items identified by CCBPI which are not expected to recur, and mainly include the impact
from the reversal of certain provisions partially offset by charges related to business transformation activities.
Operating expenses in Europe increased, driven by continued inflationary
pressures on labour and haulage. With a third of operating expenses being
variable in nature, this uplift was partially offset by the decrease in volume
reflecting strategic delisting of Capri-Sun, mixed summer weather and softer
demand in the AFH channel. Our continued focus on discretionary spend
optimisation and the delivery of our ongoing efficiency programmes, also
contributed to reducing operating expenses.
Adjusted comparable operating expenses in APS reflected inflationary pressures
on labour and haulage, similar to Europe, as well as strong volume growth
impacting variable operating expenses. Increased sales marketing investment to
support our topline growth also contributed to the growth in operating expenses.
Restructuring
In November 2022, the Group announced a new efficiency programme to be
delivered by the end of 2028. This programme focuses on further supply chain
efficiencies, leveraging global procurement and a more integrated shared service
centre model, all enabled by next generation technology including digital tools
and data and analytics.
During 2024, as part of this efficiency programme, the Group announced
restructuring proposals. These proposals resulted in restructuring charges of
€10 million and €254 million within reported cost of sales and reported operating
expenses, respectively, for the year ended 31 December 2024. The most notable
announcement took place on 1 October 2024 relating to restructuring initiatives
implemented in Germany, more specifically, the closure of a production facility in
Cologne, as well as planned changes and optimisations in the logistical network
resulting in the closure of several logistical sites. These initiatives attributed a
total restructuring expense of €108 million, mainly comprised of expected
severance payments recognised in reported operating expenses. The rest of the
restructuring spend is attributable to various initiatives implemented across
different markets aiming to enhance efficiency and productivity.
Restructuring charges of €9 million and €85 million were recognised within
reported cost of sales and reported operating expenses, respectively, for the
year ended 31 December 2023, related principally to severance charges arising
from various transformation initiatives.
Effective tax rate
The reported effective tax rate was 25% and 24% for the years ended
31 December 2024 and 31 December 2023, respectively.
The increase in the reported effective tax rate to 25% in 2024 (2023: 24%) reflects
the impact of non-UK operations which is substantially offset by prior period
adjustments.
The comparable effective tax rate was 25% and 24% for the years ended
31 December 2024 and 31 December 2023, respectively.
Income tax
In millions of €
Year ended 31 December
2024
2023
As reported
492
534
Adjust: Total items impacting comparability
126
4
Adjust: Restructuring charges(A)
70
15
Adjust: European flooding(B)
—
(2)
Adjust: Acquisition and integration related costs(C)
2
—
Adjust: Inventory step-up(D)
2
—
Adjust: Coal royalties(E)
—
(6)
Adjust: Property sale(F)
—
(16)
Adjust: Litigation (G)
1
5
Adjust: Impairment(H)
35
—
Adjust: Accelerated amortisation (I)
16
8
Comparable
618
538
A. Amounts represent the tax impact of restructuring charges related to business transformation activities.
B. Amounts represent the tax impact of the incremental expense incurred as a result of the July 2021 flooding events, which
impacted the operations of our production facilities in Chaudfontaine and Bad Neuenahr, for the year ended
31 December 2024 and the incremental expense incurred offset by the insurance recoveries collected for the year ended
31 December 2023.
C. Amounts represent the tax impact of cost associated with the acquisition and integration of CCBPI.
D. Amounts represent the tax impact of the non-recurring impact of fair value step-up of CCBPI inventories.
E. Amounts represent the tax impact of royalty income arising from the ownership of certain mineral rights in Australia. The
royalty income was recognised as “Other income” in our consolidated income statement for the year ended
31 December 2023.
F. Amounts represent the tax impact of gains mainly attributable to the sale of property in Germany. The gains on disposal
were recognised as “Other income” in our consolidated income statement for the year ended 31 December 2023.
G. Amounts represent the tax impact related to the increase in a provision established in connection with an ongoing labour
law matter in Germany.
H. Amounts represent the tax impact of the expense recognised in relation to the impairment of the Group’s Indonesia cash
generating unit and the impairment of the Feral brand, which was sold during the year ended 31 December 2024.
I. Amounts represent the tax impact of accelerated amortisation charges associated with the discontinuation of the
relationship between CCEP and Beam Suntory upon expiration of the current contractual agreements.
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Business and financial review continued
Return on invested capital
ROIC is used as a measure of capital efficiency and reflects how well the Group
generates comparable operating profit relative to the capital invested in the
business. For the year ended 31 December 2024, ROIC decreased by 140 basis
points, to 8.1%, versus 2023. On a comparable basis, ROIC increased by 80 basis
points versus 2023, reflecting the increase in comparable operating profit and
continued focus on capital allocation. On an adjusted comparable basis, which
adjusts both invested capital and comparable operating profit to reflect the
acquisition date as at 1 January 2024, ROIC increased by 50 basis points to 10.8%,
versus prior year.
ROIC
In millions of €
Year ended 31 December
2024
2023
Reported profit after tax
1,444
1,669
Taxes
492
534
Finance costs, net
187
120
Non-operating items
9
16
Reported operating profit
2,132
2,339
Items impacting comparability(A)
531
34
Comparable operating profit(A)
2,663
2,373
Taxes(B)
(667)
(570)
Non-controlling interest
(29)
—
Comparable operating profit after tax attributable to shareholders
1,967
1,803
Opening borrowings less cash and cash equivalents and short-
term investments
9,409
10,264
Opening equity attributable to shareholders
7,976
7,447
Opening invested capital
17,385
17,711
Closing borrowings less cash and cash equivalents and short-
term investments
9,618
9,409
Closing equity attributable to shareholders
8,489
7,976
Closing invested capital
18,107
17,385
Average invested capital
17,746
17,548
ROIC
8.1%
9.5%
Comparable ROIC
11.1%
10.3%
A. Reconciliation from reported to comparable operating profit is included in the Supplementary Financial Information -
Items impacting comparability section on page 91.
B. Tax rate used is the comparable effective tax rate for the year (2024: 25%; 2023: 24%).
Adjusted comparable ROIC
In millions of €
Year ended 31
December
2024
Reported profit after tax
1,444
Taxes
492
Finance costs, net
187
Non-operating items
9
Reported operating profit
2,132
Add: Adjusted operating profit impact(A)
12
Adjust: Acquisition accounting(B)
(2)
Adjusted operating profit
2,142
Items impacting comparability(C)
531
Adjusted comparable operating profit(C)
2,673
Taxes(D)
(670)
Non-controlling interest
(31)
Adjusted comparable operating profit after tax attributable to shareholders
1,972
Opening borrowings less cash and cash equivalents and short-term
investments(E)
10,536
Opening equity attributable to shareholders(E)
7,976
Opening invested capital
18,512
Closing borrowings less cash and cash equivalents and short-term
investments
9,618
Closing equity attributable to shareholders
8,489
Closing invested capital
18,107
Average invested capital
18,310
Adjusted comparable ROIC
10.8%
A. Amounts represent unaudited operating profit of CCBPI as if the Acquisition had occurred on 1 January, including
acquisition accounting adjustments and CCEP IFRS accounting policy reclassifications.
B. Amounts represent transaction accounting adjustments as if the Acquisition had occurred on 1 January. These include the
depreciation and amortisation impact relating to fair values for intangibles and property, plant and equipment.
C. Reconciliation from reported to comparable and to adjusted comparable operating profit is included in the Supplementary
Financial Information - Items impacting comparability section on pages 91-93.
D. Tax rate used is the comparable effective tax rate for the year (2024: 25%; 2023: 24%).
E. In light of the CCBPI acquisition and in order to provide investors with a more meaningful measure of capital efficiency for
2024, an adjusted comparable ROIC measure has been presented for the year ended 31 December 2024. To derive this
adjusted comparable measure, opening borrowings, cash and cash equivalents and short-term investments, and equity
attributable to shareholders were adjusted to reflect transaction accounting adjustments, the impact of debt financing
and cash flows in connection with the acquisition, as if the transaction had occurred on 1 January 2024.
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Liquidity and capital management
Liquidity
Liquidity risk is actively managed to ensure we have sufficient funds to satisfy
our commitments as they fall due. Our sources of capital include, but are not
limited to, cash flows from operating activities, public and private issuances of
debt securities, and bank borrowings. We believe our operating cash flow, cash
on hand and available short- and long-term capital resources are sufficient to
fund our working capital requirements, scheduled borrowing payments, interest
payments, capital expenditures, benefit plan contributions, income tax
obligations and dividends to shareholders for both the next 12 months and the
longer-term period thereafter. Counterparties and instruments used to hold
cash and cash equivalents are continuously assessed, with a focus on
preservation of capital and liquidity. Based on information currently available, the
Group does not believe it is at significant risk of default by its counterparties.
The Group has amounts available for borrowing under a €1.80 billion multi
currency credit facility (2023: €1.80 billion) with a syndicate of 12 banks.
This credit facility matures in 2030 and is for general corporate purposes and
supporting the Group’s working capital needs. Based on information currently
available, there is no indication that the financial institutions participating in this
facility would be unable to fulfil their commitments to the Group as at the date
of this report. The Group’s current credit facility contains no financial covenants
that would impact its liquidity or access to capital. As at 31 December 2024, the
Group had no amounts drawn under this credit facility.
Net cash flows from operating activities were €3,061 million in 2024, an increase
of 9.1%, or €255 million, from €2,806 million in 2023, reflecting the impact of the
newly acquired CCBPI operations, increased revenue performance and working
capital improvement initiatives. These cash flows were primarily generated from
our operations and included restructuring cash outflows of €105 million. In 2024,
we continued to monitor our investment in capital expenditure programmes,
given continued uncertainty. Our 2024 capital spend, which includes CCBPI from
the date of the acquisition, on property, plant and equipment and capitalised
software as part of our business capability programme was €939 million,
compared to €812 million in 2023. Comparable free cash flow generation for the
year was strong, totalling €1,817 million, after adjusting for €12 million cash taxes
paid in connection with the cash proceeds received in 2023 related to the royalty
income arising from the ownership of certain mineral rights n Australia. The
increase relative to our 2023 total of €1,734 million was largely driven by the
inclusion of CCBPI and working capital improvement initiatives.
Comparable free cash flow
In millions of €
Year ended 31 December
2024
2023
Net cash flows from operating activities
3,061
2,806
Less: Purchases of property, plant and equipment
(791)
(672)
Less: Purchases of capitalised software
(148)
(140)
Add: Proceeds from sales of property, plant and equipment
15
101
Less: Payments of principal on lease obligations
(157)
(148)
Less: Net interest payments
(175)
(124)
Adjust: Items impacting comparability(A)
12
(89)
Comparable free cash flow
1,817
1,734
A. During the year ended 31 December 2023, the Group received net of tax cash proceeds of €89 million in connection with
the royalty income arising from the ownership of certain mineral rights in Australia. During the year ended 31 December
2024, the Group paid a further €12 million of cash taxes in connection with those proceeds. The cash impacts associated
with those specific events have been included within the Group’s net cash flows from operating activities for the years
ended 31 December 2024 and 31 December 2023, respectively. Given the unusual nature and to allow for better period to
period comparability, our comparable free cash flow measure excludes the cash impact related to those items.
In 2024, total borrowings decreased by €65 million. This was driven by
repayments on third party borrowings of €1,207 million and payments on the
principal and interest from lease obligations of €178 million, partially offset by
proceeds from third party borrowings of €1,008 million. Movement as a result of
fair value hedges resulted in an increase of borrowings by €29 million.
Borrowings further increased due to additions and other movements on leases
of €188 million, borrowings and leases assumed as part of the Acquisition of
€69 million and currency translation and other non-cash changes of €26 million.
The following bonds were repaid on maturity: A$100 million 3.5% Notes, repaid in
April 2024; €500 million 1.125% Notes and US$650 million 0.8% Notes, both repaid
in May 2024. In 2024, the Group partially repaid PHP2.5 billion related to
PHP3.5 billion 6.00% 2025 Loan assumed as part of the Acquisition. In February
2024, in connection with the Acquisition, the Group entered into a term loan
facility agreement with the Bank of Philippine Islands. A term loan facility in an
aggregate amount of US$500 million was made available under the agreement to
be utilised in PHP. On 20 February 2024, the Group drew down a PHP23.5 billion
(US$420 million) loan under the facility with a maturity date of 20 February 2034.
The vast majority of the balance (90% of the total principal amount) is repayable
in full upon maturity. In April 2024, the remaining undrawn portion of this facility
was subsequently cancelled. In September 2024, the Group issued €600 million
3.250% Notes due 2032. In December 2024, the Group entered into a short-term
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loan agreement with Metropolitan Bank and Trust Company and drew down
PHP2.0 billion payable in full upon maturity in December 2025.
Capital management
The primary objective of our capital management strategy is to ensure strong
ratings and to maintain appropriate capital ratios to support our business and
maximise shareholder value. Our credit ratings are periodically reviewed by rating
agencies. We regularly assess debt and equity capital levels against our stated
policy for capital structure. Our capital structure is managed and, as appropriate,
adjusted in light of changes in economic conditions and our financial policy.
Net debt
In millions of €
Year ended 31 December
2024
2023
Total borrowings
11,331
11,396
Fair value of hedges related to borrowings(A)
36
28
Other financial assets/liabilities(A)
18
20
Adjusted total borrowings(A)
11,385
11,444
Less: cash and cash equivalents(B)(C)
(1,563)
(1,419)
Less: short-term investments(D)
(150)
(568)
Net debt
9,672
9,457
Credit ratings
As of 20 March 2025
Moody’s
Fitch Ratings
Long-term rating
Baa1
BBB+
Outlook
Stable
Stable
Note: Our credit ratings can be materially influenced by a number of factors including, but not limited to, acquisitions,
investment decisions and working capital management activities of TCCC and/or changes in the credit rating of TCCC. A credit
rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
A. Net debt includes adjustments for the fair value of derivative instruments used to hedge both currency and interest rate
risk on the Group’s borrowings. In addition, net debt also includes other financial assets/liabilities relating to cash
collateral pledged by/to external parties on hedging instruments related to borrowings.
B. Cash and cash equivalents as at 31 December 2024 and 31 December 2023 includes €36 million and €42 million of cash in
Papua New Guinea Kina, respectively. Presently, there are government-imposed currency controls which impact the extent
to which the cash held in Papua New Guinea can be converted into foreign currency and remitted for use elsewhere in the
Group.
C. Cash and cash equivalents as at 31 December 2024 includes €10 million (31 December 2023: nil) of cash held by the
Group’s Employee Benefit Trust. The funds can be solely used for the purchases of CCEP shares to satisfy the Group’s
award requirements under its current and future share-based compensation plans.
D. Short-term investments are term cash deposits with maturity dates when acquired of greater than three months and less
than one year. These short-term investments are held with counterparties that are continually assessed with a focus on
preservation of capital and liquidity. Short-term investments as at 31 December 2024 and 31 December 2023 include
€18 million and €33 million of assets in Papua New Guinea Kina, respectively, subject to the same currency controls outlined
above.
The ratio of net debt to comparable EBITDA is used by investors, analysts and
credit rating agencies to analyse our operating performance in the context of
targeted financial leverage, and so we provide a reconciliation of this measure.
Net debt enables investors to see the economic effect of total borrowings, fair
value impact of related hedges and other financial assets/liabilities, cash and
cash equivalents, and short-term investments in total. Comparable EBITDA
is calculated as EBITDA after adding back items impacting the comparability
of year over year financial performance.
Comparable EBITDA does not reflect our cash expenditures, or future
requirements for capital expenditures or contractual commitments. Further,
comparable EBITDA does not reflect changes in, or cash requirements for,
our working capital needs, and, although depreciation and amortisation are
non-cash charges, the assets being depreciated and amortised are likely
to be replaced in the future and comparable EBITDA does not reflect cash
requirements for such replacements.
Net debt to comparable EBITDA
Comparable EBITDA in 2024 totalled €3.5 billion and increased relative to 2023
by €397 million. The increase versus 2023 was primarily driven by the increase in
comparable operating profit, reflecting increased revenue and the inclusion of
CCBPI. The ratio of net debt to comparable EBITDA is 2.7 versus 3.0 in 2023,
reflecting the increase in net debt due to the impact of acquisition financing,
more than offset by the increase in comparable EBITDA.
For 2024, we have provided an adjusted calculation for our net debt to
comparable EBITDA ratio as if the Acquisition had occurred at the beginning of
2024. We believe this calculation allows for a better understanding of our capital
position in the context of CCEP. Adjusted comparable EBITDA was €3.5 billion
and the ratio of net debt to adjusted comparable EBITDA is 2.7.
Dividends
In line with our commitments to deliver long-term value to shareholders,
we paid a first half interim dividend of €0.74 per share in May 2024 and a second
half interim dividend of €1.23 per share in December 2024, based on comparable
diluted earnings per share, maintaining a payout ratio of approximately 50% in line
with our dividend policy. For the year ended 31 December 2024, dividend
payments totalled €910 million (2023: €841 million).
Share buyback
No Shares were repurchased in 2024 and 2023.
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Comparable EBITDA
In millions of €
Year ended 31 December
2024
2023
Reported profit after tax
1,444
1,669
Taxes
492
534
Finance costs, net
187
120
Non-operating items
9
16
Reported operating profit
2,132
2,339
Depreciation and amortisation
933
792
Reported EBITDA
3,065
3,131
Items impacting comparability
Restructuring charges(A)
247
83
Acquisition and integration related costs(B)
14
12
Litigation(C)
3
17
European flooding(D)
1
(9)
Property sale(E)
—
(54)
Sale of sub-strata and associated mineral rights(F)
—
(35)
Coal royalties(G)
—
(18)
Inventory step-up(H)
5
—
Impairment(I)
189
—
Comparable EBITDA
3,524
3,127
Net debt to reported EBITDA
3.2
3.0
Net debt to Comparable EBITDA
2.7
3.0
A. Amounts represent restructuring charges related to business transformation activities, excluding accelerated
depreciation included in the depreciation and amortisation line.
B. Amounts represent cost associated with the acquisition and integration of CCBPI.
C. Amounts relate to the increase in a provision established in connection with an ongoing labour law matter in Germany.
D. Amounts represent the incremental expense incurred as a result of the July 2021 flooding events, which impacted the
operations of our production facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December 2024 and the
incremental expense incurred offset by the insurance recoveries collected for the year ended 31 December 2023.
E. Amounts represent gains mainly attributable to the sale of property in Germany. The gains on disposal were recognised as
“Other income” in our consolidated income statement for the year ended 31 December 2023.
F. Amounts represent the considerations received relating to the sale of the sub-strata and associated mineral rights in
Australia. The transaction completed in April 2023 and the proceeds were recognised as “Other income” in our
consolidated income statement for the year ended 31 December 2023.
G. Amounts represent royalty income arising from the ownership of certain mineral rights in Australia. The royalty income was
recognised as “Other income” in our consolidated income statement for the year ended and 31 December 2023.
H. Amounts represent the non-recurring impact of fair value step-up of CCBPI inventories.
I. Amounts represent the expense recognised in relation to the impairment of the Group’s Indonesia cash generating unit
and the impairment of the Feral brand, which was sold during the year ended 31 December 2024.
Adjusted comparable EBITDA
In millions of €
Year ended 31 December
2024
Reported profit after tax
1,444
Taxes
492
Finance costs, net
187
Non-operating items
9
Reported operating profit
2,132
Add: Adjusted operating profit impact(A)
12
Adjust: Acquisition accounting(B)
(2)
Adjusted operating profit
2,142
Depreciation and amortisation(C)
945
Adjusted EBITDA
3,087
Items impacting comparability
Restructuring charges(D)
247
Acquisition and integration related costs(E)
14
Litigation(F)
3
European flooding(G)
1
Inventory step-up(H)
5
Impairment(I)
189
Adjusted comparable EBITDA
3,546
Net debt to adjusted EBITDA
3.1
Net debt to adjusted comparable EBITDA
2.7
A. Amounts represent unaudited operating profit of CCBPI as if the acquisition had occurred on 1 January, including
acquisition accounting adjustments and CCEP IFRS accounting policy reclassifications.
B. Amounts represent transaction accounting adjustments as if the acquisition had occurred on 1 January. These include the
depreciation and amortisation impact relating to fair values for intangibles and property, plant and equipment, the non-
recurring impact of the provisional fair value step-up of CCBPI finished goods and acquisition and integration related costs.
C. Includes the depreciation and amortisation impact relating to fair values for intangibles and property, plant and
equipment as if the acquisition had occurred on 1 January.
D. Amounts represent restructuring charges related to business transformation activities, excluding accelerated
depreciation included in the depreciation and amortisation line.
E. Amounts represent cost associated with the acquisition and integration of CCBPI.
F. Amounts relate to the increase in a provision established in connection with an ongoing labour law matter in Germany.
G. Amounts represent the incremental expense incurred as a result of the July 2021 flooding events, which impacted the
operations of our production facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December 2024 and the
incremental expense incurred offset by the insurance recoveries collected for the year ended 31 December 2023.
H. Amounts represent the non-recurring impact of fair value step-up of CCBPI inventories.
I. Amounts represent the expense recognised in relation to the impairment of the Group’s Indonesia cash generating unit
and the impairment of the Feral brand, which was sold during the year ended 31 December 2024.
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2024 Annual Report and Form 20-F
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Business and financial review continued
Supplementary financial information – Items impacting comparability – Reported to comparable
The following provides a summary reconciliation of items impacting comparability for the years ended 31 December 2024 and 31 December 2023:
Full year 2024
Iin millions of € except per share data
which is calculated prior to rounding
Operating profit
Profit after taxes
Diluted earnings
per share (€)
As reported
2,132
1,444
3.08
Items impacting comparability
531
405
0.87
Restructuring charges(A)
264
194
0.43
Acquisition and integration related costs(B)
14
12
0.02
European flooding(C)
1
1
—
Inventory step-up(D)
5
3
—
Impairment(E)
189
154
0.34
Litigation(F)
3
2
—
Accelerated amortisation(G)
55
39
0.08
Comparable
2,663
1,849
3.95
Full year 2023
In millions of € except per share data
which is calculated prior to rounding
Operating profit
Profit after taxes
Diluted earnings
per share (€)
As reported
2,339
1,669
3.63
Items impacting comparability
34
32
0.08
Restructuring charges(A)
94
79
0.18
Acquisition and integration related costs(B)
12
14
0.03
European flooding(C)
(9)
(7)
(0.02)
Coal royalties(H)
(18)
(12)
(0.03)
Property sale(I)
(54)
(38)
(0.08)
Litigation(F)
17
12
0.03
Accelerated amortisation(G)
27
19
0.04
Sale of sub-strata and associated mineral rights(J)
(35)
(35)
(0.07)
Comparable
2,373
1,701
3.71
A. Amounts represent restructuring charges related to business transformation activities.
B. Amounts represent cost associated with the acquisition and integration of CCBPI.
C. Amounts represent the incremental expense incurred as a result of the July 2021 flooding events, which impacted the
operations of our production facilities in Chaudfontaine and Bad Neuenahr, for the year ended 31 December 2024 and the
incremental expense incurred offset by the insurance recoveries collected for the year ended 31 December 2023.
D. Amounts represent the non-recurring impact of fair value step-up of CCBPI inventories.
E. Amounts represent the expense recognised in relation to the impairment of the Group’s Indonesia cash generating unit
and the impairment of the Feral brand, which was sold during the year ended 31 December 2024.
F. Amounts relate to the increase in a provision established in connection with an ongoing labour law matter in Germany.
G. Amounts represent accelerated amortisation charges associated with the discontinuation of the relationship between
CCEP and Beam Suntory upon expiration of the current contractual agreements.
H. Amounts represent royalty income arising from the ownership of certain mineral rights in Australia. The royalty income was
recognised as “Other income” in our consolidated income statement for the year ended 31 December 2023.
I. Amounts represent gains mainly attributable to the sale of property in Germany. The gains on disposal were recognised as
“Other income” in our consolidated income statement for the year ended 31 December 2023.
J. Amounts represent the considerations received relating to the sale of the sub-strata and associated mineral rights in
Australia. The transaction completed in April 2023 and the proceeds were recognised as “Other income” in our
consolidated income statement for the year ended 31 December 2023.
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2024 Annual Report and Form 20-F
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Supplementary financial information – Items impacting comparability – Reported to adjusted comparable
The following provides a summary reconciliation for CCEP’s reported results and adjusted comparable financial information for the year ended 31 December 2024
and 31 December 2023:
Year ended 31 December 2024
In millions of € except per share
data which is calculated prior to
rounding
Reported
Items
impacting
comparability(A)
Comparable
Adjusted
comparable(B)
Transaction
accounting
adjustments(C)
Adjusted
comparable
combined
CCEP
CCEP
CCBPI
CCEP
CCEP
Revenue
20,438
—
20,438
268
—
20,706
Cost of sales
13,227
(72)
13,155
214
—
13,369
Operating profit
2,132
531
2,663
10
—
2,673
Total finance costs, net
187
—
187
3
—
190
Profit after taxes
1,444
405
1,849
5
—
1,854
Attributable to:
Shareholders
1,418
402
1,820
3
—
1,823
Non-controlling interest
26
3
29
2
—
31
Diluted earnings per
share (€)
3.08
3.95
3.96
Diluted weighted
average shares
outstanding
461
Year ended 31 December 2023
In millions of € except per share
data which is calculated prior to
rounding
Reported
Items
impacting
comparability(A)
Comparable
Adjusted
comparable(B)
Transaction
accounting
adjustments(C)
Adjusted
comparable
combined
CCEP
CCEP
CCBPI
CCEP
CCEP
Revenue
18,302
—
18,302
1,744
—
20,046
Cost of sales
11,582
(6)
11,576
1,382
—
12,958
Operating profit
2,339
34
2,373
100
—
2,473
Total finance costs, net
120
—
120
28
26
174
Profit after taxes
1,669
32
1,701
51
(19)
1,733
Attributable to:
Shareholders
1,669
32
1,701
31
(19)
1,713
Non-controlling interest
—
—
—
20
—
20
Diluted earnings per
share (€)
3.63
3.71
3.73
Diluted weighted
average shares
outstanding
459
A. Amounts represent items affecting the comparability of CCEP’s year over year financial performance.
B. Amounts represent unaudited results of CCBPI as if the acquisition had occurred on 1 January, including acquisition
accounting adjustments, CCEP IFRS accounting policy reclassifications and the impact of debt financing costs in
connection with the acquisition, excluding items impacting comparability.
C. Amounts represent transaction accounting adjustments for the 12 months ending 31 December 2023 as if the acquisition
had occurred on 1 January 2023 comprising finance costs from CCEP acquisition financing. Tax rate used is 24%, in line with
the Group's effective tax rate for the year ended 31 December 2023. Separate financing adjustment is included within
CCBPI Adjusted comparable.
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The table below illustrates the impact of adjustments made to CCBPI in order to
present them on a basis consistent with CCEP’s accounting policies and including
acquisition accounting adjustments.
Year ended 31 December 2023
Iin millions of €
Historical
CCBPI(A)
Reclassifications(B)
Historical
adjusted
CCBPI
Transaction
accounting
adjustments(C)
Items
impacting
comparability(D)
Adjusted
comparable
Revenue
1,757
(1)
1,756
—
(12)
1,744
Cost of sales
1,380
(2)
1,378
17
(13)
1,382
Operating profit
124
(3)
121
(21)
—
100
Total finance costs, net
—
(2)
(2)
29
1
28
Profit after taxes
90
—
90
(39)
—
51
A. Historical unaudited CCBPI results for the period 1 January 2023 to 31 December 2023.
B. Accounting policy and classification adjustments made to CCBPI in order to present on a basis consistent with CCEP IFRS
accounting.
C. Amounts represent transaction accounting adjustments for the 12 months ending 31 December 2023 as if the acquisition
had occurred on 1 January 2023, and mainly include incremental depreciation and amortisation impact relating to fair
values for intangibles and property, plant and equipment, inventory step-up costs, an increase in total finance costs as a
result of local financing in the Philippines related to the acquisition and the inclusion of acquisition and integration related
costs.
D. Amounts represent one-time items identified by CCBPI which are not expected to recur, and mainly include inventory
step-up costs, acquisition and integration related costs and the impact from the reversal of certain provisions.
Operating profit by segment
Operating profit Europe
In millions of €. FX impact calculated
by recasting current year results at prior year rates.
Year ended 31 December
2024
2023
% Change
As reported
1,769
1,842
(4.0%)
Adjust: Total items impacting
comparability
246
46
n/a
Comparable
2,015
1,888
6.7%
Adjust: Impact of FX changes
(13)
n/a
n/a
Comparable and FX neutral
2,002
1,888
6.0%
Adjusted operating profit APS
In millions of €. FX impact calculated
by recasting current year results at prior year rates.
Year ended 31 December
2024
2023
% Change
As reported
363
497
(27.0%)
Add: Adjusted operating profit impact
12
121
n/a
Adjust: Acquisition accounting
(2)
(21)
Adjust: Total items impacting
comparability
285
(12)
Adjusted comparable
658
585
12.5%
Adjust: Impact of FX changes
12
n/a
n/a
Adjusted comparable and FX neutral
670
585
14.5%
The Company’s Strategic Report is set out on pages 1-93. The Strategic Report
was approved by the Board on 21 March 2025 and signed on its behalf by
Damian Gammell
Chief Executive Officer
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GOVERNANCE
AND DIRECTORS’
REPORT
In this section
95
96
98
103
106
118
119
122
123
130
131
132
132
134
135
136
149
153
Chairman’s introduction
Board of Directors
Directors’ biographies
Senior management
Corporate governance report
Nomination Committee Chairman’s letter
Nomination Committee report
Audit Committee Chairman’s letter
Audit Committee report
ESG Committee Chairman’s letter
ESG Committee report
Directors’ remuneration report
Statement from the Remuneration
Committee Chairman
Overview of remuneration policy
Remuneration at a glance
Annual report on remuneration
Directors’ report
Directors’ responsibilities statement
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
94
A strong corporate governance
framework is essential to the
long-term sustainable growth
of our business”
2024 was another busy year for the
Board.
It is important for the Board to
understand the business and, where
possible, to meet management and our
employees and see the business first
hand. We, therefore, took the
opportunity to meet our new
colleagues in the Philippines in March.
We gained valuable first hand insight
into the Philippines business through
site visits and market tours and it was
encouraging to see high levels of
engagement at our first Philippines
employee townhall.
Integration of the Philippines business
into CCEP was a key priority during the
year and positive progress has been
made in establishing a strong alignment
of people, culture and leadership.
Culture
The Board plays an integral role in
shaping a culture which encourages
collaboration, diversity and inclusivity.
During the year, we have realigned our
cultural strategy, policies and
practices to reflect the global growth
of our business and ensure our values
align with our strategic objectives.
Detail on how the Board monitors
culture can be found on pages 115 - 116
Succession planning
To do this we need to continue to have
great people managing the business, and
strong succession planning is important
for both the ELT and the Board.
Developing a strong and diverse
pipeline of future senior leaders has
been high on CCEP’s agenda, with
several initiatives this year. This was
demonstrated by the seamless
transition of CFOs from Nik Jhangiani to
Ed Walker, as well as being able to fill
two other vacancies on the ELT with
excellent internal candidates.
The Nomination Committee has also
continued to drive the right Board
refreshment to meet needs identified
by our skills matrix. We were delighted
to welcome Guillaume Bacuvier to the
Board in January 2024 and to benefit
from his experience in data and
technology.
We will be sorry to lose Dagmar
Kollmann who will retire from the Board
in May 2025. She has been a valued
Board member throughout her tenure.
However, we look forward to
welcoming Robert Appleby to the
Board with effect from the conclusion
of the 2025 AGM.
For more detail on Board and ELT
changes see page 119-120
Board performance review
We again conducted a review of the
effectiveness of the Board and its
Committees supporting our continuous
improvement. In line with UK Corporate
Governance Code requirements to
appoint an external board evaluator at
least once every three years, this year
the process was led by Dr Tracy Long
of Boardroom Review. The Board
discussed the feedback and agreed a
clear action plan as a result.
An overview of the Board performance
review process and findings can be
found on pages 113 - 114
Committee terms of reference
We brought this thinking into the review
of the Committee terms of reference.
It is important to give each Committee
a clear remit that reflects the current
requirements of the Board and the
business in a fast-changing world,
aligns with best practice, and meets
regulatory requirements, including the
UK Corporate Governance Code.
Stakeholders and sustainability
The Board continues to recognise the
importance of engaging effectively
with our stakeholders. This helps the
business become more sustainable in
every sense and it is important to the
long term success of the business. The
ESG and Audit Committees have been
also monitoring and ensuring
compliance with the complex changing
reporting requirements on
sustainability.
Transfer to ESCC category
The Board successfully applied to
transfer CCEP’s London listing to the
new equity shares (commercial
companies) category, enabling
subsequent inclusion in the FTSE 100
Index from March 2025. The Board
believes that this will make CCEP
accessible to a wider potential investor
base.
A summary of the Board's decision
making process can be found on
page 65
Looking forward to 2025
We will continue to use good
governance to guide us in meeting the
challenges and taking the opportunities
to promote the success of CCEP for
the benefit of all our shareholders.
Sol Daurella
Chairman
21 March 2025
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Other
Information
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2024 Annual Report and Form 20-F
95
Chairman’s introduction
Our Board of Directors(A) is diverse,
experienced and knowledgeable,
bringing together the skills needed
for our long-term success in line
with our skills matrix.
Total number of Directors
on the Board♦
17
Independent Directors
on the Board(B)♦
9
Women on the Board
6
A. Based on Directors as at 10 March 2025.
B. Excluding the Chairman. Representing 53% of the full
Board.
Strategic
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Governance and
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Financial
Statements
Further Sustainability
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Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
96
Board of Directors♦
ESRS 2 GOV-1
ESRS
1. Sol Daurella 2. Damian Gammell 3. Manolo Arroyo 4. Guillaume Bacuvier 5. John Bryant 6. José Ignacio Comenge
7. Nathalie Gaveau 8. Álvaro Gómez-Trénor Aguilar 9. Mary Harris 10. Thomas H. Johnson 11. Dagmar Kollmann
12. Alfonso Líbano Daurella 13. Nicolas Mirzayantz 14. Mark Price 15. Nancy Quan 16. Mario Rotllant Solá 17. Dessi Temperley
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Other
Information
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2024 Annual Report and Form 20-F
97
Board of Directors
Our Board consisted of
our Chairman, CEO and 15
Non-executive Directors as
at 31 December 2024.♦
Biographies of our Board
members and details of Board
and Committee changes made
during the reporting period are
set out on pages 98 - 102.
Sol Daurella
Chairman
Appointed May 2016
Committees
Key strengths/experience
• Experienced director of public
companies operating in an international
environment
• A deep understanding of fast moving
consumer goods (FMCG) and our
markets
• Extensive experience at Coca-Cola
bottling companies
• Strong international strategic and
commercial skills
• Sol and the Daurella family have been
part of the Coca-Cola system for over
70 years, when the first bottling
agreement was signed in Spain in 1951
Key external commitments
Co-Chairman and member of the
Executive Committee of Cobega, S.A.,
Executive Chairman of Olive Partners, S.A.,
director of Equatorial Coca-Cola Bottling
Company, S.L., independent non-executive
director and a member of the
Appointments and Remuneration
Committees and Chairman of the
Responsible Banking, Sustainability and
Culture Committee of Banco Santander
Previous roles
Various roles at the Daurella family’s
Coca-Cola bottling business, director of
Banco de Sabadell, Ebro Foods, Acciona
and Co-Chairman of Grupo Cacaolat
Damian Gammell
Chief Executive Officer (CEO)
Appointed December 2016
Key strengths/experience
• Strategy, risk management,
development and execution experience
• Vision, customer focus and
transformational leadership
• Developing people and teams and
promoting sustainability
• Over 25 years of leadership experience
and in depth understanding of the non-
alcoholic ready to drink industry and
within the Coca-Cola system
Key external commitments
N/A
Previous roles
Beverage Group President of Anadolu
Group and CEO of Anadolu Efes, CEO and
Managing Director of Coca-Cola İçecek
A.Ş. and a number of other senior
executive roles in the Coca-Cola system
including in Russia, Australia and Germany
Manolo Arroyo
Non-executive Director
Appointed May 2021
Committees
Key strengths/experience
• Extensive experience working in the
Coca-Cola system
• Strong operational leadership
experience in international consumer
goods groups, lived and worked in four
continents, both developed and
emerging markets
• Strategic marketing, commercial and
bottling expertise
• Served as Chief Executive Officer (CEO)
of publicly listed FMCG company
• In depth understanding of brands in
Coca-Cola system
Key external commitments
Executive Vice President and Global Chief
Marketing Officer at The Coca-Cola
Company (TCCC)
Previous roles
President of the Asia Pacific Group, Bottling
Investments Group, and Mexico business
unit of TCCC, CEO of Deoleo, S.A., Senior
Vice President and President, Asia Pacific of
S.C. Johnson & Son, Inc., President of the
ASEAN and SEWA business units of TCCC,
General Manager of the Spain business unit
of TCCC, Boards of Directors: Vice-
Chairman of Coca-Cola COFCO Bottling
China; non-executive director of
ThaiNamthip Limited and Coca-Cola Andina
and non-executive director of Effie
Strategic
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Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
98
Directors’ biographies♦
Key to Committees
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
ESRS 2 GOV-1
ESRS
Guillaume Bacuvier
Independent Non-executive Director
Appointed January 2024
Committees
Key strengths/experience
• Valuable perspectives on consumer
behaviours and strategy
• Brings a wealth of marketing
effectiveness insights from across
Europe and APAC
• Strong track record of commercial and
technological business transformation
Key external commitments
CEO of Worldpanel, Kantar’s consumer
panel market research division, and
non-executive director of Berger-Levrault
Previous roles
CEO of dunnhumby, a number of
senior positions at Google and Orange
and non-executive director of Attest
Technologies Limited and VEON Ltd
John Bryant
Independent Non-executive Director
Appointed January 2021
Committees
Key strengths/experience
• Chairman/CEO of a multinational
public company
• Expert in strategy, mergers and
acquisitions, restructuring and
portfolio transformation
• 30 years’ experience in consumer goods
• Strong track record of finance and
operational leadership, experience
in overseeing information technology
• Engaged in the cybersecurity
strategy process
Key external commitments
Chairman of the Board and of the
Nomination and Governance Committee
and member of the Remuneration
Committee of Flutter Entertainment plc,
non-executive director, Chairman of the
Remuneration Committee and member of
the Audit, Corporate Responsibility and
Nomination Committees of Compass
Group plc and non-executive director and
member of the Audit and Nominating and
Corporate Governance Committees of Ball
Corporation
Previous roles
Executive Chairman and CEO of Kellogg
Company having previously held a variety
of senior roles in the Kellogg Company,
strategy advisor at A.T. Kearney and
Marakon Associates and non-executive
director of Macy’s Inc.
José Ignacio Comenge
Non-executive Director
Appointed May 2016
Committees
Key strengths/experience
• Extensive experience of the
Coca-Cola system
• Broad board experience across
industries and sectors
• Knowledgeable about the industry
in our key market of Iberia
• Insights in formulating strategy drawn
from leadership roles in varied sectors
Key external commitments
Director of Olive Partners, S.A., ENCE
Energía y Celulosa, S.A., Compañía Vinícola
del Norte de España, S.A., Ebro Foods S.A.,
Chairman of Mendibea 2002, S.L. and
Chairman of Ball Beverage Can Iberica, S.L
Previous roles
Senior roles in the Coca-Cola system,
AXA, S.A., Aguila and Heineken Spain and
Vice-Chairman and CEO of MMA Insurance
Nathalie Gaveau
Independent Non-executive Director
Appointed January 2019
Committees
Key strengths/experience
• Successful tech entrepreneur
and investor
• Expert in e-commerce and digital
transformation, innovation, mobile,
data and social marketing
• International consumer
goods experience
Key external commitments
Non-executive director of Lightspeed
Commerce Inc., Sonepar and Senior
Advisor to BCG
Previous roles
Founder and CEO of Shopcade,
Interactive Business director of the
TBWA Tequila Group, Asia Pacific
E-business and CRM Manager for Club
Med, co-founder and Managing Director
of Priceminister, Financial Analyst for
Lazard, and non-executive director of
HEC Paris, PortAventura World and Calida
Group and President of Tailwind
International Corp, special acquisition
company
Strategic
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Governance and
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Financial
Statements
Further Sustainability
Information
Other
Information
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2024 Annual Report and Form 20-F
99
Directors’ biographies continued
Key to Committees
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Álvaro Gómez-Trénor Aguilar
Non-executive Director
Appointed March 2018
Key strengths/experience
• Broad knowledge of working in the food
and beverage industry
• Extensive understanding of the
Coca-Cola system, particularly in Iberia
• Expertise in finance and investment
banking
• Strategic and investment advisor to
businesses in varied sectors
Key external commitments
Director of Olive Partners, S.A.
Previous roles
Various board appointments in the
Coca-Cola system, including as President
of Begano, S.A., director and Chairman
of the Audit Committee of Coca-Cola
Iberian Partners, S.A., as well as key
executive roles in Grupo Pas and Garcon
Vallvé & Contreras and director of
Global Omnium (Aguas de Valencia, S.A.)
and Sinensis Seed Capital SCR de RC, S.A.
Mary Harris
Independent Non-executive Director
Appointed May 2023
Committees
Key strengths/experience
• Top level strategic outlook with
international and consumer focus
• Significant non-executive director
experience gained from other major
listed companies
• Deep understanding of remuneration
requirements gained from previous
Remuneration Committee chair roles
Key external commitments
Chair of the Remuneration Committee of
Reckitt plc, a Supervisory Board member
at HAL Holding N.V. and member of the
Corporate Governance Board Council at
INSEAD business school
Previous roles
Non-executive director at ITV plc,
Unibail-Rodamco Westfield SE,
Sainsbury’s plc, TNT Express and TNT N.V.
and Partner at McKinsey & Company
Thomas H. Johnson
Independent Non-executive Director
and Senior Independent Director
Appointed May 2016
Committees
Key strengths/experience
• Chairman/CEO of international
public companies
• Manufacturing and distribution expertise
• Extensive international management
experience in Europe
• Investment and finance experience
Key external commitments
CEO of The Taffrail Group, LLC and non-
executive director of Universal
Corporation
Previous roles
Chairman and CEO of Chesapeake
Corporation, President and CEO of
Riverwood International Corporation,
and director of Coca-Cola Enterprises,
Inc., GenOn Corporation, Mirant
Corporation, ModusLink Global Solutions,
Inc., Superior Essex Inc. and Tumi, Inc.
Dagmar Kollmann
Independent Non-executive Director
Appointed May 2019
Committees
Key strengths/experience
• Expert in finance and international
listed groups
• Thorough understanding of capital
markets and mergers and acquisitions
• Extensive commercial and investor
relations experience
• Strong executive and senior leadership
experience in global businesses
• Risk oversight and corporate
governance expertise
Key external commitments
Chairman of the Supervisory Board
of Citigroup Global Markets Europe AG,
member of the Supervisory Board of
Unibail-Rodamco-Westfield SE and
Deutsche Telekom AG, non-executive
director of Paysafe Group Limited,
and Commissioner in the German
Monopolies Commission
Previous roles
CEO and Country Head in Germany and
Austria for Morgan Stanley, member of the
boards of Morgan Stanley International
Ltd and Morgan Stanley and Co.
International Ltd in London, Associate
Director of UBS in London, non-executive
director of KfW IPEX-Bank and Deputy
Chairman of the Supervisory Boards of
Hypo Real Estate Holdings AG and
Deutsche Pfandbriefbank AG
Strategic
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Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
100
Directors’ biographies continued
Key to Committees
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Alfonso Líbano Daurella
Non-executive Director
Appointed May 2016
Committees
Key strengths/experience
• Developed the Daurella family’s
association with the Coca-Cola system
• Detailed knowledge of the Coca-Cola
system
• Insight to CCEP’s impact on
communities from experience as trustee
or director of charitable and public
organisations
• Experienced corporate social
responsibility committee chair
Key external commitments
Vice Chairman and Member of the
Executive Committee of Cobega, S.A.,
director of Olive Partners, S.A., Chairman
of Equatorial Coca-Cola Bottling Company,
S.L., Co-chair of the Polaris Committee at
United Nations and FBN, and Chair of the
Family Business Network and member of
the board of the American Chamber of
Commerce in Spain/ Vice Chair of MACBA
museum in Barcelona
Previous roles
Various roles at the Daurella family’s
Coca-Cola bottling business, Director and
Chairman of the Quality & CRS Committee
of Coca-Cola European Partners, S.A,
director of Grupo Cacaolat, S.L. and Director
of The Coca-Cola Bottling Company of
Egypt, S.A.E, member of the board of Banco
Español de Credito Banesto, Chair of Family
Business Europe and Trustee of the African
Coca-Cola Foundation
Nicolas Mirzayantz
Independent Non-executive Director
Appointed May 2023
Committees
Key strengths/experience
• Over 30 years of strategic, operational
and business transformation experience
• A deep understanding of the
FMCG industry
• Strong sustainability and ESG
experience
Key external commitments
Director of Puig S.L.
Previous roles
Various senior roles at International
Flavors & Fragrances, including President,
Nourish Division and Divisional CEO, Scent
Division. Previously served on the Board of
the International Fragrance Association
and was a Cultural Leader at the World
Economic Forum
Mark Price
Independent Non-executive Director
Appointed May 2019
Committees
Key strengths/experience
• Extensive experience in the
retail industry
• A deep understanding of
international trade
• Strong strategic and sustainable
development skills
Key external commitments
Member of the House of Lords,
Founder of WorkL, and Stour Publishing
and Perry
Previous roles
Managing Director of Waitrose
and Deputy Chairman of John Lewis
Partnership, non-executive director
and Deputy Chairman of Channel 4 TV
and Minister of State for Trade and
Investment and Trade Policy, Chair of
Business in the Community, The Prince’s
Countryside Fund and Member of
Council at Lancaster University
Nancy Quan
Non-executive Director
Appointed May 2023
Committees
Key strengths/experience
• Extensive knowledge of the
Coca-Cola system
• Significant leadership experience
spanning innovation and consumer
trends, research and development,
quality, safety, regulatory governance,
sustainability and supply chain
• Experience applicable to our expanded
geographical footprint in the APS region
Key external commitments
Executive Vice President and Global Chief
Technical and Innovation Officer at TCCC,
a member of the Liberty Mutual Group
Board of Directors, the Industry Affiliates
Advisory Board for the University of
California Davis MBA Program and the
FIRST (For Inspiration and Recognition
of Science and Technology) Executive
Advisory Board
Previous roles
Various senior roles at TCCC including
Chief Technical Officer for Coca-Cola
North America, Global Research and
Development Officer, Vice President,
Innovation, Research and Development,
General Manager for Europe and Eurasia
Group, Vice President, Research and
Development, Pacific Group, responsible
for the Shanghai, Japan and India
Research and Development Centres
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Further Sustainability
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Other
Information
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Directors’ biographies continued
Key to Committees
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Mario Rotllant Solá
Non-executive Director
Appointed May 2016
Committees
Key strengths/experience
• Extensive international experience
in the food and beverage industry
• Experience of chairing a remuneration
committee
• In-depth technical knowledge
of the Coca-Cola system and the
bottling industry
• Development of non-profit organisations
Key external commitments
Vice-Chairman of Olive Partners, S.A.,
Co-Chairman and member of the
Executive Committee of Cobega, S.A.,
Chairman of the North Africa Bottling
Company, Chairman of the Advisory Board
of Banco Santander, S.A. in Catalonia and a
director of Equatorial Coca-Cola Bottling
Company, S.L.
Previous roles
Second Vice-Chairman and member of the
Executive Committee and Chairman of the
Appointment and Remuneration Committee
of Coca-Cola Iberian Partners, S.A.
Dessi Temperley
Independent Non-executive Director
Appointed May 2020
Committees
Key strengths/experience
• Financial and technical
accounting expertise
• Strong commercial insights and
knowledge of European markets
• International consumer brands
experience
• Skilled in technology
Key external commitments
Non-executive director and Chairman
of the Audit Committee of Cimpress plc,
non-executive director and member of the
Audit, Finance and Consumer
Relationships and Regulation Committees
of Philip Morris International Inc. and
member of the Supervisory Board of
Corbion N.V.
Previous roles
Group CFO of Beiersdorf AG, member of
the Supervisory Board of Tesa SE, Head of
Investor Relations at Nestlé, CFO of
Nestlé Purina EMENA and CFO of Nestlé
South East Europe, and finance roles at
Cable & Wireless and Shell
Board and Committee
changes during 2024
Effective 1 January 2024:
• Guillaume Bacuvier was appointed to
the Board
• Nicolas Mirzayantz was appointed to
the Audit Committee
Effective 22 May 2024:
• Thomas H. Johnson stepped down as a
member of the Remuneration
Committee and was appointed as a
member of the Affiliated Transaction
Committee
• Guillaume Bacuvier was appointed as a
member of the Remuneration
Committee
2025 Board and
Committee changes
Subject to their election/re-election,
Robert Appleby will succeed Dagmar
Kollmann as an Independent Non-
executive Director and Mary Harris will
succeed Thomas H. Johnson as
Chairman of the Nomination Committee
at the conclusion of the AGM due to be
held on 22 May 2025.
Strategic
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Financial
Statements
Further Sustainability
Information
Other
Information
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Directors’ biographies continued
Key to Committees
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Read more about Robert Appleby's
experience on page 117
Our senior management
team and Damian Gammell
together constitute the
members of the Executive
Leadership Team (ELT).
Ed Walker
Chief Financial Officer (CFO)
Appointed July 2024
Ed has over 30 years of financial
experience, the majority of which
within the Coca-Cola system,
most recently as Group
Controller at CCEP prior to his
appointment as CFO. Ed has been
with CCEP since its formation and
prior to that held several roles in
the Coca-Cola system, including
CFO of the Coca-Cola bottler in
Canada. Ed’s experience over the
past decade has focused on
Group finance planning, analysis
and control, and he also has a
number of years of finance
leadership experience across
manufacturing, purchasing,
commercial, marketing and Group
functions. Ed began his career
within the Management
Development Scheme at Unilever
plc and is also a qualified
accountant.
Clare Wardle
General Counsel
and Company Secretary
Appointed July 2016
Clare leads legal, risk,
compliance, security and
company secretariat. Prior to
joining CCEP, she was Group
General Counsel and Company
Secretary at Kingfisher plc,
Commercial Director, General
Counsel and Company Secretary
at Tube Lines and held senior
roles at the Royal Mail Group. She
began her career as a barrister
before moving to Hogan Lovells.
Clare is the Senior Independent
Director of The City of London
Investment Trust plc and chair
of the Royal British Legion
Industries’ Development Board.
Clare is also an executive
sponsor of inclusion at CCEP.
José Antonio Echeverría
Chief Customer Service
and Supply Chain Officer
Appointed September 2019
José Antonio leads CCEP’s end to
end supply chain and customer
service. He is focused on
creating a superior experience
for our customers, while
delivering an expanded and
sustainable portfolio of drinks
and packaging. He has been a
part of the Coca-Cola system
since 2005, serving in multiple
roles including Vice President of
Strategy and Transformational
Projects for the Iberia business
unit, and Vice President, Strategy
and Coordination for Supply
Chain across CCEP. José Antonio
is also an executive sponsor of
inclusion at CCEP.
Peter Brickley
Chief Information Officer (CIO)
Appointed November 2016
Peter leads the business process
and technology function at CCEP,
including steering CCEP’s
investments in technology
solutions. Peter has over 25
years’ experience leading
technology for global businesses
including Heineken, Centrica and
BAT. Before CCEP, he was Global
CIO and Managing Director of
Global Business Services at
SABMiller. Peter is chair
designate of the Chorley Building
Society.
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Statements
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Information
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2024 Annual Report and Form 20-F
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Senior management
Stephen Lusk
Chief Commercial Officer
Appointed March 2021
Stephen is responsible for
advancing and shaping our
commercial strategy and
capabilities and driving our
performance in the market and
with customers. He works closely
with business unit General
Managers to build future
commercial capability and with
our franchise partners to bring
their brands and products to life.
Stephen has spent the last 30
years in the Coca-Cola system,
holding senior positions in supply
chain, sales and marketing and
general management in Europe
and Asia. Before joining CCEP, he
led the Coca-Cola bottler in
Singapore, Malaysia and Brunei.
An Vermeulen
Chief Public Affairs,
Communications and
Sustainability (PACS) Officer
Appointed September 2024
An leads CCEP’s sustainability
strategy, effective
communication with
stakeholders and employees and
engagement with media,
policymakers and communities.
An brings diverse experience to
the PACS leadership role from
her career across multiple
countries and areas of business,
most recently as Vice President
and Country Director of Belgium
and Luxembourg. She joined
CCEP almost 25 years ago. In
that time, she quickly rose to
hold a number of senior positions
in PACS, business transformation,
strategy, field sales, key account
and general management.
Véronique Vuillod
Chief People and Culture Officer
Appointed November 2020
Véronique heads CCEP’s People
and Culture function. She leads
the human capital strategies,
nurturing our people centric
organisation. Having joined the
Coca-Cola system and bottling
operations 28 years ago, she has
worked in many human resources
(HR) positions across business
units, commercial and supply
chain functions overseeing HR
strategy and partnering with
business leaders, as well as
specialist positions in talent and
leadership. She has led
transformational change
initiatives driving organisational
growth and employee experience.
She began her career as a
management consultant with
PricewaterhouseCoopers. She is
an advocate for human centred
workplaces, supports the
promotion of inclusion and well-
being, best practices in culture,
leadership, workplace, and digital
HR innovations.
Leendert den Hollander
General Manager, France-
Benelux-Nordics
Appointed September 2020
Leendert is responsible for the
France-Benelux-Nordics
Business Unit. Previously, he was
General Manager of Great Britain.
Prior to CCEP, Leendert was CEO
of Young’s Seafood and Managing
Director at Findus Group Ltd.
Earlier in his career, Leendert
spent 15 years at Procter &
Gamble in senior marketing
positions. Leendert is also an
executive sponsor of inclusion at
CCEP.
John Galvin
General Manager, Germany
Appointed June 2022
John leads CCEP’s business
unit in Germany. John joined the
business in 2019 and, prior to his
appointment as General Manager
of Germany, held the role of Vice
President, Sales and Marketing
for Germany. Previously, John
led Coca-Cola İçecek’s business
in Pakistan, and he began his
career with Diageo. He has held
sales, marketing and general
management roles across
Europe and Asia, and brings
significant international
experience and leadership in
the beverage sector to CCEP.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
104
Senior management continued
Ana Callol
General Manager, Iberia
Appointed January 2025
Ana started her career in marketing
and commercial and moved to
Public Affairs, Communications and
Sustainability (PACS) leadership
roles in the Iberian business before
becoming Chief PACS Officer. Ana is
known for her leadership on
strategic issues and significant
impact in shaping our sustainability
agenda, integrating it in the way we
do business and engage our
consumers and customers. Ana has
worked within the Coca-Cola
system for 23 years in leadership
roles across PACS, marketing,
commercial and sales, developing
the capabilities needed to succeed
as General Manager, Iberian
Business Unit.
Stephen Moorhouse
General Manager, Great Britain
Appointed September 2020
Stephen is responsible for
CCEP’s business unit in
Great Britain. He has over 25
years’ experience in the
Coca-Cola system, leading
business operations and supply
chain. Stephen has held a
number of other senior executive
roles throughout Europe, most
recently as General Manager of
Northern Europe. Prior to joining,
he worked overseas for the Swire
Group in the US and Asia Pacific
region. Stephen is a member of
the CEO Forum of the Institute
of Grocery Distribution and of the
British Soft Drinks Association.
Stephen is also an executive
sponsor of inclusion at CCEP.
Peter West
General Manager, Australia,
Pacific and South East Asia
Appointed May 2021
Peter was appointed Vice
President and General Manager
of the APS business unit in May
2021, following the acquisition of
Coca-Cola Amatil Limited. Peter
originally joined CCL as Managing
Director, Australian Beverages in
April 2018. Prior to this role, Peter
was Managing Director of
Lion’s Dairy and Drinks business in
Australia and has held several
senior roles at Arnott’s Biscuits
Ltd. and Mars Confectionery,
including Regional President for
Continental Europe for Mars
Chocolate.
ELT changes during 2024
Effective 31 March 2024:
• Victor Rufart stepped down
from his role as Chief
Integration Officer
Effective 01 July 2024:
• Ed Walker was appointed
Chief Financial Officer
following the resignation of
Nik Jhangiani. Nik supported
the transition until August
2024
Effective 01 September 2024:
• Ana Callol stepped down
from her role as Chief PACS
Officer and was appointed
Deputy General Manager,
Iberia
• An Vermeulen was appointed
as Chief PACS Officer
Effective 31 December 2024:
• Francesc Cosano stepped
down from his role as General
Manager, Iberia
2025 ELT changes
Effective 01 January 2025:
• Ana Callol assumed the role
of General Manager, Iberia
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
105
Senior management continued
Governance framework♦
Our corporate governance framework is summarised below, with further detail provided on the following pages.
Board of Directors
Chairman
Leads the Board and creates
the conditions for overall
Board and individual Director
effectiveness.
CEO
Implements the strategy
approved by the Board and
manages the business on a
day to day basis.
SID
Provides a sounding board for
the Chairman and serves as
an intermediary for the other
Directors and shareholders.
NEDs
Holds management to
account and provides
constructive challenge,
strategic guidance, external
insight and specialist advice
to the Board and its
Committees.
Company Secretary
Advises the Board on legal,
compliance and corporate
governance matters and
ensures that all Directors
have timely access to
relevant information.
Committees
Audit Committee
Assists the Board in fulfilling
its corporate governance
responsibilities relating to the
Group’s financial reporting, risk
and internal control framework
and any other matters
referred to it by the Board.
Nomination Committee
Leads the process for
appointments to the Board
and to ELT positions and
oversees wider people
matters for the Group,
including ethics and
compliance and Code of
Conduct (CoC) matters.
Remuneration Committee
Sets, monitors and reports on
the remuneration policy and
framework for the Board, ELT
and wider workforce.
Environmental, Social and
Governance (ESG)
Committee
Oversees performance
against CCEP’s strategy and
goals for ESG including
oversight of ESG-related
risks.
Affiliated Transaction
Committee (ATC)
Reviews transactions with
affiliates (i.e. holders of 5% or
more of the securities or
other ownership interests of
CCEP) and provides
recommendations regarding
them to the Board.
Read more about
our Audit Committee on
pages 122-129
Read more about
our Nomination Committee on
pages 118-121
Read more about
our Remuneration Committee on
pages 132-148
Read more about
our ESG Committee on
pages 130-131
ELT
Supports the CEO in the day to day management of the business and execution of the agreed strategy.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
106
Corporate governance report
ESRS 2 GOV-1
ESRS
Statement of compliance with the 2018 UK
Corporate Governance Code (the Code)
During the year ended 31 December
2024, CCEP has applied the principles
of the 2018 Code and complied with its
provisions, save as set out below.
A copy of the 2018 Code is available on
the Financial Reporting Council’s (FRC)
website: www.frc.org.uk/library/
standards-codes-policy/corporate-
governance/uk-corporate-governance-
code/
This year the FRC published the new
2024 Code, which will apply to CCEP
from 2025 (with the exception of
provision 29, which will apply from
2026). We have undertaken a gap
analysis between the 2018 Code and the
2024 Code in preparation for reporting
against the 2024 Code next year.
Chairman
Code provision 9
The Chairman, Sol Daurella, was not
considered independent on her
appointment. However, we benefit
from her vast knowledge of, and long-
term commitment to, the Coca-Cola
system and her extensive experience
and leadership skills gained from her
roles as director and CEO of large
public and private institutions across
many different sectors.
Remuneration
Code provision 32
The Remuneration Committee is not
composed solely of INEDs, although it
comprises a majority of INEDs. The
Shareholders’ Agreement requires that
the Remuneration Committee includes
at least one Director nominated by:
• Olive Partners, for as long as it owns
at least 15% of the Company
• European Refreshments Unlimited
Company (ER), a subsidiary of The
Coca-Cola Company (TCCC), for as
long as it owns at least 10% of the
Company
The Remuneration Committee, and its
independent Chairman, benefit from
the nominated Directors’ extensive
understanding of the Group’s market.
Code provision 33
The Remuneration Committee is not
solely responsible for setting the
remuneration of the Chairman and
CEO. Instead, the Board (excluding any
Director whose remuneration is linked
to the decision) determines their
remuneration, including the Non-
executive Directors (NEDs), on the
recommendation of the Remuneration
Committee and following rigorous
analysis and debate.
To date, the Board has followed all of
the Remuneration Committee’s
recommendations. All executives recuse
themselves from decision making when
discussing executive remuneration.
This Corporate governance report,
including the Nomination Committee,
Audit Committee, ESG Committee and
Remuneration Committee reports,
explain how we have applied the
principles and complied with the
provisions of the Code.
Board leadership and company purpose
The Board
96 - 102
Purpose, culture and values
115 - 116
Resources and control framework
5, 66 - 67
and 106
Stakeholder engagement
61 - 64
Workforce policies and practices
14 - 17
Division of responsibilities
Role of the Chairman
8 and 106
Division of responsibilities
106
Role of the Non-executive Directors
106
Operation of the Board
108 - 109
Composition, succession and evaluation
Appointments to the Board
118 - 120
Board skills, experience and knowledge 96 - 102
Performance evaluation
113 - 114
Audit, risk and internal control
Independence and effectiveness
of internal and external auditors
127 - 128
Fair, balanced and understandable
assessment
153
Risk and internal controls
76 and 129
Remuneration
Alignment to purpose, values and
long-term success
134
Implementation of remuneration
policy
136 - 148
Independent judgement and
discretion
132 - 134
Differences between the Code and the
Nasdaq corporate governance rules (the
Nasdaq Rules)
The Company is a “foreign private
issuer” (FPI) as defined under US
securities law. It is therefore exempt
from most of the Nasdaq Rules that
apply to domestic US companies,
because of its compliance with the
Code. Under the Nasdaq Rules, the
Company is required to disclose
differences between its corporate
governance practices and those
followed by domestic US companies
listed on Nasdaq. The differences are
summarised below.
Director independence
The Nasdaq Rules require a majority of
the Board to be independent whille the
Code requires at least half of the
Board (excluding the Chairman) to be
independent.
Board Committees
CCEP has a number of Committees
whose purpose and composition are
broadly comparable to the
requirements of the Nasdaq Rules for
domestic US companies. The Nasdaq
Rules, however, require that only the
Audit Committee of an FPI be all
independent. Accordingly, CCEP’s Audit
Committee is all independent and all of
its other committees are majority
independent.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
107
Corporate governance report continued
NED meetings
The Nasdaq Rules require INEDs to
meet without the rest of the Board at
least twice a year. The Code requires
NEDs to meet without the Chairman
present at least once annually to
appraise the Chairman's performance.
The NEDs have regular meetings
without management present and,
in 2024, there were two separate
meetings of INEDs.
Nasdaq Code of Conduct
The Nasdaq Rules require domestic
US companies to adopt and disclose
a code of conduct applicable to all
directors, officers and employees.
The CCEP Code of Conduct (CoC)
applies to all employees, officers and
Directors of the Group. Our CoC seeks
to ensure that we act with integrity and
accountability in all our business
dealings and relationships. Our policies
also drive compliance with relevant
legislation.
The CoC covers issues such as anti-
bribery, data protection, environmental
regulation, human rights, health, safety,
wellbeing and respect for others. It
aligns with the UN Global Compact, the
UN Guiding Principles on Business and
Human Rights, the International Labour
Organization’s Declaration on
Fundamental Principles and Rights at
Work, the US Foreign Corrupt Practices
Act, the UK Bribery Act, the EU General
Data Protection Regulation, the
Spanish and Portuguese Criminal
Codes and Sapin II.
We also expect all third parties who
work on our behalf to act in an ethical
manner consistent with our CoC and to
comply with our Responsible Sourcing
Policy.
All employees are required to undergo
CoC training, which is also a part of the
induction process for new employees.
Training on specific topics related to
their roles is provided where needed.
Our CoC specifically calls out manager
responsibilities and includes a matrix
to help with decision making and
guidance on situations such as bullying
and harassment.
Although the Nasdaq Rules require
domestic US companies to disclose
within four business days of any
determination to grant a waiver of a
code of conduct, if the Board amends
or waives the provisions of the CoC,
details of the amendment or waiver will
appear on the website. No such waiver
or amendment has been made or given
to date.
See our CoC at view.pagetiger.com/
Code-of-Conduct-Policy
CCEP considers that the CoC and
related policies meet the Nasdaq Rules
on the codes of conduct for relevant
domestic US companies.
Corporate governance framework
The governance framework of the
Company is set out in its Articles
of Association (the Articles) and
the Shareholders’ Agreement. These
provide a high level framework for the
Company’s affairs, governance and
relationship with its stakeholders
including its shareholders.
The Articles, Shareholders’ Agreement
and frequently asked questions about
the governance framework are
available on the Company’s website at
cocacolaep.com/who-we-are/
governance/.
Role of the Board
To retain control of key decisions and
ensure there is a clear division of
responsibilities, there is a formal
schedule of matters reserved to the
Board. Reserved matters include
strategic decisions, approval of annual
and long-term business plans,
suspension, cessation or abandonment
of any material activity of the Group,
and material acquisitions and
disposals.
The Board delegates certain matters
to its Committees as set out on page
106. Each Committee has its own
written terms of reference, which are
reviewed annually. These are available
at cocacolaep.com/who-we-are/
governance/committees/.
The Board, through the Nomination
Committee, assesses and monitors the
Group’s culture to ensure it aligns with
the Group’s purpose, values and
strategy set by the Board. Read more
about our culture on pages 115-116.
Board diversity and composition
The composition of the Board and its
Committees is set out on page 111. Our
Board members have a range of
backgrounds, skills, experience and
nationalities, demonstrating a rich
cognitive diversity.
See an overview of our Directors’
skills and experience on pages 96-102
Our commitment to diversity begins at
the top with clear leadership from the
Board and is embedded at every level
of our business through our Inclusion,
Diversity and Equity policy and This is
Forward commitments.
Read more about Board diversity on
page 119
Read more about our This is Forward
on people commitments on page 22
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
108
Corporate governance report continued
Independence of Non-executive Directors
The Board reviewed the independence
of all the NEDs against the Code and
also considered the requirements of
SEC Rule 10A-3 in relation to the Audit
Committee. As discussed below, a
majority of the Board and the entirety
of the Audit Committee are
independent under both standards.
It determined that Guillaume Bacuvier,
John Bryant, Nathalie Gaveau, Mary
Harris, Thomas H. Johnson, Nicolas
Mirzayantz, Mark Price, and Dessi
Temperley are independent and
continue to make effective
contributions. At its meeting in March
2025, the Board determined that
Robert Appleby, joining the Board
subject to election at the AGM, was
also independent.
The Board recognises that the
remainder of CCEP’s NEDs, including
the Chairman, cannot be considered
independent. However, they continue
to demonstrate effective judgement
when carrying out their roles and are
clear on their obligations as Directors,
including under section 172 of the UK
Companies Act 2006 (the Companies
Act).
Conflicts of interest
The Companies Act, the Articles and
the Shareholders’ Agreement allow the
Directors to manage situational
conflicts (situations where a Director
has an interest that conflicts, or may
conflict, with our interests).
Each Director is required to declare
any interests that may give rise to a
situational conflict of interest with
CCEP on appointment and
subsequently as they arise. Directors
are required to review and confirm
their interests annually.
The ATC exists to oversee transactions
with affiliates. The Nomination
Committee considers issues involving
potential situational conflicts of
interest of Directors. The Board is
satisfied that effective systems are in
place for identifying and managing
conflicts of interest.
Controlling shareholder
Olive Partners is regarded as a
“controlling shareholder” of CCEP
under the UK Listing Rules (the UKLR) as
it holds >30% of voting rights in the
Company. The Board confirms that
CCEP continues to be able to carry on
its main business activity
independently from Olive Partners.
Board support
Board meetings are generally scheduled
at least one year in advance, with ad
hoc meetings scheduled to suit
business needs. Meetings are held
in a variety of locations, reflecting our
engagement with all aspects of our
international business.
The Chairman sets the Board agenda,
which consists of discussion topics
that align with our strategic objectives
and promote the long-term success
of CCEP.
At each Board meeting the Directors
receive reports from Committee
Chairs, business and commercial
updates from the CEO (including on
performance, people, commercial,
digital, technology, sustainability and
innovation), finance reports from the
CFO and reports covering governance
and regulatory updates from the
Company Secretary.
Before each Board meeting, the
Chairman, CEO and Company Secretary
agree on the final agenda. This covers
discussion items such as the status of
ongoing projects and stakeholder
considerations. Comprehensive briefing
papers are circulated electronically to
all Directors in advance of each
meeting, to allow time to review the
matters which are to be discussed.
Directors have access to the advice
and services of the Company
Secretary and independent
professional advice at the Company’s
expense.
Board and Committee meetings
The Board held seven formal meetings
and one strategy meeting during 2024,
with additional ad hoc meetings with
Board and Committee members held in
line with business needs.
Directors are expected to attend every
meeting. If a Director cannot attend,
the relevant papers are provided to
that Director in advance so that
comments can be given to the
Chairman or Committee Chairman, as
applicable, who relays them at the
meeting. Afterwards, the Chairman or
Committee Chairman, as applicable,
also briefs the Director on the matters
discussed.
The Chairman attends most
Committee meetings. There is cross
membership between the Audit
Committee and Remuneration
Committee. This helps ensure
remuneration outcomes align with the
underlying performance of CCEP,
reflecting CCEP’s joined up approach to
investing in and rewarding our people.
This year the Audit and ESG Committee
also collaborated on sustainability
reporting, with a particular focus on the
delivery of reporting in accordance
with ESRS guidelines.
The Board recognises the value of
fostering positive relationships and
engaging in two way communication
with our stakeholders. Understanding
the views of CCEP’s key stakeholders
forms an integral part of the Board’s
decision-making process.
Read more about about our
stakeholders on pages 61-64
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
109
Corporate governance report continued
Our strategy key
Discussion topics during 2024 and how they
align to our strategic objectives are set out below.
Great
brands
Great
people
Great
execution
Done
sustainably
Commercial
Integration and development of the Philippines business
Establishment of a new visual identity
Approval of strategic portfolio choices
People
Implementation of the Accelerate Performance 2030
leadership programme
Review of results of the Company wide engagement survey
Establishment of new policies and guidelines designed to
protect employees’ physical safety and mental wellbeing
Sustainability
Continual monitoring of progress against our sustainability
strategy
Consideration of sustainability targets in light of the
Philippines acquisition
Assessment of the expanding framework of sustainability
reporting, including reporting in accordance with ESRS
requirements
Areas of
focus
Discussion topics
Strategic
objectives
Risk
Assessment of geopolitical and customer challenges and
the wider retail environment
Consideration of technologies to combat and mitigate
cyber attacks or system blackouts
Annual Risk Assessment including opportunities,
mitigations, actions and controls
Finance
Approval of capital expenditures to drive growth in key
areas
Discussion on the capital allocation framework
Ongoing monitoring of cost of living challenges to remain
affordable and relevant to our consumers
Technology
Exploration and oversight of potential AI tools
Implementation of our digital transformation programme
Progression of strategic tech initiatives
Areas of
focus
Discussion topics
Strategic
objectives
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
110
Corporate governance report continued
Attendance for the Board and Committee meetings during 2024 is set out below.
Meeting attendance by Board and Committee members(A)
Independent or nominated by
Olive Partners or ER(B)
Board of
Directors
Affiliated
Transaction
Committee
Audit
Committee(H)
ESG
Committee(H)
Nomination
Committee
Remuneration
Committee
Chairman
Sol Daurella
Nominated by Olive Partners
7 (7)
4 (4)
6 (6)
Executive Director
Damian Gammell
CEO
7 (7)
Non-executive Directors
Manolo Arroyo
Nominated by ER
7 (7)
6 (6)
5 (5)
Guillaume Bacuvier(C)(D)
Independent
6 (7)
2 (2)
John Bryant
Independent
7 (7)
8 (8)
5 (5)(I)
José Ignacio Comenge
Nominated by Olive Partners
7 (7)
5 (5)
Nathalie Gaveau(E)
Independent
7 (7)
3 (4)
5 (6)
Álvaro Gómez-Trénor Aguilar
Nominated by Olive Partners
7 (7)
Mary Harris
Independent
7 (7)
6 (6)
5 (5)
Thomas H. Johnson(F)
SID
7 (7)
2 (2)
6 (6)(I)
3 (3)
Dagmar Kollmann
Independent
7 (7)
4 (4)(I)
8 (8)
Alfonso Líbano Daurella
Nominated by Olive Partners
7 (7)
4 (4)
Nicolas Mirzayantz
Independent
7 (7)
7 (8)(J)
6 (6)
Mark Price(G)
Independent
7 (7)
5 (6)
5 (6)
Nancy Quan
Nominated by ER
7 (7)
6 (6)
Mario Rotllant Solá
Nominated by Olive Partners
7 (7)
6 (6)(I)
Dessi Temperley
Independent
7 (7)
8 (8)(I)
A. The maximum number of scheduled meetings in the
period during which the individual was a Board or
Committee member is shown in brackets.
B. Nominated pursuant to the Articles of Association and
terms of the Shareholders’ Agreement.
C. Guillaume Bacuvier was unable to attend the February
2024 Board meeting due to other pre-agreed
commitments.
D. Effective 22 May 2024, Guillaume Bacuvier was appointed
as a member of the Remuneration Committee.
E. Nathalie Gaveau was unable to attend the May 2024 ESG
Committee and Affiliated Transaction Committee
meetings due to other pre-agreed commitments.
F. Effective 22 May 2024, Thomas H. Johnson resigned as a
member of the Remuneration Committee and was
appointed as a member of the Affiliated Transaction
Committee.
G. Mark Price was unable to attend the May 2024 ESG
Committee and Nomination Committee meetings due to
other pre-agreed commitments.
H. One meeting was a joint meeting of the Audit Committee
and ESG Committee held in February 2024.
I. Chairman of the Committee.
J. Nicolas Mirzayantz was unable to attend the July 2024
Audit Committee meeting due to a pre-agreed
commitment.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
111
Corporate governance report continued
Training and development♦
To ensure constructive challenge to
management by the Board, training and
development opportunities are
provided to the Board in a wide range
of topical areas in multiple formats,
including:
• Briefings – to focus on matters of
interest to CCEP such as innovation,
and relevant ESG, commercial, legal
and regulatory developments
• Deep dive sessions – to address
requests from Directors to better
understand CCEP or the environment
in which it operates, including its
markets
• External speakers – to receive
insights from experts and engage
with stakeholders
• Site visits – to Group businesses,
production facilities and commercial
outlets to enhance knowledge of
CCEP operations and meet
employees, suppliers and customers.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
112
Corporate governance report continued
ESRS 2 GOV-1
ESRS
Board performance review
In line with best practice, we conduct
an external Board evaluation at least
once every three years. Following the
internally facilitated reviews in 2022
and 2023, we engaged Dr Tracy Long of
Boardroom Review Limited to facilitate
the external Board and Committee
performance review in 2024.
The Board followed the Chartered
Governance Institute’s Principles of
Good Practice for Listed Companies
when appointing Dr Tracy Long to
facilitate the review. Boardroom
Review Limited has no other
connection with CCEP or any individual
Director.
Dr Tracy Long developed a tailored
methodology which encouraged candid
reflections from the Board on its
current strengths and preparations for
future challenges. A detailed overview
of the process, which began in
December 2022, is set out below,
together with our proposed three year
performance review plan.
Overall, the feedback of the evaluation
was positive from all Board members,
however, for continuous improvement
the Board identified a number of focus
areas arising from the evaluation which
are set out on page 114 and agreed with
Dr Tracy Long prior to publication.
Dec
2022
Q1
2023
May
2023
Stage 1
Discussions began
on the process for
the 2024 external
performance review.
Stage 2
The Chairman and SID
met with shortlisted
candidates and agreed on
preferred candidates to
be considered by the
Nomination Committee.
Stage 3
The Board appointed
Dr Tracy Long on the
recommendation of the
Nomination Committee.
April/
May
2024
Oct
2023
Stage 5
Key corporate information was shared
with Dr Tracy Long prior to her meeting both
individually and collectively with all Board
members and certain chosen executives
to allow candid discussions of the key
strengths and challenges of the business.
Stage 4
The Committee provided
thoughts to the SID on potential
focus areas for the performance
review which aimed to build on
the internal review conducted
in the prior year.
May
2024
July
2024
Sept
2024
Stage 6
Dr Tracy Long was invited
to observe Board and
Committee meetings
held in May 2024.
Stage 7
Dr Tracy Long presented
the key findings of her
review to the Board.
The Board discussed
the results openly and
constructively.
Stage 8
The Board agreed a set
of actions based on the
recommendations to
address the points raised
in the report.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
113
Corporate governance report continued
INED succession
planning:
ELT succession
planning:
ESG:
External
landscape:
Findings
Consider Board
composition
requirements for
succession planning
for future
appointments.
Enhance Board
oversight over ELT
succession planning
pipeline and process.
Provide greater clarity
around the role of the
ESG Committee.
Continue to keep up
to date with an
evolving market and
regulatory landscape.
Actions
undertaken
The Nomination
Committee held
sessions with
Spencer Stuart to
assess the role
profiles of potential
candidates. This
resulted in the
decision to appoint
Robert Appleby.
A detailed overview
of the ELT succession
planning roadmap
was presented to the
Nomination
Committee and
subsequently the
Board.
The ESG Committee
held a special
purpose meeting to
consider its remit and
scope and agree
changes to the
Committee’s terms of
reference. Following
this meeting, the
terms of reference
were updated to
refine its roles and
responsibilities.
Board members
received regular
updates on these
matters during the
strategy meeting, as
well as deep-dive and
training sessions held
throughout the year.
We will continue to build on the
findings and actions of the 2024
evaluation in our next three
year cycle.
Year One - 2024
External review facilitated by
Dr Tracy Long as set out on
page 113.
Year Two - 2025
The Senior Independent Director
will conduct an interview based
review, building on the results of
the external evaluation from the
previous year.
Year Three - 2026
Internal review which builds on
both the external and internal
evaluation of the prior two years.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
114
Corporate governance report continued
Embedding our culture
The Board, supported by the
Nomination Committee, is responsible
for defining and setting the Company’s
corporate culture. A strong, healthy
and inclusive culture is imperative to
attract and retain top talent, which
helps CCEP deliver on its strategy for
the benefit of all stakeholders.
We put the customer first and are
locally minded, pouring the same
passion into our brands as we do our
partnerships, quality and execution.
Everyone plays their part to make,
move and sell our much-loved brands.
We celebrate teamwork, our
passionate people and our
entrepreneurial spirit. Everyone is
welcome to be themselves, belong and
bring their expertise and ideas to the
table. We celebrate and reward
everyone’s contribution.
We believe that when our people learn
and grow, our business grows too. We
invest in the development of our
talented people, whether in
manufacturing, supply chain, customer
service, sales, or a supporting function.
We are commited to continuous
learning to make sure each of us can
thrive, learn, and grow.
Our culture is built upon
five values:
1
Focus on customers and frontline:
We do everything we can to help
the front line team develop our
business and delight our customers.
2
Empowered to win together:
We work together to win, encouraging
diverse ideas and supporting people
at every level to make decisions.
3
Execute with speed and agility:
We move quickly, find ways to remove
barriers and make things happen.
4
Listening and caring:
We listen to what our colleagues,
customers and communities tell us,
seeking to understand and take the
right actions.
5
Passion for growth:
We show our determination to grow
the business, take accountability
and develop ourselves.
CCEP’s established risk and
governance framework provides the
foundations on which our culture is
built. The Board regularly reviews the
Group’s policies, chart of authority and
code of conduct to ensure they remain
fit for purpose and aligned with CCEP’s
values.
Our culture is embedded across the
organisation from the ground up
through training, objective setting,
development plans and internal
communications which celebrate CCEP
success stories, customer wins and
other key case studies.
The Board monitors culture using
a range of key indicators as set
out on page 116
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
115
Corporate governance report continued
How the Board monitors culture
Board Performance Review
The Board undertakes an annual
evaluation of its performance and
effectiveness. The review provides
useful insight on the extent to
which the corporate culture has
been promoted by the Board and
applied across the business.
Townhalls/ Market Visits
The Board regularly undertakes
market visits and townhalls across
different jurisdictions which allows
the Board to directly engage with
employees on key topics such as
health and safety and diversity. The
townhalls also act as a useful
forum for promoting CCEP’s
corporate culture on a global scale.
Speak Up
The Board has put in place a “Speak
Up channel” which allows
employees to confidentially raise
matters of concern and
encourages a culture of openness
and transparency. The Board,
supported by the Nomination
Committee, review any cases that
may arise and agree actions as
necessary.
Employee Engagement Survey
The engagement survey provides
an overview of employee
satisfaction across the Group and
useful insights both at Group and
business function level. The Board
is updated on the results and
agrees on Company engagement
priorities for the year ahead which
are routinely monitored through the
People and Culture scorecard.
Inclusion, Diversity & Equity
The Nomination Committee
monitors the Group ID&E strategy
which aims at increasing workforce
diversity and fostering an inclusive
workplace that is equitable and
free from discrimination and
harassment. The ID&E strategy
forms an important element of
CCEP’s corporate culture.
Leadership Capabilities
Our programme to enhance
leadership capabilities sets out the
key behaviours required to drive
CCEP’s growth agenda and
corporate culture, all of which are
embedded into various initiatives
such as Accelerate Performance
2030, the Great People Manager
Programme, the Commercial
academy and the CS&SC academy.
The above mentioned initiatives all
form part of CCEP’s progressive
global learning plan.
Remuneration
The Remuneration Committee is
responsible for ensuring that
workforce remuneration policies
and corporate culture remain
aligned but ultimately continue to
support CCEP’s long-term
sustainable success.
Redline Communications
Internal communications via
Redline, our online internal
communications platform, provide
frequent informal insights of how
CCEP’s corporate culture is being
implemented on a day to day basis
throughout the business.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
116
Corporate governance report continued
Annual General Meeting
Election/re-election of Directors
The Board has determined that all the
Directors, subject to continued
satisfactory performance, shall stand
for election/re-election as appropriate
at the 2025 AGM, with the exception of
Dagmar Kollmann who will retire from
the Board at the conclusion of the
2025 AGM. The Board is confident that
each Director will carry on performing
their duties effectively and remains
committed to CCEP.
The Board has also determined that
Robert Appleby should stand for
election at the 2025 AGM.
Robert Appleby
Robert Appleby brings to the Board
strong financial and ESG expertise and
experience in both Europe and Far East
markets. Robert is the Founder and
Chief Investment Officer at Cibus
Capital, a food and agribusiness-
focused private equity platform. Prior
to founding Cibus, Robert was a co-
founder and joint-CIO of ADM Capital
Hong Kong and Director of the ADM
Capital Foundation. Before establishing
ADM Capital, Robert held senior
positions in Lehman Brothers and
Credit Agricole, including working in the
Far East.
The NED terms of appointment are
available for inspection at the
Company’s registered office and at
each AGM. Among other matters, these
set out the time commitment
expected of NEDs. The Board is
satisfied that the other commitments
of all Directors do not interfere with
their ability to perform their duties
effectively.
See the significant commitments of
our Directors in their biographies on
pages 98 - 102
2025 AGM
The AGM continues to be a key date in
our annual shareholder calendar.
Our 2025 AGM will be held on 22 May.
The Notice of AGM will set out further
details and a full description of the
business to be conducted at the
meeting. This will be available on our
website from the time of its posting to
shareholders in April 2025.
The Chairman, SID and Committee
Chairmen are available to shareholders
throughout the year to discuss any
matters under their areas of
responsibility, by contacting the
Company Secretary.
Read more about our engagement
with our shareholders on page 61
2024 AGM voting results
At our 2024 AGM, we were pleased that
all resolutions were passed by >80%,
save for the resolution relating to the
whitewash under Rule 9 of the
Takeover Code, which permits buyback
authorities without obliging Olive
Partners to make a general offer for
the entire issued share capital of the
Company. The resolution provides
CCEP with the mechanics and flexibility
to return cash to shareholders by
buying back shares and thus ultimately
increasing shareholder value.
Since the AGM, CCEP has continued to
engage where appropriate with its
shareholders to address any concerns
they may have. The Company has also
communicated with Institutional
Shareholder Services on their standing
policy to recommend a vote against a
Rule 9 waiver which we believe may be
influencing investor decisions in this
regard.
Having considered the matter
carefully, the Board believe that the
resolution remains in the best interest
of all stakeholders and is comforted by
the security of CCEP’s governance
arrangements in protecting the
Company’s position and encourage
management to continue to explain the
rationale to shareholders.
Sol Daurella
Chairman
21 March 2025
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
117
Corporate governance report continued
Succession planning is pivotal to
maintaining effective leadership.”
Dear Shareholder
I am pleased to report on the work of
the Nomination Committee during 2024.
Board and ELT succession
A key focus of the Committee over the
year was to ensure that the Board, its
Committees and senior management
continued to have the right
composition and balance of skills,
experience, knowledge and diversity to
provide the Company with strong
leadership to support its workforce
and culture.
The Committee reviewed the
composition of each Board Committee
for succession planning purposes and
recommended changes to the Board
to improve the balance of skills on a
number of its Committees in light of
upcoming rotations.
The Committee conducted an internal
and external process to replace Nik
Jhangiani and were delighted to be able
to recommend an internal candidate,
Ed Walker, for the position of CFO. The
Committee also considered a number
of other leadership positions.
Read more on ELT succession
planning on page 120
People and culture
The Committee received updates on the
initiatives currently being undertaken to
accelerate CCEP’s leadership capabilities
which help to shape our corporate
culture, including the future-focused
leadership growth programme
“Accelerate Performance 2030”.
We were pleased to see strong
participation in the engagement survey
and the results demonstrated that
colleagues continued to find CCEP a
great place to work. The Committee
continued to monitor progress against
ID&E and wellbeing initiatives through a
regular people and culture scorecard.
Read more about the Board’s
Diversity, Equity and Inclusion policy
on page 119
Philippines integration
We provided support and input to
management in their journey to
integrate the Philippines business,
including the alignment of people,
culture and leadership to CCEP’s
business objectives.
INED recruitment consultant tender
The Committee led a comprehensive
process to review CCEP’s Independent
Non-executive Director recruitment
consultant throughout the year, which
resulted in the appointment of
Spencer Stuart.
Board and Committee effectiveness
We participated in the external Board
performance review during 2024, which
determined that the Committee
continued to operate effectively. A
number of actions were agreed,
including further focus on senior
management succession.
Terms of reference
In 2024, the Committee amended its
terms of reference to include the
people-related This is Forward targets
and certain Code of Conduct matters
within the Committee’s remit.
2025 Board and Committee changes
We look forward to welcoming Robert
Appleby to the Board with effect from
the conclusion of the 2025 AGM. When
considering Robert’s appointment, the
Committee noted the existing skills on
the Board and the desirability of Robert’s
broad experience in European and Asia-
Pacific markets, as well as his expertise
in the areas of finance and ESG.
As announced on 14 February 2025,
Mary Harris will succeed me as Chairman
of the Nomination Committee with
effect from the conclusion of this
year’s AGM. I will remain a Nomination
Committee member.
Availability to shareholders
I will be available to shareholders at the
AGM to answer any questions on the work
of the Committee and Mary Harris, in her
new role as Nomination Committee
Chairman, will be available throughout
the remainder of the year.
Looking forward to 2025
• Continue to focus on securing a
strong pipeline of INED candidates
to enhance the Board’s diversity of
skills, considering our expanded
footprint and diversity targets
• Maintain oversight over senior
management succession planning
• Continue to monitor and assess
relevant This is Forward people
and society goals
• Continue to support management
to foster a culture that ensures
the physical and mental wellbeing
of our people
• Ensure continued focus on
employee voices, and inclusion
and diversity policies and goals
• Support Mary Harris in her new role
as Nomination Committee Chairman
• Review the composition of the Board
Committees in light of Ms Kollmann’s
retirement from the Board
Thomas H. Johnson,
Chairman of the
Nomination Committee
21 March 2025
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
118
Nomination Committee
Chairman’s letter
Membership
Member since
Thomas H. Johnson
(Chairman)
May 2019
Manolo Arroyo
May 2021
Sol Daurella
May 2016
Mary Harris
May 2023
Mark Price
May 2019
See details of attendance at meetings
on page 111
Key responsibilities
The key duties and responsibilities of
the Committee are set out in its
revised terms of reference. These are
available at cocacolaep.com/about-us/
governance/committees and include:
• Reviewing and making
recommendations to the Board on
Board appointments,
re-elections, and Board and
Committee composition
• Overseeing the Board performance
review process
• Reviewing progress against This is
Forward people-related targets
• Monitoring ethics and compliance
matters including procedures for
speak up and CoC matters
• Overseeing succession planning of
the Board and senior management
talent pipeline
• Assessing, monitoring and embedding
culture and ensuring effective
engagement with our people
Activities of the Nomination Committee
during the year
The Committee met six times during
the year. A summary of matters
considered by the Committee during
2024 is set out below and further detail
is provided in this report:
• NED independence and 2024 AGM
elections/re-elections
• Philippines integration – people
and leadership
• INED recruitment and succession
planning, including review of the
Board skills matrix and Committee
membership
• ELT succession planning and
leadership development
• People and Culture KPI Scorecard
and key achievements for the year
• 2024 Global engagement survey
results
• Board Governance documents
review, including review of the terms
of reference of the Committee
• 2024 external Board performance
review
• Approach for 2025 internal
performance evaluation
Board Diversity
Board Diversity, Equity and Inclusion policy
The Board and the Nomination
Committee recognise the benefits that
diverse characteristics have to offer to
all aspects of governance. In 2024, the
Committee conducted a
comprehensive review of the Board’s
diversity policy and recommended a
number of updates to align more
closely with the 2024 Corporate
Governance Code. This included
renaming the policy the “Board
Diversity, Equity and Inclusion policy”
and aligning to the Listing Rules.
The policy helps to ensure a diverse
and inclusive membership on the Board
which is crucial for good decision
making and aligns with CCEP's wider
diversity policies and targets, values
and CoC.
The Board aims to:
• maintain at least 33% representation
of women on the Board and to
increase that to 40% in the longer
term
• maintain at least one director from
an ethnic minority background
• have at least one woman in a senior
Board role, being the Chairman, Chief
Executive Officer or Senior
Independent Director.
The Nomination Committee and the
Board carefully considered the
diversity-related reporting
requirements set out in the UK Listing
Rules (the UKLR).
As at 31 December 2024, we have not
met the UK Listing Rules target set out
under UKLR 6.6.6(9) that at least 40% of
our Board should be women. While the
Directors are committed to a diverse
and inclusive membership on the
Board, we will continue to appoint on
merit, based on the skills and
experience required on the Board at
such time.
We met the UKLR targets to have at
least one Board leadership position
held by a woman (the Chairman) and
one Director from an ethnic minority
background.
Our Board-level diversity statistics and
the gender of senior management and
their direct reports can be found on
page 16.
See our Diversity, Equity and
Inclusion policy at cocacolaep.com/
who-we-are/governance
Non-executive Director succession
During the year, the Committee
considered the Board roles that would
need to be recruited for as current
INED appointments approached the
maximum terms envisaged by the
Code, taking into account the review
of Directors’ skills as well as actions
identified in the Board evaluation.
We ran an INED recruitment consultant
tender. The Committee prepared a
longlist of potential consultants who
were each issued with a request for
proposal.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
119
Nomination Committee report
The longlist was shortened to three
potential candidates based on their
response to the brief, who were then
invited to present to the Committee in
May 2024. The process culminated in
the appointment of Spencer Stuart as
the preferred Nomination Committee
advisor.
The Committee met with Spencer
Stuart on a number of occasions to
proactively review and plan Board
succession by identifying a longlist of
potential INED candidates who could
meet the requirements of CCEP’s
pending rotations in 2025 and beyond.
Spencer Stuart has no other
connection to CCEP and has no
connection to any individual Director.
The process resulted in the
appointment of Robert Appleby as an
INED in February 2025, effective from
the conclusion of the 2025 AGM.
The list of Non-executive Directors
determined to be independent is set
out on page 109.
See an overview of our Directors’
diversity, skills and experience on
pages 96 - 102
Director inductions
The Nomination Committee reviews the
induction programme for new
Directors. All new Directors receive a
suite of induction materials as well as
mentorship from established Directors.
Meetings with members of the Board
and the ELT and site visits in a number
of our markets are also arranged.
Senior management succession
The Committee plays an important role
in overseeing the development of a
strong and diverse internal and
external pipeline for succession to ELT
positions across the short, medium
and long term, and recommending
those succession plans to the Board.
The Committee is supported in this by
the Chief People and Culture Officer
and CEO, who regularly review
succession plans and related learning
and development initiatives within the
Company.
Our approach to senior management
succession planning includes:
• a robust and objective assessment
and selection process to determine
potential candidates for the ELT and
senior management pipeline
• promoting inclusion, diversity and
equity
• ensuring there are learning and
development opportunities to
continue to build our talent,
capabilities and readiness for the
future
• determining the impact of any
changes on CCEP and the ability to
shape our corporate culture and long
term strategy
The Company’s talent pipeline has
been strengthened during the year
through:
• the ongoing Senior Leadership talent
assessments which provide an
internal and external global
benchmark for our most senior and
highest potential talent
• the establishment of “Accelerate
Performance 2030”, a leadership
programme, helping to equip and
inspire the top 500 leaders within
CCEP to develop their leadership
capabilities and support our growth
agenda
The strength of the talent pipeline was
demonstrated by the internal
promotions to the ELT of Ed Walker as
Chief Financial Officer, Ana Callol as
General Manager Iberia BU, and An
Vermeulen as Chief Public Affairs,
Communications and Sustainability.
During the year, we reviewed our
contingency succession planning
process for the CEO role, the
development of a long-term pipeline of
potential CEO succession candidates,
and contingency plans to respond to
unexpected CEO vacancy and
unforeseen ELT role vacancy.
The Committee acknowledges the
Parker Review's recommendations for
developing ethnic diversity targets in
senior management. Reflecting the
markets and communities we serve is
important for our business. We will
review our approach to collecting
ethnicity data, taking into consideration
the specific challenges posed by data
collection in different jurisdictions.
Senior management succession
planning will continue to be a key item
on the Committee agenda in 2025.
Workforce engagement
The Code requires companies to select
one or a combination of prescribed
methods for the Board to engage with
the workforce. If a particular method is
not appropriate for a company, it may
explain alternative arrangements in
place and why these are considered
effective. We have well established
and strong engagement mechanisms
with our employees, which are
described on page 116. These
arrangements are long standing,
involve multiple layers of workforce
representation and are deemed to be
effective as demonstrated by the
results of our Company wide
engagement survey. The Board,
through the Nomination Committee,
regularly receives updates on our
people from the Chief People and
Culture Officer and the CEO, which are
supported by key metrics and culture
insights.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
120
Nomination Committee report continued
Q&A
Guillaume Bacuvier
Independent Non-executive Director.
What are the highlights from your
first year on the Board?
It has been great to get to know the
business and collaborate with my fellow
Board members both in the UK and
overseas. I have been fortunate to see
first hand the success of the integration
with the Philippines through market visits
and employee town halls and, have also
spent time learning and enhancing my
knowledge of the Coke system, which
has been fascinating.
What were your reflections on your
induction?
I received a comprehensive and
detailed induction that included both
formal and informal sessions, as well as
bespoke training on key topics such as
franchisor agreements, governance
documents, and ESG. I also attended a
GB market tour, which provided valuable
insights into the markets in which we
operate. I had the opportunity to
compare this with another visit in
Atlanta, as well as hearing about the
system from TCCC.
How well do you understand CCEP’s
operations after the induction?
I had one-to-one meetings with
members of the ELT, which covered
CCEP’s business, operations and
strategic priorities, as well as insights
into specific functional areas, such as
finance, operations and people and
culture, directly from the leaders
responsible for these areas. These
sessions deepened my understanding
of how the business operates on a day
to day basis.
What are you looking forward to in
2025?
2025 looks to be another exciting year
for CCEP. I look forward to launching
and scaling new portfolio products
which leverage our fantastic brands,
particularly in the growing alcohol ready
to drink market. I am also excited to see
the impact of our business
transformation and digital capability
programme. More generally, I look
forward to supporting CCEP’s long-term
sustainable growth through valuable
contributions to Board discussions.
FCA listing requirements
UKLR 6 Annex 1R(1) reporting on gender identity or sex(A)
Number of
Board
members
Percentage of
the Board
Number of
senior
positions on
the Board (B)
Number in
executive
management
Percentage of
executive
management
Men
11
65
2
8
67
Women
6
35
1
4
33
Not specified/prefer not to say
—
—
—
—
—
UKLR 6 Annex 1R(2) reporting on ethnic background(A)
Number of
Board
members
Percentage of
the Board
Number of
senior
positions on
the Board (B)
Number in
executive
management
Percentage of
executive
management
White British or other White
(including minority-white groups)
16
94
3
12
100
Mixed/Multiple ethnic groups
—
—
—
—
—
Asian/Asian British
1
6
—
Black/African/Caribbean/Black
British
—
—
—
—
—
Other ethnic group
—
—
—
—
—
Not specified/prefer not to say
—
—
—
—
—
A. As at 31 December 2024.
B. Senior positions on the Board include the Chairman, Chief Executive Officer or Senior Independent Director. The Chief
Financial Officer is not a member of the Board.
The data in the above tables was collected voluntarily through the annual Directors & Officers (“D&O”) questionnaires.
The data is used purely to satisfy CCEP’s Board and leadership diversity disclosure requirements under the UK Listing Rules.
The Board and Executive Leadership Team were asked to self-report their data through questions raised in the D&O
questionnaire on gender identity, sexual orientation and ethnic background.
Thomas H. Johnson,
Chairman of the Nomination Committee
21 March 2025
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
121
Nomination Committee report continued
Supporting the external audit
tender process was a key activity
of the Committee during 2024.”
Dear Shareholder
I am very pleased to introduce the Audit
Committee report setting out the key
matters and issues considered in 2024.
CCBPI integration
In 2024, the Committee received
regular reports from management
relating to the business in the Philippines
in the run up to, and following, the joint
acquisition of CCBPI with AEV. Initial
focus was given to the efforts for
ensuring day one readiness, notably in
the controls framework, but the scope
then evolved into areas that included:
• Commencing the Sarbanes-Oxley
Section 404 (SOX) readiness project
in the Philippines to be SOX compliant
in 2025
• Progressing the Purchase Price
Allocation exercise (PPA)
• Integrating the finance and internal
audit functions
External auditor re-tender
The Committee concluded the
mandatory audit re-tender process.
With support from management, the
Board, following recommendation from
the Committee, appointed EY for a
further term of 10 years, subject to
annual shareholder approval.
ESG
During 2024, the Committee, with the
ESG Committee’s support, had
oversight over ESG reporting and
disclosure. Of particular focus was
delivery of the sustainability statement
in accordance with ESRS requirements
on a voluntary basis.
Risk management
Risk management remained a priority
for the Committee with ongoing
discussions on:
• Enterprise Risk Management (ERM)
framework
• Water scarcity assessment, including
scenario analysis and mitigations
• The cybersecurity programme and
associated risks, particularly in
relation to IT and Operational
Technology (OT) resilience
• Business continuity and resilience
• Corporate integrity
• A number of treasury and tax topics
Key drivers of some of these
discussions were the impact from the
wider macroeconomic environment,
global elections, the conflict in the
Middle East, inflation, volatility in
commodity prices and currency
fluctuations, increased recession risk
and the enhanced cyber threat.
Read more about our auditors
on page 127 - 128
Terms of reference
Following a recommendation from the
Committee, the Board approved
amendments to the terms of reference
to incorporate a collaboration section
outlining the Committee’s relationship
with the ESG Committee and to provide
greater clarity on the Committee’s role.
Other activities
The Committee continued to monitor
progress in delivering the digital
transformation programme and
governance developments such as the
proposed creation of an Auditing,
Reporting and Governance Authority
(ARGA).
Committee membership
The Committee was delighted to
welcome Nicolas Mirzayantz, who was
appointed on 1 January 2024.
Committee effectiveness
As part of the external Board evaluation
undertaken by Dr Tracy Long, the remit
and effectiveness of the Committee
were considered, with a limited number
of outputs related to the Committee
arising. These have been considered and
appropriate actions have been agreed.
More about the external evaluation
process can be found on pages 113 - 114
Availability to shareholders
I am available to shareholders
throughout the year to answer any
questions on the work of the Committee.
Looking forward to 2025
• Overseeing the continued
integration of CCBPI into CCEP’s
processes, including SOX
compliance
• Continued oversight of ESG
reporting processes and
discussing outputs of the first
round of ESRS reporting
• Maintaining focus on cyber and in
particular the risks and
opportunities of AI
• Reviewing progress of the ongoing
digital transformation programme
Dessi Temperley,
Chairman of the Audit Committee
21 March 2025
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Audit Committee
Chairman’s letter
Membership
Member since
Dessi Temperley
(Chairman)
May 2020
John Bryant
January 2021
Dagmar Kollmann
May 2019
Nicolas Mirzayantz
January 2024
See details of meeting attendance in
2024 on page 111
Read more about the Audit Committee
members on pages 99 - 102
Key responsibilities
The key duties and responsibilities of
the Audit Committee are set out in the
terms of reference, which are available
at cocacolaep.com/about-us/
governance/committees and include:
Accounting and financial reporting
• Monitoring the integrity of the
Group’s annual audited financial
statements and other periodic
financial statements
• Reviewing any key judgements
contained in them relating to
financial performance
Systems of internal control and risk
management
• Reviewing the adequacy and
effectiveness of the Group’s internal
control processes
• Overseeing the Group’s compliance,
operational and financial risk
assessments as part of the broader
ERM programme
• Overseeing the Group’s business
capability and cybersecurity
programmes
• Overseeing climate risks as part of
the ERM programme
• Reviewing and assessing the scope,
operation and effectiveness of the
internal audit function
Relationship with external auditor
• Reviewing and assessing the
relationship
• Reviewing their independence
• Agreeing terms of engagement and
remuneration annually
• Assessing the effectiveness of the
external audit process
• Reviewing reports from the external
auditor and management relating to
the financial statements and internal
control systems
• Making recommendations to the
Board in respect of the external
auditor’s appointment,
reappointment or removal
• Reviewing and approving non-audit
activity undertaken by the external
auditor
Other responsibilities
• Supporting the Board in relation to
specific matters, including oversight
of dividends, capital allocation
framework, and capital expenditures
• Working in conjunction with the ESG
Committee to regularly review the
requirements for external assurance
of ESG-related disclosures
The Committee Chairman reports back
at most Board meetings on matters of
particular relevance and the Board
receives copies of the Committee
papers and minutes of meetings.
Committee governance
The Committee keeps the Board
informed and advised on matters
concerning the Group’s financial
reporting requirements to ensure that
the Board has exercised oversight of
the work carried out by management,
internal audit and the external auditor.
The Group follows UK corporate
governance practices, as allowed by
the Nasdaq Rules for FPIs. In
accordance with the Code, the
Committee comprised four NEDs
in 2024, each of whom the Board has
deemed to be independent.
No Committee member has a
connection with the external auditor.
The Board is satisfied that the
Committee as a whole has
competence relevant to the FMCG
sector, in which the Group operates.
The Committee also follows the
requirements of the FRC’s Audit
Committees and the External Audit:
Minimum Standard (the Minimum
Standard). The Committee received
reports from management relating to
their responsibilities under the
Minimum Standard, and after review
and discussion was satisfied that it
met the requirements. Adherence to
the Minimum Standard also forms part
of the Committee’s terms of reference.
In accordance with SEC Rules, as
applicable to FPIs, the Group’s Audit
Committee must fulfil the
independence requirements set out in
SEC Rule 10A-3. The rule requires,
among other things, that the Audit
Committee be all-independent and
have at least one member qualify as an
Audit Committee Financial Expert, as
defined in the rule. The Board has
determined that all of the rule's
requirements are met and that the
Audit Committee Chairman is an Audit
Committee Financial Expert. It was
further determined that no Audit
Committee member had participated
in the preparation of the financial
statements of the Group or any of its
subsidiaries.
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Audit Committee report
Activities of the Audit Committee during
the year
The Committee met seven times during
the year and held one joint meeting
with the ESG Committee. Reports from
the internal and external auditors were
presented as standing agenda items,
along with reports from senior
management. A summary of matters
considered by the Committee during
2024 is set out below and further detail
is provided in this report:
• Accounting and reporting matters,
including 2023 preliminary results,
2024 HY financial release and Q1 and
Q3 trading updates
• 2023 Integrated Report
• Audit exemption for UK entities
• H1 and H2 interim dividends
• Accounting for TCCC bottling rights
& SEC Comment Letter
• Oversight of SOX compliance
• Legal matters
• Corporate integrity programme
• Business continuity management and
cybersecurity
• Enterprise Risk Management,
including risk appetite framework and
principal risks
• Capital allocation framework
• Capital projects, including review of
sustainability metrics
• Tax and treasury matters
• ESRS requirements and the Double
Materiality Assessment (DMA)
• External auditor re-tender
• Oversight of CCBPI acquisition
process, related financing and
integration
• KPIs for the digital transformation
programme
• Audit Committee evaluation
• Terms of reference review
The Committee’s interactions with the
internal audit function and the external
auditor during the year are discussed
in more detail later in this report.
Financial reporting, significant financial
issues and material judgements
During 2024, the Committee considered
the significant accounting judgements
and estimates, and their
appropriateness and disclosure.
The Committee met regularly with
management during 2024 to consider
the Philippines PPA, considering the
valuation of assets acquired and
liabilities assumed as of the acquisition
date. The PPA exercise also included an
assessment of the contingencies
present at CCBPI.
The Committee was also regularly
updated on the IAS 36 impairment
review over the Group's Cash
Generating Units (CGU). This included
the impairment charge related to the
Indonesia CGU, which the Committee
reviewed in detail.
For the remaining matters, the
Committee agreed with management
that the appropriate accounting
considerations had been given and the
impact of each item was not material
to the Group’s financial statements.
See our Viability statement on page 78
Audit Committee assessment
of the 2024 Annual Report
The Committee undertook a review
of a developed draft of the Annual
Report and provided its feedback,
which was reflected in the report.
The Committee considered whether
the Group’s position, strategic approach
and performance during the year were
accurately and consistently portrayed
throughout the Annual Report.
As part of its review, the Committee
referred to the management reports
it had received and considered during
the year, together with the findings
and judgements of the internal and
external auditor.
The estimates and judgements made
on the significant financial reporting
matters regarding the financial
statements are summarised in the table
on pages 125 and 126. The Committee
reviewed these in depth and concluded
that they were appropriate.
The Committee also reviewed
management's assessment of the
Group as a going concern and the
viability statement and concluded they
were appropriate in light of the risks
facing the business.
The Annual Report is, in the opinion of
the Committee, fair, balanced and
understandable, and provides the
information necessary for shareholders
to assess CCEP’s position and
performance, business model and
strategy.
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Audit Committee report continued
Significant reporting matters in relation to financial statements considered by the Audit Committee during 2024
Accounting for TCCC
bottling rights
TCCC franchise intangibles
at 31 December 2024: €12.1 billion
The Group’s bottling agreements with TCCC contain performance requirements and convey the rights
to prepare, package, distribute and sell products within specified territories. The agreements in each
territory are for an initial term of 10 years and may be renewed for successive terms of 10 years. The
Group believes that its interdependent relationship with TCCC and the substantial cost and disruption to
TCCC that would be caused by termination ensure that these agreements will continue to be renewed and,
therefore, are essentially perpetual provided that the Group remains capable of the continued promotion,
development and exploitation of the full potential of the business of the preparation, packaging, distribution
and sale of the relevant beverage. The Group has never had a bottling agreement with TCCC terminated
due to non-performance of the terms of the agreement or due to a decision by TCCC to terminate an
agreement at the expiration of a term. After evaluating the contractual provisions of the bottling
agreements as at 31 December 2024, the Group’s mutually beneficial relationship with TCCC and history
of renewals, indefinite lives have been assigned to all of the Group’s TCCC bottling agreements.
During 2024, the Committee reviewed the Group's long-standing policy and judgment on accounting for the
TCCC bottling rights as indefinite lived intangible assets confirming its appropriateness and continued
disclosure as a significant judgment.
Deductions from revenue
and sales incentives
Total cost of customer marketing
programmes in 2024: €5.8 billion
Accrual at 31 December 2024: €1.4 billion
The Group participates in various programmes and arrangements with customers designed to increase
the sale of products. Among the programmes are arrangements under which allowances can be
earned by customers for attaining agreed upon sales levels or for participating in specific marketing
programmes.
For customer incentives that must be earned, management must make estimates related to the
contractual terms, customer performance and sales volume to determine the total amounts earned. Under
IFRS 15, these types of variable consideration are deducted from revenue. There are significant estimates
used at each reporting date to ensure an accurate deduction from revenue has been recorded.
Actual amounts ultimately paid may be different from these estimates. At each reporting date, the
Committee received information regarding the total customer marketing spend of the Group along with
period end accruals. The Committee also discussed and challenged management on key judgements and
estimates applied during the period.
Tax accounting and reporting
2024 book tax expense: €492 million
2024 cash taxes: €561 million
2024 effective tax rate: 25.4%
The Group evaluated a number of tax matters during the year, including legislative developments across
tax jurisdictions, risks related to direct and indirect tax provisions in all jurisdictions, the deferred tax
inventory and potential transfer pricing exposure. Throughout the year, the Committee received
information from management on the critical aspects of tax matters affecting the Group,
considered the information received, and gained an understanding of the level of risk involved with
each significant conclusion.
The Committee also considered and provided input on the Group’s disclosures regarding
tax matters.
Accounting area
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Audit Committee considerations
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Audit Committee report continued
Asset impairment analysis
Indefinite lived intangible assets at
31 December 2024: €12.1 billion
Goodwill at 31 December 2024: €4.7 billion
Impairment of Indonesia CGU in 2024:
€175 million
The Group performs an annual impairment test of goodwill and intangible assets with indefinite lives,
or more frequently if impairment indicators are present. The testing is performed at the cash
generating units (CGUs) level, which for the Group are based on geography and generally represent
the individual territories in which the Group operates.
The Committee received information from management on the impairment tests performed,
focusing on the most critical assumptions such as the terminal growth rate, the discount rate and
operating margin, as well as changes from the prior year. The Committee reviewed and challenged
the various analyses performed by management, specifically including those related to the
Indonesia CGU and the impact of climate change, in order to assess the impact of changes in
critical assumptions on test results.
The Committee was satisfied with the assumptions used by management and also considered and
reviewed the Group’s disclosures about its impairment testing.
Business combination
Total consideration: €1.5 billion
Intangible assets: €478 million
Goodwill: €276 million
On 23 February 2024, CCEP Aboitiz Beverages Philippines, Inc. (CABPI), a special purpose vehicle funded
60% by CCEP and 40% by AEV, acquired 100% of the beneficial ownership of CCBPI for a total consideration
of US$1.68 billion (€1.54 billion), all of which was settled in cash upon completion. CABPI is determined to
have economic substance and is identified as the accounting acquirer of CCBPI.
During 2024, the Group finalised the required valuation of the assets acquired and liabilities assumed in the
business combination, the purchase price allocation, and the opening balance sheet. The Committee
regularly reviewed progress and was satisfied with the outcomes.
Restructuring accounting and
other items impacting operating
profit comparability
Items impacting operating profit
comparability recorded in 2024:
€531 million
The Committee was regularly updated by management on the nature of restructuring initiatives and
key assumptions underpinning the related provision in the financial statements. The Committee
reviewed the Group's restructuring expense of €264 million as well as the restructuring provision
balance of €250 million as at 31 December 2024, and continued to agree that it does not contain
significant uncertainty.
The Committee reviewed the remaining items impacting operating profit comparability for the year,
primarily related to the impairment of the Indonesia CGU, the accelerated amortisation charges
associated with the Beam Suntory contract expiration, and acquisition and integration-related costs
incurred in connection with the CCBPI acquisition, and was satisfied with the related disclosures.
Accounting area
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Audit Committee considerations
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Audit Committee report continued
External audit
Effectiveness of the external
audit process
The Committee has responsibility and
oversight of the Group’s relationship
with its external auditor, EY, and for
assessing the effectiveness of the
external audit process. EY was
appointed as the external auditor in
2016 and the lead audit partner is
Sarah Kokot. In accordance with the
UK and SEC external auditor
independence rules, Sarah Kokot will
face mandatory rotation as lead audit
partner ahead of the 2026 audit.
In 2024, the Committee agreed the
approach and scope of the audit work
to be undertaken by EY for the financial
year. It also reviewed EY’s terms of
engagement and agreed the appropriate
level of fees payable in respect
of audit and audit-related services.
See details of the amounts paid to the
external auditor in Note 19 to the
consolidated financial statements on
page 219.
EY provided the Committee with
regular reports on the status of the
audit, including its assessment of the
agreed areas of audit focus and
findings, the application of professional
scepticism on significant judgements,
estimates, and disclosures, as well as
findings and conclusions to date.
The Committee used a questionnaire
to review the effectiveness of the
external auditor and focused on
four key areas: the audit partner, audit
planning and execution, reporting
by the auditor and the role of
management. The review determined
the audit to be very effective, with
some minor areas for improvement
which will be reviewed and
implemented throughout 2025.
FRC Audit Quality Review (AQR) performed
jointly with the US Public Company
Accounting Oversight Board (PCAOB)
EY’s audit of CCEP’s financial statements
for the year ended 31 December 2023
was selected by the AQR for review as
part of its annual inspection of audit
firms, which was performed jointly with
the PCAOB.
The FRC has issued their report,
concluding that no major improvement
had been identified and noting one
best practice element related to EY’s
oversight of components and two
limited improvements related to
independence matters.
External auditor independence
The continued independence of the
external auditor is important for an
effective audit. The Committee has
developed and implemented policies
that govern the use of the external
audit firm for non-audit services and
limit the nature of the non-audit work
that may be undertaken. The external
auditor may, only with pre-approval
from the Committee, undertake
specific work for which its expertise
and knowledge of CCEP are important.
It is precluded from undertaking any
work that may compromise its
independence or is otherwise
prohibited by any law or regulation.
The Committee received a statement
of independence from EY in March
2024 confirming that, in its professional
judgement, it is independent and has
complied with the relevant ethical
requirements regarding independence
in the provision of its services. The
report described EY’s arrangements to
identify, manage and safeguard against
conflicts of interest.
The Committee reviewed the scope of
the audit-related services proposed by
EY during the year to ensure there was
no impairment of judgement or
objectivity, and subsequently
monitored the non-audit work
performed to ensure it remained within
the agreed policy guidelines. It also
considered the extent of non-audit
services provided to the Group.
The Committee determined, based on
its evaluation, that the external auditor
was independent.
Reappointment of the external auditor
The Committee has responsibility for
making a recommendation to the Board
regarding the reappointment of the
external auditor. Based on its
continued satisfaction with the audit
work performed to date and EY’s
continued independence, the
Committee has recommended to the
Board, and the Board has approved,
that EY be proposed for reappointment
by shareholders as the Group’s
external auditor at CCEP’s 2025 AGM.
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Audit Committee report continued
External auditor re-tender
EY has been the Group’s external
auditor since 2016. Therefore, in
accordance with applicable UK
legislation and regulations, the
Committee commenced processes for
the mandatory external audit
re-tender in 2023 with the “Big Four”
audit firms and two challenger firms
formally invited to participate.
The Committee acknowledges the
provisions contained in the Code, the
FRC’s Minimum Standard for Audit
Committees and the Statutory Audit
Services for Large Companies Market
Investigation (Mandatory Use of
Competitive Tender Processes and
Audit Committee Responsibilities)
Order 2014 in respect of audit
tendering and operated the process
with due regard of them.
The tendering process included a
preselection of firms and concluded in
2024 with the Board, on the
recommendation of the Committee,
approving EY to continue as the
Group’s external auditor through fiscal
year 2036, subject to satisfactory
performance and annual shareholder
approval. In coming to their decision,
all members of the Committee
considered a wide range of clear and
objective criteria and factors, including:
• Audit approach, including risk
assessment, material audit risks, use
of technology in the audit, approach
to issue resolution and tailoring of
audit reporting
• Audit service, including coordination
of audit and communications,
coordination with other service
providers, effective management of
the project and approach to building
working relationships
• Independence of audit firms
• Capabilities of proposed lead
partners
• Capabilities of audit firms
• Capabilities of proposed wider audit
teams
• Quality of response to the request
for proposal document
• Quality of presentation to the
Committee
• Fees
The Committee will continue to monitor
CCEP’s relationships as regards to the
provision of non-audit services with
other “Big Four” firms and “challenger
firms”.
Internal audit
The internal audit function provides an
independent and objective
assessment of the adequacy and
effectiveness of the Group’s
integrated internal control framework,
which combines risk management,
governance and compliance systems.
The internal audit function reports
directly to the Audit Committee and
comprises approximately 50 full time,
professional audit staff based in
London, Madrid, Sofia, Sydney, Manila
and Jakarta, with a range of business
expertise working across multiple
disciplines. The function utilises
co-source resources to support
specific assurance projects where
specialist knowledge, scale or language
skills are required.
Effectiveness of the internal
audit function
At the start of the year, the Committee
reviewed the internal audit plan for
2024 and agreed its scope, budget and
resource requirements for the year.
The Committee continued to monitor
the plan and forward-looking audit
radar to make sure recommendations
remained appropriate for the year
ahead.
Through regular management reports
containing key internal audit
observations, proposed improvement
measures and related timeframes
agreed with management, the
Committee monitored the
effectiveness of the internal audit
function against the approved internal
audit plan. The Chief Audit Executive
attended the scheduled meetings of
the Committee during 2024 to raise any
key matters with the Directors.
The Chief Audit Executive confirmed to
the Committee that there was no
known impairment to the internal audit
function’s independence or objectivity
in undertaking the internal audit work
performed during 2024.
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Audit Committee report continued
Internal control and risk management
The Group depends on robust internal
controls and an effective risk
management framework to
successfully deliver its strategy. The
Audit Committee is responsible for
monitoring the adequacy and
effectiveness of the Group’s internal
control systems, which includes its
compliance with relevant sections of
the Code and the requirements of SOX,
specifically sections 302 and 404, as it
applies to US FPIs.
Effectiveness of the internal control and
risk management systems
Regular reports were presented to the
Committee on the Group’s internal
audit assessments of the adequacy
and effectiveness of CCEP’s 2024 SOX
programme and commercial functions,
with increased focus on supply chain
and technological governance
processes. The Committee was
provided with updates on the internal
control framework, including any
proposed updates and amends and
the remediation of any identified
control deficiencies during the year.
In 2024, management undertook a top
down enterprise risk assessment
across the business units.
This included an assessment of the
Group’s risk appetite across identified
enterprise risks to gauge and promote
alignment of risk appetite with CCEP’s
long range plan.
The Committee reviewed the findings,
approved changes to the enterprise
risk management assessments and
concluded that management’s
approach to risk and to risk appetite
was satisfactory.
Read more about the Board’s role in
risk oversight of principal risks on
page 76
Raising concerns
In each of our territories, we have
established ways for our people and
others to raise concerns in relation to
possible wrongdoing in financial
reporting, suspected misconduct, or
other potential breaches of our CoC.
These include options to seek advice
from the line manager and/or raise a
report through our internal Speak Up
resources and/or our dedicated and
confidential external Speak Up
channels.
During 2024, certain CoC topics were
covered within the remit of the ESG
Committee, with any matters above
the materiality threshold referred to
the Audit Committee, which provides
the Board with key information for its
consideration as appropriate. In
December 2024, it was agreed that the
CoC matters covered by the ESG
Committee would move to the remit of
the Nomination Committee from 2025.
View our CoC at view.pagetiger.com/
Code-of-Conduct-Policy
Investigations into potential breaches
of our CoC are overseen in each BU by
the BU’s CoC Committee, chaired by
the BU’s Vice President, Legal. All
potential CoC breaches and corrective
actions are overseen by the Group CoC
Committee, which is a sub committee
of the Compliance and Risk Committee,
a management committee chaired by
the Chief Compliance Officer (CCO).
The Group CoC Committee also:
• Ensures that all reported breaches
have been recorded and investigated
in a timely manner and a conclusion
is reached
• Evaluates trends
• Ensures consistent application of the
CoC across CCEP
As required under the Spanish Criminal
Code, the Iberia BU has an Ethics
Committee formed of members of the
Iberia BU leadership team. It is
responsible for any ethics and
compliance activities, including
overseeing the local crime prevention
model. It reports to the board of the
Iberia BU and the CCO.
Dessi Temperley
Chairman of the Audit Committee
21 March 2025
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2024 Annual Report and Form 20-F
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Audit Committee report continued
The Committee dedicated
significant time to discussing
Double Materiality and
preparedness for reporting in
accordance with ESRS”
Dear Shareholder
I am very pleased to introduce the ESG
Committee report setting out the key
matters and issues considered for
2024.
This is Forward
At CCEP, doing business in a
sustainable way is at the heart of our
strategy and core to everything we do.
As a result, the Committee’s main
focus during 2024 continued to be the
oversight of This is Forward, CCEP’s
sustainability action plan. In particular,
work to assess the status and
performance of CCBPI against CCEP’s
existing This is Forward targets and the
efforts to calculate GHG emissions for
the Philippines business in 2024.
The Committee also discussed the
formulation of a robust, long-term
strategy for packaging collection and
compliance with the Extended
Producer Responsibility (EPR)
legislation in the Philippines.
Carbon reduction roadmap
The Committee continued to monitor the
progress of CCEP’s carbon reduction
roadmap towards our 2030 GHG
emissions reduction target and 2040 net
zero target. Updates were provided on
the key carbon reduction drivers and
ongoing efforts in supplier engagement
regarding Scope 3 GHG emissions
reduction and our Responsible Sourcing
Policy.
Regulation
The Committee spent time discussing
developments in ESG reporting,
focusing on ESRS requirements. As a
result of the joint meeting of the Audit
and ESG Committee in February 2024, it
was agreed that the Audit Committee
would support the oversight of the
ESRS reporting process, specifically
providing support on double
materiality.
The Committee received regular
updates from management on the
approach to ESRS, discussing the DMA
and stakeholder engagement, the
required assurance scope for
sustainability information for reporting
purposes.
Read more on ESRS in our
sustainability statement on pages
23-58
The Committee was also updated on
CCEP’s packaging collection strategies
as well as packaging regulation
developments on Deposit Return
Schemes in Great Britain and on the EU
Packaging and Packaging Waste
Regulations (PPWR).
Other matters
The Committee also received an
update from TCCC about an ongoing
consumer campaign that was now
being launched in Europe, aimed at
creating a transparent, comprehensive
and large-scale strategy for consumer
sustainability communications to
enhance sustainability value creation.
Committee Effectiveness
The Committee assessed a limited
number of outputs from the external
Board evaluation that related to its
remit and effectiveness. These were
discussed by the Committee and an
action plan based on the
recommendations was agreed. The
Committee continued to operate
effectively throughout 2024.
Code of Conduct
The Committee reviewed the adequacy
of the CoC arrangements and how to
ensure they allowed appropriate follow
up action and onward reporting.
We received and considered reports
from management regarding concerns
raised by our people and provided the
Board with key information for its
consideration as appropriate.
Regular updates were also received
that informed the Committee of ethics
and compliance matters such as the
Gifts, Entertainment and Anti-Bribery
Policy.
Terms of Reference
In light of increasing sustainability
requirements, the Committee
recommended to the Board proposed
changes to its remit within the Terms
of Reference to allow sufficient time to
focus on these matters.
Looking forward to 2025
• Continue to monitor and assess
progress towards and updates to
CCEP’s science-based GHG
emissions targets, now with the
inclusion of the Philippines
• Monitor the outputs of the first
cycle of ESRS reporting
• Consideration of integrating the
Philippines into This is Forward and
into the 2025 reporting cycle
• Oversight of updates to 2030
roadmaps on climate, water,
packaging and community
Mario Rotllant Solá
Chairman of the ESG Committee
21 March 2025
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ESG Committee
Chairman’s letter
Membership
Member since
Mario Rotllant Solá
(Chairman)
May 2022
Nathalie Gaveau
January 2019
Nicolas Mirzayantz
May 2023
Mark Price
May 2019
Nancy Quan
May 2023
See details of attendance at meetings
on page 111
Key responsibilities
The key duties and responsibilities of the
Committee are set out in its terms of
reference, which are available at
cocacolaep.com/about-us/governance/
committees and include:
• Overseeing and making
recommendations to the Board
on CCEP’s sustainability strategy
• Making recommendations to the
Board and monitoring progress
against This is Forward sustainability
targets and metrics
• Reviewing the integrity of external
statements about sustainability
activity, targets and progress
• Working in conjunction with the Audit
Committee to review and make
recommendations to the Board on
sustainability related reporting
• Overseeing all relevant
environmental issues not covered
directly by the sustainability strategy
• Monitoring and recommending to
the Board the establishment of
appropriate sustainability related
policies
• Regularly reviewing the requirements
for external assurance of ESG
related disclosures and identifying
material ESG related risks in
conjunction with the Audit
Committee
Skills and expertise
The Committee terms of reference
require that members have the
appropriate knowledge, skills and
expertise to understand ESG-related
strategy, targets and implementation.
Members must undertake appropriate
development of their skills and are
provided with training as necessary.
This ensures that the Committee has
the relevant skills and expertise to
address ESG-related impacts, risks
and opportunities.
Activities of the ESG Committee
during the year
The Committee met six times in
2024, including a joint meeting with
the Audit Committee. The main focus
of the Committee was monitoring
CCEP’s progress against its
sustainability action plan, This is
Forward. A summary of other matters
considered by the Committee during
2024 is set out to the right.
Summary of matters considered by the Committee
• 2023 and 2024 Sustainability
Reporting and Assurance
• Sustainability Key Performance
Dashboard
• Sustainability regulation
• Climate risk modelling
• ESRS Reporting and DMA
• 2030 carbon reduction plan
• TCCC sustainability goals and
campaigns
• Philippines GHG emissions
• Corporate Reputation Survey
•
• Ethics and Compliance
• Code of Conduct
• Modern Slavery Statement
• Data Privacy
• Gifts, Entertainment and Anti-bribery
Policy and Policy Guidance
• Committee effectiveness review
• Terms of reference review
Mario Rotllant Solà
Chairman of the ESG Committee
21 March 2025
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
131
ESG Committee report
Remuneration outcomes for
2024 reflect solid overall
business performance.”
Dear Shareholder
On behalf of the Board, I am pleased
to present the Directors’ remuneration
report for CCEP for the year ended
31 December 2024. This includes a
summary of our remuneration policy on
page 134, which shareholders approved
at our 2023 AGM. We have also set out
our Annual report on remuneration
(ARR) on pages 136-148, which outlines
how we implemented the policy during
2024 and how we intend to do so in
2025. This will be subject to an advisory
vote at our 2025 AGM.
All references to revenue, operating profit, operating free cash flow, EPS and ROIC targets refer to those measures that are defined within the ARR.
A.
Comparable and on a tax and currency neutral basis, adjusted for brand sales.
Remuneration outcomes for 2024
Annual bonus
The solid overall business performance
outlined in the Strategic Report has
been reflected through the annual
bonus, with performance against all
three financial metrics being within the
target range. Reported revenue and
comparable operating profit increased
year on year by 11.7% and 12.2%,
respectively. This, alongside strong
comparable free cash flow generation,
has resulted in an overall Business
Performance Factor (BPF) of 108% of
target being achieved. The strong
business performance is also a
reflection of the exceptional
leadership of the CEO throughout 2024,
which resulted in an Individual
Performance Factor (IPF) of 1.15x being
awarded to him.
The final bonus payment to the CEO was
52% of maximum. Further details are
provided on pages 136-137 of the ARR.
2022 Long-Term Incentive Plan
The 2022 Long-Term Incentive Plan
(LTIP) award, granted in March 2022,
was subject to earnings per share
(EPS), return on invested capital (ROIC)
and CO2e reduction performance
targets over the three year period
to 31 December 2024. Around 300
senior executives and management
participated in the scheme, including
the CEO.♦
CCEP has performed very strongly
over the last three years, with
cumulative EPS growth of 10.8% per
annum(A) and outperformance of our
ROIC and CO2e reduction targets. This
level of performance results in a
formulaic vesting outcome of 2.0x
target.♦
In assessing the formulaic vesting
outcome, the Committee also
undertook a holistic assessment of
overall performance over the three
year period to determine whether the
level of vesting was a fair reflection of
broader CCEP performance. In the
course of its assessment, the
Committee noted that:
• As with EPS and ROIC, CCEP’s
performance against its other key
financial indicators had been equally
strong, as disclosed in more detail on
pages 2-3 of the Strategic Report
• CCEP had delivered +59% total
shareholder return over the
performance period, which was
top decile versus our sector and
ahead of the FTSE 100, Euronext 100
and S&P 500 indices
• The wider stakeholder experience,
including that of our employees,
had been positive, with no material
areas of concern identified
• CCEP had delivered strongly
against our sustainability initiatives,
as disclosed in more detail on page
139 of the ARR
As a result of the assessment, the
Committee determined that the overall
performance of the business
continued to be strong. On the same
basis as last year, it was recognised
that when the CO2e reduction targets
were set in 2022 aligned with prior year
targets there remained a degree of
uncertainty about what represented
appropriately stretching performance
for the business. The Committee had
been keen to include the metric, given
its importance to CCEP’s sustainability
agenda, but as a relatively new
measure there remained a number of
moving parts. Reflecting now, the
Committee considers it appropriate to
follow a similar approach to the 2020
and 2021 LTIP awards and apply
downwards discretion in respect of the
final vesting level to cap the outcome
at target. This reduces the overall
vesting level to 1.85x target and the
Committee believes this to be a
fair reflection of overall performance.
This results in a final vesting value for
the CEO of £10.2 million, which includes
£4.9 million of benefit from the strong
share price growth and dividend
delivery over the performance period,
which has delivered more than
£9 billion of value to shareholders.♦
Further details are provided on page
138 of the ARR.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
132
Statement from the Remuneration Committee Chairman
ESRS 2 GOV-3
ESRS
Implementation of remuneration
policy in 2025
The Committee considers that our
overall remuneration framework
remains fit for purpose and will
implement our remuneration policy for
2025 on the same basis as for 2024.
See pages 146-147 for further details.
The Committee has approved a 2.0%
salary increase for the CEO, effective
1 April 2025, which is aligned with the
merit increase for the wider GB
workforce.
The structure of the 2025 annual
bonus will be unchanged from last
year, with the business performance
element being based on stretching
performance targets for operating
profit, revenue and operating free cash
flow. For the CEO, his individual
element will be assessed against
objectives aligned to the key strategic
areas of focus of the business, which
include: market share, operational and
competitiveness objectives.
All references to revenue, operating profit, operating free cash flow, EPS and ROIC targets refer to those measures that are defined within the ARR.
The 2025 LTIP award will continue to
be based on a mix of EPS, ROIC, and
CO2e reduction. The targets have been
set at stretching levels taking into
account both our long-term plan and
external forecasts, as disclosed on
page 147 of the ARR.
Following the end of the performance
period, LTIP awards will be subject to
an additional two-year holding period.
Looking ahead
We regularly monitor the performance
of our remuneration policy and will
continue to engage with shareholders
where necessary to ensure we are
implementing the policy in a way which
is aligned with both good governance
and commercial best practice.
Our remuneration policy and
outcomes reflect a strong emphasis
on performance related pay, aligned to
shareholder interests and our strategic
aims.
At our 2026 AGM we will be seeking
shareholder support for our next
remuneration policy and I look forward
to engaging with our major
shareholders on our proposals during
the course of this year, and hope we
will continue to receive your support in
respect of our ARR at our forthcoming
AGM in May 2025.
John Bryant
Chairman of the
Remuneration Committee
21 March 2025
Strategic
Report
Governance and
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Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
133
Statement from the Remuneration Committee Chairman continued
Governance framework
Key principle
Application to policy
Current implementation
Focused on delivering our
business strategy
Annual bonus and LTIP
measures aligned to the
KPIs of the business
Annual bonus
metrics
LTIP
metrics
Operating profit
EPS
Revenue
ROIC
Operating free
cash flow
Co2e
See ARR for definitions
Simple, transparent and
aligning the interests of
management and
shareholders
• Only two simple incentive
plans operated
• Strong focus on pay for
performance
• Majority of remuneration
package delivered in shares
• Significant shareholding
requirement of three
times salary
• CEO pension aligned to
wider workforce
CEO pay mix linked to
performance at target
Able to be cascaded
through the organisation
and applicable to the wider
workforce
The same remuneration
framework is applied to all
members of the ELT (but
with lower incentive levels)
Variable remuneration
should be performance
related against stretching
targets
Targets are set at
stretching levels in the
context of the business
plan and external forecasts
• Target performance linked
to business plan
• Maximum payout requires
performance significantly
above plan
Summary of remuneration policy table
Fixed pay
Annual bonus
LTIP♦
Key features
Base salary
Annual increases will
normally take into account
business performance and
increases awarded to the
general workforce
Benefits
A range of benefits may be
provided in line with
market practice
Pension
• Can participate in the UK
pension plan or receive a
cash allowance on the
same basis as all other
employees
• Maximum employer
contribution is £30k
Key features
• Target bonus opportunity
is 150% of salary
• Bonus calculated by
multiplying the target
bonus by a BPF (0-200%)
and an IPF (0-120%)
• Business and individual
performance targets are
set in the context of the
strategic plan
• Malus and clawback
provisions may apply to
awards
• Discretion to adjust the
formulaic outcome up or
down taking into account
all relevant factors
Key features
• Based on performance
measures aligned to the
strategic plan and
measured over at least
three financial years
• Target LTIP award is
250% of salary (500% of
salary maximum)
• Malus and clawback
provisions may apply to
awards
• Two year holding period
applied after vesting
• Discretion to adjust the
formulaic vesting
outcome up or down
taking into account all
relevant factors
Link to strategy
• Supports recruitment
and retention of
Executive Directors of
the calibre required for
the long-term success of
the business
Link to strategy
• Incentivises delivery of
the business plan on an
annual basis
• Rewards performance
against key indicators
which are critical to the
delivery of the strategy
Link to strategy
• Focused on delivery of
Group performance over
the long term
• Delivered in shares to
provide alignment with
shareholders’ interests
A full copy of the policy can be found on pages 122–129 of the 2022 Integrated Report, in the
reports & results section of the investor section of our website at cocacolaep.com/investors
All references to revenue, operating profit, operating free cash flow, EPS and ROIC targets for 2025 refer to those measures that
are defined within the ARR.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
134
Overview of remuneration policy
22%
Fixed
pay
29%
Annual
bonus
49%
LTIP
ESRS 2 GOV-3
ESRS
Overview of 2024 remuneration performance
Overview of 2025 CEO remuneration framework
CCEP share price(A) (US$)
Reported
long-term KPIs
Fixed pay
Annual bonus
LTIP
80
75
70
65
60
31 Dec 2023
31 Dec 2024
A. Nasdaq listing.
2024 CEO single figure
CEO shareholding
£1.4m
(10%)
£2.3m
(17%)
£10.2m
(73%)
As at 31 Dec 2024
2,626% of salary
300% of salary
Fixed pay
2024 total value
Annual bonus
£13.9m
Current shareholding
LTIP
Shareholding requirement
B. Comparable diluted EPS and comparable ROIC are non-IFRS performance measures. Refer to ‘Note regarding the
presentation of adjusted financial information and alternative performance measures’ on pages 80-81 for the definition of
our non-IFRS performance measures and to pages 87 and 91 for a reconciliation of reported to comparable results.
Annual bonus outcomes
(multiple of target)
Operating profit
1.00x
Revenue
0.65x
Operating free cash flow
e
t
1.93x
Bonus pay out = 52%
of maximum (including
IPF of 1.15x)
Comparable EPS(B)
Comparable ROIC(B)
CO2e reduction per litre
(Reduction 2021-2024)
Base salary
2.0% increase
for 2025
£1.29m
Benefits
• Car allowance
• Private medical
• School fees
• Financial planning
Pension
Pension scheme
contribution and
cash in lieu aligned
to wider workforce
£28k
All references to revenue, operating profit, operating free cash flow, EPS and ROIC targets for
2024 outcomes and for 2025 refer to those measures that are defined within the ARR.
Read more in the Annual report on remuneration from page 136
1 Operating profit
50%
2 Revenue
30%
3 Operating free
cash flow
20%
0x–1.2x
Individual multiplier
150%
360%
(% of salary)
Target
Maximum
1 ROIC
42.5%
2 EPS
42.5%
3 Reduction in
CO2e♦
15.0%
250%
500%
(% of salary)
Target
Maximum
Strategic
Report
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Directors’ Report
Financial
Statements
Further Sustainability
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Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
135
Remuneration at a glance
1
2
3
1
2
3
11.3 %
2024
11.1%
2024
10.3%
2023
9.1%
2022
3.95
2024
3.71
2023
3.39
2022
ESRS 2 GOV-3
ESRS
Remuneration outcomes for 2024
The following pages set out details of the remuneration received by Directors
for the financial year ending 31 December 2024. Prior year figures have also been
shown. Audited sections of the report have been identified.
The Directors’ remuneration in 2024 was awarded in line with the remuneration
policy, which was approved by shareholders at the AGM in May 2023.
Single figure table for Executive Directors (audited)
Individual
Year
Salary
(£000)
Taxable
benefits
(£000)
Pension
(£000)
Fixed
pay
(£000)
Annual
bonus
(£000)
Long-term
incentives
(£000)
Variable
remuneration
(£000)
Total
remuneration
(£000)
Damian
Gammell
2024
1,260
75
28
1,363
2,343
10,196(A)
12,539
13,902
2023
1,235
99
27
1,361
3,525
8,273(B)
11,798
13,159
A. Value based on share price and exchange rate on vest date of 10 March 2025 of US $80.95 (£62.81) and includes £682,000
cash payment in respect of dividend equivalents to be paid on the vested Shares. Around £4,176,000 of the vest value is
attributable to share price appreciation.
B. Restated from £7,396,000 in last year’s single figure table to reflect actual share price on vesting date of US $70.92
(£55.70)
on 15 March 2024 applied to 138,201 vested Shares and £574,000 cash payment in respect of dividend equivalents paid
on the vested Shares.
Notes to the single figure table for Executive Directors (audited)
Base salary
Damian Gammell received a salary increase of 2.0% from £1,241,440 to £1,266,269
effective from 1 April 2024. This increase was lower than the merit increase
provided to the wider GB workforce of 3.5%.
Taxable benefits
During the year, Damian Gammell received the following main benefits: car
allowance (£14,000), financial planning allowance (£10,000), schooling allowance
(£25,000 net) and family private medical coverage (£4,000).
Pension
The pension provisions that apply to Damian Gammell are aligned to all other GB
employees. Damian Gammell elected to receive a contribution into the pension
scheme up to the annual allowance with the balance up to the maximum allowed
by the remuneration policy as a cash allowance. This equates to a total payment
of £30,000 from CCEP inclusive of employer National Insurance contributions
(i.e. the actual benefit received by Damian Gammell is less than £30,000 per
year).
Annual bonus
Around 12,500 people across the organisation participate in the annual bonus
(around 38% of our total workforce). Around two thirds of our employees
participate in annual variable remuneration plans in total, including the annual
bonus, sales incentive plans (around 20% of our people), and local incentive plans
(around 25% of our people).
Overview of CCEP’s annual bonus design
The 2024 CCEP annual bonus plan was designed to incentivise the delivery
of the business strategy and comprised the following elements:
Business Performance Factor (BPF) – Provides alignment with our core
objectives to deliver strong financial performance against our main financial
performance indicators of operating profit (50%), revenue (30%) and operating
free cash flow (20%).
Individual Performance Factor (IPF) – Individual objectives were also set
for Damian Gammell, focused on a number of areas which are aligned to key
longer-term strategic objectives of the business.
In line with the remuneration policy, Damian Gammell had a target bonus
opportunity of 150% of salary. Actual payments range from zero to a maximum
of 360% of salary depending on the extent to which business and individual
performance measures were achieved.
Target
bonus
(150% of
base salary)
BPF
(0x to 2.0x)
IPF
(0x to 1.2x)
Final
bonus
outcome
(0% to 360%
of base salary)
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
136
Annual report on remuneration
2024 annual bonus outcome – BPF
As set out in the Statement from the Remuneration Committee Chairman on
page 132, overall performance in 2024 has been solid. This has been reflected in
the annual bonus outcome, with performance for all three financial measures
being within the target range.
Performance targets
Performance outcomes
Measure
Weighting
Threshold
(0.25x multiplier)
Target
(1x multiplier)
Maximum
(2x multiplier)
Actual outcome
Multiplier
achieved
Operating
profit(A)
50%
€2,602m
€2,727m
€2,852m
€2,727m
1.00x
Revenue(B)
30%
€20,601m
€21,437m
€21,823m
€21,042m
0.65x
Operating
free cash
flow(C)
20%
€2,384m
€2,563m
€2,743m
€2,729m
1.93x
Total
100%
1.08x
A. Comparable operating profit on a FX neutral basis at budget rates.
B. Revenue on a FX neutral basis at budget rates.
C. Comparable operating profit before depreciation and amortisation and adjusting for capital expenditures, restructuring
cash expenditures and changes in operating working capital, on an FX neutral basis at budget rates.
2024 annual bonus outcome – IPF
To determine an appropriate IPF, the Chairman of the Board assesses Damian
Gammell’s performance against the individual performance objectives that were
set at the start of the year. The outcome is then discussed with and
recommended by the Committee for final approval by the Board.
Damian Gammell once again provided exceptional leadership of the business
during 2024 within a very challenging external environment. He delivered strongly
against his specific individual objectives outlined in the table to the right, but also
led the business strongly across all areas despite macro and geopolitical
challenges. This has resulted not only in strong business performance but
delivered record levels of employee engagement in what continues to be a more
diverse organisation. Taking all relevant factors into account the Board
determined that his IPF should be set at 1.15x for the year.
Further details of some of the specific objectives achieved, which link to our
strategic pillars (great brands, great people, great execution, done sustainably),
are included in the table below:
2024 objectives
Performance delivered
Strategic
objective
Grow sparkling volume
share versus 2023
• Delivery of increased volume share, value
share and absolute volume
Succession and
development plans
• Development and approval of long-term
succession plans for ELT and their direct
reports, including internal successors filling
two roles on the ELT in 2024
Indonesia transformation
and integration of
Philippines
• Delivery of transformation ahead of plan in
Indonesia. Successful integration of the
Philippines with delivery of strong annual
performance exceeding budgets
Sustainability
• Development and approval of next iteration
of GHG reduction plan to 2030
Link to strategy
Great
brands
Great
people
Great
execution
Done
sustainably
2024 annual bonus outcome – calculation
Based on the level of performance achieved, as set out above, this resulted in
a cash bonus paid following the year end to Damian Gammell as follows:
Target
bonus
(150% of
base salary)
BPF
(1.08x)
IPF
(1.15x)
Final
bonus outcome
(186% of
base salary)
Strategic
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Financial
Statements
Further Sustainability
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Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
137
Annual report on remuneration continued
Long-term incentives♦
Awards vesting for performance in respect of 2024
The 2022 LTIP award was subject to EPS, ROIC and CO2e reduction performance
targets measured over the three year performance period from 1 January 2022
to 31 December 2024.
Performance targets(D)
Measure
Weighting
Threshold
(25% vesting)
Target
(100% vesting)
Maximum
(200% vesting)
Actual
performance
outcome
Final
vesting
level
EPS(A)
42.5%
€3.19
€3.58
€3.85
€4.03
2.00x
ROIC(B)
42.5%
8.8%
9.7%
10.4%
10.7%
2.00x
CO2e
reduction(C)
15%
6.0%
per litre
8.0%
per litre
10.0%
per litre
11.3%(E)
per litre
2.00x
Total formulaic
vesting level
2.00x
Total vesting
after discretion
1.85x
A. Comparable and on a tax and currency neutral basis, adjusted for brand sales and material non-cash equity accounting
adjustments.
B. ROIC calculated as comparable operating profit after tax attributable to shareholders, on a tax and currency neutral
basis, divided by the average of opening and closing invested capital for the year, adjusted for brand sales and material
non-cash equity accounting adjustments. Invested capital is calculated as the addition of borrowings and equity
attributable to shareholders less cash and cash equivalents and short-term investments.
C. Relative reduction in total value chain GHG emissions per litre since 2021. Target based on entire value chain in Europe.
D. Straight-line vesting between each vesting level shown.
E. This metric is included in the sustainability statement.
In assessing the formulaic vesting outcome of the 2022 LTIP, the Committee
additionally undertook a holistic assessment of overall performance over the
three-year period to determine whether the formulaic outcome was an
appropriate vesting level for all participants (around 300 people who occupy the
most senior roles in the business) and reflected underlying Company
performance. The Committee took into account a wide range of performance
reference points, including financial performance, returns to shareholders, the
stakeholder experience and our sustainability achievements, as described below.
As a result of the assessment, the Committee determined the overall
performance of the business to be strong. However, as outlined in the Statement
from the Remuneration Committee Chairman (page 132) the Committee
considered it appropriate to follow a similar approach to that used for the 2020
and 2021 LTIP awards and apply downwards discretion in respect of the final
vesting level for the CO2e reduction measure and cap this at target. This reduced
the overall vesting level to 1.85x target, and the Committee believes this to be a
fair reflection of overall performance. From the 2023 LTIP, CO2e reduction
targets were set at more stretching levels and as such it is expected that vesting
outcomes will be aligned with the formulaic outcome in future years.
The value of the award has been calculated based on the share price at vesting
of US $80.95 (£62.81). This results in a final pay out of around £10.2 million
including the value of the cash payment to be received in respect of dividend
equivalents accrued during the vesting period. As outlined in the Chairman’s
statement, this value included the benefit of the significant increase in share
price over the three year performance period, which has delivered over £9 billion
of value to shareholders over the same period.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
138
Annual report on remuneration continued
ESRS 2 GOV-3
ESRS
Holistic review of overall performance over 2022 LTIP performance period
Overall business performance
• NARTD value share growth over the performance period
(2022 = +10bps, 2023 = +10bps and 2024 = +40bps).
• Number one value creator in FMCG in Europe, Australia and the Philippines, creating
additional €1.3 billion value for our customers across all markets versus 2023.
• Across the three-year performance period, we created over €3.4 billion of
value for customers across our markets, by focusing on great brands
supported in market by great execution.
• Continued robust top and bottom line growth, growing share ahead of the
market and delivered underlying volume growth.
• Delivered solid adjusted comparable revenue per unit case (FY24 +2.7%)
through our continued focus on revenue and margin growth management.
• Strong comparable free cash flow generation of €1.8 billion in 2024, ahead of
our medium-term objective of around €1.7 billion.
Shareholder experience
• Share price performance – highest share price to date in the history of the
company ($81.88) achieved during the performance period (share price as at
the vest date remained 78% above the grant price).
• Significant value delivered to shareholders through continued payments of
dividends – FY24 dividend per share of €1.97 (+7% versus 2023), and cumulative
dividends of €2.5 billion over the period, maintaining an annualised dividend
pay-out ratio of approximately 50%.
• Strong TSR growth – 59% growth over the three-year period, which was
top decile performance versus FMCG peers and outperformed the
FTSE 100 (20%), Euronext 100 (10%) and S&P 500 (35%).
Continued delivery of our sustainability agenda
• CCEP’s focus on long-term value creation and innovation positions
sustainability at the heart of everything we do. Over the 2022 LTIP performance
period we delivered the following(A):
– 20.0% reduction across our Scope 1, 2 and 3 GHG emissions since 2019.
– Reduction in our Group Water Use Ratio of 4.3% versus 2019.
– Continued to exceed our target to use >50% rPET, reaching 56.0% across the
Group, and 63.2% in Europe in 2024.
– 49.9% of our volume sold came from low or no calorie products, making
progress against our target to reach 50% by 2030.
A. Data excluding the Philippines. In 2025, we will review and update our sustainability action plan to include the Philippines.
Integration of our Philippines business
• Seamless integration of the Philippines into the CCEP family.
• Great full year performance in this highly attractive and growing market with
fantastic momentum delivering double-digit volume growth.
• Great execution driving record high value share gains (75% sparkling and 50%
NARTD).
• FY24 operating margin expansion up around 200bps to around 7.5%.
Wider workforce and other stakeholder experiences
• Our primary focus throughout the performance period, in the context of the
macro geopolitical environment, was on the safety and wellbeing of our
colleagues. This included emotional and mental wellbeing support through an
expanded EAP, and a significant Mental Health First Aider programme to provide
ongoing support to all employees.
• In recognition of the rising cost of living, one-off payments were delivered
in 2022 to our lowest paid colleagues in selected markets.
• In 2022, we launched the new global Employee Share Purchase Plan (ESPP),
which gives our employees the opportunity to buy Shares in CCEP on a regular
basis. For every share an employee purchases, CCEP will provide a matching
share, up to an agreed limit. Total value of matching shares delivered to
participants valued at 31 December 2024 has been €45 million. In Great Britain,
we offer a similar opportunity under an employee share plan, which makes use
of a tax-efficient opportunity for employees to become shareholders through
salary sacrifice arrangements. Around 46% and 76% of eligible employees were
participating in the global ESPP and Great Britain share plan, respectively, on
31 December 2024.
• Focus on our communities(A) – our employees volunteered approximately
41,800 hours with a total of €15.0 million in community investment in Europe and
APS. Our Support My Cause initiative enables employees to nominate local
charities they feel passionately about for a donation from the business. Since
2019, we have donated €1.5 million to 240 local charities and community groups
across our territories. In addition, in 2024, we continued to financially support
grassroots charitable and community partnerships located close to our sites.
• Focus on our customers – we have an unrivalled customer coverage with which
we jointly create value, with more than €3.4 billion added to the FMCG industry
since 2022.
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2024 Annual Report and Form 20-F
139
Annual report on remuneration continued
Awards granted in 2024 (audited)
A conditional award of performance share units (PSUs) was granted under the
CCEP LTIP to Damian Gammell on 24 May 2024, with a target value of 250% of
salary in line with the remuneration policy. The performance measures were
unchanged from the prior year and continued to align with the long-term strategy
– EPS, ROIC and CO2e reduction. Financial targets were set at stretching levels
and on the same basis as in prior years, taking into account both our long-term
plan and external forecasts. Targets for CO2e reduction were aligned with those
for the 2023 LTIP, significantly increased versus those used for prior awards.
Further details are set out below:
Individual
Date of
award
Maximum
number of
Shares
under award
Target
number of
Shares under
award(A)
Closing
Share price
at date
of award
Face value
Performance
period
Normal
vesting
date
Damian
Gammell
24 May
2024(B)
112,218
56,109 US$73.08
US$8,200,891
1 Jan 2024 –
31 Dec 2026
15 Mar
2027
A. Number of Shares awarded calculated using 10 day average share price to the normal grant date (15 March 2024) of
US$70.62.
B. The award date was delayed to May 2024 due to the timing of the acquisition of CCBPI, and to enable robust targets to be
set for the combined business, however all other terms including the vest date were set as if granted at the normal time.
The vesting of awards is subject to the achievement of the following
performance targets:
Vesting level(D) (% of target)
Measure
Definition
Weighting
25%
100%
200%
EPS(A)
EPS achieved in the final year of
the performance period
(FY 2026)
42.5%
€4.14
€4.64
€4.99
ROIC(B)
ROIC achieved in the final year of
the performance period
(FY 2026)
42.5%
11.3%
12.6%
13.7%
CO2e
reduction(C)
Relative reduction in total value
chain GHG emissions since 2023
(gCO2e/litre)
15%
12.0%
per litre
14.5%
per litre
17.0%
per litre
A. Comparable and on a tax and currency neutral basis. Should there be share repurchases during the performance period, or
any material changes resulting from the Philippines purchase price allocation, an adjustment will be made to neutralise
for the impact and will be fully disclosed at the time of vesting.
B. ROIC calculated as comparable operating profit after tax attributable to shareholders, on a tax and currency neutral
basis, divided by the average of opening and closing invested capital for the year, adjusted for material non-cash equity
accounting adjustments. Invested capital is calculated as the addition of borrowings and equity attributable to
shareholders less cash and cash equivalents and short-term investments. Should there be share repurchases during the
performance period, or any material changes resulting from the Philippines purchase price allocation, an adjustment will be
made to neutralise for the impact and will be fully disclosed at the time of vesting.
C. Target based on entire Group value chain.
D. Straight line vesting between each vesting level.
Any award vesting for the CEO will be subject to a two year post-vesting holding period.
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2024 Annual Report and Form 20-F
140
Annual report on remuneration continued
Historical TSR performance and CEO remuneration outcomes
The chart below compares the TSR performance of CCEP from admission up until 31 December 2024 with the TSR of the Euronext 100, the FTSE 100
and the S&P 500. These indices have been chosen as recognised equity market indices of companies of a similar size, complexity and global reach as to CCEP.
30 trading day average data: against S&P 500, Euronext 100 and FTSE 100
Total shareholder return data
CCEP
S&P 500
Euronext 100
FTSE 100
May 2016
Dec 2016
Dec 2017
Dec 2018
Dec 2019
Dec 2020
Dec 2021
Dec 2022
Dec 2023
Dec 2024
0
50
100
150
200
250
300
350
The following table summarises the historical CEO’s single figure of total remuneration, annual bonus and LTIP pay out as a percentage of the maximum opportunity
over this period:
2016(A)
2016(A)
2017
2018
2019
2020
2021
2022
2023
2024
John Brock
Damian Gammell
Damian Gammell
Damian Gammell
Damian Gammell
Damian Gammell
Damian Gammell
Damian Gammell
Damian Gammell
Damian Gammell
CEO single figure of remuneration
(‘000)
US$3,890
£27
£3,716
£3,821
£7,839
£5,513
£7,672
£12,153
£13,159(B)
£13,902
Annual bonus pay out (as a %
of maximum opportunity)
31.23%
40.6%
60.7%
63.1%
43.7%
35.3%
84.1%
85.8%
79.3%
51.7%
LTIP vesting (as a % of maximum
opportunity)
N/A
N/A
N/A
N/A
59.0%
36.5%
45.0%
92.5%
92.5%
92.5%
A. The figures for 2016 are in respect of the period for which each individual served as CEO during the year. John Brock served as CEO from 29 May to 28 December 2016. Damian Gammell served as CEO from 29 December to 31 December 2016.
B. Restated from last year’s single figure to reflect the actual share price on vesting date for the 2021 LTIP.
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Annual report on remuneration continued
Percentage change in CEO and Director remuneration
The table below shows the percentage change in CEO and Director remuneration from 2023 to 2024 (and between prior years) compared to the average percentage
change in remuneration for all employees of the Parent Company.
2024
2023
2022
2021
2020
Comparator
Base
salary/fee
Taxable
benefits
Annual
bonus
Base
salary/fee
Taxable
benefits
Annual
bonus
Base
salary/fee
Taxable
benefits(F)
Annual
bonus
Base
salary/fee
Taxable
benefits(F)
Annual
bonus
Base
salary/fee
Taxable
benefits(F)
Annual
bonus
CEO
2.0%
(24.2)%
(33.5)%
2.2%
(26.7)%
(5.5)%
2.5%
0.7%
4.6%
0.4%(G)
0.0%
139.4%
2.0%
5.5%
(17.5)%
All employees
3.5%
1.7%
(30.6)%
4.3%
0.5%
(7.0)%
3.4%
0.6%
11.7%
1.7%
1.1%
139.9%
2.7%
0.2%
(21.9)%
Other Directors
Sol Daurella
2.8%
(71.4%)
n/a
1.3%
133.3%
n/a
2.4%
200.0%
n/a
0.0%
0.0%
n/a
0.5%
0.0%
n/a
Manolo Arroyo(A)
3.5%
100.0%
n/a
4.5%
(87.5)%
n/a
71.9%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Guillaume Bacuvier(B)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
John Bryant(C)
2.2%
50.0%
n/a
17.9%
(11.1)%
n/a
3.5%
125.0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
José Ignacio Comenge
2.0%
(41.7)%
n/a
1.0%
33.3%
n/a
2.0%
125.0%
n/a
0.0%
300.0%
n/a
1.0%
(80.0)%
n/a
Nathalie Gaveau
8.2%
(77.8)%
n/a
12.2%
200.0%
n/a
6.5%
200.0%
n/a
0.0%
0.0%
n/a
0.0%
(66.7)%
n/a
Álvaro Gómez-Trénor Aguilar
2.4%
(38.5)%
n/a
1.2%
62.5%
n/a
2.4%
100.0%
n/a
0.0%
100.0%
n/a
0.0%
(71.4)%
n/a
Mary Harris(D)
70.0%
(21.4)%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Thomas H. Johnson
4.2%
(37.5)%
n/a
7.8%
23.1%
n/a
2.7%
550.0%
n/a
0.0%
n/a
n/a
3.5% (100.0)%
n/a
Dagmar Kollmann
1.5%
8.3%
n/a
3.8%
20.0%
n/a
16.8%
150.0%
n/a
0.0%
300.0%
n/a
71.2%
(83.3)%
n/a
Alfonso Líbano Daurella
2.0%
(80.0)%
n/a
(2.9)%
66.7%
n/a
1.0%
n/a
n/a
0.0%
n/a
n/a
1.0% (100.0)%
n/a
Nicolas Mirzayantz(D)
98.3%
(76.9)%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Mark Price
3.5%
(33.3)%
n/a
5.5%
100.0%
n/a
5.8%
200.0%
n/a
0.0%
0.0%
n/a
71.7%
(50.0)%
n/a
Nancy Quan(D)
71.7%
0.0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Mario Rotllant Solá
1.7%
(58.3)%
n/a
8.0%
33.3%
n/a
14.3%
125.0%
n/a
0.0%
300.0%
n/a
1.0%
(80.0)%
n/a
Dessi Temperley(E)
1.6%
57.1%
n/a
8.0%
(30.0)%
n/a
15.3%
150.0%
n/a
69.0%
n/a
n/a
n/a
n/a
n/a
A. Appointed to the Board on 26 May 2021.
B. Appointed to the Board on 1 January 2024.
C. Appointed to the Board on 1 January 2021.
D. Appointed to the Board on 24 May 2023.
E. Appointed to the Board on 27 May 2020.
F. Reduction and increases in taxable benefits reflect the impact of travel restrictions across 2020, 2021 and 2022.
G. No increase was applied for 2021, but small increase reflects the 2020 salary increase applying only from 1 April 2020.
Relative importance of spend on pay
The table below shows a summary of distributions to shareholders by way of
dividends and share buyback as well as total employee expenditure for 2024 and
2023, along with the percentage change of each.
2024
2023
€ million
€ million
% change
Total employee expenditure
2,624
2,433
7.9%
Dividends paid(A)
910
841
8.2%
A. There were no share buybacks in 2023 or 2024.
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Annual report on remuneration continued
CEO pay ratio
The table below shows the ratio of the CEO’s single figure of remuneration for
2024 to the 25th percentile, median and 75th percentile total remuneration of full
time equivalent GB employees. The ratio is heavily influenced by the fact that the
CEO participates in the LTIP. If the LTIP were excluded from the calculation,
then the median ratio would be 60:1. The main reason for the increase in the ratio
from 2023 to 2024 is driven by a change in the reported LTIP value for the CEO,
due to strong share price performance over the LTIP vesting period.
Year(D)
Method
25th percentile ratio
Median ratio
75th percentile ratio
2024
Option B
290:1(A)
224:1(B)
196:1(C)
2023
246:1
189:1
150:1
2022
281:1
171:1
130:1
2021
221:1
162:1
92:1
2020
175:1
105:1
83:1
2019
250:1
169:1
111:1
A. The individual used in this calculation received total pay and benefits of £48,000 (of which £39,000 was salary).
B. The individual used in this calculation received total pay and benefits of £62,000 (of which £52,000 was salary).
C. The individual used in this calculation received total pay and benefits of £71,000 (of which £58,000 was salary).
D. Prior year ratios are as reported in previous years and not restated for final vest values of LTIP awards.
The Committee has chosen Option B (hourly gender pay gap information as
at 5 April 2024) to determine the ratios, as that data was already available and
provides a clear methodology to calculate full time equivalent earnings.
No component of pay and benefits has been omitted for the purposes
of the calculations.
The Committee is satisfied that the individuals whose remuneration is used in
the above calculations are reasonably representative of employees at the three
percentile points, having also reviewed the remuneration for individuals
immediately above and below each of these points, and noted that the spread
of ratios was acceptable. No adjustments were made to the three reference
points selected.
The Committee believes the median ratio is consistent with the pay and reward
policies for CCEP’s GB employees. CCEP is committed to offering an attractive
package for all employees. Salaries are set with reference to factors such as
skills, experience and performance of the individual, as well as market
competitiveness. All employees receive a wide range of employee benefits and a
large number are eligible for an annual bonus. Our LTIP is designed to link
remuneration to the delivery of long-term strategic objectives and therefore
participation is typically offered to senior employees who have the ability to
influence these outcomes. The 25th percentile, median and 75th percentile
employees identified in the above calculation do not participate in the LTIP. As
the CEO participates in the LTIP, the ratio will be influenced by vesting outcomes
and will likely vary year on year. In consideration of these points, the Committee
considers that the levels of remuneration are appropriate.
Payments to past Directors (audited)
There were no payments to past Directors during the year.
Payments for loss of office (audited)
There were no payments for loss of office during the year.
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Annual report on remuneration continued
Statement of Directors’ share ownership and share interests (audited)
Interests of the CEO
The CEO is required to hold 300% of their base salary in Shares. The guideline is
expected to be met within five years of appointment. Until the guideline is met,
50% of any vested Shares from incentive awards (after tax) must be retained.
The guideline continues to apply for one year following termination of
employment.
Share ownership requirements and the number of Shares held by Damian
Gammell are set out in the table below.
Interests in
Shares at 31
December
2024
Interests
in share
incentive
schemes
subject to
performance
conditions at
31 December
2024(A)(B)(C)
Interests in
share option
schemes(A)(B)
Share
ownership
requirement
as a %
of salary
Share
ownership
as a % of salary
achieved at
31 December
2024
Shareholding
guideline
met
Interests in
Shares at 10
March 2025(D)
Damian
Gammell
542,123
406,732
–
300%
2,626%
ü
621,291
A. For further details of these interests, please refer to footnote (C) of the outstanding awards table below.
B. Do not count towards achievement of the share ownership guideline.
C. The CEO has no interests in share incentive schemes not subject to performance conditions at 31 December 2024.
D. This includes the post-tax shares resulting from the 151,493 shares that vested under the 2022 LTIP on 10 March 2025.
Details of the CEO’s share awards are set out in the table below.
Director
and grant date
Form of award
Exercise price
Number of
Shares subject
to awards at 31
December 2023
Granted
during the year
Vested
during the year
Exercised
during the year
Lapsed
during the year
Number of
Shares subject
to awards at 31
December 2024
End of
performance
period
Vesting date
Damian
Gammell(A)
29 Sep 2021
PSU(B)
N/A
149,406
–
138,201
N/A
11,205
–
31 Dec 2023
15 Mar 2024
10 Mar 2022
PSU(C)(D)
N/A
163,776
–
–
N/A
–
163,776
31 Dec 2024
10 Mar 2025
13 Mar 2023
PSU(C)
N/A
130,738
–
–
N/A
–
130,738
31 Dec 2025
13 Mar 2026
24 May 2024
PSU(C)
N/A
–
112,218
–
N/A
–
112,218
31 Dec 2026
15 Mar 2027
A. In addition, the CEO had 324,643 vested options with an expiry date of 5 November 2025 and an exercise price of US $39.00 which were exercised by the CEO during the year.
B. The performance condition was satisfied at 92.5% of maximum on 31 December 2023. Award vested on 15 March 2024.
C. The number of Shares shown is the maximum number of Shares that may vest if the performance targets are met in full.
D. The 2022 PSU awards vested at 185% of target (151,493 shares) on 10 March 2025.
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Annual report on remuneration continued
Interests of other Directors (audited)
The table below gives details of the Share interests of each NED either through
direct ownership or connected persons.
Interests in Shares at
31 December 2024(E)
Interests in Shares at
10 March 2025
Sol Daurella(A)(B)
33,385,384
33,385,384
Manolo Arroyo
–
–
Guillaume Bacuvier(D)
–
–
John Bryant
3,340
3,340
José Ignacio Comenge(A)(C)
7,855,504
7,855,504
Nathalie Gaveau
–
–
Álvaro Gómez-Trénor Aguilar(A)
3,143,876
3,143,876
Mary Harris
–
–
Thomas H. Johnson
14,000
14,000
Dagmar Kollmann
–
–
Alfonso Líbano Daurella(A)
6,701,540
6,701,540
Nicolas Mirzayantz
7,930
7,930
Mark Price
–
–
Nancy Quan
–
–
Mario Rotllant Solá
–
–
Dessi Temperley
10,000
10,000
A. Shares held indirectly through Olive Partners. The number of Shares increased slightly during the year as a result of a
reduction in Olive Partners’ share capital.
B. For the purposes of Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as
amended), Sol Daurella (and her connected persons within the meaning of section 252 of the Companies Act) are deemed to be
interested in the shares held by Olive by virtue of their indirect minority interest in Cobega S.A, which indirectly owns 57.5% of Olive.
C. José Ignacio Comenge’s Share interests increased to 7,855,504 on 12 February 2024 following an increase to his overall
holding in Olive Partners.
D. Appointed to the Board on 1 January 2024.
E. No changes occurred to the Directors’ direct beneficial interests in Shares between 31 December 2024 and 10 March 2025.
Dilution levels
The terms of the Company’s share plans set limits on the number of newly issued
Shares that may be issued to satisfy awards. These limits restrict overall dilution
under all plans to under 10% of the Company’s issued share capital over a 10 year
period in relation to the Company’s issued share capital, with a further limitation
of 5% in any 10 year period on discretionary plans.
Single figure table for NEDs (audited)
The following table sets out the total fees and taxable benefits received by the
Chairman and NEDs for the year ended 31 December 2024. Prior year figures are
also shown.
2024 (£’000)
2023 (£’000)
Individual
Base
fee
Chairman/
Committee
fees
Taxable
benefits(C)
Total
fees
Base
fee
Chairman/
Committee
fees
Taxable
benefits(C)
Total
fees
Sol Daurella
597
32
2
631
582
30
7
619
Manolo Arroyo
87
32
2
121
85
30
1
116
Guillaume Bacuvier(A)
87
10
1
98
-
-
-
-
John Bryant
87
54
12
153
85
53
8
146
José Ignacio
Comenge
87
16
7
110
85
16
12
113
Nathalie Gaveau
87
32
2
121
85
25
9
119
Álvaro Gómez-Trénor
Aguilar
87
0
8
95
85
0
13
98
Mary Harris(B)
87
32
11
130
51
19
14
84
Thomas H. Johnson
120
52
10
182
117
48
16
181
Dagmar Kollmann
87
52
13
152
85
52
12
149
Alfonso Líbano
Daurella
87
16
1
104
85
16
5
106
Nicolas Mirzayantz(B)
87
32
3
122
51
9
13
73
Mark Price
87
32
8
127
85
30
12
127
Nancy Quan(B)
87
16
8
111
51
9
8
68
Mario Rotllant Solá
87
36
5
128
85
36
12
133
Dessi Temperley
87
37
11
135
85
37
7
129
A. Appointed to the Board on 1 January 2024.
B. Appointed to the Board on 24 May 2023.
C. Taxable benefits mainly relate to travel and accommodation costs in respect of attendance at Board meetings with FX
rates used as at the date of the relevant meeting.
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Annual report on remuneration continued
Implementation of remuneration policy for 2025
The Committee annually reviews the incentive structure for senior management,
including the measures and targets, to ensure they do not raise environmental,
social and governance risks by inadvertently motivating irresponsible behaviour.
Base salary
Damian Gammell will receive a 2.0% salary increase effective 1 April 2025. This is
aligned with the average merit increase provided to the wider GB workforce of
2.0%.
Individual
2024 salary
2025 salary
(effective from 1 April)
% increase
Damian Gammell
£1,266,269
£1,291,594
2.0%
Taxable benefits
No significant changes to the provision of benefits are proposed for 2025.
The main benefits for Damian Gammell will continue to include allowances
in respect of: a car, financial planning, schooling and private healthcare.
Pension
No changes are proposed in respect of the pension provision for Damian
Gammell. He will continue to receive a contribution into the pension scheme
up to the annual allowance, with the balance up to the maximum allowed by
the remuneration policy (£30,000 inclusive of employer National Insurance
contributions) as a cash allowance.
Annual bonus
No changes have been made to the structure of the annual bonus plan for 2025,
and the opportunity for Damian Gammell will remain unchanged at 150% of salary
for target performance and 360% for maximum performance.
Performance will continue to be assessed against financial and individual
performance measures on a multiplicative basis as set out on page 136.
The financial measures and relative weightings will also remain unchanged.
Measure
Definition
Weighting
Operating profit
Comparable operating profit on a FX neutral basis at
budget rates
50%
Revenue
Revenue on a FX neutral basis at budget rates
30%
Operating free cash
flow
Comparable operating profit before depreciation and
amortisation and adjusting for capital expenditures,
restructuring cash expenditures and changes in
operating working capital, on a FX neutral basis at
budget rates
20%
In determining the IPF for Damian Gammell for 2025, he will be assessed against a
number of objectives which are aligned to the key longer-term strategic objectives of
the business, which include:
Objectives include:
Strategic objective
• Growth in volume and volume share aligned with the business plan
• Competitiveness targets as agreed with the Board
• Operational targets relating to our markets
• Long range planning for digital tools and AI
Link to strategy
Great
brands
Great
people
Great
execution
Done
sustainably
The actual financial targets are not disclosed prospectively, as they are deemed
commercially sensitive. We intend to disclose them in next year’s ARR. A fuller
description of individual performance objectives, including specific quantitative
measures (where appropriate) and their outcomes, will also be disclosed in next
year’s ARR.
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2024 Annual Report and Form 20-F
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Annual report on remuneration continued
Long-term incentive
Damian Gammell’s long-term incentive opportunity for 2025 will be aligned with
the limits set out in the remuneration policy. He was granted a target award of
250% of salary on 18 March 2025 and may receive up to two times this target
award (98,438 shares) if the maximum performance targets are achieved.
The 2025 LTIP award will continue to be based on a mix of EPS, ROIC and CO2e
reduction, unchanged from last year, and the targets have been set at stretching
levels taking into account both our long-term plan and external forecasts.
Following the end of the performance period, awards will be subject to an
additional two year holding period.
Vesting level(D) (% of target)
Measure
Definition
Weighting
25%
100%
200%
EPS(A)
EPS achieved in the final year of
the performance period (FY 2027)
42.5%
€4.28
€4.80
€5.17
ROIC(B)
ROIC achieved in the final year of
the performance period (FY 2027)
42.5%
11.0%
12.3%
13.4%
CO2e
reduction(C)
Relative reduction in total value
chain GHG emissions since 2024
(gCO2e/litre)
15%
12.0%
per litre
14.5%
per litre
17.0%
per litre
A. Comparable and on a tax and currency neutral basis. Should there be share repurchases during the performance period an
adjustment will be made to neutralise for the impact and will be fully disclosed at the time of vesting.
B. ROIC calculated as comparable operating profit after tax attributable to shareholders, on a tax and currency neutral
basis, divided by the average of opening and closing invested capital for the year, adjusted for material non-cash equity
accounting adjustments. Invested capital is calculated as the addition of borrowings and equity attributable to
shareholders less cash and cash equivalents and short-term investments. Should there be share repurchases during the
performance period an adjustment will be made to neutralise for the impact and will be fully disclosed at the time
of vesting.
C. Target based on entire Group value chain.
D. Straight line vesting between each vesting level.
Chairman and NED fees
The NED base fee and Chairman fee were increased by 2.0% with effect from
1 April 2025, as outlined below, to reflect inflation and general market increases.
Fees were last increased with effect from 1 April 2024, other than for the
Committee Chairman fees which were last increased with effect from
1 April 2023 for the Nomination Committee Chairman fee, 1 April 2022 for the
Audit, Remuneration, and ESG Committee Chairman fees, and 1 April 2019 for the
Affiliated Transaction Committee Chairman fee.
Role
Current fees
Fees effective
1 April 2025
Chairman
£602,250
£614,250
NED basic fee
£88,000
£89,750
Additional fee for Senior Independent Director
£32,750
£32,750
Additional fee for
Committee Chairman
Audit and Remuneration Committees
£37,250
£37,250
Affiliated Transaction, Nomination and
ESG Committees
£36,000
£36,000
Additional fee for
Committee
membership
Audit and Remuneration Committees
£16,500
£16,500
Affiliated Transaction, Nomination and
ESG Committees
£16,000
£16,000
The Remuneration Committee
The entire Board approves the remuneration policy and determines the terms of
the compensation of the CEO and fees for the NEDs and Chairman, all on the
Committee’s recommendation. The Committee is also responsible for setting the
remuneration for each member of the ELT reporting to the CEO.
The terms of reference can be found on our website at cocacolaep.com/about-
us/governance/committees.
Remuneration Committee members and attendance
In line with the Shareholders’ Agreement, the Committee has five members, as
set out on pages 98-102. There are three independent NEDs, one Director
nominated by Olive Partners and one Director nominated by ER. The Committee
formally met five times during the year. Attendance is set out on page 111 of the
Corporate governance report.
As described in the remuneration policy, the Committee receives an annual
report in respect of wider workforce remuneration, including pay and reward
policies, which informs its decisions on executive pay. The Committee does not
engage directly with employees on the issue of executive pay; however, within
CCEP, employee groups are regularly consulted about matters affecting
employees, including our strategy, Company performance, culture and approach
to reward, and this feedback informs decisions on people matters and other
activities.
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2024 Annual Report and Form 20-F
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Annual report on remuneration continued
Remuneration Committee key activities
The table below gives an overview of the key agenda items discussed at each
scheduled meeting of the Remuneration Committee during 2024:
Meeting date
Key agenda items
February
2024
• Approval of financial performance
outcome for 2023 annual bonus
• Approval of final vesting outcome for
2021 LTIP
• Approval of 2023 annual bonus
outcomes for the ELT
March
2024
• Approval of 2024 annual bonus
financial performance measures and
targets
• Approval of 2024 LTIP opportunities
• Review of Chairman and NED fees
• Approval of 2024 ELT
remuneration packages
• Review of ELT individual
objectives in respect of the 2024
annual bonus
• Approval of 2023 Remuneration
Report
May 2024
• Approval of 2024 LTIP targets
• Deloitte Market Update
• Advisor review
• AGM voting update
• Review of ELT changes, including
packages and termination
arrangements
July 2024
• Review of executive shareholding
guidelines
• Review of annual report on wider
workforce remuneration
• Performance update in respect
of 2024 annual bonus and 2022
LTIP
December
2024
• Review of first draft of the 2024
Remuneration Report
• Performance update in respect of
2024 annual bonus and 2022 LTIP
• Approval of adoption of an Employee
Benefit Trust for satisfying share
awards
• Base pay design for 2024
• Incentive design for 2024
• Review of Committee
effectiveness
• Appointment of Advisors
The Chairman, CEO, CFO and the Chief People and Culture Officer attended
meetings by invitation of the Committee to provide it with additional context or
information, except where their own remuneration was discussed.
Support for the Remuneration Committee
Deloitte was appointed by the Remuneration Committee in 2016 following a
selection process. During the year, Deloitte provided the Committee with external
advice on executive remuneration. Deloitte is a member of the Remuneration
Consultants Group and has voluntarily signed up to the Remuneration
Consultants’ Code of Conduct relating to executive remuneration consulting in
the UK. The Committee is satisfied that the engagement partner and team that
provide advice to the Committee do not have connections with CCEP or individual
Directors that may impair their independence. During 2024, the wider Deloitte firm
also provided CCEP with other tax and consultancy services.
Following a formal tender process in 2024 the Committee appointed Ellason LLP
as their remuneration advisors effective in February 2025.
Total fees received by Deloitte in relation to the remuneration advice provided
to the Committee during the year amounted to £57,550 based on the required
time commitment.
Summary of voting outcomes
The table below shows how shareholders voted in respect of the ARR at the AGM
held on 22 May 2024 and the remuneration policy at the AGM held on 24 May
2023:
Resolution
Votes
for (%)
Votes
against (%)
Number of votes
withheld
Approval of the ARR
97.69%
2.31%
66,483
Approval of the remuneration policy
99.10%
0.90%
70,554
This Directors’ remuneration report is approved by the Board and signed on its behalf by
John Bryant,
Chairman of the Remuneration Committee
21 March 2025
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2024 Annual Report and Form 20-F
148
Annual report on remuneration continued
The Directors present their report, together with the audited
consolidated financial statements of the Group, and of the Company,
for the year ended 31 December 2024.
This Directors’ report has been prepared in accordance with the applicable
disclosure requirements of the following:
• Companies Act
• UK Listing Rules (UKLRs) and DTRs
• Statutory Audit Services for Large Companies Market Investigation (Mandatory
Use of Competitive Tender Processes and Audit Committee Responsibilities)
Order 2014, as published by the UK Competition and Markets Authority
(with which CCEP complied voluntarily for the year ended 31 December 2024)
• Rules promulgated by the US Securities and Exchange Commission
Additional information and disclosures, as required by the Companies Act, UKLRs
and DTRs, are included elsewhere in this Annual Report and are incorporated into
this Directors’ report by reference in the table opposite.
This Directors’ report, together with the Strategic Report on pages 1 to 93 represent
the management report for the purpose of compliance with DTR 4.1.5R(2) and 4.1.8R.
Directors
Appointment and replacement of Directors
The Articles set out certain rules that govern the appointment and replacement
of the Company’s Directors. These are summarised as follows:
• A Director may be appointed by either an ordinary resolution of shareholders or
by the Board
• Olive Partners and European Refreshments (ER) may each appoint a specified
number of Directors, up to a set maximum, in accordance with their respective
equity holding proportions in the Company
• Replacement INEDs must be recommended to the Board by the Nomination
Committee
• The Board shall consist of a majority of INEDs
• Directors must retire at each AGM, and may, if eligible, offer themselves for re-
election
• The minimum number of Directors (disregarding alternate Directors) is two
Read more about the election/ re-election of Directors in the Corporate
governance report on page 117
Other information that is relevant to the Directors’ report, and which is incorporated by
reference into this report, can be located as follows:
Disclosure
Section of report
Page(s)
Names of Directors during the
year
Board of Directors
98 - 102
Review of performance,
financial position and likely
future developments
Strategic Report
80 - 93
Dividends
Business and financial review and Note
18 to the consolidated financial
statements
80 - 93, 217
Principal risks
Principal risks section of the Strategic
Report
66 -77
Information on share capital
relating to share classes,
rights and obligations
Note 18 to the consolidated financial
statements, and the Share capital
section in Other Group information
215-217, 295-298
Financial instruments and
financial risk management
Notes 14 and 28 to the consolidated
financial statements
198-203, 233-236
Cash balances and
borrowings
Notes 12 and 15 to the consolidated
financial statements
196, 203 - 207
Significant events after the
reporting period
Note 29 to the consolidated financial
statements
236
Information on employment
of persons with disabilities
Done sustainably - forward on society
56-57
Workforce engagement
Done sustainably - forward on society
Our stakeholders
14-17
61-64
Business relationships with
suppliers, customers and
others
Great execution - our customers,
Done sustainably - forward on supply
chain
Our stakeholders
18-20
47 and 51-52
61-64
GHG and energy consumption Done sustainably - forward on climate
TCFD metrics and targets
GHG methodology
Key performance data summary
32-45
59-60
261-266
255-259
Responsibility statement
Directors’ responsibilities statement
153
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2024 Annual Report and Form 20-F
149
Directors’ report
Disclosure of information required under UKLR 6.6
In accordance with UKLR 6.6.1(R), the table below sets out the location of the
information required to be disclosed, where applicable.
UK Listing Rule
Information to be included
Reference in report
6.6.1(1)
Interest capitalised by the Group
n/a
6.6.1(2)
Unaudited financial information required by UKLR 6.2.23R
Page 82
6.6.1(3)
Long-term incentive schemes required by UKLR 9.3.3R
n/a
6.6.1(4)
Waiver of emoluments by a Director
n/a
6.6.1(5)
Waiver of future emoluments by a Director
n/a
6.6.1(6)
Non-pre-emptive issues of equity for cash
n/a
6.6.1(7)
Non-pre-emptive issues of equity for cash in relation to
major subsidiary undertakings
n/a
6.6.1(8)
Listed company is a subsidiary of another company
n/a
6.6.1(9)
Contracts of significance involving a Director or
controlling shareholder
n/a
6.6.1(10)
Contracts for the provision of services by a controlling
shareholder
n/a
6.6.1(11)
Shareholder waiver of dividends
n/a
6.6.1(12)
Shareholder waiver of future dividends
n/a
6.6.1(13)
Statement of compliance with UKLR 6.2.3R (controlling
shareholder)
Page 109
Powers of Directors
The Directors may exercise all powers of the Company, in accordance with, and
subject to, the Company’s Articles and any applicable legislation.
Read more about the roles and responsibilities of the Board and the main Committees
of the Board in the Governance and Directors’ Report on pages 106 - 152
Directors’ indemnity arrangements
Qualifying third party indemnities were in place throughout 2024, and remain in
place as at the date of this Annual Report. Under these indemnities, the Company
has agreed to indemnify the Directors of the Company, to the extent permitted
by law, against losses and liabilities that may be incurred in executing the powers
and duties of their office.
Amendment of Articles
The Articles may only be amended by a special resolution of the Company’s
shareholders in accordance with the Companies Act. Certain provisions of the
Articles are entrenched and may only be amended or repealed with the
prior consent of Olive Partners, ER or a majority of the INEDs (as applicable). In
particular, the requirement under the Articles that the Board shall, at all times,
contain a majority of INEDs may only be amended or repealed with the
prior consent of a majority of the INEDs. The Articles are available at
cocacolaep.com/about-us/governance.
Political donations
The Group made no political donations or contributions during 2024 (2023: nil). It
is our policy not to make political donations or incur political expenditure.
However, there may be uncertainty as to whether some normal business
activities fall under the wide definitions of political donations, organisations and
expenditure used in the Companies Act. We will therefore continue to seek
shareholder approval to make political donations or incur expenditure as a
precaution to avoid any inadvertent breach of the Companies Act.
Shares
Rights and obligations
The rights and obligations relating to the Company’s Shares (in addition to those
set out by law) are contained in the Articles.
Restrictions on transfer of securities
Olive Partners and TCCC are both subject to certain restrictions relating to the
acquisition or disposal of Shares under the terms of the Shareholders’
Agreement. Other than those set out in the Shareholders’ Agreement, we are not
aware of any agreements between shareholders that may result in a restriction
of the transfer of securities or voting rights in the Company.
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Directors’ report continued
Employee share schemes
Shares issued under the Company’s employee share schemes rank pari passu
with the existing Shares of the Company. Voting rights attached to Shares held
on trust on behalf of participants in the GB Employee Share Plan are exercised by
the trustee as directed by the participants.
Significant shareholdings
In accordance with DTR 5.8, the table below shows the significant interests in
Shares of which the Company has been notified as at 31 December 2024, and
10 March 2025. The shareholders identified have the same voting rights as all
other shareholders.
Share buyback programme
On 14 February 2025, we announced our intention (initially under the existing 2024
shareholder authority and subsequently under renewed authority) to return up to
€1 billion to shareholders through a coordinated share buyback programme on (i)
Nasdaq and other applicable US trading venues and (ii) the London Stock
Exchange, CBOE Europe Limited (through the BXE and CXE order books) and Aquis
(the "Programme"). The Programme began on 18 February 2025 and is expected to
be completed prior to the end of February 2026. The purpose of the Programme
is to reduce the issued share capital of the Company. All shares repurchased as
part of the Programme will be cancelled.
For more details, see the Share buyback programme section in Other Group information
on page 296
Interests in Shares of which the Company has been notified
Shareholder
Percentage of
total voting rights notified
to the
Company as at
the year end(C)
Number of
voting rights notified to
the Company as at
the year end
Percentage of
total voting rights
notified to the Company as
at 10 March 2025(C)
Number of
voting rights
notified to the
Company as
at 10 March 2025
Cobega, S.A.(A)
36.1%
166,128,987
36.1%
166,128,987
TCCC(B)
19.01%
87,950,640
17.15%
78,972,727
A. Held indirectly through its 56.03% owned subsidiary, Olive Partners.
B. Held indirectly through European Refreshments Unlimited Company.
C. Percentage interests disclosed have been calculated soley based on the relevant DTR 5 disclosure.
Dividends
The current dividend policy of the Company is to pay two interim dividends, the
first-half interim dividend being announced with the Q1 trading update and the
second-half interim dividend being announced with the Q3 trading update.
Accordingly, the directors are not recommending a final dividend with respect to
the financial year ending 31 December 2024.
Change of control
There are no agreements in place which provide compensation for loss of office
or employment to any Director in the event of a takeover, except for certain
provisions under the employee share plans, which may provide that certain
outstanding awards may vest early in such an event.
The Board considers that a change of control might have an impact on the
following significant agreements:
• Bottling agreements between the Group and TCCC
• A bank credit facility agreement, under which the maximum amount available
at 31 December 2024 was €1.8 billion
• Note and guarantee agreement in relation to the A$250 million 4.20% Notes 2031
• Note and guarantee agreement in relation to the US$50 million 4.34% Notes 2023
• a term loan facility involving CCEP Aboitiz Beverages Philippines Inc. under
which the outstanding principal amount is PHP 23.5 billion.
Research and development
One of the key innovation centres globally for TCCC, focusing primarily on Europe,
Eurasia, the Middle East and Africa is based in Belgium. CCEP does not have its
own research and development centre, but the Company invests in and
undertakes certain activities for the development of innovative solutions (such
as packaging concepts or less energy, water and carbon intensive beverage
manufacturing technology), digital capabilities and advanced analytics to drive
the simplification of applications and platforms, and to support and grow its
business in both its manufacturing and non-manufacturing operations(D).
D. This policy has applied for the last four years.
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Directors’ report continued
Independent auditor
Disclosure of information to auditors
Each of the Directors in office as at the date of this Annual Report, confirms that:
• So far as he or she is aware, there is no relevant audit information (as defined
by section 418 of the Companies Act) of which the Company’s auditor is
unaware.
• He or she has taken all the reasonable steps that he or she ought to have taken
as a Director to make himself or herself aware of any relevant audit information
and to establish that the Company’s auditor is aware of that information.
Auditor reappointment
Following the conclusion of the tender process, the Audit Committee
recommended to the Board that EY be reappointed as the Company’s external
auditor. EY has expressed willingness to continue in its capacity as independent
auditor of the Company. The Directors plan to recommend a resolution to
reappoint EY at the 2025 AGM.
Going concern
As part of the Directors’ consideration of the appropriateness of adopting the
going concern basis in preparing the Parent Company and consolidated financial
statements, the Directors have taken into account the Group’s overall financial
position, exposure to the principal risks and future business forecasts. For the
Parent Company, the Directors also considered the ability of its subsidiaries to
remit earnings. At 31 December 2024, the Group had cash and cash equivalents of
€1.6 billion and had access to a €1.8 billion undrawn committed credit facility,
which is free of financial covenants and in place until at least January 2030. The
Directors have also considered the stress testing performed as part of the
assessment of viability set out on page 78.
On this basis, the Directors have a reasonable expectation that the Group and
Parent Company have adequate resources to continue in operational existence
for a period of 12 months from the date of signing these accounts.
This Directors’ Report has been approved by the Board and signed on its behalf
by
Clare Wardle
Company Secretary
21 March 2025
Coca-Cola Europacific Partners plc
09717350
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Directors’ report continued
Responsibility for preparing
financial statements
The Directors are responsible for
preparing the Annual Report and the
financial statements in accordance
with applicable United Kingdom (UK)
law and regulations.
UK company law requires the Directors
to prepare financial statements for
each financial year. Under that law, the
Directors have prepared Group and
Parent Company financial statements
in accordance with UK-adopted
International Accounting Standards.
In preparing the consolidated Group
financial statements the Directors
have also elected to comply with
International Financial Reporting
Standards (IFRS) as adopted by the
European Union, and International
Financial Reporting Standards as
issued by the International Accounting
Standards Board (IASB).
Under section 393 of the Companies
Act, the Directors must not approve
the financial statements unless they
are satisfied that they give a true and
fair view of the state of affairs of the
Company and of the Group and of the
profit or loss of the Company and of
the Group for that period.
In preparing the Company financial
statements, the Directors are
required to:
• Select suitable accounting policies
and apply them consistently
• Make judgements and accounting
estimates that are reasonable
and prudent
• Follow UK-adopted International
Accounting Standards, International
Financial Reporting Standards as
adopted by the European Union, and
International Financial Reporting
Standards as issued by the IASB
• Prepare the financial statements
on a going concern basis unless it is
inappropriate to presume that the
Company will continue in business
In preparing the Group financial
statements the Directors are
required to:
• Select suitable accounting policies
and apply them consistently
• State whether UK-adopted
International Accounting Standards,
International Financial Reporting
Standards as adopted by the
European Union, and International
Financial Reporting Standards as
issued by the IASB have been
followed, subject to any material
departures disclosed and explained
in the financial statements
• Present information, including
accounting policies, in a manner
that provides relevant, reliable,
comparable and understandable
information
• Provide additional disclosures when
compliance with the specific
requirements in IFRS are insufficient
to enable users to understand the
impact of particular transactions,
other events and conditions on the
entity’s financial performance
• Make an assessment of the Group’s
ability to continue as a going concern
The Directors are responsible for
keeping adequate accounting records
that are sufficient to show and explain
the Group’s and Company’s
transactions and disclose with
reasonable accuracy at any time the
financial position of the Group and the
Company and enable them to ensure
that the financial statements comply
with the Companies Act. They are
responsible for safeguarding the
assets of the Group and Company and
hence for taking reasonable steps for
the prevention and detection of fraud
and other irregularities.
Under applicable law and regulations,
the Directors are also responsible for
preparing a Strategic Report, Directors’
report, Annual report on remuneration,
and Corporate governance report that
comply with that law and those
regulations. The Directors are
responsible for the maintenance
and integrity of the corporate and
financial information included on the
Company’s website.
Legislation, regulation and practice in
the UK governing the preparation and
dissemination of financial statements
may differ from legislation, regulation
and practice in other jurisdictions.
Responsibility statement
The Directors, whose names and
functions are set out on pages 98 - 102,
confirm that to the best of their
knowledge:
• The consolidated financial
statements, prepared in accordance
with UK-adopted International
Accounting Standards, International
Financial Reporting Standards as
adopted by the European Union and
International Financial Reporting
Standards as issued by the IASB,
give a true and fair view of the
assets, liabilities, financial position
and profit or loss of the Company
and the undertakings included in the
consolidation taken as a whole
• The Strategic Report includes a fair
review of the development and
performance of the business and the
position of the Company and the
undertakings included in the
consolidation taken as a whole, together
with a description of the principal
risks and uncertainties they face
• The Annual Report and financial
statements, taken as a whole, are fair,
balanced and understandable and
provide the information necessary for
shareholders to assess the
Company’s position and performance,
business model and strategy
By order of the Board
Clare Wardle
Company Secretary
21 March 2025
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Directors’ responsibilities statement
FINANCIAL
STATEMENTS
In this section
155
173
178
243
247
Independent auditor’s reports
Consolidated financial statements
Notes to the consolidated financial statements
Company financial statements
Notes to the Company financial statements
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Opinion
In our opinion:
• Coca-Cola Europacific Partners plc’s Group financial statements and Parent
Company financial statements (the “financial statements”) give a true and fair
view of the state of the Group’s and of the Parent Company’s affairs as at 31
December 2024 and of the Group’s and the Parent Company’s profit for the
year then ended;
• The financial statements have been properly prepared in accordance with UK
adopted International Accounting Standards, International Financial Reporting
Standards (“IFRS”) as adopted by the European Union and International
Financial Reporting Standards as issued by the International Accounting
Standards Board (“IASB”); and
• The financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
We have audited the financial statements of Coca-Cola Europacific Partners plc
(the “Parent Company”) and its subsidiaries (the “Group”) for the year ended 31
December 2024 which comprise:
Group
Parent Company
Consolidated statement of financial
position as at 31 December 2024
Statement of financial position as at
31 December 2024
Consolidated income statement for the
year then ended
Statement of comprehensive income for the
year then ended
Consolidated statement of comprehensive
income for the year then ended
Statement of cash flows for the year then
ended
Consolidated statement of changes in
equity for the year then ended
Statement of changes in equity for the year
then ended
Consolidated statement of cash flows for
the year then ended
Related Notes 1 to 13 to the financial
statements including material accounting
policy information
Related Notes 1 to 31 to the financial
statements, including material accounting
policy information
The financial reporting framework that has been applied in their preparation is
applicable law, UK adopted International Accounting Standards, IFRS as
adopted by the European Union and International Financial Reporting Standards
as issued by the IASB.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and Parent in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard as applied to listed public interest entities,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not
provided to the Group or the Parent Company and we remain independent of the
Group and the Parent Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use
of the going concern basis of accounting in the preparation of the financial
statements is appropriate. Our evaluation of the Directors’ assessment of the
Group and Parent Company’s ability to continue to adopt the going concern basis
of accounting included:
• In conjunction with our walkthrough of the Group’s financial close process, we
confirmed our understanding of management’s going concern assessment
process.
• Obtaining management’s going concern assessment, including the liquidity
forecast as well as the downside scenarios which covers a period of twelve
months to 21 March 2026.
• Testing the clerical accuracy of the model and appropriateness of the
assumptions used to prepare the Group’s going concern assessment, for
example by reconciling the prospective financial information used in the model
to the Board approved plan.
• Confirming the cash and cash equivalents balance of €1.6 billion as at 31
December 2024 and verifying the cash flows from operating activities of €3.1
billion in the year. We obtained evidence of the Group’s €1.8 billion multi-
currency credit facility which is available through to January 2030, noting no
associated financial covenants. The facility is undrawn as at 21 March 2025.
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• Assessing the plausibility of the downside scenarios in the context of our
understanding of the Group and its principal risks, including climate-related
risks.
• Reviewing the debt maturity ladder and confirming that all expected debt
repayments were included in the forecasts. We also checked that the Group is
forecast to have sufficient liquidity to repay debt which matures in the 12
months after the going concern period.
• Confirming that the Group’s forecasts used in the going concern assessment
were consistent with other forecasts used by the Group in its accounting
estimates, including those used in the annual impairment test.
• Assessing the ability of the subsidiaries of the Group to remit earnings to the
Parent Company, for example by considering any restricted cash.
• Reviewing the Group and Parent Company going concern disclosures included
in the Directors’ Report on page 152 and Note 1 to the consolidated and Parent
Company financial statements on pages 178 and 247, respectively, in order to
assess that the disclosures were appropriate and in conformity with the
reporting standards.
In management’s base case and stress case scenarios, there is headroom
without taking into consideration the benefit of any identified controllable
mitigations.
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or collectively, may
cast significant doubt on the Group and Parent Company’s ability to continue as a
going concern for a period of twelve months to 21 March 2026.
In relation to the Group and Parent Company’s reporting on how they have
applied the UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the Directors’ statement in the financial
statements about whether the Directors considered it appropriate to adopt the
going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going
concern are described in the relevant sections of this report. However, because
not all future events or conditions can be predicted, this statement is not a
guarantee as to the Group’s ability to continue as a going concern.
Overview of our audit approach
Audit scope
• We performed an audit of the complete financial information of 15
components and audit procedures on specific balances for a further 10
components. We also performed specified audit procedures on certain
accounts on 2 additional components
• We performed central procedures on financial statement line items as
detailed in the “Tailoring the scope” section below
Key audit
matters
• Accrued customer marketing costs
• Accounting for uncertain tax positions
• Valuation of The Coca-Cola Company distribution rights and land
acquired in the acquisition of Coca-Cola Beverages Philippines, Inc.
• Impairment of Indonesia goodwill and non-current assets
Materiality
• Overall group materiality of €105 million which represents 4.9% of the
adjusted profit before tax
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
In the current year our audit scoping has been updated to reflect the new
requirements of ISA (UK) 600 (Revised). We have followed a risk-based approach
when developing our audit approach to obtain sufficient appropriate audit
evidence on which to base our audit opinion. We performed risk assessment
procedures, with input from our component auditors, to identify and assess risks
of material misstatement of the Group financial statements and identified
significant accounts and disclosures. When identifying components at which
audit work needed to be performed to respond to the identified risks of material
misstatement of the Group financial statements, we considered our
understanding of the Group and its business environment, changes at specific
components, macroeconomic and geopolitical factors, the applicable financial
reporting framework, the Group’s system of internal control at the entity level,
the existence of centralised processes, applications, any relevant internal audit
results and the potential impact of climate change.
We determined that centralised audit procedures would be performed on
goodwill and intangible assets with indefinite lives, business combinations, net
retirement benefit surplus and net retirement benefit liabilities, derivative
financial instruments, debt, cash & cash equivalents, finance income and costs,
accrued customer marketing costs, uncertain tax positions, equity and financial
statement disclosures.
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We then identified 25 components as individually relevant to the Group due to
relevant events and conditions underlying the identified risks of material
misstatement of the Group financial statements being associated with the
reporting components or a pervasive risks of material misstatement of the Group
financial statements, or a significant risk or an area of higher assessed risk of
material misstatement of the Group financial statements being associated with
the components. We also considered the materiality or financial size of the
components relative to the Group.
For those individually relevant components, we identified the significant
accounts where audit work needed to be performed at these components by
applying professional judgement, having considered the Group significant
accounts on which centralised procedures will be performed, the reasons for
identifying the financial reporting component as an individually relevant
component and the size of the component’s account balance relative to the
Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances
not yet subject to audit procedures, in aggregate, could give rise to a risk of
material misstatement of the Group financial statements. We selected 2
components of the Group to include in our audit scope to address these risks.
Having identified the components for which work will be performed, we
determined the scope to assign to each component.
Of the 27 components selected, we designed and performed audit procedures
on the entire financial information of 15 components (“full scope components”).
For 10 components, we designed and performed audit procedures on specific
significant financial statement account balances or disclosures of the financial
information of the component (“specific scope components”). For the remaining 2
components, we performed specified audit procedures to obtain evidence for
one or more relevant assertions.
Our scoping to address the risk of material misstatement for each key audit
matter is set out in the Key audit matters section of our report.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type
of work that needed to be undertaken at each of the components by us, as the
Group audit engagement team, or by component auditors operating under our
instruction.
The Group audit team continued to follow a programme of planned visits that has
been designed to ensure that the Senior Statutory Auditor, or another Group
audit partner, visit at least all individually relevant components each year. During
the current year’s audit cycle, in person visits were undertaken by the primary
audit team to the component teams in Belgium, France, Germany, Great Britain,
Spain, Australia, Indonesia and the Philippines.
These visits involved discussing the audit approach with the component team
and any issues arising from their work, holding meetings with local management,
reviewing relevant working papers and understanding the significant audit
findings in response to the risk areas including accrued customer marketing
costs and taxation.
The Group audit team interacted regularly with the component teams where
appropriate during various stages of the audit, which included holding a global
planning event, reviewing relevant working papers and being responsible for the
scope and direction of the audit process. Where relevant, the section on key
audit matters details the level of involvement we had with component auditors
to enable us to determine that sufficient audit evidence had been obtained as a
basis for our opinion on the Group as a whole.
This, together with the additional procedures performed at Group level, gave us
appropriate evidence for our opinion on the Group financial statements.
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Climate change
Stakeholders are increasingly interested in how climate change will impact the
Group. The Group has determined that the most significant future impacts from
climate change on its operations will be from the increased severity of extreme
weather events which could cause disruption to facilities and logistics routes,
increasing water stress or water scarcity, changes to weather and precipitation
patterns which could cause disruption to the supply of ingredients as well future
regulations (e.g. carbon tax related to greenhouse gas emissions). These are
explained on pages 59-60 in the required Task Force on Climate-Related Financial
Disclosures and on pages 66-77 in the principal risks and uncertainties. All of
these disclosures form part of the “Other information,” rather than the audited
financial statements. Our procedures on these unaudited disclosures therefore
consisted solely of considering whether they are materially inconsistent with the
financial statements, or our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated, in line with our responsibilities on
“Other information”.
In planning and performing our audit we assessed the potential impacts of
climate change on the Group’s business and any consequential material impact
on its financial statements.
The Group has explained in Note 1 (Impact of climate change) articulation of how
climate change has been reflected in the financial statements. There are no
significant judgements or estimates relating to climate change in the notes to the
financial statements. In Note 7 (Intangible assets and goodwill) and Note 8
(Property, plant and equipment) to the financial statements, narrative
explanation including further details over the Group’s considerations has been
provided.
Our audit effort in considering the impact of climate change on the financial
statements was focused on evaluating management’s assessment of the impact
of climate risk, physical and transition, the effects of material climate risks
disclosed on pages 39-45 and the significant judgements and estimates
disclosed in Note 3 and whether these have been appropriately reflected in
asset values, useful economic lives, cash flow projections used in assessing the
recoverable amount of the Group’s cash generating units, and also in the going
concern and viability assessment. As part of this evaluation, we performed our
own risk assessment, supported by our climate change internal specialists, to
determine the risks of material misstatement in the financial statements from
climate change which needed to be considered in our audit.
We also challenged the Directors’ considerations of climate change risks in their
assessment of going concern and viability and associated disclosures. Where
considerations of climate change were relevant to our assessment of going
concern, these are described above.
Based on our work we have not identified the impact of climate change on the
financial statements to be a key audit matter or to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of
most significance in our audit of the financial statements of the current period
and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those
which had the greatest effect on: the overall audit strategy, the allocation of
resources in the audit; and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the financial statements
as a whole, and in our opinion thereon, and we do not provide a separate opinion
on these matters.
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Accrued customer marketing costs
Refer to the Audit Committee Report (page 125);
Accounting policies (pages 180, 182 and 207).
The Group participates in various programmes and
arrangements with customers referred to as
“promotional programmes”, which are recorded as
deductions from revenue. The off-invoice
discounts activity totalled €5.8 billion for the year
ended 31 December 2024 (2023: €5.4 billion), with
€1.4 billion of accrued customer marketing costs
as of 31 December 2024 (2023: €1.3 billion).
Auditing the completeness and measurement of
the accrued customer marketing costs was
complex and judgemental, particularly in relation
to promotional programmes that involved
estimation uncertainty related to the amounts
ultimately settled with customers.
The types of promotional programmes are more
fully described in Note 3 to the consolidated
financial statements, with details about accrued
customer marketing costs disclosed in Note 16 to
the consolidated financial statements.
We obtained an understanding of the Group’s revenue recognition policies and
processes and how they are applied, and for full and specific scope reporting
components evaluated the design and tested the operating effectiveness of
controls, that address the risks of material misstatement relating to the
completeness and measurement of the promotional programmes. For example,
we tested controls over management’s consideration of historical trends used in
estimating the accrued customer marketing costs that will be ultimately settled.
To evaluate the reasonableness of the estimates used in the calculation of the
accrued customer marketing costs and the completeness of the accrual:
• We evaluated management’s methodology to estimate the year end accrued
customer marketing costs, in particular the use of historical trends.
• We tested the completeness and accuracy of the underlying data by agreeing
key terms of the promotional programmes to the executed sales agreements
on a sample basis.
• We compared accrued customer marketing costs to subsequent cash
settlements on a sample basis.
• We performed analytical procedures to compare accrued customer marketing
costs with relevant data, such as gross revenue.
We analysed the historical reversals and ageing of the accrued customer
marketing costs, to identify potential management bias in the estimate of the
year end accrual. We considered any changes in the business environment that
would warrant changes in the methodology.
We concluded that accrued customer
marketing costs in the consolidated
statement of financial position represent a
reasonable estimate of the associated
liability.
How we scoped our audit to respond to the risk and involvement with component teams
We performed centralised procedures, full and specific scope audit procedures over this risk in seven locations, which covered 83% of the risk amount. We also performed specified
procedures over the accrued customer marketing costs in one location, which covered 1% of the risk amount.
We held regular discussions with component teams throughout the audit, including in person on site visits at all locations. We reviewed all component deliverables and additional key
workpapers prepared by the component teams to address the risk identified.
Risk
Our response to the risk
Key observations communicated to the Audit Committee
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Accounting for uncertain tax positions
Refer to the Audit Committee Report (page 125);
Accounting policies (pages 182 and 227).
At 31 December 2024, the Group recorded
provisions for uncertain tax positions, of which
€267 million (31 December 2023: €175 million) are
included in current tax liabilities and the remainder
in non-current tax liabilities.
The Group is subject to income tax in numerous
jurisdictions and is routinely under audit by tax
authorities in the ordinary course of business, as
described in Note 22 and Note 24 of the
consolidated financial statements.
Management applies judgement in assessing
uncertain tax positions in each jurisdiction, which
requires interpretation of local tax laws and
specific facts and circumstances.
Auditing the uncertain tax positions was
judgemental, because of the inherent uncertainty
involved in evaluating the unique and evolving facts
and circumstances of each tax position, which may
result in materially different outcomes to those
expected by management.
We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls in place over the Group’s process to evaluate and
account for uncertain tax positions. For example, we tested the Group’s controls
around evaluation of the facts and circumstances supporting the conclusions on
the Group’s tax positions.
To evaluate management’s assessment of uncertain tax positions:
• We obtained management’s reporting of uncertain tax positions by jurisdiction,
tested the completeness based on the consideration of material transactions
in the year and agreed inputs to source documentation, where applicable.
• We evaluated the tax positions taken by management in each significant
jurisdiction in the context of local tax laws, considering correspondence with
tax authorities, the status of related tax audits and third-party advice obtained
by the Group. Our work involved tax professionals with local knowledge to
assess the tax positions taken in each significant jurisdiction, which involved
evaluation of local tax law and significant tax assessments.
• In evaluating management’s tax provisions for uncertain tax positions, we
developed an independent range of possible outcomes for the Group’s
uncertain tax positions, based on evidence obtained, which we compared to
the Group’s provisions.
• Where uncertain tax positions arose in jurisdictions with similar laws and
regulations, we also considered whether the evaluation of tax risks was
consistent across those jurisdictions and took into account resolution of these
issues with the tax authorities.
We evaluated the adequacy of the related disclosures provided in the Group
financial statements.
We have evaluated the Group’s tax
provisions and challenged the judgements
applied. We concluded that the amounts
provided for uncertain tax positions are
within an acceptable range considering the
latest developments in each jurisdiction and
the Group’s overall tax exposures, and that
the related disclosures are appropriate.
How we scoped our audit to respond to the risk and involvement with component teams
We performed centralised procedures, full and specific scope audit procedures over this risk in six locations.
We held regular discussions with component teams throughout the audit, including in person on site visits at all locations. We reviewed all component deliverables and additional key
workpapers prepared by the component teams to address the risk identified.
Risk
Our response to the risk
Key observations communicated to the Audit Committee
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Valuation of the TCCC distribution rights and land
acquired in the acquisition of Coca-Cola Beverages
Philippines, Inc.
Refer to the Audit Committee Report (page 126);
Accounting policies (pages 183 and 184).
As described in Note 4 and 8 of the consolidated
financial statements, the Group completed the
joint acquisition of Coca-Cola Beverages
Philippines, Inc. on 23 February 2024 for a total
consideration of €1,543 million. As a result of the
acquisition, the Group measured the assets
acquired and liabilities assumed at their estimated
fair values at the acquisition date. Among the
assets acquired and liabilities assumed, the Group
obtained a bottling agreement with TCCC (€440
million), which provides to the Group, the exclusive
rights to prepare, package, distribute and sell TCCC
branded products in the Philippines (the “TCCC
distribution rights”), and land (€464 million). The
estimated fair value of the TCCC distribution rights
was determined using a multi-period excess
earnings model and the estimated fair value of the
land was determined using a market approach.
Auditing the Group’s valuation of the TCCC
distribution rights and land acquired was complex,
due to a higher degree of subjectivity and
judgement used by management in determining
certain assumptions required in the fair value
estimates, including those in the multi-period
excess earnings model for the TCCC distribution
rights, and the comparable property market values
used to value the land.
We evaluated and tested the design and operating effectiveness of the Group’s
internal controls over the valuation of the acquired assets. For example, we
tested controls over management's review of the valuation methodologies and
the development of the significant assumptions used in the multi-period excess
earnings model to value the TCCC distribution rights, including revenue growth
rates, EBITDA margins and discount rate, and comparable property market values
for land.
To test the estimated fair values of the TCCC distribution rights and land at the
acquisition date:
Overall procedures
• We evaluated the Group’s use of appropriate valuation methodologies with
assistance from our valuation specialists and tested the clerical accuracy of
the model.
• We performed sensitivity analyses to determine which assumptions had the
greatest impact on the fair value determination.
• We evaluated the competence, capabilities and objectivity of specialists
engaged by management to assist in valuing these assets and read their
valuation reports to identify corroborating or contradictory evidence to the fair
value estimates.
• We also evaluated the adequacy of the related disclosures provided in the
consolidated financial statements.
Procedures in respect of the TCCC distribution rights valuation
• To evaluate the reasonableness of the discount rate used in the multi-period
excess earnings model, we involved our internal valuation specialists to
develop an independent range.
• To evaluate the reasonableness of the revenue growth rates, we compared the
assumptions to historical results of the acquired business and to external
sources of information, such as industry forecasts.
• To evaluate the EBITDA margin, we compared management’s assumption to
historical results of the acquired business.
Procedures in respect of the land valuation
• We involved our valuation specialists to assess the reasonableness of the land
valuations, determined using the market approach, on a sample basis,
considering factors including the size, location and use of the land, as well as
market data on comparable recent listings or sales.
We consider management’s assumptions
used to estimate the fair value of the TCCC
distribution rights and land acquired in the
acquisition of Coca-Cola Beverages
Philippines, Inc. to be reasonable, and that
the related disclosures are appropriate.
How we scoped our audit to respond to the risk
All audit work performed to address this risk was undertaken by the Group audit team.
Risk
Our response to the risk
Key observations communicated to the Audit Committee
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Impairment of Indonesia cash generating unit
(“CGU”) carrying value
Refer to the Audit Committee Report (page 126);
Accounting policies (page 190).
As discussed in Note 7 of the consolidated
financial statements, during 2024, the Group
recognised an impairment charge associated with
its Indonesia CGU of €175 million, allocated to
goodwill and non-current assets. The Group
estimated the recoverable amount of the CGU to
be €182 million, using a value in use approach that
discounts expected future cash flows to present
value. The estimated recoverable amount of the
CGU was compared to the carrying value for the
purpose of calculating the impairment charge.
Auditing the estimated recoverable amount of the
Indonesia CGU was complex due to a higher
degree of subjectivity and judgement used by
management in determining certain assumptions,
in particular the revenue growth rate and the
discount rate, used in the value in use model.
We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls in place within the impairment review process. For
example, we tested controls over management’s identification of impairment
indicators, review of the valuation methodology and development of the
assumptions used in the determination of recoverable amount for the Indonesia
CGU.
To test the impairment charge determined for the CGU:
• We tested the clerical accuracy of the value in use model and agreed the
carrying value of the CGU assets to financial records.
• We reconciled the prospective financial information used in the model to the
Board approved plan.
• We performed sensitivity analyses to determine which assumptions had the
greatest impact on the recoverable amount determination.
• To evaluate the reasonableness of the discount rate used in the value in use
model, we involved our internal valuation specialists to develop an independent
range.
• To assess the reasonableness of the revenue growth rate, we compared
management’s assumptions to the historical performance of the Indonesia
CGU and external sources of information, such as industry forecasts.
• We performed independent scenario analysis considering the geopolitical
uncertainty in the Middle East and evaluated the plausibility of these scenarios.
We assessed the adequacy of the related disclosures provided in the
consolidated financial statements.
We concluded that management’s
estimation of recoverable amount for
Indonesia, and the impairment charge
recognised is reasonable.
We concluded that the disclosures in Note 7
of the Group financial statements in relation
to the impairment charge for the Indonesia
CGU are appropriate.
How we scoped our audit to respond to the risk
All audit work performed to address this risk was undertaken by the Group audit team.
Risk
Our response to the risk
Key observations communicated to the Audit Committee
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Our application of materiality
We apply the concept of materiality in planning and performing the audit, in
evaluating the effect of identified misstatements on the audit and in forming
our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the
aggregate, could reasonably be expected to influence the economic
decisions of the users of the financial statements. Materiality provides a
basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be €105 million (2023: €100 million),
which is 4.9% (2023: 4.8%) of adjusted profit before tax. We believe that the
adjusted profit before tax provides us with the most relevant profit basis as the
non-recurring items were not related to the ongoing trading of the Group. The
increase in Group materiality since 2023 reflects the increase in profit before
taxation, driven by the acquisition of CCBPI and continued growth in the
underlying business in the current year.
We determined materiality for the Parent Company to be €156 million (2023: €139
million), which is 1% (2023: 1%) of shareholder’s equity.
Adjusted profit before tax measure
Starting basis
Profit before tax: €1,936 million
Adjustments
Impairment charges: €189 million
Adjusted basis
Adjusted profit before tax: €2,125 million
Materiality
Materiality maintained at planning level of €105 million versus
€106.3 million on adjusted final reported profit before tax
During the course of our audit, we reassessed initial materiality and the actual
adjusted profit before tax was slightly higher than the forecasted adjusted profit
before tax and hence the recalculated materiality was higher than our initial
estimates used at planning. However, due to the status of our procedures we did
not change our materiality assessment to reflect this.
Performance materiality
The application of materiality at the individual account or balance level. It is
set at an amount to reduce to an appropriately low level the probability that
the aggregate of uncorrected and undetected misstatements exceeds
materiality.
On the basis of our risk assessments, together with our assessment of the
Group’s overall control environment, our judgement was that performance
materiality was 75% (2023: 75%) of our planning materiality, namely €78.7 million
(2023: €75 million). We have set performance materiality at this percentage due
to our assessment of the control environment and the historic lack of significant
misstatements.
Audit work was undertaken at component locations for the purpose of
responding to the assessed risks of material misstatement of the Group financial
statements. The performance materiality set for each component is based on
the relative scale and risk of the component to the Group as a whole and our
assessment of the risk of misstatement at that component. In the current year,
the range of performance materiality allocated to components was €15.7 million
to €39.4 million (2023: €15.0 million to €37.5 million).
Reporting threshold
An amount below which identified misstatements are considered as being
clearly trivial.
We agreed with the Audit Committee that we would report to them all
uncorrected audit differences in excess of €5.2 million (2023: €5.0 million), which
is set at 5% of planning materiality, as well as differences below that threshold
that, in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative
measures of materiality discussed above and in light of other relevant qualitative
considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report
including the Strategic Report set out on pages 1 to 93, Governance and
Directors’ report set out on pages 94 to 153, Further Sustainability Information
set out on pages 254 to 279 and Other Information set out on pages 283 to 322
other than the financial statements and our auditor’s report thereon. The
Directors are responsible for the other information contained within the annual
report.
Our opinion on the financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in this report, we do not
express any form of assurance conclusion thereon.
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Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial
statements, or our knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If,
based on the work we have performed, we conclude that there is a material
misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the Directors’ remuneration report to be audited has
been properly prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• The information given in the Strategic Report and the Directors’ Report for the
financial year for which the financial statements are prepared is consistent
with the financial statements; and
• The Strategic Report and the Directors’ Report have been prepared in
accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent
Company and its environment obtained in the course of the audit, we have not
identified material misstatements in the Strategic Report or the Directors’
Report.
We have nothing to report in respect of the following matters in relation to which
the Companies Act 2006 requires us to report to you if, in our opinion:
• Adequate accounting records have not been kept by the Parent Company, or
returns adequate for our audit have not been received from branches not
visited by us; or
• The Parent Company financial statements and the part of the Directors’
remuneration report to be audited are not in agreement with the accounting
records and returns; or
• Certain disclosures of Directors’ remuneration specified by law are not made;
or
• We have not received all the information and explanations we require for our
audit.
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going concern, longer-
term viability and that part of the Corporate Governance Statement relating to
the Group and Company’s compliance with the provisions of the UK Corporate
Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each
of the following elements of the Corporate Governance Statement is materially
consistent with the financial statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of adopting the going
concern basis of accounting and any material uncertainties identified set out
on page 152;
• Directors’ explanation as to its assessment of the company’s prospects, the
period this assessment covers and why the period is appropriate set out on
page 78;
• Directors’ statement on whether it has a reasonable expectation that the
Group will be able to continue in operation and meets its liabilities set out on
page 152;
• Directors’ statement on fair, balanced and understandable set out on page 153;
• Board’s confirmation that it has carried out a robust assessment of the
emerging and principal risks set out on pages 76 and 77;
• The section of the annual report that describes the review of effectiveness of
risk management and internal control systems set out on pages 76 and 129; and
• The section describing the work of the Audit Committee set out on pages 122-129.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement set out on
page 153, the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for
such internal control as the Directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing
the Group and Parent Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the
Group or the Parent Company or to cease operations, or have no realistic
alternative but to do so.
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Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of
these financial statements.
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and
regulations. We design procedures in line with our responsibilities, outlined above,
to detect irregularities, including fraud. The risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by, for example, forgery
or intentional misrepresentations, or through collusion. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed
below.
However, the primary responsibility for the prevention and detection of fraud
rests with both those charged with governance of the company and
management.
• We obtained an understanding of the legal and regulatory frameworks that are
applicable to the Group and determined that the most significant are:
• Those that relate to the reporting framework: UK adopted International
Accounting Standards, IFRS as adopted by the European Union, International
Financial Reporting Standards as issued by the IASB, the UK Companies Act
2006 and the UK Corporate Governance Code.
• Those that relate to the accrual or recognition of expenses for taxation such
as various country specific tax regulations in which the Group has operations.
• Those that relate to the accrual or recognition of expenses for pension costs,
as well as the treatment of its employees, such as labour agreements in
countries where the Group operates.
• In addition, we concluded that there are certain significant laws and
regulations which may have an effect on the determination of the amounts
and disclosures in the financial statements, primarily being The US Securities
Act and Exchange Act of 1934 and the Listing Rules of the UK Listing Authority.
• We considered the policies that the Company has in place to comply with the
legal and regulatory frameworks, including the internal control processes and
enterprise risk management programme.
• We understood how Coca-Cola Europacific Partners plc is complying with those
frameworks and policies by making enquiries of management, internal audit and
those responsible for legal and compliance procedures. We corroborated our
enquiries through our review of board minutes and papers provided to the Audit
Committee, observations during attendance at all meetings of the Audit
Committee, as well as consideration of the results of our audit procedures
across the Group.
• We assessed the susceptibility of the Group’s financial statements to material
misstatement, including how fraud might occur by:
• Meeting with management from various parts of the business, including the
Corporate Integrity function, to understand where they considered there to
be susceptibility to fraud;
• Assessing whistleblowing incidences and other allegations of fraud for those
with a potential financial reporting impact;
• Understanding the Group’s annual bonus scheme and long-term incentive
plan performance targets and their propensity to influence on efforts made
by management to manage revenue and earnings;
• Understanding the related party transactions and significant transactions
occurring with related parties in the year;
• Assessing the key judgements and estimates and significant transactions
occurring in the year; and
• Considering the controls framework, including IT General controls, that the
Group has established to prevent, deter and detect fraud; and how senior
management monitors those programmes and control.
Where the risk was considered to be higher, we performed audit procedures to
address identified risks of material misstatement. These procedures included
those referred to in the “Accrued customer marketing costs” key audit matters
section above. In addition, we used data analytics at our full and specific scope
components to correlate revenue with trade receivables and cash received, as
well as promotional programmes expense with promotional programmes
accruals and settlements. We also performed journal entry testing, focusing on
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manual and consolidation journals, and inspected documentation for any
material unusual or unexpected journals.
• Based on this understanding we designed our audit procedures to identify
non-compliance with such laws and regulations. Our procedures involved
enquiries of Group management and those charged with governance, legal
counsel and internal audit and also testing over manual consolidation
journals and journals indicating large or unusual transactions based on our
understanding of the business. At a component level, our full and specific
scope component audit team’s procedures included enquiries of component
management; journal entry testing; and focused testing over areas we
considered more susceptible to management override, including as referred
to in the “Accrued customer marketing costs” key audit matters section
above.
• Any instances of non-compliance with laws and regulations, including in
relation to fraud, were communicated by/to components and considered in
our audit approach, if applicable. In addition, we completed procedures to
conclude on the compliance of the disclosures in the annual report and
accounts with all applicable requirements.
A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council’s website at https://
www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Other matters we are required to address
• Following the recommendation from the Audit Committee we were appointed
by the Company on 22 June 2016 to audit the financial statements for the year
ending 31 December 2016 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and
reappointments is nine years, covering the years ending 31 December 2016 to
31 December 2024.
• The audit opinion is consistent with the additional report to the Audit Committee.
European Single Electronic Format (ESEF)
Coca-Cola Europacific Partners plc has prepared the annual report in ESEF. The
requirements for this are set out in the Delegated Regulation (EU) 2019/815 with
regard to regulatory technical standards on the specification of a single
electronic reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report, prepared in the XHTML format, including the
partially marked-up consolidated financial statements, as included in the
reporting package by Coca-Cola Europacific Partners plc, complies in all material
respects with the RTS on ESEF.
Management is responsible for preparing the annual report, including the financial
statements, in accordance with the RTS on ESEF, whereby management
combines the various components into a single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the
annual report in this reporting package complies with the RTS on ESEF.
We performed our procedures having regard to Dutch Standard 3950N
‘Assurance engagements relating to compliance with criteria for digital reporting’.
Our procedures included amongst others:
• Obtaining an understanding of the Group’s financial reporting process, including
the preparation of the reporting package;
• Identifying and assessing the risks that the annual report does not comply in
all material respects with the RTS on ESEF and designing and performing
further assurance procedures responsive to those risks to provide a basis for
our opinion, including:
• Obtaining the reporting package and performing validations to determine
whether the reporting package containing the Inline XBRL instance document
and the XBRL extension taxonomy files, has been prepared in accordance
with the technical specifications as included in the RTS on ESEF; and
• Examining the information related to the consolidated financial statements in
the reporting package to determine whether all required mark-ups have been
applied and whether these are in accordance with the RTS on ESEF.
Use of our report
This report is made solely to the company’s members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company’s members those matters we
are required to state to them in an auditor’s report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Sarah Kokot
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
21 March 2025
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To the Shareholders and the Board of Directors of Coca-Cola Europacific Partners plc
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial
position of Coca-Cola Europacific Partners plc (the “Group”) as of 31 December
2024 and 2023, the related consolidated statements of income, comprehensive
income, statement of changes in equity and cash flows for each of the three
years in the period ended 31 December 2024, and the related notes, collectively
referred to as the “consolidated financial statements”. In our opinion, the
consolidated financial statements present fairly, in all material respects, the
financial position of the Group at 31 December 2024 and 2023, and the results of
its operations and its cash flows for each of the three years in the period ended
31 December 2024, in conformity with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States) (PCAOB), the Company's internal
control over financial reporting as of 31 December 2024, based on criteria
established in Internal Control-Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (2013 framework) and
our report dated 21 March 2025 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Group’s management.
Our responsibility is to express an opinion on the Group’s financial statements
based on our audits. We are a public accounting firm registered with the PCAOB
and are required to be independent with respect to the Group in accordance
with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing
procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our
audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable
basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the
current period audit of the financial statements that were communicated or
required to be communicated to the Audit Committee and that: (1) relate to
accounts or disclosures that are material to the financial statements and (2)
involved our especially challenging, subjective or complex judgements. The
communication of critical audit matters does not alter in any way our opinion on
the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on
the critical audit matters or on the accounts or disclosures to which they relate.
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Report of independent registered public accounting firm
Accrued customer marketing costs
Description of the matter
How we addressed the matter in our audit
The Group participates in various programmes and arrangements with customers referred
to as “promotional programmes”, which are recorded as deductions from revenue. The off-
invoice discounts activity totalled €5.8 billion for the year ended 31 December 2024, with
€1.4 billion of accrued customer marketing costs as of 31 December 2024.
Auditing the completeness and measurement of the accrued customer marketing costs
was complex and judgemental, particularly in relation to promotional programmes that
involved estimation uncertainty related to the amounts ultimately settled with customers.
The types of promotional programmes are more fully described in Note 3 to the
consolidated financial statements, with details about accrued customer marketing costs
disclosed in Note 16 to the consolidated financial statements.
We obtained an understanding of the Group’s revenue recognition policies and processes
and how they are applied, evaluated the design and tested the operating effectiveness of
controls that address the risks of material misstatement relating to the completeness
and measurement of the promotional programmes. For example, we tested controls over
management’s consideration of historical trends used in estimating the accrued customer
marketing costs that will be ultimately settled.
To evaluate the reasonableness of the estimates used in the calculation of the accrued
customer marketing costs and the completeness of the accrual, our audit procedures
included, among others, testing management’s methodology to estimate the year-end
accrued customer marketing costs, in particular the use of historical trends. We tested
the completeness and accuracy of the underlying data by agreeing key terms of the
promotional programmes to the executed sales agreements on a sample basis. We
compared accrued customer marketing costs to subsequent cash settlements on a
sample basis. We performed analytical procedures to compare accrued customer
marketing costs with relevant data, such as gross revenue.
We also analysed the historical reversals and ageing of the accrued customer marketing
costs, to identify potential management bias in the estimate of the year end accrual and
considered any changes in the business environment that would warrant changes in the
methodology.
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Accounting for uncertain tax positions
Description of the matter
How we addressed the matter in our audit
At 31 December 2024, the Group recorded provisions for uncertain tax positions, of which
€267 million are included in current tax liabilities and the remainder in non-current tax
liabilities.
The Group is subject to income tax in numerous jurisdictions and is routinely under audit
by tax authorities in the ordinary course of business, as described in Note 22 and Note 24
of the consolidated financial statements.
Management applies judgement in assessing uncertain tax positions in each jurisdiction,
which requires interpretation of local tax laws and specific facts and circumstances.
Auditing the uncertain tax positions was judgemental, because of the inherent uncertainty
involved in evaluating the unique and evolving facts and circumstances of each tax
position, which may result in materially different outcomes to those expected by
management.
We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls in place over the Group’s process to evaluate and account for
uncertain tax positions. For example, we tested the Group’s controls around evaluation of
the facts and circumstances supporting the conclusions on the Group’s tax positions.
To evaluate management’s assessment of uncertain tax positions, our audit procedures
included, among others, obtaining management’s reporting of uncertain tax positions by
jurisdiction, testing the completeness based on the consideration of material transactions
in the year and agreeing inputs to source documentation, where applicable. We evaluated
the tax positions taken by management in each significant jurisdiction in the context of
local tax laws, considering correspondence with tax authorities, the status of related tax
audits and third-party advice obtained by the Group. Our work involved tax professionals
with local knowledge to assess the tax positions taken in each significant jurisdiction,
which involved evaluation of local tax law and significant tax assessments.
In evaluating management’s tax provisions for uncertain tax positions, we developed an
independent range of possible outcomes for the Group’s uncertain tax positions, based on
evidence obtained, which we compared to the Group’s provisions. Where uncertain tax
positions arose in jurisdictions with similar laws and regulations, we also considered
whether the evaluation of tax risks was consistent across those jurisdictions and took into
account resolution of these issues with the tax authorities.
We evaluated the adequacy of the related disclosures provided in the Group financial
statements.
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Valuation of the TCCC distribution rights and land acquired in the acquisition of Coca-Cola Beverages Philippines, Inc.
Description of the matter
How we addressed the matter in our audit
As described in Note 4 and 8 of the consolidated financial statements, the Group
completed the joint acquisition of Coca-Cola Beverages Philippines, Inc. on 23 February
2024 for a total consideration of €1,543 million. As a result of the acquisition, the Group
measured the assets acquired and liabilities assumed at their estimated fair values at the
acquisition date. Among the assets acquired and liabilities assumed, the Group obtained a
bottling agreement with TCCC (€440 million), which provides to the Group, the exclusive
rights to prepare, package, distribute and sell TCCC branded products in the Philippines
(the “TCCC distribution rights”), and land (€464 million). The estimated fair value of the
TCCC distribution rights was determined using a multi-period excess earnings model and
the estimated fair value of the land was determined using a market approach.
Auditing the Group’s valuation of the TCCC distribution rights and land acquired was
complex, due to a higher degree of subjectivity and judgement used by management in
determining certain assumptions required in the fair value estimates, including those in the
multi-period excess earnings model for the TCCC distribution rights, and the comparable
property market values used to value the land.
We evaluated and tested the design and operating effectiveness of the Group’s internal
controls over the valuation of the acquired assets. For example, we tested controls over
management's review of the valuation methodologies and the development of the
significant assumptions used in the multi-period excess earnings model to value the TCCC
distribution rights, including revenue growth rates, EBITDA margins and discount rate, and
comparable property market values for land.
We evaluated the Group’s use of appropriate valuation methodologies with assistance
from our valuation specialists and tested the clerical accuracy of the model. We
performed sensitivity analyses to determine which assumptions had the greatest impact
on the fair value determination.
In respect of the TCCC distribution rights valuation, to evaluate the reasonableness of
the discount rate used in the multi-period excess earnings model, we involved our internal
valuation specialists to develop an independent range. We evaluated the reasonableness
of the revenue growth rates, by comparing the assumptions to historical results of the
acquired business and to external sources of information, such as industry forecasts. To
evaluate the EBITDA margin, we compared management’s assumption to historical results
of the acquired business.
In respect of the land valuation, our procedures included involving our valuation
specialists to assess the reasonableness of the land valuations, determined using the
market approach, on a sample basis, considering factors including the size, location and
use of the land, as well as market data on comparable recent listings or sales.
We also evaluated the adequacy of the related disclosures provided in the consolidated
financial statements.
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Impairment of Indonesia cash generating unit (‘CGU’) carrying value
Description of the matter
How we addressed the matter in our audit
As discussed in Note 7 of the consolidated financial statements, during 2024, the Group
recognised an impairment charge associated with its Indonesia CGU of €175 million,
allocated to goodwill and non-current assets. The Group estimated the recoverable
amount of the CGU to be €182 million, using a value in use approach that discounts
expected future cash flows to present value. The estimated recoverable amount of the
CGU was compared to the carrying value for the purpose of calculating the impairment
charge.
Auditing the estimated recoverable amount of the Indonesia CGU was complex due to a
higher degree of subjectivity and judgement used by management in determining certain
assumptions, in particular the revenue growth rate and the discount rate, used in the
value in use model.
We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls in place within the impairment review process. For example, we
tested controls over management’s identification of impairment indicators, review of the
valuation methodology and development of the assumptions used in the determination of
recoverable amount for the Indonesia CGU.
To test the impairment charge determined for the CGU, our procedures included testing
the clerical accuracy of the value in use model and agreeing the carrying value of the CGU
assets to financial records. We also performed sensitivity analyses to determine which
assumptions had the greatest impact on the recoverable amount determination.
To evaluate the reasonableness of the discount rate used in the value in use model, we
involved our internal valuation specialists to develop an independent range.
To assess the reasonableness of the revenue growth rate, we compared management’s
assumptions to the historical performance of the Indonesia CGU and external sources of
information, such as industry forecasts.
We also performed independent scenario analysis considering the geopolitical uncertainty
in the Middle East and evaluated the plausibility of these scenarios.
We assessed the adequacy of the related disclosures provided in the consolidated
financial statements.
/s/ Ernst & Young LLP
We have served as the Group’s auditor since 2016.
London, United Kingdom 21 March 2025
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To the Shareholders and the Board of Directors of Coca-Cola Europacific Partners plc
Opinion on Internal Control Over Financial Reporting
We have audited Coca-Cola Europacific Partners plc’s internal control over
financial reporting as of 31 December 2024, based on criteria established in
Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework), (the COSO criteria).
As indicated in the accompanying Management’s report on internal control over
financial reporting, management’s assessment of and conclusion on the
effectiveness of internal control over financial reporting did not include the
internal controls of Coca-Cola Beverages Philippines, Inc., which is included in the
2024 consolidated financial statements of Coca-Cola Europacific Partners plc
(“the Group”) and constituted 4% and 6% of total assets and net assets,
respectively, as of 31 December 2024 and 8% and 7% of revenues and net income,
respectively, for the year then ended. Our audit of internal control over financial
reporting of the Group also did not include an evaluation of the internal control
over financial reporting of Coca-Cola Beverages Philippines, Inc. In our opinion,
the Group maintained, in all material respects, effective internal control over
financial reporting as of 31 December 2024, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States) (PCAOB), the consolidated
statements of financial position of the Group as of 31 December 2024 and 2023,
the related consolidated statements of income, comprehensive income,
statement of changes in equity and cash flows for each of the three years in the
period ended 31 December 2024, and the related notes and our report dated
21 March 2025 expressed an unqualified opinion thereon.
Basis for Opinion
The Group’s management is responsible for maintaining effective internal control
over financial reporting and for its assessment of the effectiveness of internal
control over financial reporting included in the accompanying Management’s
report on internal control over financial reporting. Our responsibility is to express
an opinion on the Group’s internal control over financial reporting based on our
audit. We are a public accounting firm registered with the PCAOB and are required
to be independent with respect to the Group in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was
maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors
of the company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may
not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
London, United Kingdom
21 March 2025
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
172
Report of independent registered public accounting firm continued
Year ended 31 December
2024
2023
2022
Note
€ million
€ million
€ million
Revenue
5
20,438
18,302
17,320
Cost of sales
(13,227)
(11,582)
(11,096)
Gross profit
7,211
6,720
6,224
Selling and distribution expenses
19
(3,345)
(3,178)
(2,984)
Administrative expenses
19
(1,734)
(1,310)
(1,250)
Other income
25
—
107
96
Operating profit
2,132
2,339
2,086
Finance income
20
85
65
67
Finance costs
20
(272)
(185)
(181)
Total finance costs, net
(187)
(120)
(114)
Non-operating items
(9)
(16)
(15)
Profit before taxes
1,936
2,203
1,957
Taxes
22
(492)
(534)
(436)
Profit after taxes
1,444
1,669
1,521
Profit attributable to shareholders
1,418
1,669
1,508
Profit attributable to non-controlling interests
26
—
13
Profit after taxes
1,444
1,669
1,521
Basic earnings per share (€)
6
3.08
3.64
3.30
Diluted earnings per share (€)
6
3.08
3.63
3.29
The accompanying notes are an integral part of these consolidated financial statements.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
173
Consolidated income statement
Year ended 31 December
2024
2023
2022
Note
€ million
€ million
€ million
Profit after taxes
1,444
1,669
1,521
Components of other comprehensive income/(loss):
Items that may be subsequently reclassified to the income statement:
Foreign currency translations:
Pre-tax activity, net
(85)
(246)
(205)
Tax effect
—
—
—
Foreign currency translations, net of tax
(85)
(246)
(205)
Cash flow hedges:
Pre-tax activity, net
15
21
(64)
Tax effect
22
(3)
(11)
17
Cash flow hedges, net of tax
14
12
10
(47)
Other reserves:
Pre-tax activity, net
(8)
3
(9)
Tax effect
22
3
—
3
Other reserves, net of tax
(5)
3
(6)
Items that may be subsequently reclassified to the income statement
(78)
(233)
(258)
Items that will not be subsequently reclassified to the income statement:
Pension plan remeasurements:
Pre-tax activity, net
17
61
(108)
(45)
Tax effect
22
(16)
35
11
Pension plan remeasurements, net of tax
45
(73)
(34)
Items that will not be subsequently reclassified to the income statement
45
(73)
(34)
Other comprehensive (loss)/income for the period, net of tax
(33)
(306)
(292)
Comprehensive income for the period
1,411
1,363
1,229
Comprehensive income attributable to shareholders
1,385
1,363
1,202
Comprehensive income attributable to non-controlling interests
26
—
27
Comprehensive income for the period
1,411
1,363
1,229
The accompanying notes are an integral part of these consolidated financial statements.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
174
Consolidated statement of comprehensive income
ASSETS
Non-current:
Intangible assets
7
12,749
12,395
Goodwill
7
4,687
4,514
Property, plant and equipment
8
6,434
5,344
Investment property
9
73
—
Non-current derivative assets
14
98
100
Deferred tax assets
22
24
1
Other non-current assets
27
397
295
Total non-current assets
24,462
22,649
Current:
Current derivative assets
14
102
161
Current tax assets
58
58
Inventories
10
1,608
1,356
Amounts receivable from related parties
21
89
123
Trade accounts receivable
11
2,564
2,547
Other current assets
26
458
351
Assets held for sale
26
46
22
Short-term investments
12
150
568
Cash and cash equivalents
12
1,563
1,419
Total current assets
6,638
6,605
Total assets
31,100
29,254
LIABILITIES
Non-current:
Borrowings, less current portion
15
9,940
10,096
Employee benefit liabilities
17
172
191
Non-current provisions
24
104
45
Non-current derivative liabilities
14
161
169
Deferred tax liabilities
22
3,498
3,378
Non-current tax liabilities
30
75
Other non-current liabilities
61
46
Total non-current liabilities
13,966
14,000
Year ended 31 December
2024
2023
Note
€ million
€ million
Current:
Current portion of borrowings
15
1,391
1,300
Current portion of employee benefit liabilities
17
7
8
Current provisions
24
246
114
Current derivative liabilities
14
45
99
Current tax liabilities
301
253
Amounts payable to related parties
21
373
270
Trade and other payables
16
5,786
5,234
Total current liabilities
8,149
7,278
Total liabilities
22,115
21,278
EQUITY
Share capital
18
5
5
Share premium
18
307
276
Merger reserves
18
287
287
Other reserves
18
(912)
(823)
Retained earnings
8,802
8,231
Equity attributable to shareholders
8,489
7,976
Non-controlling interests
18
496
—
Total equity
8,985
7,976
Total equity and liabilities
31,100
29,254
Year ended 31 December
2024
2023
Note
€ million
€ million
The accompanying notes are an integral part of these consolidated financial
statements.
The financial statements were approved by the Board of Directors and
authorised for issue on 21 March 2025. They were signed on its behalf by:
Damian Gammell
Chief Executive Officer
21 March 2025
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2024 Annual Report and Form 20-F
175
Consolidated statement of financial position
Cash flows from operating activities:
Profit before taxes
1,936
2,203
1,957
Adjustments to reconcile profit before tax to net
cash flows from operating activities:
Depreciation
8
751
653
715
Amortisation of intangible assets
7
182
139
101
Impairment losses
189
—
—
Share-based payment expense
23
45
57
33
Gain on sale of sub-strata and associated
mineral rights
25
—
(35)
—
Gain on the sale of property
25
—
(54)
—
Finance costs, net
20
187
120
114
Income taxes paid
(561)
(509)
(415)
Changes in assets and liabilities:
Decrease/(increase) in trade and other
receivables
37
(5)
(282)
(Increase)/decrease in inventory
(37)
6
(244)
Increase in trade and other payables
158
124
885
Increase/(decrease) in net payable receivable
from related parties
89
80
(15)
Increase/(decrease) in provisions
137
(11)
37
Change in other operating assets and liabilities
(52)
38
46
Net cash flows from operating activities
3,061
2,806
2,932
Cash flows from investing activities:
Acquisition of bottling operations, net of cash
acquired
4
(1,524)
—
—
Purchases of property, plant and equipment
(791)
(672)
(500)
Purchases of capitalised software
(148)
(140)
(103)
Proceeds from sales of property, plant and
equipment
15
101
11
Proceeds from sales of intangible assets
—
37
143
Year ended 31 December
2024
2023
2022
Note
€ million
€ million
€ million
Proceeds from the sale of sub-strata and
associated mineral rights
25
—
35
—
Net proceeds/(payments) of short-term
investments
420
(342)
(207)
Investments in equity instruments
(6)
(5)
(2)
Proceeds from sale of equity instruments
—
—
13
Interest received
12
74
58
—
Other investing activity, net
3
(9)
—
Net cash flows used in investing activities
(1,957)
(937)
(645)
Cash flows from financing activities:
Proceeds from borrowings, net
15
1,008
694
—
Proceeds received from a non-controlling
shareholder relating to the acquisition of bottling
operations
18
468
—
—
Changes in short-term borrowings
15
—
—
(285)
Repayments on third party borrowings
15
(1,207)
(1,159)
(938)
Settlement of debt-related cross currency
swaps
15
66
69
—
Payments of principal on lease obligations
15
(157)
(148)
(153)
Interest paid
15
(249)
(182)
(130)
Dividends paid
15
(910)
(841)
(763)
Exercise of employee share options
31
43
13
Acquisition of non-controlling interest
—
(282)
—
Other financing activities, net
(23)
(16)
(20)
Net cash flows used in financing activities
(973)
(1,822)
(2,276)
Net change in cash and cash equivalents
131
47
11
Net effect of currency exchange rate changes on
cash and cash equivalents
13
(15)
(31)
Cash and cash equivalents at beginning of period
12
1,419
1,387
1,407
Cash and cash equivalents at end of period
12
1,563
1,419
1,387
Year ended 31 December
2024
2023
2022
Note
€ million
€ million
€ million
The accompanying notes are an integral part of these consolidated financial
statements.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
176
Consolidated statement of cash flows
As at 1 January 2022
5
220
287
(156)
6,677
7,033
177
7,210
Profit after taxes
—
—
—
—
1,508
1,508
13
1,521
Other comprehensive income/(loss)
—
—
—
(272)
(34)
(306)
14
(292)
Total comprehensive income/(loss)
—
—
—
(272)
1,474
1,202
27
1,229
Acquisition of non-controlling interests
—
—
—
(79)
—
(79)
(204)
(283)
Issue of shares during the year
18
—
14
—
—
—
14
—
14
Equity-settled share-based payment expense
23
—
—
—
—
33
33
—
33
Share-based payment tax effects
22
—
—
—
—
10
10
—
10
Dividends
18
—
—
—
—
(766)
(766)
—
(766)
As at 31 December 2022
5
234
287
(507)
7,428
7,447
—
7,447
Profit after taxes
—
—
—
—
1,669
1,669
—
1,669
Other comprehensive loss
—
—
—
(233)
(73)
(306)
—
(306)
Total comprehensive income/(loss)
—
—
—
(233)
1,596
1,363
—
1,363
Cash flow hedge (gains)/losses transferred to cost of inventories
14
—
—
—
(114)
—
(114)
—
(114)
Tax effect on cash flow hedge (gains)/losses transferred to cost of inventories
14; 22
—
—
—
31
—
31
—
31
Issue of shares during the year
18
—
42
—
—
—
42
—
42
Equity-settled share-based payment expense
23
—
—
—
—
54
54
—
54
Purchases of shares for equity-settled Employee Share Purchase Plan
—
—
—
—
(4)
(4)
—
(4)
Share-based payment tax effects
22
—
—
—
—
1
1
—
1
Dividends
18
—
—
—
—
(844)
(844)
—
(844)
As at 31 December 2023
5
276
287
(823)
8,231
7,976
—
7,976
Profit after taxes
—
—
—
—
1,418
1,418
26
1,444
Other comprehensive income/(loss)
—
—
—
(78)
45
(33)
—
(33)
Total comprehensive income/(loss)
—
—
—
(78)
1,463
1,385
26
1,411
Non-controlling interest established in connection with the Acquisition
18
—
—
—
—
—
—
468
468
Non-controlling interest assumed as part of the Acquisition
4
—
—
—
—
—
—
2
2
Cash flow hedge (gains)/losses transferred to goodwill relating to business combination
—
—
—
2
—
2
—
2
Cash flow hedge (gains)/losses transferred to cost of inventories
14
—
—
—
(20)
—
(20)
—
(20)
Tax effect on cash flow hedge (gains)/losses transferred to cost of inventories
14; 22
—
—
—
7
—
7
—
7
Issue of shares during the year
18
—
31
—
—
—
31
—
31
Purchases of shares for equity-settled Employee Share Purchase Plan
—
—
—
—
(16)
(16)
—
(16)
Equity-settled share-based payment expense
23
—
—
—
—
42
42
—
42
Treasury shares acquired
18
—
—
—
—
(7)
(7)
—
(7)
Dividends
18
—
—
—
—
(911)
(911)
—
(911)
As at 31 December 2024
5
307
287
(912)
8,802
8,489
496
8,985
Share capital
Share premium
Merger
reserves
Other reserves
Retained
earnings
Total
Non-controlling
interests
Total
equity
Note
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
The accompanying notes are an integral part of these consolidated financial statements.
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2024 Annual Report and Form 20-F
177
Consolidated statement of changes in equity
Note 1
General information and basis of preparation
Coca-Cola Europacific Partners plc (the Company) and its subsidiaries (together
CCEP, or the Group) are a leading consumer goods group in Western Europe and
the Asia Pacific region, making, selling and distributing an extensive range of
primarily non-alcoholic ready to drink beverages.
On 23 February 2024, the Group together with Aboitiz Equity Ventures Inc. (AEV)
jointly acquired 100% of Coca-Cola Beverages Philippines, Inc. (CCBPI)
(the Acquisition), a wholly owned subsidiary of The Coca-Cola Company (TCCC).
Refer to Note 4 for further details about the acquisition of CCBPI.
The Company has ordinary shares with a nominal value of €0.01 per share
(Shares). CCEP is a public company limited by shares, incorporated under the
laws of England and Wales with the registered number in England of 9717350.
The Group’s Shares are listed and traded on Euronext Amsterdam, NASDAQ
Global Select Market, London Stock Exchange and the Spanish Stock Exchanges.
The address of the Company’s registered office is Pemberton House, Bakers
Road, Uxbridge, UB8 1EZ, United Kingdom.
The consolidated financial statements of the Group for the year ended
31 December 2024 were approved and signed by Damian Gammell,
Chief Executive Officer, on 21 March 2025 having been duly authorised to do so by
the Board of Directors.
Impact of climate change
As part of the preparation of these consolidated financial statements, the Group
has considered the impact of climate change risks on the current valuation of the
Group’s assets and liabilities, particularly in the context of the risks and scenarios
identified in the European Sustainability Reporting Standards (ESRS) and Task
Force on Climate-related Financial Disclosures (TCFD), included in the Strategic
Report. There has been no material impact on the financial reporting judgements
and estimates arising from the considerations of the Group and, as a result, the
valuation of the Group’s assets and liabilities as at 31 December 2024 have not
been affected. The Group’s considerations were specifically focused on the
impact of climate change risks on the projected cash flows used in the
impairment assessment of our indefinite lived intangible assets and goodwill
(refer to Note 7) as well as the carrying value and useful lives of property, plant
and equipment (refer to Note 8). As the pace and effectiveness of a global
transition to a low-carbon economy evolve, including the development of
government policies aiming to address the risks arising from climate change, the
Group will continue to monitor and assess the relevant implications on the
valuation of the Group’s assets and liabilities that could arise in future years.
Basis of preparation
These consolidated financial statements of the Group reflect the following:
• They have been prepared in accordance with UK adopted International
Accounting Standards, International Financial Reporting Standards (IFRS) as
adopted by the European Union and International Financial Reporting
Standards as issued by the International Accounting Standards Board (IASB).
• They have been prepared under the historical cost convention, except for
certain items measured at fair value. Those accounting policies have been
applied consistently in all periods, except for the adoption of new standards
and amendments as of 1 January 2024, as described below under accounting
policies.
• They are presented in euro, which is also the Parent Company’s functional
currency, and all values are rounded to the nearest euro million except where
otherwise indicated.
• They have been prepared on a going concern basis (refer to the “Going concern”
paragraph on page 152).
Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Group and its subsidiaries. All subsidiaries have accounting years ending
31 December and apply consistent accounting policies for the purpose of the
consolidated financial statements.
Subsidiary undertakings are consolidated from the date on which control is
transferred to the Group and cease to be consolidated from the date on which
control is transferred out of the Group. The Group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through the Group’s power to direct
the activities of the entity. All intercompany accounts and transactions are
eliminated on consolidation.
Associates are all entities over which the Group has significant influence but not
control, generally accompanying a shareholding of between 20% to 50% of voting
rights. Investments in associates are accounted for using the equity method of
accounting, after initially being recognised at cost.
The Group treats transactions with non-controlling interests that do not result in
a loss of control as equity transactions.
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2024 Annual Report and Form 20-F
178
Notes to the consolidated financial statements
When the Group loses control over a subsidiary, it derecognises the related
assets (including goodwill), liabilities, non-controlling interest and any other
components of equity, while any resulting gain or loss is recognised in profit or
loss. Any interest retained in the former subsidiary is measured at fair value when
control is lost.
Foreign currency
The individual financial statements of each subsidiary are presented in the
currency of the primary economic environment in which the subsidiary operates
(its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each subsidiary are expressed in
euros.
Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Monetary assets
and liabilities denominated in foreign currencies are remeasured to the
functional currency of the entity at the rate of exchange in effect at the
statement of financial position date with the resulting gain or loss recorded in the
consolidated income statement.
The consolidated income statement includes non-operating items which are
primarily comprised of remeasurement gains and losses related to currency
exchange rate fluctuations on financing transactions denominated in a currency
other than the subsidiary’s functional currency. Non-operating items are shown
on a net basis and reflect the impact of any derivative instruments utilised to
hedge the foreign currency movements of the underlying financing transactions.
The assets and liabilities of the Group's foreign operations are translated from
local currencies to the euro reporting currency at exchange rates in effect at the
end of each reporting period. Revenues and expenses are translated at average
monthly exchange rates, with average rates being a reasonable approximation of
the rates prevailing on the transaction dates. Gains and losses from translation
are included in other comprehensive income. On disposal of a foreign operation,
accumulated exchange differences are recognised as a component of the gain
or loss on disposal.
The principal exchange rates used for translation purposes in respect of one
euro were:
Average for the year ended 31 December
Closing as at 31 December
2024
2023
2022
2024
2023
British pound
1.18
1.15
1.17
1.21
1.15
US dollar
0.92
0.92
0.95
0.96
0.90
Norwegian krone
0.09
0.09
0.10
0.08
0.09
Swedish krona
0.09
0.09
0.09
0.09
0.09
Icelandic krona
0.01
0.01
0.01
0.01
0.01
Australian dollar
0.61
0.61
0.66
0.60
0.61
Indonesian rupiah(A)
0.06
0.06
0.06
0.06
0.06
New Zealand dollar
0.56
0.57
0.60
0.54
0.57
Papua New Guinean kina
0.24
0.26
0.27
0.24
0.24
Philippine peso(B)
0.02
n/a
n/a
0.02
n/a
A. Indonesian rupiah is shown as 1,000 IDR versus 1 euro.
B. For the year ended 31 December 2024, the Philippine peso average rate is calculated as the average from 23 February 2024
to 31 December 2024.
Reporting periods
In these consolidated financial statements, the Group is reporting the financial
results for the years ended 31 December 2024, 31 December 2023 and
31 December 2022.
The following table summarises the number of selling days for the years ended
31 December 2024, 31 December 2023 and 31 December 2022 (based on a
standard five day selling week):
First half
Second half
Full year
2024
130
132
262
2023
130
130
260
2022
130
130
260
Comparability
Sales of the Group’s products are seasonal. In Europe, the second and third
quarters typically account for higher unit sales of the Group’s products than the
first and fourth quarters. In the Group’s Asia Pacific territories, the fourth quarter
would typically reflect higher sales volumes in the year. The seasonality of the
Group’s sales volume, combined with the accounting for fixed costs such as
depreciation, amortisation, rent and interest expense, impacts the Group’s
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2024 Annual Report and Form 20-F
179
Notes to the consolidated financial statements continued
reported results for the first and second halves of the year. Additionally, year
over year shifts in holidays, selling days and weather patterns can impact the
Group’s results on an annual or half yearly basis.
Note 2
Accounting policies
IFRS 15 “Revenue recognition and deductions from revenue”
The Group derives its revenues by making, selling and distributing ready to drink
beverages. The revenue from the sale of products is recognised at the point in
time at which control passes to a customer, typically when products are
delivered to a customer. A receivable is recognised by the Group at the point in
time at which the right to consideration becomes unconditional.
The Group uses various promotional programmes under which rebates, refunds,
price concessions or similar items can be earned by customers for attaining
agreed upon sales levels or for participating in specific marketing programmes.
Those promotional programmes do not give rise to a separate performance
obligation. Where the consideration the Group is entitled to varies because of
such programmes, it is deemed to be variable consideration. The related
customer marketing accruals are recognised as a deduction from revenue and
are not considered distinct from the sale of products to the customer. Variable
consideration is only included to the extent that it is highly probable that the
inclusion will not result in a significant revenue reversal in the future.
Financing elements are not deemed present in our contracts with customers, as
the sales are made with credit terms not exceeding normal commercial terms.
Taxes on sugared soft drinks, excise taxes and taxes on packaging are recorded
on a gross basis (i.e. included in revenue) where the Group is the principal in the
arrangement. Value added taxes are recorded on a net basis (i.e. excluded from
revenue). The Group assesses these taxes and duties on a jurisdiction by
jurisdiction basis to conclude on the appropriate accounting treatment.
The rest of the accounting policies applied by the Group are included in the
relevant notes herein.
New and amended standards
The Group has applied the following amendments for the first time in the year
ended 31 December 2024:
Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback
The amendments to IFRS 16 specify the requirements that a seller-lessee uses
in measuring the lease liability arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any amount of the gain or loss that
relates to the right of use it retains.
The amendments had no impact on the consolidated financial statements of the
Group.
Amendments to IAS 1 – Classification of Liabilities as Current or Non-current and Non-
current Liabilities with Covenants
The amendments to IAS 1 specify the requirements for classifying liabilities as
current or non-current. They also clarify:
• what is meant by a right to defer settlement
• that a right to defer must exist at the end of the reporting period
• that the classification is unaffected by the likelihood that an entity will exercise
its deferral right
• that only if an embedded derivative in a convertible liability is itself an equity
instrument, would the terms of a liability not impact its classification.
In addition, an entity is required to disclose when a liability arising from a loan
agreement is classified as non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants within 12 months.
These amendments had no impact on the consolidated financial statements of
the Group.
Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7
The amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 ”Financial
Instruments: Disclosures” clarify the characteristics of supplier finance
arrangements and require enhanced disclosure of such arrangements. The
disclosure requirements in the amendments are intended to assist users of
financial information in understanding the effects arising from supplier finance
arrangements on the entity’s liabilities, cash flows and exposure to liquidity risk.
As a result of the adoption of these amendments, the Group has provided
additional disclosures concerning its supplier finance arrangements (refer to
Note 16 for further details).
The Group has not early adopted any standards and amendments to accounting
standards that have been issued but are not yet effective. The Group’s
assessment of the impact of these standards and amendments is set out below:
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Notes to the consolidated financial statements continued
Amendments to IAS 21 – Lack of Exchangeability (effective for annual periods beginning on
or after 1 January 2025)
In August 2023, the IASB amended IAS 21 to assist entities in the determination
whether a currency is exchangeable into another currency, and which spot
exchange rate to use when it is not. The amendments also require disclosures
that enable the users of financial information to understand how the currency
not being exchangeable to another currency affects, or is expected to affect the
entity’s financial operations, financial position and cash flows.
The Group does not expect these amendments to have a material impact on its
operations or consolidated financial statements.
Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial
Instruments (effective for annual periods beginning on or after 1 January 2026)
On 30 May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to
respond to recent questions arising in practice, and to include new requirements
not only for financial institutions but also for corporate entities.
These amendments:
• clarify the date of recognition and derecognition of some financial assets and
liabilities, with a new exception for some financial liabilities settled through an
electronic cash transfer system
• clarify and add further guidance for assessing whether a financial asset meets
the solely payments of principle and interest (SPPI) criterion
• add new disclosures for certain instruments with contractual terms that can
change cash flows (such as some financial instruments with features linked to
the achievement of environmental, social and governance targets)
• update the disclosures for equity instruments designated at fair value through
other comprehensive income (FVOCI).
The Group does not expect these amendments to have a material impact on its
operations or consolidated financial statements.
Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity
(effective for annual periods beginning on or after 1 January 2026)
In December 2024, the IASB issued Contracts Referencing Nature-dependent
Electricity (Amendments to IFRS 9 and IFRS 7). These amendments:
• clarify the application of the “own-use” requirements
• permit hedge accounting if these contracts are used as hedging instruments
• introduce new disclosure requirements to enable investors to understand the
effects of these contracts on an entity’s financial performance and cash flows.
The clarifications regarding the “own-use” requirements must be applied
retrospectively, but the guidance permitting the hedge accounting have to be
applied prospectively to new hedging relations designated on or after the date of
initial application.
The Group does not expect these amendments to have a material impact on its
operations or consolidated financial statements.
IFRS 18 – Presentation and Disclosures in Financial Statements (effective for annual periods
beginning on or after 1 January 2027)
In April 2024, the IASB issued IFRS 18, which replaces IAS 1 “Presentation of
Financial Statements”. IFRS 18 introduces new requirements for presentation
within the income statement, including specified totals and subtotals. Further,
entities are required to classify all income and expenses within the income
statement into one of five categories: operating, investing, financing, income
taxes and discontinued operations.
It also requires disclosure of management-defined performance measures,
subtotals of income and expenses, and includes new requirements for
aggregation and disaggregation of financial information.
In addition, narrow-scope amendments have been made to IAS 7 “Statement of
Cash Flows”, which include changing the starting point for determining the cash
flows from operations under the indirect method, from “profit or loss” to
“operating profit or loss” and removing the optionality around classification of
cash flows from dividends and interest.
Even though IFRS 18 will not affect the recognition or measurement of items in
the financial statements, its impacts on presentation and disclosure are
expected to be pervasive. The Group is currently assessing the relevant effects
arising from the application of the new standard to the Group’s consolidated
financial statements.
IFRS 19 – Subsidiaries without Public Accountability: Disclosures (effective for annual
periods beginning on or after 1 January 2027)
Issued in May 2024, IFRS 19 allows for certain eligible subsidiaries of parent
entities that report under IFRS Accounting Standards to apply reduced
disclosure requirements.
The Group does not expect this standard to have an impact on its operations or
consolidated financial statements.
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181
Notes to the consolidated financial statements continued
Note 3
Significant judgements and estimates
In preparing these consolidated financial statements, management has made
judgements and estimates that affect the application of the Group’s accounting
policies and the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively. The significant judgements made in applying the
Group’s accounting policies were applied consistently across the annual periods.
The significant judgements and key sources of estimation uncertainty that have a
significant effect on the amounts recognised in these financial statements are
outlined below.
Significant judgements
Intangible assets and goodwill
The Group has assigned indefinite lives to its bottling agreements with TCCC.
This judgement has been made after evaluating the contractual provisions of the
bottling agreements, the Group’s mutually beneficial relationship with TCCC and
the history of renewals for bottling agreements.
Refer to Note 7 for further details on the judgement regarding the lives of bottling
agreements.
Significant estimates
Impairment of indefinite lived intangible assets and goodwill
Determining whether goodwill and intangible assets with indefinite lives are
impaired, requires an estimation of the value in use or the fair value less costs to
sell of the cash generating unit (CGU) to which the goodwill and/or intangible
assets have been allocated. The value in use calculation requires management’s
estimation of the future cash flows expected to arise from the CGU, including
climate-related risks. Refer to Note 7 for the sensitivity analysis of the
assumptions used in the impairment analysis of goodwill and intangible assets
with indefinite lives.
Deductions from revenue and sales incentives
The Group participates in various promotional programmes with customers
designed to increase the sale of products. Among the programmes are
arrangements under which rebates, refunds, price concessions or similar items
can be earned by customers for attaining agreed upon sales levels, or for
participating in specific marketing programmes. Those promotional programmes
do not give rise to a separate performance obligation. Where the consideration
the Group is entitled to varies because of such programmes, the amount payable
is deemed to be variable consideration. Management makes estimates on an
ongoing basis for each individual promotion to assess the value of the variable
consideration based on historical customer experience, the programme’s
contractual terms and the amounts expected to be settled with customers.
The related accruals are recognised as a deduction from revenue and are not
considered distinct from the sale of products to the customer. Refer to Note 16
for further details.
Income tax
The Group is subject to income taxes in numerous jurisdictions and there are
many transactions for which the ultimate tax determination cannot be assessed
with certainty in the ordinary course of business. The Group recognises a
provision for situations that might arise in the foreseeable future based on an
assessment of the probabilities as to whether additional taxes will be due.
In addition, the Group is involved in various legal proceedings and tax matters.
Where an outflow of funds is believed to be probable and a reliable estimate of
the outcome of the dispute can be made, management provides for its best
estimate of the liability. Where the final outcome on these matters is different
from the amounts that were initially recorded, such differences impact the tax
provision in the period in which such determination is made. These estimates are
subject to potential change over time as new facts emerge and each
circumstance progresses. The evaluation of deferred tax asset recoverability
requires estimates to be made regarding the availability of future taxable income
in the jurisdiction giving rise to the deferred tax asset. Refer to Note 22 for further
details regarding income taxes.
Defined benefit plans
The determination of pension benefit costs and obligations is estimated based
on assumptions determined with the assistance of external actuarial advice.
The key assumptions impacting the valuations are the discount rate, rate of
compensation increases, inflation rate and mortality rates. Refer to Note 17 for
further details about the Group’s defined benefit pension plan costs and
obligations, including sensitivities to the key assumptions applied.
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182
Notes to the consolidated financial statements continued
Note 4
Business combinations
In November 2023, the Group together with Aboitiz Equity Ventures Inc. (AEV)
entered into a definitive agreement with The Coca-Cola Company (TCCC) to
jointly acquire 100% of Coca-Cola Beverages Philippines, Inc. (CCBPI), a wholly
owned subsidiary of TCCC.
The Acquisition was effected through the establishment of a special purpose
vehicle, CCEP Aboitiz Beverages Philippines, Inc. (CABPI), which is owned and
funded 60% by CCEP and 40% by AEV, commensurate with the effective 60:40
ownership structure of CCBPI.
On 23 February 2024, CABPI acquired 100% of the beneficial ownership of
CCBPI for a total consideration of US$1.68 billion (€1.54 billion), all of which was
settled in cash upon completion. CABPI is determined to have economic
substance and is identified as the accounting acquirer of CCBPI.
CCBPI is the authorised bottler and distributor of TCCC’s beverage brands in the
Philippines. The Acquisition is a further step for the Group to create a more
diverse footprint within its existing Australia, Pacific and Indonesia business
segment. The transaction is aligned with the Group’s aim of driving sustainable
growth through diversification and building scale.
The transaction is being accounted for under IFRS 3 “Business Combinations”,
using the acquisition method. The accounting for the Acquisition is complete at
the end of the current reporting period. Measurement period adjustments to
provisional amounts previously disclosed are immaterial.
The following table details the euro equivalent consideration and the fair values
of assets acquired and liabilities assumed:
Total
€ million
Intangible assets
478
Property, plant and equipment
1,084
Investment property
46
Other non-current assets
56
Inventories
228
Amounts receivable from related parties
25
Trade accounts receivable
75
Other current assets
47
Cash and cash equivalents
19
Borrowings, less current portion
(6)
Employee benefit liabilities
(15)
Non-current provisions
(29)
Non-current tax liabilities
(6)
Deferred tax liabilities
(170)
Other non-current liabilities
(21)
Current portion of borrowings
(63)
Current provisions
(29)
Current tax liabilities
(23)
Amounts payable to related parties
(55)
Trade and other payables
(372)
Net identifiable assets acquired
1,269
Non-controlling interest
(2)
Goodwill
276
Fair value of consideration
1,543
Intangible assets include both indefinite lived and finite lived intangible assets.
Indefinite lived intangible assets consist of the bottling agreement with TCCC
(€440 million), which provides the Company with the exclusive rights to prepare,
package, distribute and sell TCCC branded products in the territory in which it
operates. Finite lived intangible assets are comprised primarily of customer
relationships.
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183
Notes to the consolidated financial statements continued
The bottling agreement with TCCC and customer relationships have been valued
using a multi-period excess earnings model, whereby the value of a specific
intangible asset is estimated from the excess earnings after fair returns on all
other assets employed have been deducted from the business’s after-tax
operating earnings.
Goodwill of €276 million has been recognised in connection with the Acquisition,
representing the excess of consideration transferred over the fair values of the
net identifiable assets acquired.
The goodwill is attributable to new growth opportunities, workforce and synergies
of the combined business operations, and it is not expected to be deductible for
tax purposes.
Property, plant and equipment has been valued using a variety of valuation
techniques and considering the highest and best use of each asset. These
techniques include capitalisation of comparable net market income, depreciated
replacement cost and market approach. Included within property, plant and
equipment are right of use assets which have been valued at €8 million. A
corresponding lease liability of €11 million is included within Borrowings.
The fair value of acquired trade accounts receivable, net is €75 million. The gross
contractual amount related to these receivables is €84 million, of which
€9 million is expected to be uncollectable.
From the effective date of the Acquisition, CCBPI contributed revenue of
€1.7 billion and profit before tax of €85 million to the Group for the year ended
31 December 2024. If the Acquisition had taken place at the beginning of the
year, adjusted comparable revenue and profit before tax for CCEP for the year
ended 31 December 2024 would have been €20.7 billion and €2.5 billion,
respectively.
Deal and integration costs of €14 million are included in administrative expenses
in the consolidated income statement for the year ended 31 December 2024.
Cash payments for deal and integration costs are included in operating cash
flows in the consolidated statement of cash flows.
Note 5
Segment information
Description of segment and principal activities
Following the acquisition of CCBPI, the Group re-evaluated its segment reporting
under IFRS 8 “Operating Segments”. The Group continues to derive its revenues
through a single business activity, which is making, selling and distributing an
extensive range of primarily non-alcoholic ready to drink beverages. The
acquisition of CCBPI has broadened the Group’s geographic footprint which now
includes the Philippines, within its existing API business segment, from now on
renamed APS (Australia, Pacific & South East Asia). The Group’s Board continues
to be its Chief Operating Decision Maker (CODM), which allocates resources and
evaluates performance of its operating segments based on volume, revenue and
comparable operating profit. Comparable operating profit excludes items
impacting the comparability of period over period financial performance.
The following table provides a reconciliation between reportable segment
operating profit and consolidated profit before tax:
Year ended 31 December
2024
2023
2022
Europe
APS
Total
Europe
APS
Total
Europe
APS
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Revenue
14,971 5,467 20,438 14,553 3,749 18,302 13,529 3,791 17,320
Comparable
operating profit(A)
2,015
648 2,663
1,888
485 2,373
1,670
468 2,138
Items impacting
comparability(B)
(531)
(34)
(52)
Reported operating
profit
2,132
2,339
2,086
Total finance costs,
net
(187)
(120)
(114)
Non-operating items
(9)
(16)
(15)
Reported profit
before tax
1,936
2,203
1,957
A. Comparable operating profit includes comparable depreciation and amortisation of €596 million and €265 million for
Europe and APS, respectively, for the year ended 31 December 2024. Comparable depreciation and amortisation charges
for the year ended 31 December 2023 totalled €558 million and €196 million for Europe and APS, respectively. Comparable
depreciation and amortisation charges for the year ended 31 December 2022 totalled €549 million and €223 million for
Europe and APS, respectively.
B. Items impacting the comparability of period over period financial performance for 2024 primarily include restructuring
charges of €264 million (refer to Note 19), €14 million of deal and integration costs related to the Acquisition (refer to
Note 4), impairment charges of €189 million mainly related to the Group’s Indonesia CGU (refer to Note 7) and accelerated
amortisation charges of €55 million (refer to Note 7). Items impacting the comparability of period over period financial
performance for 2023 primarily include restructuring charges of €94 million (refer to Note 19) and accelerated
amortisation charges of €27 million (refer to Note 7), partially offset by €18 million of royalty income arising from the
ownership of certain mineral rights in Australia (refer to Note 25), considerations of €35 million received relating to the sale
of the sub-strata and associated mineral rights in Australia (refer to Note 25) and gains of €54 million mainly attributable to
the sale of property in Germany (refer to Note 25). Items impacting the comparability for 2022 included restructuring
charges of €163 million (refer to Note 19), partially offset by €96 million of other income arising from the favourable court
ruling pertaining to the ownership of certain mineral rights in Australia (refer to Note 25) and net insurance recoveries
received of €11 million arising from the July 2021 flooding events.
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2024 Annual Report and Form 20-F
184
Notes to the consolidated financial statements continued
No single customer accounted for more than 10% of the Group’s revenue during
the years ended 31 December 2024, 31 December 2023 and 31 December 2022.
Revenue by geography
The following table summarises revenue from external customers by geography,
which is based on the origin of the sale, for the periods presented:
Year ended 31 December
Revenue:
2024
2023
2022
€ million
€ million
€ million
Iberia(A)
3,398
3,325
3,034
Great Britain
3,327
3,235
3,088
Germany
3,179
3,018
2,682
France(B)
2,322
2,321
2,089
Belgium/Luxembourg
1,070
1,078
1,042
Netherlands
785
718
682
Sweden
410
398
421
Norway
398
376
404
Iceland
82
84
87
Total Europe
14,971
14,553
13,529
Australia
2,475
2,385
2,339
Philippines
1,652
—
—
New Zealand and Pacific Islands
694
679
649
Indonesia
403
458
556
Papua New Guinea
243
227
247
Total APS
5,467
3,749
3,791
Total CCEP
20,438
18,302
17,320
A. Iberia refers to Spain, Portugal and Andorra.
B. France refers to continental France and Monaco.
Assets by geography
Assets are allocated based on operations and physical location. The following
table summarises non-current assets, other than financial instruments, deferred
tax assets and post-employment benefit assets, by geography as at the dates
presented:
Year ended 31 December
Assets:
2024
2023
€ million
€ million
Iberia(A)
6,478
6,455
Germany
3,089
3,162
Great Britain
2,616
2,523
France(B)
1,002
940
Belgium/Luxembourg
563
623
Netherlands
433
439
Sweden
337
349
Norway
212
225
Iceland
40
38
Other unallocated
442
360
Total Europe
15,212
15,114
Australia
4,822
5,065
Philippines
2,008
—
New Zealand and Pacific Islands
1,603
1,687
Papua New Guinea
297
298
Indonesia
222
384
Total APS
8,952
7,434
Total CCEP
24,164
22,548
A. Iberia refers to Spain, Portugal and Andorra.
B. France refers to continental France and Monaco.
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Notes to the consolidated financial statements continued
Note 6
Earnings per share
Basic earnings per share is calculated by dividing profit after taxes by the
weighted average number of Shares in issue during the period, after deducting
the weighted average number of treasury shares held. Diluted earnings per share
is calculated in a similar manner, but includes the effect of dilutive securities,
principally share options, restricted stock units and performance share units.
Share-based payment awards that are contingently issuable upon the
achievement of specified market and/or performance conditions are included in
the diluted earnings per share calculation based on the number of Shares that
would be issuable if the end of the period was the end of the contingency period.
The following table summarises basic and diluted earnings per share calculations
for the years presented:
Year ended 31 December
2024
2023
2022
Profit after taxes attributable to equity
shareholders (€ million)
1,418
1,669
1,508
Basic weighted average number of Shares
in issue(A) (million)
460
459
457
Effect of dilutive potential Shares(B)
(million)
1
—
1
Diluted weighted average number of
Shares in issue(A) (million)
461
459
458
Basic earnings per share(C) (€)
3.08
3.64
3.30
Diluted earnings per share(C) (€)
3.08
3.63
3.29
A. As at 31 December 2024, 31 December 2023 and 31 December 2022, the Group had 460,947,057, 459,200,818 and
457,106,453 Shares, respectively, in issue. As at 31 December 2024 the Group held 92,564 Shares that were acquired in the
market by Coca-Cola Europacific Partners plc Employee Benefit Trust (see Note 18), classified as treasury shares for
accounting purposes. The Shares held by the trust are excluded from the calculation of basic and diluted earnings per
share. The Group did not hold any treasury shares as at 31 December 2023 and 31 December 2022, respectively.
B. For the years ended 31 December 2024, 31 December 2023 and 31 December 2022, no outstanding options to purchase
Shares were excluded from the diluted earnings per share calculation. The dilutive impact of all outstanding options,
unvested restricted stock units and unvested performance share units was included in the effect of dilutive securities.
C. Basic and diluted earnings per share are calculated prior to rounding.
Note 7
Intangible assets and goodwill
Intangible assets with indefinite lives
Intangible assets with indefinite lives acquired through business combination
transactions are measured at fair value at the date of acquisition. These assets
are not subject to amortisation but are tested for impairment annually at the
CGU level or more frequently if facts and circumstances indicate an impairment
may exist. In addition to the annual impairment test, the assessment of
indefinite lives is also reviewed annually.
TCCC franchise intangible assets
The Group’s bottling agreements with TCCC contain performance requirements
and convey the rights to distribute and sell products within specified territories.
The agreements in each territory are for an initial term of 10 years and may be
renewed for successive terms of 10 years. The Group believes that its
interdependent relationship with TCCC and the substantial cost and disruption
to TCCC that would be caused by non-renewal ensure that these agreements
will continue to be renewed and, therefore, are essentially perpetual.
The Group has never had a bottling agreement with TCCC terminated due
to non-performance of the terms of the agreement or due to a decision by
TCCC to terminate an agreement at the expiration of a term. After evaluating
the contractual provisions of the bottling agreements as at 31 December 2024,
the Group’s mutually beneficial relationship with TCCC and history of renewals,
indefinite lives have been assigned to all of the Group’s TCCC bottling agreements.
Goodwill
Goodwill is initially measured as the excess of the total consideration
transferred over the amount recognised for net identifiable assets acquired and
liabilities assumed in a business combination. If the fair value of the net assets
acquired is in excess of the aggregate consideration transferred, the gain is
recognised in the consolidated income statement as a bargain purchase.
Goodwill is not subject to amortisation. It is tested annually for impairment at
the CGU level or more frequently if events or changes in circumstances indicate
that it might be impaired. Goodwill acquired in a business combination is
allocated to the CGU that is expected to benefit from the synergies of the
combination, irrespective of whether a CGU is part of the business combination.
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Notes to the consolidated financial statements continued
Intangible assets with finite lives
Intangible assets with finite lives are measured at cost of acquisition or
production and are amortised using the straight-line method over their
respective estimated useful lives. Finite lived intangible assets are assessed for
impairment whenever there is an indication that they may be impaired. The
amortisation period and method are reviewed annually.
Internally generated software
The Group capitalises certain development costs associated with internally
developed software, including external direct costs of materials and services,
and payroll costs for employees devoting time to a software project and any
such software acquired as part of a business combination. Development
expenditure is recognised as an intangible asset only after its technical feasibility
and commercial viability can be demonstrated. When capitalised software is not
integral to related hardware, it is treated as an intangible asset; otherwise it is
included within property, plant and equipment. The estimated useful life of
capitalised software is predominantly between five and ten years. Amortisation
expense for capitalised software is included within administrative expenses and
was €107 million, €94 million and €83 million for the years ended
31 December 2024, 31 December 2023 and 31 December 2022, respectively.
Customer relationships
The Group has acquired certain customer relationships in connection with
business combinations. These customer relationships are recorded at fair value
on the date of acquisition, and amortised over an estimated useful life between
17 and 20 years. Amortisation expense for these assets is included within
administrative expenses and was €12 million, €10 million and €10 million for the
years ended 31 December 2024, 31 December 2023 and 31 December 2022,
respectively.
Non-TCCC franchise intangible
In connection with the acquisition of Coca-Cola Amatil Limited in 2021, the Group
acquired certain bottling agreements with non-TCCC distribution partners, mainly
Beam Suntory, which contain performance requirements and convey the rights to
distribute and sell products within specified APS territories. The non-TCCC
bottling arrangements were recorded at fair value at the acquisition date and
were initially amortised over an expected useful life of 20 years. On
2 August 2023, the Group announced that CCEP and Beam Suntory will
discontinue their relationship effective 1 July 2025 (Australia) and 1 January 2026
(New Zealand). CCEP will remain the exclusive manufacturing, sales and
distribution partner for Beam Suntory in Australia and New Zealand through to
the end of the current contractual terms set to expire on 30 June 2025 and
31 December 2025, respectively. The discontinuance of the relationship triggered
a change in the assigned useful life of the intangible assets effective from the
second half of 2023, resulting in an accelerated amortisation charge of
€55 million recognised for the year ending 31 December 2024 (2023: €27 million).
As at 31 December 2024, finite lived intangible assets of €30 million were
reflected in the consolidated statement of financial position related to the Beam
Suntory distribution rights, primarily attributable to those available in Australia.
Total amortisation expense for these assets is recognised within administrative
expenses amounting to €63 million, €35 million and €8 million for the years
ended 31 December 2024, 31 December 2023 and 31 December 2022,
respectively.
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2024 Annual Report and Form 20-F
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Notes to the consolidated financial statements continued
Balances and movements in intangible assets and goodwill
The following table summarises the movements in the carrying amounts of intangible assets and goodwill for the periods presented:
TCCC
franchise
intangible
Brands
Software
Customer
relationships
Non-TCCC
franchise
intangible
Assets under
construction
Total
intangibles
Goodwill
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Cost:
As at 31 December 2022
11,874
39
621
195
148
69
12,946
4,600
Additions
—
—
64
—
—
92
156
—
Disposals
—
—
(27)
—
—
—
(27)
—
Transfers and reclassifications
—
—
63
—
—
(65)
(2)
—
Currency translation adjustments
(116)
(7)
(1)
(1)
(6)
(2)
(133)
(86)
As at 31 December 2023
11,758
32
720
194
142
94
12,940
4,514
Acquisition of CCBPI
440
—
—
38
—
—
478
276
Additions
—
—
74
—
—
124
198
—
Disposals
—
(10)
(35)
—
—
—
(45)
—
Transfers and reclassifications
—
—
45
—
—
(50)
(5)
—
Currency translation adjustments
(51)
—
2
(2)
(4)
4
(51)
(73)
As at 31 December 2024
12,147
22
806
230
138
172
13,515
4,717
Accumulated amortisation and impairment:
As at 31 December 2022
—
(7)
(360)
(61)
(13)
—
(441)
—
Amortisation expense
—
—
(94)
(10)
(35)
—
(139)
—
Disposals
—
—
27
—
—
—
27
—
Currency translation adjustments
—
7
1
—
—
—
8
—
As at 31 December 2023
—
—
(426)
(71)
(48)
—
(545)
—
Amortisation expense
—
—
(107)
(12)
(63)
—
(182)
—
Disposals
—
10
35
—
—
—
45
—
Impairment
(67)
(10)
(4)
—
—
(2)
(83)
(30)
Currency translation adjustments
—
—
(5)
1
3
—
(1)
—
As at 31 December 2024
(67)
—
(507)
(82)
(108)
(2)
(766)
(30)
Net book value:
As at 31 December 2022
11,874
32
261
134
135
69
12,505
4,600
As at 31 December 2023
11,758
32
294
123
94
94
12,395
4,514
As at 31 December 2024
12,080
22
299
148
30
170
12,749
4,687
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Notes to the consolidated financial statements continued
Impairment of indefinite lived intangible assets and goodwill
Each CGU is tested for impairment annually in the fourth quarter or whenever
there is an indication of impairment. The recoverable amount of each CGU is
normally determined through a value in use calculation. To determine value in use
for a CGU, estimated future cash flows are discounted to their present values
using a pre-tax discount rate reflective of the current market conditions and
risks specific to each CGU. If the carrying value of a CGU exceeds its recoverable
amount, the carrying value of the CGU is reduced to its recoverable amount and
impairment charges are recognised immediately within the consolidated income
statement. Impairment charges other than those related to goodwill may be
reversed in future periods if a subsequent test indicates that the recoverable
amount has increased. Such recoveries may not exceed a CGU’s original carrying
value less any depreciation that would have been recognised if no impairment
charges were previously recorded.
The Group’s CGUs are based on geography and generally represent the individual
territories in which the Group operates. For the purposes of allocating intangibles,
each indefinite lived intangible asset is allocated to the geographic region to
which the agreement relates and goodwill is allocated to each of the CGUs
expected to benefit from a business combination, irrespective of whether other
assets and liabilities of the acquired businesses are assigned to the CGUs.
The Group has recognised fair values for the indefinite lived intangible assets and
goodwill related to the Acquisition, representing the Group’s Philippines CGU.
Should operating results or macroeconomic assumptions deteriorate versus
those utilised in calculating the fair values of these assets as of the acquisition
date, an impairment of goodwill and the acquired assets could result in the
future.
The following table identifies the carrying value of goodwill and indefinite lived
intangible assets attributable to each significant CGU of the Group. In addition to
the significant CGUs of the Group, as at 31 December 2024, the Group had other
CGUs with total indefinite lived intangible assets of €1,222 million
(2023: €1,349 million) and goodwill of €260 million (2023: €370 million).
Year ended 31 December
2024
2023
Cash generating unit
Indefinite lived
intangible assets
Goodwill
Indefinite lived
intangible assets
Goodwill
€ million
€ million
€ million
€ million
Iberia
4,289
1,275
4,289
1,275
Australia
2,510
1,412
2,596
1,397
Great Britain
1,760
198
1,680
200
Germany
1,060
748
1,060
748
Pacific(A)
821
518
816
524
Philippines
440
276
—
—
A. Pacific refers to New Zealand and Pacific Islands.
The recoverable amount of each CGU was determined through a value in use
calculation, which uses cash flow projections for a five year period. These
projections reflect the impact of climate change on our business, over the
medium to long term, as well as the mitigating actions and strategies we are
undertaking to support our commitment to reach Net Zero by 2040. The key
assumptions used in projecting these cash flows were as follows:
• Growth rate and operating margins: Cash flows were projected based on the
Group’s strategic business plan. Cash flows for the terminal year and beyond
were projected using an inflation-based long-term terminal growth rate
between 2.0% and 4.5%.
• Discount rate: A weighted average cost of capital was applied specific to each
CGU as a hurdle rate to discount cash flows. The discount rates represent the
current market assessment of the risks specific to each CGU, taking into
consideration the time value of money and individual risks of the underlying
assets that have not been incorporated in the cash flow estimates. The
following table summarises the pre-tax discount rate attributable to each
significant CGU.
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Notes to the consolidated financial statements continued
2024
2023
Pre-tax
discount rate
Pre-tax
discount rate
Cash generating unit
%
%
Iberia
9.3
9.3
Australia
11.3
11.1
Great Britain
9.3
9.8
Germany
10.1
10.1
Pacific(A)
11.3
11.2
Philippines
13.9
—
A. Pacific refers to New Zealand and Pacific Islands.
The Group’s Iberia, Australia, Great Britain, Germany and Philippines CGUs have
substantial headroom when comparing the value in use calculation of the CGU
versus the CGU’s total carrying value.
For the Group’s Pacific CGU, the headroom in the 2024 impairment analysis was
approximately 12% of total carrying value. The Group estimates that a 1.0%
reduction in the terminal growth rate or a 0.7% increase in the discount rate, each
in isolation, would eliminate existing headroom in Pacific.
Impairment of Feral brand
During 2024, the Group recognised €10 million of impairment in relation to the
Feral brand and subsequently sold it in September 2024.
Impairment of Indonesia CGU
As disclosed in its consolidated financial statements for the year ended
31 December 2023, the Group estimated that reasonably possible changes in the
value in use growth rate or in the discount rate, each in isolation, would eliminate
existing headroom in the Indonesia CGU. During the second half of 2024,
Indonesia experienced worsening business performance primarily driven by the
continued geopolitical situation in the Middle East.
As at 31 December 2024, the Group’s annual impairment test resulted in an
impairment of €175 million, as the recoverable amount was lower than the
carrying amount of the CGU. The recoverable amount was determined based on
value in use assumptions updated with management’s best estimate of
expected future cash flows, reflecting the persistent geopolitical uncertainty.
The impairment loss reduced the carrying amount of goodwill allocated to the
CGU to zero. The remaining impairment charge was allocated pro rata to the
property, plant and equipment and intangible assets included in the carrying
value of the CGU.
An impairment loss of €54 million, €6 million and €115 million was included in the
consolidated income statement in cost of sales, selling and distribution
expenses and administrative expenses, respectively, and under APS for
segmental allocation purposes.
The following table sets out key assumptions used in the impairment assessment
of the Indonesia CGU:
2024
2023
%
%
Pre-tax discount rate
13.5
12.2
Terminal growth rate
2.5
1.6
As at 31 December 2024, the recoverable amount of the Indonesia CGU was
€182 million and represents its value in use.
Note 8
Property, plant and equipment
Property, plant and equipment is recorded at cost, net of accumulated
depreciation and accumulated impairment losses, where cost is the amount of
cash or cash equivalents paid to acquire an asset at the time of its acquisition
or construction. Major property additions, replacements and improvements are
capitalised, while maintenance and repairs that do not extend the useful life of
an asset or add new functionality are expensed as incurred. Land is not
depreciated, as it is considered to have an indefinite life. For all property, plant
and equipment, other than land, depreciation is recorded using the straight-line
method over the respective estimated useful lives as follows:
Useful life (years)
Category
Low
High
Buildings and improvements
10
40
Machinery, equipment and containers
3
20
Cold drink equipment
2
12
Vehicle fleet
3
12
Furniture and office equipment
3
10
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Notes to the consolidated financial statements continued
Gains or losses arising on the disposal or retirement of an asset are determined
as the difference between the carrying amount of the asset and any proceeds
from its sale. Leasehold improvements are amortised using the straight-line
method over the shorter of the remaining lease term or the estimated useful life
of the improvement.
The Group assesses, at each reporting date, whether there is an indication that
an asset may be impaired. If any indication exists, an impairment test is
performed to estimate the potential loss of value that may reduce the
recoverable amount of the asset to below its carrying amount. Any impairment
loss is recognised within the consolidated income statement by the amount
which the carrying amount exceeds the recoverable amount. Useful lives and
residual amounts are reviewed annually and adjustments are made
prospectively as required.
For property, plant and equipment, the Group assesses annually whether there is an
indication that previously recognised impairment losses no longer exist or have
decreased. If such an indication exists, a previously recognised impairment loss is
reversed only if there has been a change in the assumptions used to determine the
asset’s recoverable amount since the last impairment loss was recognised and only
up to the recoverable amount or the original carrying amount net of depreciation
that would have been incurred had no impairment losses been recognised.
The transition to a low-carbon economy may impact the carrying value and
remaining useful lives of the Group’s property, plant and equipment. The Group
continues to invest in more efficient, cleaner and more technologically advanced
assets, however, the significant majority of the Group’s assets currently in
operation are likely to be substantially depreciated ahead of our Net Zero 2040
target, as set out in our Strategic Report. In addition, the Group continuously
monitors the latest developments in government legislation in relation to
climate-related risks. Currently, no legislation has been passed that will
materially impact the carrying value and remaining useful lives of the Group.
The Group leases land, office and warehouse property, computer hardware,
machinery and equipment, and vehicles under non-cancellable lease
agreements, most of which expire at various dates through to 2030. The Group
includes right of use assets within property, plant and equipment. Right of use
assets are initially measured at cost, comprising the initial measurement of the
lease liability, plus any direct costs and an estimate of asset retirement
obligations, less lease incentives. Subsequently, right of use assets are measured
at cost, less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the term of the lease.
The Group does not separate lease from non-lease components for each of its
lease categories, except for property leases. All low value leases with total
minimum lease payments under €5,000 and leases with a term less than 12
months are expensed on a straight-line basis.
Extension and termination options are included in a number of property and
equipment leases across the Group and are used to maximise operational flexibility
in terms of managing contracts. Extension options (or periods after termination
options) are only included in the lease term if the Group has an enforceable right to
extend or terminate the lease and is reasonably certain to do so.
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Notes to the consolidated financial statements continued
The following table summarises the movement in net book value for property, plant and equipment for the periods presented:
Land
Buildings and
improvements
Machinery, equipment
and containers
Cold drink equipment
Vehicle fleet
Furniture
and office equipment
Assets under
construction
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Cost:
As at 31 December 2022
648
2,501
3,723
1,110
297
179
305
8,763
Additions
20
71
271
73
101
9
344
889
Disposals
(1)
(44)
(214)
(47)
(51)
(3)
—
(360)
Transfers and reclassifications
2
84
124
34
3
12
(259)
—
Currency translation adjustments
(12)
(26)
(18)
(9)
(1)
(2)
(1)
(69)
As at 31 December 2023
657
2,586
3,886
1,161
349
195
389
9,223
Acquisition of CCBPI
464
117
446
7
5
2
43
1,084
Additions
62
65
228
96
102
12
349
914
Disposals
(1)
(23)
(187)
(145)
(76)
(43)
—
(475)
Transfers to assets held for sale
(16)
(12)
—
—
—
—
—
(28)
Transfers to investment property
(33)
—
—
—
—
—
—
(33)
Transfers and reclassifications
1
70
181
69
2
19
(337)
5
Currency translation adjustments
(5)
1
21
(11)
1
(1)
(2)
4
As at 31 December 2024
1,129
2,804
4,575
1,177
383
184
442
10,694
Accumulated depreciation and impairment:
As at 31 December 2022
—
(843)
(1,738)
(725)
(153)
(103)
—
(3,562)
Depreciation expense
—
(137)
(318)
(112)
(61)
(25)
—
(653)
Disposals
—
28
204
43
47
3
—
325
Transfers and reclassifications
—
—
3
(1)
—
—
—
2
Currency translation adjustments
—
—
5
4
—
—
—
9
As at 31 December 2023
—
(952)
(1,844)
(791)
(167)
(125)
—
(3,879)
Depreciation expense
—
(149)
(396)
(111)
(69)
(26)
—
(751)
Disposals
—
22
180
140
71
42
—
455
Impairment(A)
—
(27)
(31)
(4)
—
(2)
(12)
(76)
Transfers to assets held for sale
—
6
—
—
—
—
—
6
Transfers and reclassifications
—
(1)
17
(14)
—
(2)
—
—
Currency translation adjustments
—
(4)
(17)
5
—
1
—
(15)
As at 31 December 2024
—
(1,105)
(2,091)
(775)
(165)
(112)
(12)
(4,260)
Net book value:
As at 31 December 2022
648
1,658
1,985
385
144
76
305
5,201
As at 31 December 2023
657
1,634
2,042
370
182
70
389
5,344
As at 31 December 2024
1,129
1,699
2,484
402
218
72
430
6,434
(A) Amounts relate to the impairment of the Group’s Indonesia cash generating unit and the impairment of the Feral brand, which was sold during the year ended 31 December 2024. Refer to Note 7 for further details.
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Notes to the consolidated financial statements continued
Right of use assets
The following table summarises the net book value of right of use assets
included within property, plant and equipment:
Year ended 31 December
2024
2023
€ million
€ million
Buildings and improvements
405
427
Vehicle fleet
206
171
Machinery, equipment and containers
80
81
Furniture and office equipment
—
2
Total
691
681
Total additions to right of use assets during 2024 were €186 million
(2023: €192 million), of which €8 million was acquired as part of the Acquisition.
The following table summarises depreciation charges relating to right of use
assets for the periods presented:
Year ended 31 December
2024
2023
€ million
€ million
Buildings and improvements
66
67
Vehicle fleet
64
58
Machinery, equipment and containers
33
32
Furniture and office equipment
1
2
Total
164
159
During the years ended 31 December 2024 and 31 December 2023, the total
expense relating to low value and short-term leases was €29 million and
€24 million, respectively, which is primarily included in administrative expenses.
The Group does not have any residual value guarantees in relation to its leases.
As at 31 December 2024, the total value of lease extension and termination
options included within right of use assets was €26 million (2023: €17 million).
The Group incurred variable lease expenses of €129 million in 2024 (2023: €157 million),
primarily included in selling and distribution expenses. This amount mainly
consists of the variable component of lease payments for product
transportation services in Australia and New Zealand, whereby these
components are dependent on various factors such as the number of cases of
product delivered, number of trips and pallets.
Note 9
Investment property
Investment property consists of land and buildings held primarily for earning
rental income, capital appreciation or both. These properties are not used by the
Group in the ordinary course of business. The Group applies the cost model for
measuring investment property. Under the cost model, investment property is
initially recognised at cost. Subsequently, it is depreciated on a straight-line basis
over the assigned useful life (consistent with owner-occupied property).
The Group assesses at each reporting date whether there is an indication that an
asset may be impaired. If any indication exists, an impairment test is performed
to estimate the potential loss of value that may reduce the recoverable amount
of the asset to below its carrying amount. Any impairment loss is recognised
within the consolidated income statement by the amount which the carrying
amount exceeds the recoverable amount.
Investment property is derecognised when it has been disposed of or when it is
permanently withdrawn from use and no further economic benefit is expected
from its disposal. The difference between the net disposal proceeds and the
carrying amount of the asset is recognised in the Group’s consolidated income
statement in the period of derecognition.
Transfers are made to (or from) investment property when there is a change in
use.
The following tables illustrate the net book value and the reconciliation of the
carrying amount of the Group’s investment property as of 31 December 2024:
Year ended 31 December
2024
2023
€ million
€ million
At cost
73
—
Accumulated depreciations and impairment losses
—
—
Net book value
73
—
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Notes to the consolidated financial statements continued
Total
€ million
Net book value as at 31 December 2023
—
Acquisition of CCBPI
46
Transfers from property, plant and equipment
33
Transfers to assets held for sale
(6)
Currency translation adjustments
—
Net book value as at 31 December 2024
73
As of 31 December 2024 and 31 December 2023, the carrying value of investment
property was €73 million and nil, respectively. The increase is primarily due to the
properties acquired as part of the CCBPI business combination transaction
(€46 million) and the transfer of some properties in Indonesia and Great Britain
from property, plant and equipment to investment property (€33 million).
No impairments were recognised during the year ended 31 December 2024.
The fair value of the investment property as at 31 December 2024 amounted to
approximately €86 million (31 December 2023: nil). The fair value of investment
property was determined by external, independent property valuers, having the
appropriate recognised professional qualifications and recent experience in the
location and category of property being valued. The valuation was conducted in
accordance with the International Valuation Standards and is generally based on
the market approach. At the end of each reporting period, the Group updates its
assessment of the fair value of its investment property, taking into consideration
the most recent independent valuations. The best evidence of fair value is
current prices in an active market for similar properties. Where such information
is unavailable, the Group considers information from a variety of sources
including recent prices in less active markets for similar properties, adjusted to
reflect existing differences. The resulting fair value measurements for all assets
forming part of the Group’s investment property have been categorised within
Level 3 of the fair value hierarchy.
The Group has no restrictions on the realisability of its investment property and
no contractual obligations to purchase, construct or develop investment
property or for repairs, maintenance and enhancements.
During the year ended 31 December 2024, the Group did not hold any rental
income-generating investment property, and as such, no rental income has been
recognised in the Group’s consolidated income statement. Direct operating
expenses (including repairs and maintenance but excluding depreciation
expense) arising from non-rental income-generating investment property
amounted to nil for 2024 (2023: nil; 2022: nil).
Note 10
Inventories
Inventories are valued at the lower of cost or net realisable value and cost is
determined using the first-in, first-out (FIFO) method. Net realisable value is the
estimated selling price in the ordinary course of business, less the estimated
costs necessary to complete and sell the inventory. Inventories consist of raw
materials, supplies (primarily including concentrate, other ingredients
and packaging) and finished goods, which also include direct labour, indirect
production and overhead costs. Cost includes all costs incurred to bring
inventories to their present location and condition. Cost of inventories also
includes the transfer from equity of gains and/or losses on qualified cash flow
hedges relating to inventory purchases. Spare parts, classified and accounted as
inventories, are recorded as assets at the time of purchase and are expensed as
utilised.
The following table summarises the inventory outstanding in the consolidated
statement of financial position as at the dates presented:
Year ended 31 December
2024
2023
€ million
€ million
Finished goods
839
750
Raw materials and supplies
585
449
Spare parts and other
184
157
Total inventories
1,608
1,356
Write downs of inventories totalled €67 million, €59 million and €41 million for the
years ended 31 December 2024, 31 December 2023 and 31 December 2022,
respectively. The majority of these write downs were included in cost of sales in
the consolidated income statement. None of these write downs of inventory
were subsequently reversed.
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Notes to the consolidated financial statements continued
Note 11
Trade accounts receivable
The Group sells its products to retailers, wholesalers and other customers and
extends credit, generally without requiring collateral, based on an evaluation of
the customer’s financial condition. While the Group has a concentration of credit
risk in the retail sector, this risk is mitigated due to the diverse nature of the
customers the Group serves, including, but not limited to, their type, geographic
location, size and beverage channel.
Trade accounts receivable are initially recognised at their transaction price and
subsequently measured at amortised cost less provision for impairment.
Typically, accounts receivable have terms of 30 to 60 days and do not bear
interest. The Group applies an expected credit loss reserve methodology to
assess possible impairments. Balances are considered for impairment on an
individual basis rather than by reference to the extent that they become
overdue. The Group considers factors such as delinquency in payment, financial
difficulties, payment history of the debtor and certain forward-looking
macroeconomic indicators. The carrying amount of trade accounts receivable is
reduced through the use of an allowance account, and the amount of the loss is
recognised in the consolidated income statement. Credit insurance on a portion
of the accounts receivable balance is also carried. Refer to Note 28 for further
details on credit risk management.
As a result of continued recession risk across our European territories, the Group
supplements its existing credit loss reserve methodology to include an
incremental loss allowance for those receivable balances that were deemed to
be higher risk in the current environment. The incremental allowance is included
within allowance for doubtful accounts below, as at 31 December 2024 and
31 December 2023.
The following table summarises the trade accounts receivable outstanding in the
consolidated statement of financial position as at the dates presented:
Year ended 31 December
2024
2023
€ million
€ million
Trade accounts receivable, gross
2,622
2,601
Allowance for doubtful accounts
(58)
(54)
Total trade accounts receivable
2,564
2,547
The following table summarises the ageing of trade accounts receivable, net of
allowance for doubtful accounts, in the consolidated statement of financial
position as at the dates presented:
Year ended 31 December
2024
2023
€ million
€ million
Not past due
2,409
2,348
Past due 1 – 30 days
91
142
Past due 31 – 60 days
14
16
Past due 61 – 90 days
12
7
Past due 91 – 120 days
9
9
Past due 121+ days
29
25
Total trade accounts receivables
2,564
2,547
The following table summarises the change in the allowance for doubtful
accounts for the periods presented:
Allowance for
doubtful accounts
€ million
As at 31 December 2022
(57)
Provision for impairment recognised during the year
(9)
Receivables written off during the year as uncollectable
9
Reversals
2
Currency translation adjustments
1
As at 31 December 2023
(54)
Provision for impairment recognised during the year
(11)
Receivables written off during the year as uncollectable
3
Reversals
4
Currency translation adjustments
—
As at 31 December 2024
(58)
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Notes to the consolidated financial statements continued
Note 12
Cash and cash equivalents and short-term investments
Cash and cash equivalents
Cash and cash equivalents are comprised of cash and short-term, highly liquid
financial instruments, including investments in money market funds, with maturity
dates of less than three months when acquired that are readily convertible to
cash and are subject to an insignificant risk of changes in value. Counterparties
and instruments used to hold the Group’s cash and cash equivalents are
continually assessed, with a focus on preservation of capital and liquidity.
The following table summarises the cash and cash equivalents outstanding in the
consolidated statement of financial position as at the dates presented:
Year ended 31 December
2024
2023
€ million
€ million
Cash at banks and on hand
611
465
Short-term deposits and securities
952
954
Total cash and cash equivalents
1,563
1,419
Cash and cash equivalents are held in the following currencies as at the
dates presented:
Year ended 31 December
2024
2023
€ million
€ million
Euro
268
662
British pound
497
305
US dollar
51
64
Norwegian krone
57
58
Swedish krona
13
26
Australian dollar
358
118
Indonesian rupiah
123
48
Papua New Guinean kina
36
42
Philippine peso
25
—
Other
135
96
Total cash and cash equivalents
1,563
1,419
Included within cash and cash equivalents as at 31 December 2024 and
31 December 2023 were Papua New Guinea cash assets of €36 million and €42
million, respectively, denominated in local currency (kina). Government-imposed
currency controls impact the extent to which the cash held in Papua New Guinea
can be converted into foreign currency and remitted for use elsewhere in the Group.
As at 31 December 2024, there were €10 million of cash and cash equivalents held
by the Group’s Employee Benefit Trust (refer to Note 18). The funds can be solely
used for the purchases of CCEP shares to satisfy the Group’s award requirements
under its current and future share-based compensation plans.
There were no other material restrictions on the Group’s cash and cash equivalents.
Short-term investments
Short-term investments are financial assets that are initially recognised at fair
value and subsequently measured at amortised cost. The Group classifies its
financial assets as measured at amortised cost only if both of the following
criteria are met:
• the asset is held within a business model whose objective is to collect the
contractual cash flows; and
• the contractual terms give rise to cash flows that are solely payments of
principal and interest.
The short-term investment balance is comprised of time deposits and treasury
bills, with maturity dates of greater than three months and less than one year
when acquired, which do not meet the definition of cash and cash equivalents,
and are expected to be held until maturity. These are highly liquid investments
and, due to their short-term nature, their carrying amount is not significantly
different from the fair values.
As at 31 December 2024, short-term investments were €150 million
(2023: €568 million), which included €18 million (2023: €33 million) denominated in
Papua New Guinea kina that are subject to government-imposed currency
controls which impact the extent to which these investments, upon maturity, can
be converted into foreign currency and remitted for use elsewhere in the Group.
Cash receipts arising from the interest earned on cash and cash equivalents and
short-term investments were €74 million, €58 million and €25 million for the
years ended 31 December 2024, 31 December 2023, and 31 December 2022,
respectively. For the years ended 31 December 2024 and 31 December 2023, these
were considered as a major class of gross cash receipts from investing activities, and
have been presented as such in the Group’s consolidated statement of cash flows.
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Notes to the consolidated financial statements continued
Note 13
Fair values
Fair value measurements
All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorised within the fair value hierarchy. This is
described as one of the following, based on the lowest-level input that is
significant to the fair value measurement as a whole:
• Level 1 – Quoted prices in active markets for identical assets or liabilities.
• Level 2 – Observable inputs other than quoted prices included in Level 1. The
Group values assets and liabilities included in this level using dealer and broker
quotations, certain pricing models, bid prices, quoted prices for similar assets
and liabilities in active markets or other inputs that are observable or can be
corroborated by observable market data.
• Level 3 – Unobservable inputs that are supported by little or no market activity
and that are significant to the fair value of the assets or liabilities. This includes
certain pricing models, discounted cash flow methodologies and similar
techniques that use significant unobservable inputs.
The following table provides the carrying amounts and fair values of the Group's
financial assets and liabilities, including their levels in the fair value hierarchy. It
does not include fair value information for financial assets and liabilities not
measured at fair value if the carrying amount is a reasonable approximation of
fair value.
As at 31 December 2024
Carrying
amount
Level 1
Level 2
Level 3
Total fair
value
€ million
€ million
€ million
€ million
€ million
Financial assets measured at fair
value
Cash and cash equivalents (A)
241
241
—
—
241
Derivatives
Note 14
200
—
200
—
200
Equity investments at fair
value through other
comprehensive income
Note 27
14
—
—
14
14
Financial liabilities measured at
fair value
Derivatives
Note 14
206
—
206
—
206
Financial liabilities not measured
at fair value
Borrowings
Note 15
11,331
—
10,680
—
10,680
A. The amount is comprised of investments in money market funds which are classified as financial assets at fair value through profit or loss
as these do not meet the solely payments of principle and interest (SPPI) criterion.
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Notes to the consolidated financial statements continued
As at 31 December 2023
Carrying
amount
Level 1
Level 2
Level 3
Total fair
value
€ million
€ million
€ million
€ million
€ million
Financial assets measured at
fair value
Derivatives
Note 14
261
—
261
—
261
Equity investments at fair
value through other
comprehensive income
Note 27
4
—
—
4
4
Financial liabilities measured at
fair value
Derivatives
Note 14
268
—
268
—
268
Financial liabilities not
measured at fair value
Borrowings
Note 15
11,396
—
10,580
—
10,580
The fair values of the Group’s cash and cash equivalents, short-term
investments, trade accounts receivable, amounts receivable from related
parties, trade and other payables and amounts payable to related parties
approximate their carrying amounts due to their short-term nature.
The fair values of the Group’s borrowings are estimated based on borrowings
with similar maturities, credit quality and current market interest rates. These are
categorised within Level 2 of the fair value hierarchy, as the Group uses certain
pricing models and quoted prices for similar liabilities in active markets in
assessing their fair values. Refer to Note 15 for further details regarding the
Group’s borrowings. The Group’s derivative assets and liabilities are carried at fair
value both upon initial recognition and subsequently. The fair value is determined
using a variety of valuation techniques, depending on the specific characteristics
of the hedging instrument, taking into account credit risk. The fair value of the
Group’s derivative contracts (including forwards, options, futures, cross currency
swaps and interest rate swaps) is determined using standard valuation models.
The significant inputs used in these models are readily available in public markets
or can be derived from observable market transactions and, therefore, the
derivative contracts have been classified as Level 2. Inputs used in these
standard valuation models include the applicable spot, forward and discount
rates.
The standard valuation model for the option contracts also includes implied
volatility, which is specific to individual options and is based on rates quoted
from a widely used third party resource. Refer to Note 14 for further details about
the Group’s derivatives.
Assets valued using Level 3 techniques include €14 million (2023: €4 million)
relating to certain unlisted equity investments, which are immaterial both
individually and in the aggregate. Valuation techniques are specific to each
investment and involve the use of unobservable inputs. Changes in the equity
investments for the year ended 31 December 2024 were attributable to additions
of equity investments of €10 million, €4 million of which resulted from the
Acquisition. Movements in the equity investments for the year ended
31 December 2023 were driven by the purchase of additional investments
amounting to €2 million. No gains or losses have been recognised in other
comprehensive income for the years ended 31 December 2024 and
31 December 2023.
For the fair value measurement and categorisation of the Group’s investment
property refer to Note 9.
For assets and liabilities that are recognised in the financial statements on a
recurring basis, the Group determines whether transfers have occurred between
levels in the hierarchy by reassessing categorisation at the end of each reporting
period. There have been no transfers between levels during the periods
presented.
Note 14
Hedging activities
Derivative financial instruments
The Group utilises derivative financial instruments to mitigate its exposure to
certain market risks associated with its ongoing operations. The primary risks that
it seeks to manage through the use of derivative financial instruments include
currency exchange risk, commodity price risk and interest rate risk.
All derivative financial instrument assets and liabilities are recorded at fair value
in the consolidated statement of financial position. The Group does not use
derivative financial instruments for trading or speculative purposes, and all
hedge ratios are on a 1:1 basis. At the inception of a hedge transaction, the Group
documents the relationship between the hedging instrument and the hedged
item, as well as its risk management objective and strategy for undertaking the
hedge transaction.
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Notes to the consolidated financial statements continued
This process includes linking the derivative financial instrument designated as a
hedging instrument to the specific asset, liability, firm commitment or forecasted
transaction. Refer to Note 28 for further details about the Group’s risk
management strategy and objectives. Both at the hedge inception and on an
ongoing basis, the Group assesses and documents whether the derivative
financial instrument used in the hedging transaction is highly effective in
maintaining the risk management objectives. Where critical terms match, the
Group uses a qualitative assessment to ensure initial and ongoing effectiveness
criteria. Hedge accounting is discontinued when the hedging instrument expires
or is sold, terminated, exercised or no longer qualifies for hedge accounting.
At that time, any cumulative gain or loss on the hedging instrument recognised in
equity is retained in equity until the forecasted transaction occurs. If the hedged
transaction is no longer expected to occur, the net cumulative gain or loss
recognised in equity is transferred to the income statement.
While certain derivative financial instruments are designated as hedging
instruments, the Group may also enter into derivative financial instruments that
are designed to hedge a risk but are not designated as hedging instruments
(referred to as an economic hedge or a non-designated hedge). The decision
regarding whether or not to designate a hedge for hedge accounting is made by
management considering the size, purpose and tenure of the hedge, as well as
the anticipated ability to achieve and maintain the Group’s risk management
objective.
The Group is exposed to counterparty credit risk on all of its derivative financial
instruments. It has established and maintained strict counterparty credit
guidelines and enters into hedges only with financial institutions that are
investment grade or better. It continuously monitors counterparty credit risk and
utilises numerous counterparties to minimise its exposure to potential defaults.
The following table summarises the fair value of the assets and liabilities related
to derivative financial instruments and the respective line items in which they
were recorded in the consolidated statement of financial position as at the
dates presented. All derivative instruments are classified as Level 2 within the
fair value hierarchy.
Discussion of the Group’s other financial assets and liabilities is contained
elsewhere in these financial statements. Refer to Note 11 for trade accounts
receivable, Note 16 for trade and other payables, Note 15 for borrowings and
Note 21 for amounts receivable and payable with related parties.
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Notes to the consolidated financial statements continued
Hedging instrument
Location – statement of financial position
Year ended 31 December
2024
2023
€ million
€ million
Assets:
Derivatives designated as
hedging instruments:
Commodity contracts
Non-current derivative
assets
9
38
Foreign currency contracts
Non-current derivative
assets
9
—
Interest rate and cross
currency swaps
Non-current derivative
assets
80
62
Commodity contracts
Current derivative assets
52
94
Foreign currency contracts
Current derivative assets
50
20
Interest rate and cross
currency swaps
Current derivative assets
—
47
Total assets
200
261
Liabilities:
Derivatives designated as
hedging instruments:
Commodity contracts
Non-current derivative
liabilities
46
30
Foreign currency contracts
Non-current derivative
liabilities
—
2
Interest rate and cross
currency swaps
Non-current derivative
liabilities
115
137
Commodity contracts
Current derivative liabilities
37
58
Foreign currency contracts
Current derivative liabilities
8
36
Deal contingent forwards
Current derivative liabilities
—
5
Total liabilities
206
268
Cash flow hedges
The Group uses cash flow hedges to mitigate its exposure to variability in cash
flows attributable to currency fluctuations and commodity price fluctuations
associated with certain highly probable forecasted transactions, including
purchases of raw materials, finished goods and services denominated in
non-functional currencies, the receipts of interest as well as the payments
of interest and principal on debt issuances in non-functional currencies.
Effective changes in the fair value of these cash flow hedging instruments are
recognised as a component of other reserves in the consolidated statement of
changes in equity. Any changes in the fair value of these cash flow hedges that
are the result of ineffectiveness are recognised immediately in the line item in
the consolidated income statement that is consistent with the nature of the
underlying hedged item. Historically, the Group has not experienced, and does
not expect to experience, material hedge ineffectiveness with the value of the
hedged instrument equalling that of the hedged item. If the hedged cash flow
results in a subsequent recognition of a non-financial asset or liability, the gains
and/or losses accumulated in equity are included in the measurement of the
cost of the asset or liability. For other cash flow hedges, the amounts deferred in
equity are then recognised within the line item in the consolidated income
statement that is consistent with the nature of the underlying hedged item in the
period that the forecasted purchases or payments impact earnings.
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Notes to the consolidated financial statements continued
The following table summarises the Group’s outstanding cash flow hedges by risk
category as at the dates presented (all contracts denominated in a foreign
currency have been converted into euro using the respective year end spot rate):
Notional maturity profile
Total
Less than
1 year
1 to 3 years
3 to 5 years
Over 5 years
Cash flow hedges
€ million
€ million
€ million
€ million
€ million
Foreign currency contracts
1,723
1,292
431
—
—
Interest rate and cross currency
swaps
2,079
760
604
416
299
Commodity contracts
1,397
834
563
—
—
As at 31 December 2022
5,199
2,886
1,598
416
299
Deal contingent foreign currency
forwards
636
636
—
—
—
Foreign currency contracts
1,105
980
125
—
—
Interest rate and cross currency
swaps
1,306
602
—
520
184
Commodity contracts
1,441
829
588
9
15
As at 31 December 2023
4,488
3,047
713
529
199
Foreign currency contracts
1,460
1,196
264
—
—
Interest rate and cross currency
swaps
696
—
416
101
179
Commodity contracts
1,662
889
635
121
17
As at 31 December 2024
3,818
2,085
1,315
222
196
The net notional amount of outstanding interest rate and cross currency swaps
used to hedge interest rate risk and currency fluctuations of non-functional
currency borrowings was €0.7 billion as at 31 December 2024, €1.3 billion as
at 31 December 2023 and €2.1 billion as at 31 December 2022. The net notional
amount of the other outstanding foreign currency cash flow hedges was
€1.5 billion as at 31 December 2024, €1.1 billion as at 31 December 2023 and
€1.7 billion as at 31 December 2022. The net notional amount of outstanding
commodity-related cash flow hedges was €1.7 billion as at 31 December 2024,
€1.4 billion as at 31 December 2023 and €1.4 billion as at 31 December 2022.
Outstanding cash flow hedges as at 31 December 2024 are expected to be
settled between 2025 and 2036.
The following table provides a reconciliation by risk category of the net of tax
impacts on the cash flow hedge reserve disclosed in Note 18, resulting from cash
flow hedge accounting:
Foreign
currency
contracts
Commodity
contracts
Interest rate
and cross
currency
swaps
Total
Cash flow hedges
€ million
€ million
€ million
€ million
As at 1 January 2022
26
153
(28)
151
Net fair value gains/(losses) recognised in OCI
13
43
46
102
Net (gains)/losses reclassified from OCI to
income statement or transferred to cost of
inventories
(19)
(117)
(13)
(149)
As at 31 December 2022
20
79
5
104
Net fair value gains/(losses) recognised in OCI
(26)
67
(3)
38
Net (gains)/losses reclassified from OCI to
income statement or transferred to cost of
inventories(A)
10
(111)
(10)
(111)
As at 31 December 2023
4
35
(8)
31
Net fair value gains/(losses) recognised in OCI
41
(27)
8
22
Net (gains)/losses reclassified from OCI to
income statement or transferred to cost of
inventories(A)
5
(24)
(4)
(23)
Net losses transferred to goodwill in connection
with the Acquisition
2
—
—
2
As at 31 December 2024
52
(16)
(4)
32
A. The amount includes a net of tax gain of €13 million and €83 million in 2024 and 2023 respectively transferred from the cash flow hedge
reserve to the cost of inventories.
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Notes to the consolidated financial statements continued
The following table summarises the net of tax effect of the cash flow hedges in
the consolidated income statement for the periods presented:
Cash flow hedging instruments
Location – Income statement
Amount of gain/(loss) reclassified
from the cash flow hedge reserve into profit
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Foreign currency
contracts
Cost of sales
—
1
19
Commodity contracts
Cost of sales
—
—
83
Commodity contracts
Selling and
distribution
expenses
6
17
34
Interest rate and cross
currency swaps
Finance costs
4
10
13
Total
10
28
149
Ineffectiveness associated with these cash flow hedges was not material during
any year presented within these financial statements.
Fair value hedges
The Group has designated certain cross currency swaps used to mitigate foreign
currency exchange risk and interest rate risk on foreign currency borrowings as
fair value hedges. There is an economic relationship between the hedged item
and the hedging instrument, as the terms of the cross currency swap contracts
match the terms of the fixed rate borrowings. The Group has established a hedge
ratio of 1:1 for the hedging relationship.
The Group also designates foreign currency contracts as fair value hedges to
mitigate foreign currency exchange risk.
The following table summarises the Group’s outstanding fair value hedges by risk
category as at the dates presented (all contracts denominated in a foreign
currency have been converted into euro using the respective year end spot rate):
Less than
1 year
1 to 3 years
3 to 5 years
Over 5 years
Fair value hedges
Total
€ million
€ million
€ million
€ million
Interest rate and cross currency swaps
1,165
—
—
500
665
As at 31 December 2022
1,165
—
—
500
665
Interest rate and cross currency swaps
1,159
—
275
450
434
As at 31 December 2023
1,159
—
275
450
434
Interest rate and cross currency
swaps
1,154
—
500
225
429
Foreign currency contracts
13
13
—
—
—
As at 31 December 2024
1,167
13
500
225
429
The net notional amount of outstanding interest rate and cross currency swaps
designated in a fair value hedge relationship with borrowings was €1,154 million as
at 31 December 2024, €1,159 million as at 31 December 2023 and €1,165 million as
at 31 December 2022.
The following table summarises the gains/(losses) recognised from the settlement of
fair value hedges within the consolidated income statement for the periods
presented:
Fair value hedges
Location – Income statement
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Interest rate and
cross currency swaps
Finance costs
(36)
(30)
2
Total
(36)
(30)
2
The carrying value of the hedged item recognised in borrowings as at
31 December 2024 is €1,076 million (31 December 2023: €1,051 million), which
includes accumulated amounts of fair value hedging adjustments of €74 million
reduction in borrowings (31 December 2023: €106 million reduction in borrowings).
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Notes to the consolidated financial statements continued
Non-designated hedges
The Group periodically enters into derivative instruments that are designed to
hedge various risks but are not designated as hedging instruments.
At times, it enters into other short-term non-designated hedges to mitigate its
exposure to changes in cash flows attributable to currency fluctuations
associated with no qualifying hedged items such as short-term intercompany
loans and certain cash equivalents denominated in non-functional currencies.
Changes in the fair value of outstanding non-designated hedges are recognised
each reporting period in the line item in the consolidated income statement that
is consistent with the nature of the hedged risk.
There were €206 million of outstanding non-designated foreign currency hedges
related to hedging foreign currency exposure on intercompany loans as at
31 December 2024. There were €215 million outstanding non-designated hedges
as at 31 December 2023.
There were €33 million of outstanding non-designated commodity hedges
entered into as part of a power purchase agreement as at 31 December 2024
(31 December 2023: nil). This agreement expires in 2035.
The following table summarises the gains/(losses) recognised from non-designated
derivative financial instruments in the consolidated income statement for the
years presented:
Non-designated hedging
instruments
Location – Income statement
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Foreign currency
contracts(A)
Non-operating items
2
(5)
(5)
Commodity
contracts
Non-operating items
4
—
—
Total
6
(5)
(5)
A. The gain/(loss) recognised on these currency contracts is offset by the gain/(loss) recognised on the remeasurement of the underlying
hedged items; therefore, there is a minimal consolidated net effect in non-operating items on the consolidated income statement.
Net investment hedges
The Group had no net investment hedges in place as at 31 December 2024 or
31 December 2023. However, it continues to monitor its exposure to currency
exchange rates and may enter into future net investment hedges as a result of
volatility in the functional currencies of certain of its subsidiaries.
Note 15
Borrowings and leases
Borrowings
Borrowings are initially recognised at fair value, net of issuance costs incurred.
Borrowings assumed by the Group as part of the Acquisition have been
recognised at fair value at the acquisition date. After initial recognition,
borrowings are subsequently measured at amortised cost using the effective
interest rate method. Amortisation of transaction costs, fair value adjustments
made on acquisition, premiums and discounts are recognised as part of finance
costs within the consolidated income statement.
Leases
Lease liabilities are included within borrowings in our consolidated statement of
financial position.
The lease liability is measured at the present value of lease payments,
discounted using the Group’s incremental borrowing rate (IBR). The lease term
comprises the non-cancellable period of the contract, together with periods
covered by an option to extend the lease whenever the Group is reasonably
certain to exercise that option and has an enforceable right to do so.
Subsequently, the lease liability is measured by increasing the carrying amount to
reflect interest on the lease liability and reducing it by lease payments made.
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Notes to the consolidated financial statements continued
Borrowings outstanding
The following table summarises the carrying value of the Group’s borrowings as
at the dates presented:
Non-current:
Euro denominated bonds:
€350 million 2.375% Notes 2025
—
349
€250 million 2.75% Notes 2026(A)
247
245
€600 million 1.75% Notes 2026(A)
593
588
€400 million 1.50% Notes 2027(A)
387
381
€250 million 1.50% Notes 2027
256
258
€500 million 1.75% Notes 2028(A)
484
478
€750 million 0.20% Notes 2028
746
745
€500 million 1.125% Notes 2029
497
496
€500 million 1.875% Notes 2030(A)
485
482
€700 million 3.875% Notes 2030
695
694
€500 million 0.70% Notes 2031(A)
485
482
€800 million 0.00% Notes 2025
—
798
€700 million 0.50% Notes 2029
696
695
€600 million 3.250% Notes 2032(B)
594
—
€1 billion 0.875% Notes 2033
992
991
€750 million 1.50% Notes 2041
746
746
Foreign currency bonds (swapped into euro)(C):
US$500 million 1.50% Notes 2027
478
451
Year ended 31 December
2024
2023
€ million
€ million
Australian dollar denominated bonds:
A$30 million 4.166% Notes 2025
—
19
A$20 million 4.25% Notes 2025
—
13
A$30 million 4.125% Notes 2026
18
19
A$50 million 4.155% Notes 2028
32
33
A$133 million 2.45% Notes 2029
80
83
A$50 million 4.20% Notes 2031
33
34
A$187 million 4.20% Notes 2031
123
128
A$13 million 4.20% Notes 2031
9
9
Foreign currency bonds (swapped into Australian dollar or New
Zealand dollar)(C):
NOK1 billion 3.04% Notes 2028
87
92
NOK750 million 2.75% Notes 2030
65
68
US$50 million 2.6525% Notes 2030
48
45
JPY10 billion 4.15% Notes 2036(A)
67
67
JPY12.3 billion 0.00% Notes 2037(A)
63
65
PHP Term loan due 2034(D)
387
—
Lease obligations
547
542
Total non-current borrowings
9,940
10,096
Year ended 31 December
2024
2023
€ million
€ million
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Notes to the consolidated financial statements continued
Current:
Euro denominated bonds:
€800 million 0.00% Notes 2025
799
—
€350 million 2.375% Notes 2025
351
—
€500 million 1.125% Notes 2024(E)
—
500
Foreign currency bonds (swapped into euro)(C):
US$650 million 0.80% Notes 2024(F)
—
588
Australian dollar denominated bonds:
A$30 million 4.166% Notes 2025
19
—
A$20 million 4.250% Notes 2025
12
—
A$100 million 3.50% Notes 2024(G)
—
62
Philippine peso denominated loans:
PHP3.5 billion 6.00% Loan 2025(H)
16
—
PHP2 billion 5.750% Loan 2025(I)
33
—
Lease obligations
161
150
Total current borrowings
1,391
1,300
Year ended 31 December
2024
2023
€ million
€ million
A. Bonds designated in full or partially in a fair value hedge relationship.
B. In September 2024, the Group issued €600 million 3.250% Notes due 2032.
C. Cross currency swaps are used by the Group to swap foreign currency bonds into the required local currency.
D. In February 2024, in connection with the Acquisition, the Group entered into a term loan facility agreement with the Bank of
Philippine Islands. A term loan facility in an aggregate amount of US$500 million was made available under the agreement
to be utilised in PHP. On 20 February 2024, the Group drew down a PHP23.5 billion (US$420 million) loan under the facility
with a maturity date of 20 February 2034. The vast majority of the balance (90% of the total principal amount) is repayable
in full upon maturity. In April 2024, the remaining undrawn portion of this facility was subsequently cancelled.
E. In May 2024, the Group repaid on maturity the outstanding amount related to the €500 million 1.125% Notes.
F. In May 2024, the Group repaid on maturity the outstanding amount related to the US$650 million 0.8% Notes.
G. In April 2024, the Group repaid on maturity A$100 million 3.5% Notes.
H. Included within the Group's borrowings as at 31 December 2024 is a short-term loan denominated in PHP assumed as part
of the Acquisition. In August 2024 and November 2024, the Group repaid PHP500 million and PHP2 billion, respectively.
I. In December 2024, the Group entered into a short-term loan agreement with Metropolitan Bank and Trust Company and
drew down PHP2 billion payable in full upon maturity on 19 December 2025.
Borrowings are stated net of unamortised financing fees of €29 million and
€30 million, as at 31 December 2024 and 31 December 2023, respectively.
Interest expense recognised on lease liabilities totalled €21 million, €17 million
and €14 million in 2024, 2023 and 2022, respectively.
Credit facilities
During 2024, the amount available under the Group’s multi currency credit facility
was €1.80 billion. This amount is available for borrowing with a syndicate
of 12 banks. This credit facility matures in 2030 and is for general corporate
purposes and supporting the Group’s working capital needs. Based on
information currently available, there is no indication that the financial
institutions participating in this facility would be unable to fulfil their
commitments to the Group as at the date of these consolidated financial
statements. The Group’s current credit facility contains no financial covenants
that would impact its liquidity or access to capital. As at 31 December 2024 the
Group had no amounts drawn under this credit facility.
Changes in liabilities arising from financing activities
The following table provides a reconciliation of movements of liabilities to cash
flows arising from financing activities:
As at 1 January 2022
1,350
11,790
78
(110)
3
13,111
Changes from financing cash flows
Changes in short-term
borrowings(A)
(285)
—
—
—
—
(285)
Repayments on third party
borrowings
(938)
—
—
—
—
(938)
Payment of principal on lease
obligations
(153)
—
—
—
—
(153)
Interest paid
(14)
—
(116)
—
—
(130)
Dividends paid
—
—
—
—
(763)
(763)
Other financing activities
(1)
—
—
—
—
(1)
Current
portion
of borrowings
Borrowings,
less current
portion
Interest
payable(B)
Derivatives
(assets)/
liabilities held
to hedge
borrowings(C)
Dividends
payable(B)
Total
€ million
€ million
€ million
€ million
€ million
€ million
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Notes to the consolidated financial statements continued
Other non-cash changes
Amortisation of discounts,
premium, issue costs and fair
value adjustments
(1)
4
—
—
—
3
Other non-cash movements
34
171
112
—
766
1,083
Movement as a result of fair
value hedges
11
(172)
—
—
—
(161)
Changes in fair values
—
—
—
45
—
45
Currency translations
—
111
—
(18)
(2)
91
Reclassifications
1,333
(1,333)
—
—
—
—
Total changes
(14)
(1,219)
(4)
27
1 (1,209)
As at 31 December 2022
1,336
10,571
74
(83)
4 11,902
Changes from financing cash flows
Proceeds from third party
borrowings, net
—
694
—
—
—
694
Changes in short-term
borrowings(A)
—
—
—
—
—
—
Repayments on third party
borrowings
(1,159)
—
—
—
—
(1,159)
Payment of principal on lease
obligations
(148)
—
—
—
—
(148)
Interest paid
(17)
—
(165)
—
—
(182)
Dividends paid
—
—
—
—
(841)
(841)
Settlement of debt-related
cross currency swaps
—
—
—
69
—
69
Current
portion
of borrowings
Borrowings,
less current
portion
Interest
payable(B)
Derivatives
(assets)/
liabilities held
to hedge
borrowings(C)
Dividends
payable(B)
Total
€ million
€ million
€ million
€ million
€ million
€ million
Other non-cash changes
Amortisation of discounts,
premium, issue costs and fair
value adjustments
—
5
—
—
—
5
Other non-cash movements
93
98
164
—
844
1,199
Movement as a result of fair
value hedges
—
40
—
—
—
40
Changes in fair values
—
—
—
25
—
25
Currency translations
(40)
(77)
—
17
(2)
(102)
Reclassifications
1,235
(1,235)
—
—
—
—
Total changes
(36)
(475)
(1)
111
1
(400)
As at 31 December 2023
1,300
10,096
73
28
5 11,502
Changes from financing cash flows
Acquisition of CCBPI
63
6
—
—
—
69
Proceeds from third party
borrowings, net
32
976
—
—
—
1,008
Changes in short-term
borrowings(A)
—
—
—
—
—
—
Repayments on third party
borrowings
(1,207)
—
—
—
— (1,207)
Payment of principal on lease
obligations
(157)
—
—
—
—
(157)
Interest paid
(21)
—
(228)
—
—
(249)
Dividends paid
—
—
—
—
(910)
(910)
Current
portion
of borrowings
Borrowings,
less current
portion
Interest
payable(B)
Derivatives
(assets)/
liabilities held
to hedge
borrowings(C)
Dividends
payable(B)
Total
€ million
€ million
€ million
€ million
€ million
€ million
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Notes to the consolidated financial statements continued
Settlement of debt-related
cross currency swaps
—
—
—
66
—
66
Other non-cash changes
Amortisation of discounts,
premium, issue costs and fair
value adjustments
(1)
7
—
—
—
6
Other non-cash movements
53
135
243
—
911
1,342
Movement as a result of fair
value hedges
—
29
—
—
—
29
Changes in fair values
—
—
—
(59)
—
(59)
Currency translations
33
(13)
—
—
—
20
Reclassifications
1,296
(1,296)
—
—
—
—
Total changes
91
(156)
15
7
1
(42)
As at 31 December 2024
1,391
9,940
88
35
6 11,460
Current
portion
of borrowings
Borrowings,
less current
portion
Interest
payable(B)
Derivatives
(assets)/
liabilities held
to hedge
borrowings(C)
Dividends
payable(B)
Total
€ million
€ million
€ million
€ million
€ million
€ million
A. In 2024, changes in short-term borrowings include €10,074 million of newly issued and €10,074 million of repaid euro
commercial paper. In 2023, changes in short-term borrowings included €6,810 million and €6,810 million of newly issued
and repaid euro commercial paper, respectively. In 2022, changes in short-term borrowings included €2,464 million and
€2,749 million of newly issued and repaid euro commercial paper, respectively.
B. Interest payable and dividends payable balances are presented within the “Trade and other payables” line item in the
Group’s consolidated statement of financial position.
C. Interest rate and cross currency swaps used to hedge interest rate risk and currency fluctuations of non-functional
currency borrowings, refer to Note 14.
Total cash outflows for leases were €178 million, €165 million and €167 million for
the years ended 31 December 2024, 31 December 2023 and 31 December 2022,
respectively.
Note 16
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to
the Group prior to the end of the reporting period, which are unpaid. Trade and
other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. Trade and other payables are
recognised initially at fair value and subsequently measured at amortised cost
using the effective interest rate method. Trade payables are non-interest bearing
and are normally settled between 70 to 80 days.
The Group participates in various programmes and arrangements with customers
designed to increase the sale of our products. The costs of these programmes
are recorded as deductions from revenue. Among the programmes are
arrangements under which allowances can be earned by customers for attaining
agreed upon sales levels or for participating in specific marketing programmes.
When these allowances are paid in arrears, the Group accrues the estimated
amount to be paid based on historical customer experience, the programme’s
contractual terms and the amounts expected to be settled with customers. The
costs of these off-invoice customer marketing initiatives totalled €5.8 billion,
€5.4 billion and €5.2 billion for 2024, 2023 and 2022, respectively.
The following table summarises trade and other payables as at the dates
presented:
Year ended 31 December
2024
2023
€ million
€ million
Trade accounts payable
2,669
2,306
Accrued customer marketing costs
1,376
1,340
Accrued deposits
392
338
Accrued compensation and benefits
500
532
Accrued taxes(A)
389
280
Other accrued expenses
460
438
Total trade and other payables
5,786
5,234
A. This line item includes a payable of €61 million in 2024 and €59 million in 2023 to the Spanish tax authorities. Refer to Note
26 for further details.
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Notes to the consolidated financial statements continued
Supplier finance arrangements
The Group engages in supplier finance arrangements facilitated by various banks,
pursuant to which, its suppliers may elect to receive early payments of their
invoices from a bank. Under the arrangements, the bank agrees to pay amounts
due to participating suppliers with respect to invoices owed by the Group, and
the Group repays the bank at a later date. Participation in these arrangements is
at suppliers’ own discretion. If suppliers elect to receive early payments, they
pay a fee to the respective bank, to which the Group is not party. The primary
purpose of these arrangements is to streamline payment processing and allow
willing suppliers to receive early payments from the bank before the invoice due
date. Payment terms with suppliers have not been renegotiated in conjunction
with these arrangements.
The Group does not derecognise the original liabilities to which supplier finance
arrangements apply because a legal release is not obtained, and the original
liabilities remain substantially unmodified upon entering into these arrangements.
From the perspective of the Group, the arrangements do not significantly extend
the payment terms beyond the normal terms agreed with other non-participating
suppliers. The Group incurs no additional fees or interest expense towards the
banks on the amounts due to the suppliers. As a result, the Group discloses the
amounts subject to the arrangements within trade and other payables. As of
31 December 2024, all payables related to supplier finance arrangements are
classified as current.
Payments made to the banks are included in cash flows from operating activities
because they continue to be part of the Group’s normal operating cycle and their
principal nature remains operating.
The following tables provide an overview of the carrying amount of the liabilities
part of a supplier financing arrangement as well as the range of common
payment due dates.
Year ended 31 December
2024
2023
€ million
€ million
Carrying amount of liabilities that are part of supplier financing
arrangements
Presented within trade accounts payable
764
622
of which suppliers have received payment
596
(A)
Year ended 31 December
2024
2023
Days after
Days after
Range of payment due dates
Liabilities that are part of an arrangement
45 - 135
(A)
Comparable liabilities that are not part of an arrangement
0 - 135
(A)
A. The Group applied transitional relief available under Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7
and has not provided comparative information in the first year of adoption.
Following the Acquisition, the Group assumed €40 million of trade and other
payables, which were part of a supplier finance arrangement. There were no
other significant non-cash changes in the carrying amount of the trade payables
included in the Group’s supplier finance arrangements.
Note 17
Post-employment benefits
The cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual
reporting period. All remeasurements of the defined benefit obligation, such as
actuarial gains and losses and return on plan assets, are recognised directly in
other comprehensive income. Remeasurements recognised in other
comprehensive income are reflected immediately in retained earnings and are
not reclassified to profit or loss. Service cost is presented within cost of sales,
selling and distribution expenses and administrative expenses in the
consolidated income statement. Past service cost is recognised immediately
within cost of sales, selling and distribution expenses, and administrative
expenses in the consolidated income statement. The net interest cost is
calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. Net interest cost is presented
within finance costs or finance income, as applicable, in the consolidated income
statement. The defined benefit obligation recognised in the consolidated
statement of financial position represents the present value of the estimated
future cash outflows, using interest rates of high quality corporate bonds which
have terms to maturity approximating the terms of the related liability.
The Group recognises termination benefits at the earlier of the following dates:
(1) when the Group can no longer withdraw the offer of those benefits; and (2)
when the Group recognises costs for restructuring that are within the scope of
IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” and involves the
payment of termination benefits. In the case of an offer made to encourage
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Notes to the consolidated financial statements continued
voluntary redundancy, the termination benefits are measured based on the
number of employees expected to accept the offer. Termination benefits are
payable whenever an employee’s employment is terminated before the normal
retirement date or whenever an employee accepts voluntary redundancy in
exchange for those benefits.
The following table summarises our non-current employee benefit liabilities as at
the dates presented:
Year ended 31 December
2024
2023
GB
Rest of world
Total
GB
Rest of world
Total
€ million
€ million
€ million
€ million
€ million
€ million
Retirement benefit
obligation
55
82
137
77
81
158
Other employee benefit
liabilities
—
35
35
—
33
33
Total non-current employee
benefit liabilities
55
117
172
77
114
191
Defined benefit plans
The Group sponsors a number of defined benefit pension plans in Belgium,
France, Germany, Great Britain, Luxembourg, Norway, Australia and Indonesia. As
part of the Acquisition, the Group assumed the liabilities related to defined
benefit plans available in the Philippines. The majority of the defined benefit plans
are either career average, final salary or hybrid plans, and operate on a funded
basis with assets held in external funds. The Group’s Great Britain plan
(GB Scheme) is the most significant.
The GB Scheme’s defined benefit obligation includes benefits for current
employees, former employees and current pensioners. The level of benefits
provided (funded final salary pension) depends on the member’s length of
service and salary at retirement age. Part of the pension may be exchanged for a
tax free cash lump sum. The GB Scheme was closed to new members with effect
from 1 October 2005 and is administered by a board of trustees, which is legally
separate from the Group. The board of trustees is composed of representatives
of both the employer and employees. The board of trustees is required by law to
act in the interest of all relevant beneficiaries and is responsible for the
investment policy with regard to the assets plus the day to day administration of
the benefits.
On 8 October 2020, the Group announced a proposal to close the GB Scheme to
future accrual, which was implemented on 31 March 2021. The affected
employees were offered to enrol in the Group’s defined contribution scheme
(DC scheme). Subsequent to the implementation of the closure of the GB
Scheme, the members moved from active to deferred status, with future
indexation of deferred pensions before retirement measured by reference to the
consumer price index (CPI).
As part of its risk management strategy, in September 2023, the board of trustees
entered into a buy-in agreement with Just Retirement Ltd to acquire an insurance
policy with the intent of matching a specific portion of the GB Scheme’s future cash
flows arising from the accrued pension liabilities of retired members. The transaction
was financed entirely using a portion of the existing plan assets, with no further
funding required from the Group. On an IAS 19 “Employee Benefits” basis, the
subsequent fair value of the insurance policy matches the present value of the
liabilities being insured, which totalled €242 million as at 31 December 2024 and
€260 million as at 31 December 2023.
A full actuarial valuation of the GB Scheme occurs on a triennial basis by a
qualified external actuary, which is used as the basis for determining the Group’s
future contributions to the plan. The latest triennial valuation was carried out as
at 5 April 2022 and has been updated to 31 December 2024 to reflect our defined
benefit obligation, for known events and changes in market conditions as allowed
under IAS 19.
Risks
The Group’s defined benefit pension schemes expose the Group to a number of
risks, including:
• Asset volatility: The plan liabilities are calculated using a discount rate set with
reference to corporate bond yields; if assets underperformed this yield, a
deficit would occur. Some of our plans hold a significant proportion of growth
assets (equities and property) which, though expected to outperform
corporate bonds in the long term, create volatility and risk in the short term.
The allocation to growth assets is monitored to ensure it remains appropriate
given each scheme’s long-term objectives.
• Changes in bond yields: A decrease in corporate bond yields will increase the
defined benefit liability, although this will be partially offset by an increase in
the value of the plan’s bond holdings.
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Notes to the consolidated financial statements continued
• Inflation risk: A significant proportion of our benefit obligations are linked to inflation,
and higher inflation will lead to higher liabilities (although, in most cases, caps on the
level of inflationary increases are in place to protect against extreme inflation). The
majority of the assets are either unaffected by or only loosely correlated with
inflation, meaning that an increase in inflation will also increase the deficit.
• Life expectancy: The majority of our plans have an obligation to provide
benefits for the life of the member, so increases in life expectancy will result in
an increase in the defined benefit liabilities.
Benefit costs
The following table summarises the expense related to pension plans recognised
in the consolidated income statement for the years presented:
Year ended 31 December
2024
2023
2022
GB
Rest of
world
Total
GB
Rest of
world
Total
GB
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Service cost
—
19
19
—
14
14
—
18
18
Past service
(credit)/cost
(5)
2
(3)
—
(7)
(7)
—
(2)
(2)
Net interest cost/
(income)
4
(1)
3
(1)
(1)
(2)
(2)
1
(1)
Administrative
expenses
—
1
1
—
1
1
—
1
1
Total cost
(1)
21
20
(1)
7
6
(2)
18
16
Other comprehensive income
The following table summarises the changes in other comprehensive income
related to our pension plans for the years presented:
Year ended 31 December
2024
2023
2022
GB
Rest of
world
Total
GB
Rest of
world
Total
GB
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Actuarial (gain)/loss
on defined benefit
obligation arising
during the period
(151)
(24)
(175)
39
32
71
(712)
(125) (837)
Return on plan
assets less/
(greater) than
discount rate
139
(25)
114
65
(28)
37
808
74
882
Net charge to other
comprehensive
income
(12)
(49)
(61)
104
4
108
96
(51)
45
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Notes to the consolidated financial statements continued
Benefit obligation and fair value of plan assets
The following tables summarise the changes in the pension plan benefit obligation and the fair value of plan assets for the periods presented:
Reconciliation of benefit obligation:
Benefit obligation at beginning
of plan year
1,008
548
1,556
937
529
1,466
Service cost
—
19
19
—
14
14
Past service (credit)/cost
(5)
2
(3)
—
(7)
(7)
Interest costs on defined
benefit obligation
46
18
64
45
15
60
Plan participants’ contributions
—
31
31
—
36
36
Actuarial (gain)/loss –
experience
(1)
(3)
(4)
21
9
30
Actuarial (gain)/loss –
demographic assumptions
(1)
—
(1)
(13)
—
(13)
Actuarial (gain)/loss – financial
assumptions
(149)
(21)
(170)
31
23
54
Benefit payments
(33)
(73)
(106)
(33)
(70)
(103)
Administrative expenses
—
1
1
—
1
1
Acquisition of CCBPI
—
72
72
—
—
—
Currency translation
adjustments
44
2
46
20
(2)
18
Benefit obligation at end of plan
year
909
596
1,505
1,008
548
1,556
Year ended 31 December
2024
2023
GB
Rest of
world
Total
GB
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
Reconciliation of fair value
of plan assets:
Fair value of plan assets at
beginning of plan year
931
601
1,532
952
572
1,524
Interest income on plan assets
42
19
61
46
16
62
Return on plan assets (less)/
greater than discount rate
(139)
25
(114)
(65)
28
(37)
Plan participants’ contributions
—
31
31
—
36
36
Employer contributions
11
29
40
11
21
32
Benefit payments
(33)
(73)
(106)
(33)
(70)
(103)
Acquisition of CCBPI
—
57
57
—
—
—
Currency translation adjustment
42
1
43
20
(2)
18
Fair value of plan assets at end
of plan year
854
690
1,544
931
601
1,532
Year ended 31 December
2024
2023
GB
Rest of
world
Total
GB
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
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Notes to the consolidated financial statements continued
Timing of benefit payments
The weighted average duration of the defined benefit plan obligation as at
31 December 2024 is 15 years, including 16 years for the GB Scheme. The
weighted average duration of the defined benefit plan obligation as at
31 December 2023 was 15 years, including 16 years for the GB Scheme.
Retirement benefit status
The following table summarises the retirement benefit status of pension plans as
at the dates presented:
Year ended 31 December
2024
2023
GB
Rest of
world
Total
GB
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
Net benefit status:
Present value of obligation
(909)
(596)
(1,505)
(1,008)
(548)
(1,556)
Fair value of assets
854
690
1,544
931
601
1,532
Net benefit status:
(55)
94
39
(77)
53
(24)
Retirement benefit surplus
(Note 27)
—
176
176
—
134
134
Retirement benefit obligation
(55)
(82)
(137)
(77)
(81)
(158)
The surplus for 2024 is primarily related to the defined benefit plans in Germany
and Belgium. The surplus is recognised on the balance sheet on the basis that
the Group is entitled to a refund of any remaining assets once all members have
left the plan.
Actuarial assumptions
The following tables summarise the weighted average actuarial assumptions
used to determine the benefit obligations of pension plans as at the dates
presented:
Year ended 31 December
2024
2023
GB
Rest of
world
Average
GB
Rest of
world
Average
Financial assumptions
%
%
%
%
%
%
Discount rate
5.5
4.2
5.0
4.5
3.6
4.2
Rate of compensation increase
N/A
3.9
3.9
N/A
3.6
3.6
Rate of price inflation
3.1
2.1
2.8
3.1
2.3
2.9
Year ended 31 December
2024
2023
Demographic assumptions
(weighted average)(A)
GB
Rest of
world
Average
GB
Rest of
world
Average
Retiring at the end
of the reporting period
Male
21.4
19.9
21.0
21.4
19.8
21.0
Female
24.0
23.2
23.8
23.9
23.2
23.7
Retiring 15 years after the end
of the reporting period
Male
22.3
20.9
21.9
22.3
20.0
21.7
Female
25.1
24.0
24.8
25.0
23.5
24.6
A. These assumptions translate into an average life expectancy in years, post-retirement, for an employee retiring at age 65.
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212
Notes to the consolidated financial statements continued
The following tables summarise the sensitivity of the defined benefit obligation to
changes in the weighted average principal assumptions for the periods
presented:
Year ended 31 December 2024
Change in
assumption
Impact on defined benefit obligation (%)
Increase in assumption
Decrease in assumption
Principal assumptions
GB
Rest of
world
Average
GB
Rest of
world
Average
Discount rate
0.5%
(7.2)
(4.2)
(6.0)
7.8
4.6
6.5
Rate of compensation
increase(A)
0.5%
N/A
2.1
0.8
N/A
(2.0)
(0.8)
Rate of price inflation
0.5%
5.6
1.5
4.0
(5.0)
(1.4)
(3.6)
Mortality rates
1 year
2.6
1.6
2.2
(2.6)
(1.6)
(2.2)
Year ended 31 December 2023
Change in
assumption
Impact on defined benefit obligation (%)
Increase in assumption
Decrease in assumption
Principal assumptions
GB
Rest of
world
Average
GB
Rest of
world
Average
Discount rate
0.5%
(7.3)
(4.1)
(6.2)
7.9
4.4
6.7
Rate of compensation
increase(A)
0.5%
N/A
1.6
0.5
N/A
(1.4)
(0.5)
Rate of price inflation
0.5%
4.6
3.2
4.1
(4.5)
(3.0)
(4.0)
Mortality rates
1 year
2.3
1.7
2.1
(2.5)
(1.8)
(2.2)
A. The compensation increase assumption is no longer applicable to the valuation of the defined benefit obligation
associated with the GB Scheme in light of the plan closure effective 31 March 2021.
The sensitivity analyses have been determined based on a method that
extrapolates the impact on the defined benefit obligation as a result of
reasonable changes in key assumptions occurring at the end of the reporting
period. The sensitivity analyses are based on a change in a significant assumption,
keeping all other assumptions constant. The sensitivity analyses may not be
representative of an actual change in the defined benefit obligation, as it is
unlikely that changes in assumptions would occur in isolation from one another.
Pension plan assets
There are formal investment policies for the assets associated with our pension
plans. Policy objectives include: (1) maximising long-term return at acceptable risk
levels; (2) diversifying among asset classes, if appropriate, and among investment
managers; and (3) establishing relevant risk parameters within each asset class.
Investment policies reflect the unique circumstances of the respective plans
and include requirements designed to mitigate risk, including quality and
diversification standards. Asset allocation targets are based on periodic asset
liability and/or risk budgeting study results, which help determine the appropriate
investment strategies for acceptable risk levels. The investment policies permit
variances from the targets within certain parameters.
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2024 Annual Report and Form 20-F
213
Notes to the consolidated financial statements continued
The following table summarises pension plan assets measured at fair value as at the dates presented:
Year ended 31 December 2024
Year ended 31 December 2023
Total
Investments quoted in active markets
Unquoted investments
Total
Investments quoted in active markets
Unquoted investments
GB
Rest of world
GB
Rest of world
GB
Rest of world
GB
Rest of world
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Equity securities(A)
193
—
193
—
—
154
—
154
—
—
Fixed income securities:(B)
Corporate bonds and notes
229
127
102
—
—
211
117
94
—
—
Government bonds(C)
348
628
75
(355)
—
335
770
41
(476)
—
Cash and other short-term investments(D)
38
22
16
—
—
25
19
6
—
—
Other investments:
Real estate funds(E)
219
22
26
164
7
255
21
26
208
—
Insurance contracts(F)
436
—
—
242
194
463
—
—
260
203
Investment funds(G)
77
—
—
—
77
77
—
—
—
77
Derivatives(H)
4
2
—
2
—
12
7
—
5
—
Total
1,544
801
412
53
278
1,532
934
321
(3)
280
A. Equity securities are comprised of ordinary shares and investments in equity funds. Investments in ordinary shares are valued using quoted market prices multiplied by the number of shares owned. Investments in equity funds are valued at the net
asset value per share, which is calculated predominantly based on the underlying quoted investments market price, multiplied by the number of shares held as of the measurement date.
B. The fair values of the fixed income securities are determined based on quoted market prices in active markets. Bonds are held mainly in the currency of the geography of the plan.
C. The unquoted amounts within this category relate to repurchase agreements (where the Scheme has sold government bonds with the agreement to repurchase at a fixed date and price). The commitment to repurchase the government bonds reduces
the pension assets and is reflected at fair value based on the repurchase price. The assets sold are reported at their fair value, reflecting that the Scheme retains the risks and rewards of ownership of those assets. The asset portfolio of the GB Scheme
was refined during 2022 by entering into repurchase agreement of government bonds in order to better match the Scheme liability and to offset the exposure to interests and inflation rates, while remaining invested in the assets of similar risk profile.
D. Cash and other short-term investments are valued at €1.00/unit, which approximates fair value. Amounts are generally invested in cash or interest bearing accounts.
E. The valuation of unquoted real estate funds is based on net assets value per share multiplied by the number of shares owned. For quoted real estate funds, the calculation is based on the underlying quoted investments market price, multiplied by the
number of shares held as of the measurement date.
F. Insurance contracts exactly match the amount and timing of certain benefits and therefore the fair value of these insurance policies is deemed to be the present value of the related obligations.
G. Primarily includes investments in equity securities, fixed income securities and combinations of both. Fair values are sourced from broker quotes.
H. The unquoted amounts within derivatives primarily relate to total return swaps, which represent the current value of future cash flows arising from the swap determined using discounted cash flow models and market data at the reporting date.
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2024 Annual Report and Form 20-F
214
Notes to the consolidated financial statements continued
Contributions
To support a long-term funding arrangement, during 2019 the Group entered into
a partnership agreement with the GB Scheme and the CCEP Scottish Limited
Partnership (the Partnership). Certain property assets in Great Britain, with a
market value of £171 million, were transferred into the Partnership and
subsequently leased back to the Group’s operating subsidiary in Great Britain.
The GB Scheme receives semi-annual distributions from the Partnership,
increasing each year at a fixed cumulative rate of 3% through to 2034. The Group
exercises control over the Partnership, and as such, it is fully consolidated in
these consolidated financial statements. Under IAS 19, the investment held by
the GB Scheme in the Partnership does not represent a plan asset for the
purposes of these consolidated financial statements. Similarly, the associated
liability is not included in the consolidated statement of financial position; rather,
the distributions are recognised when paid as a contribution to the plan assets of
the scheme.
Contributions to pension plans totalled €40 million, €32 million and €32 million
during the years ended 31 December 2024, 31 December 2023 and
31 December 2022, respectively. Included within the 2024 contribution
is €11 million relating to the Partnership agreement. The Group expects to make
contributions of €39 million for the full year ending 31 December 2025.
Other employee benefit liabilities
In certain territories, the Group has an early retirement programme designed to
create an incentive for employees, within a certain age group, to transition from
(full or part time) employment into retirement before their legal retirement age.
Furthermore, the Group also sponsors deferred compensation plans in other
territories. The current portion of these liabilities totalled €7 million and
€8 million as at 31 December 2024 and 31 December 2023, respectively, and is
included within the Current portion of employee benefit liabilities. The non-
current portion of these liabilities totalled €35 million and €33 million as at
31 December 2024 and 31 December 2023, respectively, and is included within
employee benefit liabilities.
Defined contribution plans
The Group sponsors a number of defined contribution plans across its territories.
Contributions payable for the period are charged to the consolidated income
statement as an operating expense for defined contribution plans. Contributions
to these plans totalled €88 million for the year ended 31 December 2024,
€81 million for the year ended 31 December 2023 and €79 million for the year
ended 31 December 2022.
Note 18
Equity
Share capital
As at 31 December 2024, the Company has issued and fully paid 460,947,057
Shares (31 December 2023: 459,200,818 Shares and 31 December 2022:
457,106,453 Shares) with a nominal value of €0.01 per share. Shares in issue have
one voting right each and no restrictions related to dividends or return of capital.
Number of Shares
Share capital
millions
€ million
As at 1 January 2022
456
5
Issuances of Shares
1
—
Cancellation of Shares
—
—
As at 31 December 2022
457
5
Issuance of Shares
2
—
Cancellation of Shares
—
—
As at 31 December 2023
459
5
Issuance of Shares
2
—
Cancellation of Shares
—
—
As at 31 December 2024
461
5
The number of Shares increased in 2024, 2023 and 2022 from the issue of
1,746,239, 2,094,365 and 871,421 Shares, respectively, following the exercise of
share-based payment awards.
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2024 Annual Report and Form 20-F
215
Notes to the consolidated financial statements continued
Share premium
The share premium account increased by cash received for the exercise of
options by €31 million in 2024, €42 million in 2023 and €14 million in 2022.
Treasury shares
In December 2024, Coca-Cola Europacific Partners plc Employee Benefit Trust
(referred to as “the Trust”) was established for the purpose of facilitating the
acquisition and distribution of CCEP Shares for the benefit of satisfying the
Group’s share-based payments obligations under its existing and future share-
based compensation plans. The Trust’s operations are included in the Group’s
consolidated financial statements.
CCEP Shares acquired in the market and held by the Trust are classified as
treasury shares for accounting purposes. The book value of shares held is
deducted from retained earnings. As at 31 December 2024, the total
consideration of the Shares acquired by the Trust of €7 million, including directly
attributable costs, was deducted from retained earnings. As at
31 December 2024, the Trust held 92,564 Shares (31 December 2023 and
31 December 2022: nil) classified as treasury shares for accounting purposes. The
Shares held by the Trust are excluded from the calculation of earnings per share
(see Note 6).
Dividends are waived on all Shares held with this classification by the Trust.
Merger reserves
The consideration transferred in relation to previous business acquisitions (CCIP
and CCEG) qualified for merger relief under the Companies Act. As such, the
excess consideration transferred over nominal value of €287 million was
required to be excluded from the share premium account and recorded to
merger reserves.
Other reserves
The following table summarises the balances in other reserves (net of tax) as at
the dates presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Cash flow hedge reserve
32
31
104
Net investment hedge reserve
197
197
197
Foreign currency translation adjustment
reserve
(1,059)
(974)
(728)
Reserve related to the acquisition of non-
controlling interests
(79)
(79)
(79)
Other reserves(A)
(3)
2
(1)
Total other reserves
(912)
(823)
(507)
A. Other reserves relate to cost of hedging which represents forward point on spot designations, time value of options and
currency basis.
Movements, including the tax effects, in these accounts through to
31 December 2024 are included in the consolidated statement of comprehensive
income or directly within the consolidated statement of changes in equity.
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2024 Annual Report and Form 20-F
216
Notes to the consolidated financial statements continued
Dividends
Dividends are recognised on the date that the shareholder’s right to receive
payment is established. In respect of interim dividends, this is generally the date
when the dividend is paid.
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
First half dividend(A)
340
308
256
Second half dividend(B)
567
533
507
Total dividend on ordinary shares paid
907
841
763
A. Dividend of €0.74 per Share was paid in first half of 2024. Dividend of €0.67 per Share was paid in first half of 2023.
Dividend of €0.56 per Share was paid in first half of 2022.
B. Dividend of €1.23 per Share was paid in second half of 2024. Dividend of €1.17 per Share was paid in second half of 2023.
Dividend of €1.12 per Share was paid in second half of 2022.
Additionally, dividends attributable to restricted stock units and performance
share units that are unvested at the period end date are accrued accordingly.
During 2024, an incremental dividend accrual of €4 million has been recognised
(2023: €3 million; 2022: €3 million). During 2024, the Group paid €3 million
(2023: €2 million; 2022: €1 million) of dividends related to vested within the period
restricted stock units and performance share units.
Non-controlling interests
As at 31 December 2024, 31 December 2023 and 31 December 2022, equity
attributable to non-controlling interest was €496 million, nil and nil, respectively.
A non-controlling interest (NCI) of €468 million has been recognised in
connection with Aboitiz Equity Ventures Inc. (AEV) 40% ownership of CCEP Aboitiz
Beverages Philippines, Inc. (CABPI), the accounting acquirer of CCBPI (refer to
Note 4 for further details). The Group measured the non-controlling interest in
CABPI based on their proportionate share of net assets. The Group recognises
changes in NCI based upon post-acquisition results of the year and movements
in reserves.
CABPI is the only subsidiary of the Group which has a material non-controlling
interest.
The following table summarises the financial information in relation to CABPI,
prior to intragroup eliminations:
CABPI
Year ended 31
December
2024
€ million
NCI percentage
40%
Non-current assets
2,007
Current assets
464
Non-current liabilities
(621)
Current liabilities
(614)
Net assets
1,236
Net assets attributable to non-controlling interest
494
Revenue
1,652
Profit after taxes
64
Other comprehensive income
1
Comprehensive income for the period
65
Comprehensive income attributable to non-controlling interest
26
Net cash flows from operating activities
204
Net cash flows used in investing activities
(1,694)
Net cash flows from financing activities (dividends to NCI: nil)
1,521
Net increase in cash and cash equivalents
31
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217
Notes to the consolidated financial statements continued
Note 19
Total operating costs
The following tables summarise the significant cost items by nature within
operating costs for the years presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Transportation costs(A)
1,023
958
851
Employee benefits
1,189
1,116
1,110
Depreciation of property, plant and
equipment, excluding restructuring
252
236
246
Amortisation of intangible assets
1
6
7
Restructuring charges, including
accelerated depreciation(B)
2
—
1
Impairment losses(C)
6
—
—
Other selling and distribution expenses
872
862
769
Total selling and distribution expenses
3,345
3,178
2,984
Transportation costs(A)
4
3
16
Employee benefits
615
608
544
Depreciation of property, plant and
equipment, excluding restructuring
86
93
99
Amortisation of intangible assets
179
130
94
Acquisition-related costs(D)
14
12
3
Restructuring charges, including
accelerated depreciation(B)
252
85
143
Impairment losses(C)
129
—
—
Other administrative expenses
455
379
351
Total administrative expenses
1,734
1,310
1,250
Total operating expenses
5,079
4,488
4,234
A. Transportation costs include warehousing and delivery costs to the final customer destination. They exclude depreciation
and amortisation.
B. See restructuring costs table.
C. Expenses recognised in relation to the impairment of the Group’s Indonesia cash generating unit and the impairment of the
Feral brand, which was sold during the year ended 31 December 2024.
D. Costs associated with the acquisition and integration of CCBPI.
Year ended 31 December
2024
2023
2022
Restructuring costs
€ million
€ million
€ million
Increase in provision for restructuring
programmes (Note 24)
219
78
115
Amount of provision unused (Note 24)
(9)
(10)
(8)
Accelerated depreciation and non-cash
costs
29
11
44
Other cash costs(A)
25
15
12
Total restructuring costs
264
94
163
Restructuring costs by function:
Cost of sales
10
9
19
Selling and distribution expenses
2
—
1
Administrative expenses
252
85
143
A. Other cash costs primarily relate to professional fees, which include consultancy costs, legal fees and other costs directly
associated with restructuring.
Restructuring costs charged in arriving at operating profit for the years
presented, include restructuring costs arising under the following programmes
and initiatives.
In November 2022, the Group announced a new efficiency programme to be
delivered by the end of 2028. This programme focuses on further supply chain
efficiencies, leveraging global procurement and a more integrated shared service
centre model, all enabled by next generation technology including digital tools
and data and analytics.
During 2024, as part of this efficiency programme, the Group announced
restructuring proposals resulting in €264 million of recognised costs primarily
related to expected severance payments. The most notable announcement took
place on 1 October 2024 relating to restructuring initiatives implemented in
Germany, more specifically, the closure of a production facility in Cologne, as well
as planned changes and optimisations in the logistical network resulting in the
closure of several logistical sites. These initiatives attributed a total restructuring
expense of €108 million, mainly comprised of expected severance payments. The
rest of the restructuring spend is attributable to various initiatives implemented
across different markets aiming to enhance efficiency and productivity.
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2024 Annual Report and Form 20-F
218
Notes to the consolidated financial statements continued
Staff costs
Staff costs included within the income statement were as follows:
Year ended 31 December
2024
2023
2022
Employee costs
€ million
€ million
€ million
Wages and salaries
1,993
1,841
1,769
Social security costs
367
339
316
Pension and other employee benefits
264
253
233
Total employee costs
2,624
2,433
2,318
Directors’ remuneration information is disclosed in the Directors’ remuneration
report.
The average number of persons employed by the Group (including Directors) for
the periods presented were as follows:
2024
2023
2022
No. in thousands
No. in thousands
No. in thousands
Commercial
13.0
11.6
12.5
Supply chain
23.9
17.1
16.6
Support functions
4.4
4.1
4.0
Total average staff employed
41.3
32.8
33.1
The increase in the average staff employed in 2024 was primarily attributable to
the Acquisition.
Auditor’s remuneration
Audit and other fees charged in the income statement concerning the statutory
auditor of the consolidated financial statements, Ernst & Young LLP, were as
follows:
Year ended 31 December
2024
2023
2022
€ thousand
€ thousand
€ thousand
Audit of Parent Company and consolidated
financial statements (A)
4,672
3,759
3,136
Audit of the Company’s subsidiaries
7,151
6,269
6,248
Total audit
11,823
10,028
9,384
Audit-related assurance services(B)
1,067
1,019
1,002
Other assurance services(C)
1,540
717
213
Total audit and audit-related assurance
services
14,430
11,764
10,599
All other services
4
36
47
Total non-audit or non-audit-related assurance
services
4
36
47
Total audit and all other fees
14,434
11,800
10,646
A. The year on year increase in the audit fee is primarily attributed to the Acquisition.
B. Includes professional fees for interim reviews, reporting on internal financial controls and issuance of comfort letters for
debt issuances.
C. The year on year increase is primarily attributed to the procedures performed on the sustainability statement in 2024.
Note 20
Finance costs
Finance costs are recognised in the consolidated income statement in the period
in which they are incurred, with the exception of general and specific borrowing
costs directly attributable to the acquisition, construction or production of
qualifying assets. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale. Borrowing costs are
added to the cost of those assets, until such time as the assets are substantially
ready for their intended use or sale. All other borrowing costs are recognised
within the consolidated income statement in the period in which they are
incurred based upon the effective interest rate method. Interest income is
recognised using the effective interest rate method.
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2024 Annual Report and Form 20-F
219
Notes to the consolidated financial statements continued
The following table summarises net finance costs for the years presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Interest income(A)
85
65
67
Interest expense on external debt(A)
(242)
(162)
(162)
Other finance costs(B)
(30)
(23)
(19)
Total finance costs, net
(187)
(120)
(114)
A. Includes interest income and expense amounts, as applicable, on cross currency swaps and interest rate swaps. Cross
currency swaps and interest rate swaps income totalled €45 million, €47 million and €50 million in 2024, 2023 and 2022,
respectively. Cross currency swaps and interest rate swaps expense totalled €77 million, €67 million and €31 million in
2024, 2023 and 2022, respectively. Refer to Note 14 for further details.
B. Other finance costs principally include amortisation of the discount on external debt and interest on leases.
Note 21
Related party transactions
For the purpose of these consolidated financial statements, transactions with
related parties mainly comprise transactions between subsidiaries of the Group
and the related parties of the Group.
Transactions with entities with significant influence over the Group
Transactions with TCCC
TCCC has significant influence over the Group, as defined by IAS 24 “Related
Party Disclosures”. As at 31 December 2024, 19.08% of the total outstanding
Shares of the Group were owned by European Refreshments, a wholly owned
subsidiary of TCCC. The Group is a key bottler of TCCC products and has entered
into bottling agreements with TCCC to make, sell and distribute products of
TCCC within the Group’s territories. The Group purchases concentrate from
TCCC and also receives marketing funding to help promote the sale of TCCC
products. The Group’s agreements with TCCC in each territory are for an initial
term of 10 years and may be renewed for successive terms of 10 years.
Additionally, two of the Group’s 17 Directors are nominated by TCCC.
The Group and TCCC engage in a variety of marketing programmes to promote
the sale of TCCC products in territories in which the Group operates. The Group
and TCCC operate under an incidence based concentrate pricing model and
funding programme across most territories, the terms of which are tied to the
bottling agreements. In certain APS territories, the Group operates under a fixed
price model with marketing rebates and support.
TCCC makes discretionary marketing contributions under shared marketing
agreements to CCEP’s operating subsidiaries. Amounts to be paid to the Group by
TCCC under the programmes are generally determined annually and are
periodically reassessed as the programmes progress. Under the bottling
agreements, TCCC is under no obligation to participate in the programmes or
continue past levels of funding in the future. The amounts paid and terms of
similar programmes with other franchises may differ.
Marketing support funding programmes granted to the Group provide financial
support principally based on product sales or on the completion of stated
requirements and are intended to offset a portion of the costs of the
programmes.
Payments from TCCC for marketing programmes to promote the sale of products
are classified as a reduction in cost of sales, unless the presumption that the
payment is a reduction in the price of the franchisors’ products can be
overcome. Payments for marketing programmes are recognised as product is
sold.
The following table summarises the transactions with TCCC that directly
impacted the consolidated income statement for the years presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Amounts affecting revenue(A)
149
140
117
Amounts affecting cost of sales(B)
(4,427)
(3,964)
(3,805)
Amounts affecting operating expenses(C)
4
25
19
Amounts affecting finance costs, net(D)
2
4
—
Total net amount affecting
the consolidated income statement
(4,272)
(3,795)
(3,669)
A. Amounts principally relate to fountain syrup and packaged product sales.
B. Amounts principally relate to the purchase of concentrate, syrup, mineral water and juice, as well as funding for marketing
programmes.
C. Amounts principally relate to certain costs associated with new product development initiatives and reimbursement of
certain marketing expenses.
D. Amounts relate to bank fees recharges for bank guarantees.
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220
Notes to the consolidated financial statements continued
The following table summarises the transactions with TCCC that impacted the
consolidated statement of financial position for the periods presented:
Year ended 31 December
2024
2023
€ million
€ million
Amounts due from TCCC
76
101
Amounts payable to TCCC
320
229
Acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI)
On 23 February 2024, the joint acquisition of CCBPI was successfully
consummated for a total consideration of US$1.68 billion (€1.54 billion), all of
which was settled in cash upon completion. The Group’s share of the total
consideration was US$1.0 billion (€930 million), commensurate with the effective
60:40 ownership structure of CCBPI. The transaction has been accounted for
under IFRS 3 “Business Combinations”, using the acquisition method of
accounting. Refer to Note 4 for further detail on the acquisition of CCBPI.
Refer to Note 24 for details regarding commitments made to TCCC.
Terms and conditions of transactions with TCCC
Outstanding balances on transactions with TCCC are unsecured, interest free
and generally settled in cash. Receivables from TCCC are considered to be fully
recoverable.
Transactions with Cobega companies
Cobega, S.A. (Cobega) has significant influence over the Group, as defined by IAS
24 “Related Party Disclosures”. As at 31 December 2024, 20.71% of the total
outstanding Shares of the Group were indirectly owned by Cobega through its
ownership interest in Olive Partners, S.A. Additionally, five of the Group’s
17 Directors, including the Chairman, are nominated by Olive Partners, three of
whom are affiliated with Cobega.
The principal transactions with Cobega are for the purchase of packaging
materials and maintenance services for vending machines. The following table
summarises the transactions with Cobega that directly impacted the
consolidated income statement for the years presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Amounts affecting revenue(A)
1
1
2
Amounts affecting cost of sales(B)
(67)
(69)
(76)
Amounts affecting operating expenses(C)
(12)
(18)
(17)
Total net amount affecting
the consolidated income statement
(78)
(86)
(91)
A. Amounts principally relate to packaged product sales.
B. Amounts principally relate to the purchase of packaging materials and concentrate.
C. Amounts principally relate to maintenance and repair services and transportation.
The following table summarises the transactions with Cobega that impacted the
consolidated statement of financial position for the periods presented:
Year ended 31 December
2024
2023
€ million
€ million
Amounts due from Cobega
7
16
Amounts payable to Cobega
32
22
In December 2024, the Group purchased from Cobega property located in Bilbao,
Spain, for a total consideration of €15 million, inclusive of relevant taxes.
Terms and conditions of transactions with Cobega
Outstanding balances on transactions with Cobega are unsecured, interest free
and generally settled in cash. Receivables from Cobega are considered to be
fully recoverable.
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Notes to the consolidated financial statements continued
Other related parties
Transactions with associates, joint ventures and other related parties
Joint venture investments relate to interests in a service provider supporting the
operation of container refund schemes in certain Australian states, a PET
recycling plant in Indonesia and a manufacturer of alcoholic beverages (divested
during the first half of 2022).
Associate investments relate to interests in deposit scheme coordinators and a
holding company of container deposit schemes in certain Australian states and
territories. Associate investments also include the Group’s equity interests in
early stage development companies as part of CCEP Ventures. As a result of the
Acquisition, the Group obtained an associate investment in a recycling facility in
the Philippines.
Other related parties include coordinators of container deposit schemes in
certain Australian states over which significant influence is held.
Following the Acquisition, there are two post-employment benefit plan entities
(Coca-Cola Bottlers Philippines, Inc. Retirement Plan and Coca-Cola Bottlers
Business Service, Inc. Retirement Plan) that are considered related parties to the
Group. During 2024, the Group made contributions to the retirement plans
amounting to €14 million.
The following table summarises the transactions with associates, joint ventures
and other related parties:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Net amounts affecting consolidated
income statement – associates(A)
(66)
(68)
(73)
Net amounts affecting consolidated
income statement – joint ventures(A),(B)
(56)
(28)
(9)
Net amounts affecting consolidated
income statement – other related parties(A)
(86)
(85)
(85)
Total net amount affecting
the consolidated income statement
(208)
(181)
(167)
A. Amounts relate to container deposit scheme charges.
B. Amounts relate to the purchase of certain raw materials.
The following table summarises the balances with associates, joint ventures and
other related parties:
Year ended 31 December
2024
2023
€ million
€ million
Amounts due from associates
6
6
Amounts payable to associates
2
2
Amounts payable to joint ventures
9
7
Amounts payable to other related parties
10
10
Terms and conditions of transactions with associates, joint ventures and other related
parties
Outstanding balances on transactions are unsecured, interest free and generally
settled in cash. Receivables are considered to be fully recoverable.
Refer to Note 30 for a listing of associates, joint ventures and other related
parties.
Transactions with key management personnel
Key management personnel are the members of the Board of Directors and the
members of the Executive Leadership Team. The following table summarises the
total remuneration paid or accrued during the reporting period related to key
management personnel:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Salaries and other short-term employee
benefits(A)
33
31
30
Share-based payments
9
20
15
Termination benefits
7
—
—
Total
49
51
45
A. Short-term employee benefits include wages, salaries and social security contributions, paid annual leave and paid sick
leave, paid bonuses and non-monetary benefits.
The Group did not have any loans with key management personnel and was not
party to any other transactions with key management personnel during the
periods presented.
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222
Notes to the consolidated financial statements continued
Note 22
Income taxes
Current tax
Current tax for the period includes amounts expected to be payable on taxable
income in the period together with any adjustments to taxes payable in respect
of previous periods, and is determined based on the tax laws enacted or
substantively enacted at the balance sheet date in the countries where the
Group operates and generates taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes
provisions, where appropriate, on the basis of amounts expected to be paid to
the tax authorities.
Deferred tax
Deferred tax is determined by identifying the temporary differences between
the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes at the reporting date. Deferred tax for the period includes
origination and reversal of temporary differences, remeasurements of deferred
tax balances and adjustments in respect of prior periods.
Deferred tax liabilities are recognised for all taxable temporary differences,
except:
• When the deferred tax liability arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable
profit or loss, unless it gives rise to equal taxable and deductible temporary
differences; or
• In respect of taxable temporary differences associated with investments in
subsidiaries, branches and associates, and interests in joint ventures, when the
timing of the reversal of the temporary differences can be controlled by the
Group and it is probable that the temporary differences will not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences,
carry forward of unused tax credits and unused tax losses, to the extent that it is
probable that taxable profit will be available against which the deductible
temporary differences and the carry forward of unused tax credits and unused
tax losses can be utilised, except:
• When the deferred tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss, unless it gives rise to equal
taxable and deductible temporary differences; or
• In respect of deductible temporary differences associated with investments
in subsidiaries, branches and associates, and interests in joint ventures,
deferred tax assets are recognised only to the extent that it is probable that
the temporary differences will reverse in the foreseeable future and taxable
profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the year when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable
right exists to set off current tax assets against current income tax liabilities and
the deferred taxes relate to the same taxation authority on either the same
taxable entity or different taxable entities where there is an intention to settle
the balances on a net basis.
Income tax is recognised in the consolidated income statement. Income tax is
recognised in other comprehensive income or directly in equity to the extent that
it relates to items recognised in other comprehensive income or in equity.
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2024 Annual Report and Form 20-F
223
Notes to the consolidated financial statements continued
2024, 2023 and 2022 results
The following table summarises the major components of income tax expense
for the periods presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Current tax:
Current tax charge
596
555
460
Adjustment in respect of current tax from
prior periods
(38)
(10)
(37)
Total current tax
558
545
423
Deferred tax:
Relating to the origination and reversal of
temporary differences
(71)
11
35
Adjustment in respect of deferred income
tax from prior periods
2
(22)
(22)
Relating to changes in tax rates or the
imposition of new taxes
3
—
—
Total deferred tax
(66)
(11)
13
Income tax charge per
the consolidated income statement
492
534
436
The following table summarises the taxes on items recognised in other
comprehensive income and directly within equity for the periods presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Taxes charged/(credited) to OCI:
Deferred tax on net gain/loss on
revaluation of cash flow hedges and
other reserves
—
11
(20)
Deferred tax on net gain/loss on pension
plan remeasurements
16
(43)
(11)
Current tax on net gain/loss on pension
plan remeasurements
—
8
—
Total taxes charged/(credited) to OCI
16
(24)
(31)
Taxes charged/(credited) to equity:
Deferred tax charge/(credit): cash flow
hedges
(7)
(31)
—
Deferred tax charge/(credit): share-based
compensation
—
(1)
(2)
Current tax charge/(credit): share-based
compensation
—
—
(8)
Total taxes charged/(credited) to equity
(7)
(32)
(10)
The effective tax rate was 25.4%, 24.2% and 22.3% for the years ended
31 December 2024, 31 December 2023 and 31 December 2022, respectively.
The Parent Company of the Group is a UK company.
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Notes to the consolidated financial statements continued
Accordingly, the following tables provide reconciliations of the Group’s income
tax expense at the UK statutory tax rate to the actual income tax expense for
the periods presented:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Accounting profit before tax
from continuing operations
1,936
2,203
1,957
Tax expense at the UK statutory rate
484
518
371
Taxation of foreign operations, net(A)
28
43
115
Non-deductible expense items for tax
purposes
16
15
2
Rate and law change impact, net(B)
3
—
—
Deferred taxes not recognised
(3)
(10)
7
Adjustment in respect of prior periods(C)
(36)
(32)
(59)
Total provision for income taxes
492
534
436
A. This reflects the impact, net of income tax contingencies, of having operations outside the UK, which are taxed at rates
other than the statutory UK rate of 25% (2023: 23.5%; 2022: 19%).
B. In 2024, New Zealand enacted a law change that removed tax depreciation from commercial properties from 1 April 2024.
The Group recognised a deferred tax expense of €3 million to reflect the impact of this change.
C. The prior year adjustment is principally due to the reassessment of our uncertain tax positions and release of tax reserves
that are no longer required due to expiration of statute of limitations.
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Notes to the consolidated financial statements continued
Deferred income taxes
The following table summarises the movements in the carrying amounts of deferred tax liabilities and assets by significant component during the periods presented:
Franchise and other
intangible assets
Property, plant
and equipment
Financial assets and
liabilities
Tax
losses
Employee and retiree
benefit accruals
Tax
credits
Other,
net
Total,
net
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
As at 31 December 2022
3,254
236
17
(11)
(23)
(12)
31
3,492
Amount charged/(credited) to income statement
(excluding effect of tax rate changes)
(14)
2
11
—
(15)
(12)
17
(11)
Amounts charged/(credited) directly to OCI
—
—
11
—
(43)
—
—
(32)
Amount charged/(credited) to equity
—
—
(31)
—
(1)
—
—
(32)
Balance sheet reclassifications
—
10
—
—
—
—
(10)
—
Effect of movements in foreign exchange
(49)
—
—
—
2
—
7
(40)
As at 31 December 2023
3,191
248
8
(11)
(80)
(24)
45
3,377
Amount charged/(credited) to income statement
(excluding effect of tax rate changes)
(27)
(25)
1
(9)
4
—
(13)
(69)
Effect of tax rate changes on income statement
—
3
—
—
—
—
—
3
Amounts charged/(credited) directly to OCI
—
—
—
—
16
—
—
16
Amount charged/(credited) to equity
—
—
(7)
—
—
—
—
(7)
Acquired through business combinations
116
143
(69)
—
(10)
—
(10)
170
Balance sheet reclassifications
8
3
(1)
—
—
—
(10)
—
Effect of movements in foreign exchange
(10)
1
(1)
—
—
—
(6)
(16)
As at 31 December 2024
3,278
373
(69)
(20)
(70)
(24)
6
3,474
Analysed as follows:
As at 31 December
2023
As at 31 December
2024
Deferred tax asset
(1)
(24)
Deferred tax liability
3,378
3,498
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Notes to the consolidated financial statements continued
Unrecognised tax items
The utilisation of tax losses and temporary differences carried forward, for which
no deferred tax asset is currently recognised, is subject to the resolution of tax
authority enquiries and the achievement of positive income in periods which are
beyond the Group’s current business plan, and therefore this utilisation is
uncertain.
The gross and tax effected amounts including expiry dates, where applicable, of
unrecognised losses, tax credits and deductible temporary differences available
for carry forward are as follows:
Year ended 31 December
2024
2023
2022
€ million
€ million
€ million
Gross
amount
Tax
effected
Gross
amount
Tax
effected
Gross
amount
Tax
effected
Tax losses expiring:
Within 10 years
4
1
—
—
—
—
Beyond 10 years
3
1
3
1
3
1
No time limit
1,261
253
1,391
264
1,657
288
1,268
255
1,394
265
1,660
289
Tax credits expiring:
Within 10 years
60
60
57
57
58
58
Beyond 10 years
33
33
35
35
43
43
93
93
92
92
101
101
Deductible temporary differences
No time limit
12
3
17
4
79
20
12
3
17
4
79
20
Total
1,373
351
1,503
361
1,840
410
As at 31 December 2024, no deferred tax liability has been recognised in respect
of €271 million (2023: €244 million) of unremitted earnings in subsidiaries,
associates and joint ventures.
Tax provisions
The Group is routinely under audit by tax authorities in the ordinary course of
business. Due to their nature, such proceedings and tax matters involve inherent
uncertainties including, but not limited to, court rulings, settlements between
affected parties and/or governmental actions. The probability of outcome is
assessed and accrued as a liability and/or disclosed, as appropriate. The Group
maintains provisions for uncertainty relating to these tax matters that it believes
appropriately reflect its risk. As at 31 December 2024, €267 million
(31 December 2023: €175 million) of these provisions is included in current tax
liabilities and the remainder is included in non-current tax liabilities.
The Group reviews the adequacy of these provisions at the end of each reporting
period and adjusts them based on changing facts and circumstances. Due to the
uncertainty associated with tax matters, it is possible that at some future date,
liabilities resulting from audits or litigation could vary significantly from the
Group’s provisions. When an uncertain tax liability is regarded as probable, it is
measured on the basis of the Group’s best estimate.
The Group has received tax assessments in certain jurisdictions for potential tax
related to the Group’s purchases of concentrate. The value of the Group’s
concentrate purchases is significant, and, therefore, the tax assessments are
substantial. The Group strongly believes the application of tax has no technical
merit based on applicable tax law, and its tax position would be sustained.
Accordingly, the Group has not recorded a tax liability for these assessments,
and is vigorously defending its position against these assessments.
Global minimum top up tax
On 12 May 2023, the International Accounting Standards Board (IASB) issued
International Tax Reform – Pillar Two Model Rules – Amendments to
IAS 12 (“the Amendments”). The Amendments introduce a mandatory temporary
exception from the recognition and disclosure of deferred taxes arising from the
implementation of the OECD’s Pillar Two Model Rules.
Pillar Two legislation was enacted in the UK on 11 July 2023, under Finance (No 2)
Act 2023, and was effective from 1 January 2024.
The Group has applied the exception under the IAS 12 amendment to recognising
and disclosing information about deferred tax assets and liabilities related to top
up tax in preparing its consolidated financial statements as at 31 December 2024.
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Notes to the consolidated financial statements continued
The Group is in scope of the Pillar Two tax legislation and is subject to top up tax
in relation to its operations in a few countries. No material liability has been
recognised in the consolidated financial statements.
Note 23
Share-based payment plans
The Group has an established Share options plan and a Long-Term Incentive Plan
(LTIP) for certain executive and management level employees that provide for
granting restricted stock units, some with performance and/or market conditions.
These awards are designed to align the interests of executives and management
with the interests of shareholders.
During 2022, the Group launched a global Employee Share Purchase Plan (ESPP),
which gives employees the opportunity to purchase CCEP Shares on a regular
basis and become a shareholder, promoting an ownership culture. Under the
ESPP, participating employees are granted matching Shares when certain vesting
and non-vesting conditions are met.
The Group recognises compensation expense equal to the grant date fair
value for all share-based payment awards that are expected to vest. Expense
is generally recorded on a straight-line basis over the requisite service period
for each separately vesting portion of the award.
During the years ended 31 December 2024, 31 December 2023 and
31 December 2022, compensation expense related to our share-based payment
plans totalled €45 million, €57 million and €33 million, respectively. The expense
arising from equity-settled share-based payment transactions was €42 million
for the year ended 31 December 2024 (2023: €54 million; 2022: €33 million).
Share options
Share options: (1) are granted with exercise prices equal to or greater than the
fair value of the Group’s stock on the date of grant, (2) generally vest in three
annual tranches over a period of 36 months, and (3) expire 10 years from the
date of grant. Generally, when options are exercised, new Shares will be issued
rather than issuing treasury Shares, if available. No options were granted during
the years ended 31 December 2024, 31 December 2023 and 31 December 2022.
All options outstanding as at 31 December 2024, 31 December 2023
and 31 December 2022 were valued and had exercise prices in US dollars.
The following table summarises our share option activity for the periods
presented:
2024
2023
2022
Shares
Average
exercise price
Shares
Average
exercise price
Shares
Average
exercise price
thousands
US$
thousands
US$
thousands
US$
Outstanding at
beginning of year
920
37.42
2,272
35.30
2,758
34.19
Granted
—
—
—
—
—
—
Exercised
(895)
37.39
(1,352)
33.86
(484)
29.00
Forfeited, expired
or cancelled
(1)
—
—
—
(2)
23.21
Outstanding
at end of year
24
39.00
920
37.42
2,272
35.30
Options exercisable
at end of year
24
39.00
920
37.42
2,272
35.30
The weighted average Share price during the years ended 31 December 2024,
31 December 2023 and 31 December 2022 was US$73.60, US$60.96 and US$51.21,
respectively.
The following table summarises the weighted average remaining life of options
outstanding for the periods presented:
2024
2023
2022
Range of exercise prices
Options
outstanding
Weighted
average
remaining life
Options
outstanding
Weighted
average
remaining life
Options
outstanding
Weighted
average
remaining life
US$
thousands
years
thousands
years
thousands
years
25.01 to 40.00
24
0.85
920
1.60
2,272
2.20
Total
24
0.85
920
1.60
2,272
2.20
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Notes to the consolidated financial statements continued
Restricted Stock Units (RSUs) and Performance Share Units (PSUs)
RSU awards entitle the participant to accrue dividends, which are paid in cash
only if the RSUs vest. They do not have voting rights. Upon vesting, the participant
is granted one Share for each RSU. They generally vest subject to continued
employment for a period of 36 months. Unvested RSUs are restricted as to
disposition and subject to forfeiture.
There were 0.2 million, 0.1 million and 0.1 million unvested RSUs outstanding with a
weighted average grant date fair value of US$59.31, US$50.67 and US$42.74 as at
31 December 2024, 31 December 2023 and 31 December 2022, respectively.
PSU awards entitle the participant to the same benefits as RSUs. They generally
vest subject to continued employment for a period of 36 months and the
attainment of certain performance targets. There were 1.1 million, 2.1 million and
1.8 million of unvested PSUs, with weighted average grant date fair values of
US$54.19, US$48.95 and US$41.65 outstanding as at 31 December 2024,
31 December 2023 and 31 December 2022, respectively.
The PSUs granted in 2024, 2023 and 2022 are subject to performance conditions
of absolute EPS and ROIC, each with a 42.5% weighting, and to a sustainability
metric, focused on the reduction of greenhouse gas emissions (CO2e) across our
entire value chain with a 15% weighting.
Key assumptions for grant date fair value
The following table summarises the weighted average grant date fair values
per unit:
Restricted stock units and performance share units
2024
2023
Grant date fair value – service conditions (US$)
67.60
59.21
Grant date fair value – service and performance conditions (US$)
67.77
59.23
Employee Share Purchase Plan
Through the ESPP, employees are able to contribute on a regular basis up to
a maximum amount deducted from their salary for the purpose of purchasing
CCEP Shares. Every quarter, for each purchased Share, CCEP awards
participating employees matching Shares at the same time. Participating
employees become owners of the matching Shares 12 months after the award,
as long as they remain in employment and do not sell the related purchased
Shares during this period. Participants have all the rights of a shareholder in
respect of their purchased Shares and matching Shares (once they are fully
owned by the employees), including dividend rights and voting rights. During the years
ended 31 December 2024, 31 December 2023 and 31 December 2022 the Group
recognised a compensation expense related to the ESPP of €17 million,
€14 million and €3 million, respectively.
Note 24
Provisions, contingencies and commitments
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. When some
or all of a provision is expected to be reimbursed, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the consolidated
income statement, net of any reimbursement.
Asset retirement obligations are estimated at the inception of a lease or
contract, for which a liability is recognised. A corresponding asset is also created
and depreciated.
If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
229
Notes to the consolidated financial statements continued
Provisions
The following table summarises the movement in each class of provision for the
periods presented:
Restructuring
provision
Decommissioning
provision
Other provisions(A)
Total
€ million
€ million
€ million
€ million
As at 31 December 2022
137
24
9
170
Charged/(credited) to profit or
loss:
Additional provisions
recognised
78
1
24
103
Unused amounts reversed
(10)
(9)
(1)
(20)
Utilised during the period
(89)
(1)
(4)
(94)
Translation
—
—
—
—
As at 31 December 2023
116
15
28
159
Acquisition of CCBPI
3
—
55
58
Charged/(credited) to profit or
loss:
Additional provisions
recognised
219
1
10
230
Unused amounts reversed
(9)
—
(1)
(10)
Utilised during the period
(80)
—
(8)
(88)
Translation
1
—
—
1
As at 31 December 2024
250
16
84
350
Non-current
59
16
29
104
Current
191
—
55
246
As at 31 December 2024
250
16
84
350
A. Other provisions primarily relate to property tax assessment provisions and legal reserves, and are not considered
material to the consolidated financial statements.
Restructuring provision
Restructuring provisions are recognised only when the Group has a constructive
obligation, which is when a detailed formal plan identifies the business or part of
the business concerned, the location and number of employees affected, a
detailed estimate of the associated costs and an appropriate timeline, and the
employees affected have been notified of the plan’s main features. These
provisions are expected to be resolved by the time the related programme
is substantively complete.
Refer to Note 19 for further details regarding our restructuring programmes.
Decommissioning provisions
Decommissioning liabilities relate to contractual or legal obligations to pay for
asset retirement costs. The liabilities represent both the reinstatement
obligations when the Group is contractually obligated to pay for the cost of
retiring leased buildings and the costs for collection, treatment, reuse, recovery
and environmentally sound disposal of cold drink equipment. Specific to cold
drink equipment obligations, the Group is subject to, and operates in accordance
with, the EU Directive on Waste from Electrical and Electronic Equipment (WEEE).
Under the WEEE, companies that put electrical and electronic equipment (such
as cold drink equipment) on the EU market are responsible for the costs of
collection, treatment, recovery and disposal of their own products.
Where applicable, the WEEE provision estimate is calculated using assumptions,
including disposal cost per unit, average equipment age and the inflation rate, to
determine the appropriate accrual amount.
The period over which the decommissioning liabilities on leased buildings and
cold drink equipment will be settled ranges from 1 to 26 years and 2 to 9 years,
respectively.
Contingencies
Legal proceedings and tax matters
The Group is involved in various legal proceedings and tax matters and is
routinely under audit by tax authorities in the ordinary course of business. Due to
their nature, such legal proceedings and tax matters involve inherent
uncertainties including, but not limited to, court rulings, settlements between
affected parties and/or governmental actions. The probability of loss for such
contingencies is assessed and accrued as a liability and/or disclosed, as
appropriate.
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2024 Annual Report and Form 20-F
230
Notes to the consolidated financial statements continued
Guarantees
In connection with ongoing litigation and tax matters in certain territories,
guarantees of approximately €850 million have been issued (2023: €1,127 million).
The Group was required to issue these guarantees to satisfy potential obligations
arising from such litigation. In addition, we have approximately €42 million of
guarantees issued to third parties through the normal course of business
(2023: €37 million). The guarantees have various terms and the amounts
represent the maximum potential future payments that we could be required to
make under the guarantees. No significant additional liabilities in the
accompanying consolidated financial statements are expected to arise from
guarantees issued.
Commitments
Commitments beyond 31 December 2024 are disclosed herein but not accrued
for within the consolidated statement of financial position.
Purchase agreements
Total purchase commitments were €0.5 billion as at 31 December 2024. This
amount represents non-cancellable purchase agreements with various suppliers
that are enforceable and legally binding, and that specify a fixed or minimum
quantity that we must purchase. All purchases made under these agreements
have standard quality and performance criteria.
During the year ended 31 December 2024, the Group made a commitment to
TCCC to invest €167 million with Microsoft for Azure cloud migration services over
a six years term. A further €25 million has been committed to Infosys, who will
act as a supporting partner. In addition, the Group committed to €113 million of
third party warehouse logistics investment in GB. A total of approximately
€50 million related to these commitments was paid during the year ended
31 December 2024. No material commitments were assumed as part of the
Acquisition.
In addition to these amounts, the Group has outstanding capital expenditure
purchase orders of approximately €195 million as at 31 December 2024.
The Group also has other purchase orders raised in the ordinary course of
business, which are settled in a reasonably short period of time.
Lease agreements
As at 31 December 2024, the Group had committed to a number of lease agreements
that have not yet commenced. The minimum lease payments for these lease
agreements totalled €55 million.
Note 25
Other income
Other income for the year ended 31 December 2024 totalled nil
(31 December 2023: €107 million; 31 December 2022: €96 million).
The balance for the year ended 31 December 2023 was primarily attributable to
the following activities.
The Group recognised €18 million of royalty income arising from the ownership of
mineral rights in Queensland, Australia (2022: €96 million). On 7 March 2023, the
Group entered into an agreement to sell the sub-strata and associated mineral
rights. Upon regulatory approval, the transaction was consummated in April 2023.
The total consideration approximated €35 million.
The Group recognised a gain of €54 million related to the sales of properties,
mainly attributable to the sale of property in Germany completed on 7 July 2023.
Note 26
Other current assets and assets held for sale
Other current assets
The following table summarises the Group’s other current assets as at the dates
presented:
Year ended 31 December
2024
2023
Other current assets
€ million
€ million
Prepayments
202
130
VAT receivables
44
40
Miscellaneous receivables
212
181
Total other current assets
458
351
VAT receivables
In 2014, a dispute arose between the Spanish tax authorities and the regional tax
authorities of Bizkaia (Basque Region) as to the responsibility for refunding VAT to
CCEP. Pertaining to the VAT assessment for years 2013 to 2016, the Group
recognised a VAT receivable of €214 million within other non-current assets, for
the year ended 31 December 2021. During 2022, the Group received €252 million
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231
Notes to the consolidated financial statements continued
inclusive of interest, from the regional tax authorities of Bizkaia following the
Arbitration Board ruling and recognised an additional VAT receivable of
€25 million from the Basque Region within other current assets, and a VAT
payable of €57 million to the Spanish tax authorities within trade and other
payables, both inclusive of interest. As at 31 December 2024, the VAT receivable
balance of €25 million remains unchanged, while the VAT payable balance
increased to €61 million resulting from interests (as at 31 December 2023:
€59 million).
The classification of both balances remains unchanged.
Related to the same dispute between the Spanish tax authorities and the
regional tax authorities of Bizkaia (Basque Region), on 8 February 2023 the Group
received a proposed VAT assessment for years 2017 to 2019, approximating
€250 million, inclusive of interest. There was no VAT receivable outstanding for
periods 2017 onwards. We believe that the Group will continue to be held neutral
in respect of the VAT dispute.
Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are
classified as held for sale if it is highly probable that they would be recovered
through sale rather than continuous use. In order for a sale to be considered
highly probable, all of the following criteria need to be met: management is
committed to a plan to sell the assets, an active programme to locate a buyer
and complete the plan has been initiated, the assets are actively marketed at a
reasonable price, and the sale is expected to be completed within one year from
the date of classification.
Such assets, or disposal groups, are generally measured at the lower of their
carrying amount and fair value less cost to sell.
Once classified as held for sale, intangible assets and property, plant and
equipment are no longer amortised or depreciated, and any equity accounted
investee is no longer equity accounted.
Assets classified as held for sale as at 31 December 2024 and 31 December 2023
totalled €46 million and €22 million, respectively. These assets primarily consist of
properties expected to be sold in the near future.
Note 27
Other non-current assets
The following table summarises the Group’s other non-current assets as at the
dates presented:
Year ended 31 December
2024
2023
Other non-current assets
€ million
€ million
Retirement benefit surplus (Note 17)
176
134
Investments
54
39
Other
167
122
Total other non-current assets
397
295
Investments
Joint ventures are undertakings in which the Group has an interest and which are
jointly controlled by the Group and one or more other parties. Associates are
undertakings where the Group has an investment in which it does not have
control or joint control but can exercise significant influence. Interests in joint
ventures and associates are accounted for using the equity method and are
stated in the consolidated balance sheet at cost, adjusted for the movement in
the Group’s share of their net assets and liabilities. The Group’s share of the
profit or loss after tax of joint ventures and associates is included in the Group’s
consolidated income statement as non-operating items. Where the Group’s
share of losses exceeds its interest in the equity accounted investee, the
carrying amount of the investment is reduced to zero and the recognition of
further losses is discontinued, except to the extent that the Group has an
obligation to make payments on behalf of the investee.
Financial assets at fair value through other comprehensive income relate to
equity investments. These investments are not held for trading purposes,
therefore the Group has opted to recognise fair value movements through other
comprehensive income. There have been no significant changes in fair value of
these investments during the period.
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2024 Annual Report and Form 20-F
232
Notes to the consolidated financial statements continued
The following table summarises the Group’s carrying value of investments as at
the dates presented:
Year ended 31 December
2024
2023
Investments
€ million
€ million
Investments accounted using equity method
40
35
Financial assets at fair value through other comprehensive
income(A)
14
4
Total investments
54
39
A. Investments amounting to approximately €10 million were acquired in 2024, €4 million of which were obtained as part of
the Acquisition.
Note 28
Financial risk management
Financial risk factors, objectives and policies
The Group’s activities expose it to several financial risks including market risk,
credit risk and liquidity risk. Financial risk activities are governed by appropriate
policies and procedures to minimise the uncertainties these risks create on the
Group’s future cash flows. Such policies are developed and approved by the
Group’s Treasury and Commodities Risk Committee, through the authority
delegated to it by the Board.
Market risk
Market risk represents the risk that the fair value of future cash flows of a
financial instrument will fluctuate due to changes in market prices and includes
interest rate risk, currency exchange risk and other price risk such as commodity
price risk. Market risk affects outstanding borrowings, as well as derivative
financial instruments.
Interest rates
The Group is subject to interest rate risk for its outstanding borrowings.
To manage interest rate risk, the Group maintains a significant proportion of its
borrowings at fixed rates. Approximately 90% and 89% of the Group’s interest
bearing borrowings were comprised of fixed rate borrowings at
31 December 2024 and 31 December 2023, respectively. The Group also
modifies its interest rate exposure through the use of interest rate swaps. As at
31 December 2024 and 31 December 2023, the notional value of the Group’s
interest rate swaps was €1,060 million and €1,123 million, respectively.
If interest rates on the Group’s floating rate debt were adjusted by 1% for the
years ended 31 December 2024, 31 December 2023 and 31 December 2022, the
Group’s finance costs and pre-tax equity would change on an annual basis by
approximately €8 million, €9 million and €9 million, respectively. This amount is
determined by calculating the effect of a hypothetical interest rate change on
the Group’s floating rate debt.
Currency exchange risk
Foreign currency exchange risk can only arise on financial instruments that are
denominated in a currency other than the functional currency in which they are
measured. Translation-related risks are therefore not included in the
assessment of the Group’s exposure to currency risks. Translation exposures
arise from financial and non-financial items held by the Group with a functional
currency different from the Group’s presentation currency (euro). To manage
currency exchange risk arising from future commercial transactions and
recognised monetary assets and liabilities, foreign currency forward and option
contracts with external third parties are used. Typically, up to 80% of anticipated
cash flow exposures in each major foreign currency for the next calendar year
are hedged using a combination of forward and option contracts with third
parties.
The Group is also exposed to the risk of changes in currency exchange rates
between US dollar and euro relating to its US dollar denominated borrowings.
This risk is managed by entering into cross currency swaps upon issuance
thereby mitigating the foreign currency exchange risk in its entirety.
The Group’s main foreign currency exchange rate exposure relates to the change
in value of the euro and US dollar against other currencies. The following tables
demonstrate the sensitivity to a reasonably possible change in the euro and US
dollar exchange rates, with all other variables held constant. The impact on the
Group’s profit before taxes is due to the changes in the fair value of the
monetary assets and liabilities denominated in currencies other than the
functional currencies in which they are measured. The impact on the Group’s pre-
tax equity is due to changes in the fair value of foreign currency contracts
designated as cash flow hedges. The Group’s exposure to foreign currency
changes for all other currencies is not material.
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2024 Annual Report and Form 20-F
233
Notes to the consolidated financial statements continued
Year ended 31 December
Profit before taxes impact of non-functional foreign currency exchange
exposure
2024
2023
2022
€ million
€ million
€ million
10% appreciation in the Euro
(9)
(8)
(8)
10% depreciation in the Euro
9
8
8
10% appreciation in the US dollar
(8)
2
(1)
10% depreciation in the US dollar
8
(2)
1
Year ended 31 December
Pre-tax equity impact of non-functional foreign currency exchange
exposure
2024
2023
2022
€ million
€ million
€ million
10% appreciation in the Euro
(33)
(6)
(29)
10% depreciation in the Euro
33
6
29
10% appreciation in the US dollar
108
79
114
10% depreciation in the US dollar
(108)
(79)
(114)
Commodity price risk
The competitive marketplace in which the Group operates may limit its ability to
recover increased costs through higher prices. As such, the Group is subject to
market risk with respect to commodity price fluctuations, principally related to
its purchases of aluminium, PET (plastic, including recycled PET, LDPE), natural
gas, power, ethylene, sugar and vehicle fuel. When possible, exposure to this risk
is managed primarily through the use of supplier pricing agreements, which
enable the Group to establish the purchase price for certain commodities.
Certain suppliers restrict the Group’s ability to hedge prices through supplier
agreements. As a result, commodity hedging programmes are entered into and
generally designated as hedging instruments. Refer to Note 14 for more
information. Typically, up to 80% of the anticipated commodity transaction
exposures for the next calendar year are hedged using a combination of forward
and option contracts executed with third parties.
The following table demonstrates the sensitivity to reasonably possible changes
in commodity prices at the reporting date, with all other variables held constant.
The impact on the Group’s pre-tax equity is due to changes in the fair value of
commodity hedges designated as cash flow hedges. The impact on the Group’s
profit before taxes is immaterial as the vast majority of commodity derivatives
are designated as hedging instruments in cash flow hedges.
As at 31 December 2024, there were €33 million (31 December 2023: nil) of
outstanding non-designated commodity hedges (refer to Note 14 for further
details).
Year ended 31 December
2024
2023
2022
Commodity price risk
€ million
€ million
€ million
10% increase in commodity prices equity gain
166
144
140
10% decrease in commodity prices equity loss
(166)
(144)
(140)
Credit risk
The Group is exposed to counterparty credit risk on all of its derivative financial
instruments. Strict counterparty credit guidelines are maintained and only
financial institutions that are investment grade or better are acceptable
counterparties. Counterparty credit risk is continuously monitored and numerous
counterparties are used to minimise exposure to potential defaults. Where
required, collateral is paid between the counterparties to minimise counterparty
risk. The maximum credit risk exposure for each derivative financial instrument
is the carrying amount of the derivative. Included in trade and other payables is
€18 million (2023: €20 million) related to collateral received from counterparties.
Credit is extended in the form of payment terms for trade to customers of the
Group, consisting of retailers, wholesalers and other customers, generally
without requiring collateral, based on an evaluation of the customer’s financial
condition. While the Group has a concentration of credit risk in the retail sector,
this risk is mitigated due to the diverse nature of the customers the Group
serves, including, but not limited to, their type, geographic location, size and
beverage channel. Depending on the risk profile of certain customers, we may
also seek bank guarantees. Collections of receivables are dependent on each
individual customer’s financial condition and sales adjustments granted.
Trade accounts receivable are initially recognised at their transaction price and
subsequently measured at amortised cost less provision for impairment.
Typically, accounts receivable have terms of 30 to 60 days and do not bear
interest. A default on a financial asset is when the counterparty fails to make
contractual payments when they fall due. Exposure to losses on receivables is
monitored, and balances are adjusted for expected credit losses. Expected
credit losses are determined by: (1) evaluating the ageing of receivables;
(2) analysing the history of adjustments; and (3) reviewing high risk customers.
Credit insurance on a portion of the accounts receivable balance is also carried.
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2024 Annual Report and Form 20-F
234
Notes to the consolidated financial statements continued
Liquidity risk
Liquidity risk is actively managed to ensure that the Group has sufficient funds to
satisfy its commitments. The Group’s sources of capital include, but are not
limited to, cash flows from operations, public and private issuances of debt and
equity securities, and bank borrowings. The Group believes its operating cash
flows, cash on hand and available short- and long-term capital resources are
sufficient to fund its working capital requirements, scheduled borrowing
payments, interest payments, capital expenditures, benefit plan contributions,
income tax obligations and dividends to its shareholders. Counterparties and
instruments used to hold cash and cash equivalents are continuously assessed,
with a focus on preservation of capital and liquidity. Based on information
currently available, the Group does not believe it is at significant risk of default by
its counterparties.
The Group has amounts available for borrowing under a €1.80 billion multi
currency credit facility (2023: €1.80 billion) with a syndicate of 12 banks.
This credit facility matures in 2030 and is for general corporate purposes,
including serving as a backstop to its commercial paper programme and
supporting the Group’s working capital needs. Based on information currently
available, the Group has no indication that the financial institutions participating
in this facility would be unable to fulfil their commitments as at the date of these
financial statements. The current credit facility contains no financial covenants
that would impact the Group’s liquidity or access to capital. As at
31 December 2024, the Group had no amounts drawn under this credit facility.
The Group operates a sustainability-linked supply chain finance programme.
The facility is provided by a third party bank and helps our suppliers get paid
earlier than under contractual credit terms. Supplier balances under supply
chain finance facilities are disclosed in Note 16.
The following table analyses the Group’s non-derivative financial liabilities and
net settled derivative financial liabilities into relevant maturity groupings based
on the remaining period at the statement of financial position date to the
contractual maturity date. The amounts disclosed in the table are the
contractual undiscounted cash flows:
Total
Less than 1 year
1 to 3 years
3 to 5 years
More than
5 years
Financial liabilities
€ million
€ million
€ million
€ million
€ million
31 December 2024
Trade and other payables
5,319
5,319
—
—
—
Amounts payable to related
parties
373
373
—
—
—
Borrowings
11,886
1,376
2,332
2,916
5,262
Derivatives
206
45
58
15
88
Lease liabilities
787
172
269
142
204
Total financial liabilities
18,571
7,285
2,659
3,073
5,554
31 December 2023
Trade and other payables
4,875
4,875
—
—
—
Amounts payable to related
parties
270
270
—
—
—
Borrowings
11,803
1,322
2,325
2,681
5,475
Derivatives
268
99
42
39
88
Lease liabilities
774
159
237
141
237
Total financial liabilities
17,990
6,725
2,604
2,861
5,800
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Notes to the consolidated financial statements continued
Capital management
The primary objective of the Group’s capital management is to ensure a strong
credit rating and appropriate capital ratios are maintained to support the Group’s
business and maximise shareholder value. The Group’s credit ratings are
periodically reviewed by rating agencies. Currently, the Group’s long-term ratings
from Moody’s and Fitch are Baa1 and BBB+, respectively. Changes in the operating
results, cash flows or financial position could impact the ratings assigned by the
various rating agencies. The credit rating can be materially influenced by a
number of factors including, but not limited to, acquisitions, investment
decisions, capital management activities of TCCC and/or changes in the credit
rating of TCCC. Should the credit ratings be adjusted downwards, the Group may
incur higher costs to borrow, which could have a material impact on the financial
condition and results of operations.
The capital structure is managed and, as appropriate, adjustments are made in
light of changes in economic conditions and the Group’s financial policy.
The Group monitors its operating performance in the context of targeted
financial leverage by comparing the ratio of net debt with comparable EBITDA.
Net debt is calculated as borrowings adjusted for the fair value of hedging
instruments and other financial assets/liabilities related to borrowings, net of
cash and cash equivalents and short-term investments. Comparable EBITDA is
calculated as EBITDA and adjusted for items impacting comparability.
Refer to Note 13 for the presentation of fair values for each class of financial
assets and financial liabilities and Note 14 for an outline of how the Group utilises
derivative financial instruments to mitigate its exposure to certain market risks
associated with its ongoing operations.
Refer to the Strategic Report included within this Annual Report for disclosure of
strategic, commercial and operational risk relevant to the Group.
Note 29
Significant events after the reporting period
On 14 February 2025, the Group announced its intention to commence a share
buyback programme of up to €1 billion, to be completed over a 12 month period.
The initial tranche of the programme has commenced and is currently being
executed within the authority granted by the Annual General Meeting of
Shareholders (AGM) on 22 May 2024. Subject to requisite approvals being granted,
it will continue to operate under the authority granted by future general
meetings. All shares repurchased under the programme will be cancelled.
The share buyback programme may be suspended, modified, or discontinued at
any time, subject to compliance with applicable laws and regulations.
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Notes to the consolidated financial statements continued
Note 30
Group companies
In accordance with section 409 of the Companies Act 2006, a full list of the Group’s subsidiaries, partnerships, associates, joint ventures and other undertakings as
at 31 December 2024 is disclosed below, along with the country of incorporation, the registered address and the effective percentage of equity owned at that date.
Unless otherwise stated, each entity has a share capital comprising a single class of ordinary shares and is wholly owned and indirectly held by CCEP.
Agua De La Vega Del Codorno, S.L.U.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
Aguas De Cospeito, S.L.U.
Spain
100%
Crta. Pino km. 1 - 2, 27377, Cospeito (Lugo), Spain
Aguas De Santolin, S.L.U.
Spain
100%
C/ Real, s/n 09246, Quintanaurria, Burgos, Spain
Aguas Del Maestrazgo, S.L.U.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
Aguas Del Toscal, S.A.U.
Spain
100%
Ctra. de la Pasadilla, km, 3-35250, ingenio (Gran Canaria), Spain
Aguas Vilas Del Turbon, S.L.U.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
Aitonomi AG
Switzerland
15%
Bruderhausstrasse 10, CH-6372 Ennetmoos, Switzerland
Amalgamated Beverages Great Britain Limited
United Kingdom
100%(D)(I) Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Apand Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Associated Products & Distribution Proprietary
Australia
100%(O)
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Bebidas Gaseosas Del Noroeste, S.L.U.
Spain
100%
Avda. Alcalde Alfonso Molina, S/N-15007, (A Coruna), Spain
Beganet, S.L.U.
Spain
100%
Avda Paisos Catalans, 32, 08950, Esplugues de Llobregat, Spain
Beverage Bottlers (NQ) Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Beverage Bottlers (QLD) Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Birtingahúsið ehf.
Iceland
34.5%
Laugavegur 174, 105, Reykjavík, Iceland
BL Bottling Holdings UK Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
BNI B.V.
Netherlands
100%
Marten Meesweg 25 J, 3068 AV, Rotterdam, Netherlands
BNII Inc.
Philippines
100%(G)
V&A Law Center, 11th Ave Cor 39th St., Bonifacio Global City, Fort Bonifacio, 1634 Taguig
City NCR, Fourth District, Philippines
BNI (Finance) B.V.
Netherlands
100%
Marten Meesweg 25 J, 3068 AV, Rotterdam, Netherlands
Bottling Great Britain Limited
United Kingdom
100%(D)
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Bottling Holding France SAS
France
100%
9 chemin de Bretagne, 92784, Issy-les-Moulineaux, France
Bottling Holdings (Luxembourg) SARL
Luxembourg
100%
2, Rue des Joncs, L-1818, Howald, Luxembourg
Bottling Holdings (Netherlands) B.V.
Netherlands
100%
Marten Meesweg 25 J, 3068 AV, Rotterdam, Netherlands
Bottling Holdings Europe Limited
United Kingdom
100%(B)(E) Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Brewhouse Investments Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
C - C Bottlers Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Name
Country of incorporation
% equity
interest
Registered address
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2024 Annual Report and Form 20-F
237
Notes to the consolidated financial statements continued
Can Recycling (S.A.) Pty. Ltd.
Australia
100%(B)
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
CC Digital GmbH
Germany
50%
Stralauer Allee 4, 10245, Berlin, Germany
CC Erfrischungsgetränke Oldenburg Verwaltungs GmbH
Germany
100%(I)
Stralauer Allee 4, 10245, Berlin, Germany
CC Iberian Partners Gestion S.L.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
CC Verpackungsgesellschaft mit beschraenkter Haftung
Germany
100%
Schieferstrasse 20, 06126, Halle (Saale), Germany
CCA Bayswater Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
CCEP Aboitiz Beverages Philippines, Inc.
Philippines
60%
NAC Tower, 32nd Street, Bonifacio Global City, Taguig City, 1634, Philippines
CCEP Australia Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
CCEP Finance (Australia) Limited
United Kingdom
100%(A)
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
CCEP Finance (Ireland) Designated Activity Company
Ireland
100%
3 Dublin Landings, North Wall Quay, Dublin, D01 C4E0, Ireland
CCEP Group Services Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
CCEP Holdings (APS) Limited
United Kingdom
100%(A)(D) Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
CCEP Holdings (Australia) Pty Ltd
Australia
100%(A)
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
CCEP Holdings Norge AS
Norway
100%
Robsrudskogen 5, Lørenskog, 1470, Norway
CCEP Holdings Sverige AB
Sweden
100%
Dryckesvägen 2 C, 136 87, Haninge, Sweden
CCEP Holdings UK Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
CCEP Scottish Limited Partnership
United Kingdom
100%(P)
52 Milton Road, College Milton, East Kilbride, Scotland, G74 5DJ, United Kingdom
CCEP Ventures Australia Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
CCEP Ventures Europe Limited
United Kingdom
100%(A)
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
CCEP Ventures UK Limited
United Kingdom
100%(A)
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
CCIP Soporte, S.L.U.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
Circular Economy Systems Pty Ltd
Australia
50%
Maddocks, Angel Place, Level 27, 123 Pitt Street, Sydney NSW 2000, Australia
Circular Plastics Australia (PET) Holdings Pty Ltd
Australia
16.67%
Building 3, 658 Church Street, Cremorne VIC 3121, Australia
Classic Brand (Europe) Designated Activity Company
Ireland
100%
Charlotte House, Charlemont Street, Saint Kevin's, Dublin, D02 NV26
Cobega Embotellador, S.L.U.
Spain
100%
Avda Paisos Catalans, 32, 08950, Esplugues de Llobregat, Spain
Coca-Cola Beverages Philippines, Inc.
Philippines
60%(R)
28th Floor, Six/NEO Building, 5th Avenue corner 26th Street, Bonifacio Global City, Taguig
City, 1634, Philippines
Coca-Cola Bottlers Business Service Inc. Retirement Plan
Philippines
—%(Q)
2nd Floor, Annex Building, 10 Obrero Street, Bagumbayan, Quezon City, 1103, Philippines
Coca-Cola Bottlers Philippines, Inc. Retirement plan
Philippines
—%(Q)
20th Floor, San Miguel Properties Centre 7, St. Francis Street, Ortigas Center,
Mandaluyong City, Philippines
Coca-Cola Europacific Partners (CDE Aust) Pty Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Coca-Cola Europacific Partners (Fiji) Pte Limited
Fiji
100%
Lot 1, Ratu Dovi Road, Laucala Beach Estate, NASINU, Fiji
Name
Country of incorporation
% equity
interest
Registered address
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
238
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners (Holdings) Pty Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Coca-Cola Europacific Partners (Initial LP) Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Coca-Cola Europacific Partners (Scotland) Limited
United Kingdom
100%
52 Milton Road, College Milton, East Kilbride, Scotland, G74 5DJ, United Kingdom
Coca-Cola Europacific Partners API Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Coca-Cola Europacific Partners Australia Pty Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Coca-Cola Europacific Partners Belgium SRL/BV
Belgium
100%
Chaussée de Mons 1424, 1070 Brussels, Belgium
Coca-Cola Europacific Partners Deutschland GmbH
Germany
100%(F)
Stralauer Allee 4, 10245, Berlin, Germany
Coca-Cola Europacific Partners France SAS
France
100%(G)
9 chemin de Bretagne, 92784, Issy-les-Moulineaux, France
Coca-Cola Europacific Partners Great Britain Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Coca-Cola Europacific Partners Holdings Great Britain Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Coca-Cola Europacific Partners Holdings NZ Limited
New Zealand
100%
The Oasis, 19 Carbine Road, Mount Wellington, Auckland, 1060, New Zealand
Coca-Cola Europacific Partners Holdings US, Inc.
United States
100%(A)(D) Corporation Trust Center, 1209 Orange Street, Wilmington DE, USA
Coca-Cola Europacific Partners Iberia, S.L.U.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
Coca-Cola Europacific Partners Investments (Singapore) Pte. Ltd. Singapore
100%
80 Robinson Road, #02-00, 068898, Singapore
Coca-Cola Europacific Partners Ísland ehf.
Iceland
100%
Studlahals 1, 110, Reykjavik, Iceland
Coca-Cola Europacific Partners Luxembourg sàrl
Luxembourg
100%
2, Rue des Joncs, L-1818, Howald, Luxembourg
Coca-Cola Europacific Partners Nederland B.V.
Netherlands
100%
Marten Meesweg 25 J, 3068 AV, Rotterdam, Netherlands
Coca-Cola Europacific Partners New Zealand Limited
New Zealand
100%
The Oasis, 19 Carbine Road, Mount Wellington, Auckland, 1060, New Zealand
Coca-Cola Europacific Partners Norge AS
Norway
100%
Robsrudskogen 5, Lørenskog, 1470, Norway
Coca-Cola Europacific Partners Papua New Guinea Limited
Papua New Guinea 100%
Section 23, Allotment 14, Milfordhaven Road, LAE, Morobe Province, 411, Papua New Guinea
Coca-Cola Europacific Partners Pension Scheme Trustees Limited United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Coca-Cola Europacific Partners plc Employee Benefit Trust
Jersey (Channel
Islands)
—%(S)
Computershare Trustees (Jersey) Limited, 13 Castle Street, St Helier, JE1 1ES, Jersey
Coca-Cola Europacific Partners Portugal Unipessoal LDA
Portugal
100%
Quinta da Salmoura - Cabanas-2925-362 Azeitão, Setúbal, Portugal
Coca-Cola Europacific Partners Services Bulgaria EOOD
Bulgaria
100%
2 Donka Ushlinova Street, Garitage Park, Office Building 4, floor 6, Sofia, 1766, Bulgaria
Coca-Cola Europacific Partners Services Europe Limited
United Kingdom
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Coca-Cola Europacific Partners Services SRL
Belgium
100%(N)
Chaussée de Mons 1424, 1070 Brussels, Belgium
Coca-Cola Europacific Partners Sverige AB
Sweden
100%
136 87, Haninge, Sweden
Coca-Cola Europacific Partners US, LLC
United States
100%
Corporation Trust Center, 1209 Orange Street, Wilmington 19801, Delaware, USA
Coca-Cola Europacific Partners US II, LLC
United States
100%
Corporation Trust Center, 1209 Orange Street, Wilmington 19801, Delaware, USA
Coca-Cola Europacific Partners Vanuatu Limited
Vanuatu
100%
1st Floor, Govant Building, Kumul Highway, Port Vila, Vanuatu
Name
Country of incorporation
% equity
interest
Registered address
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
239
Notes to the consolidated financial statements continued
Coca-Cola Foundation Philippines, Inc.
Philippines
30%
25th Floor Net Lima Building, 5th Avenue corner 26th Street, Bonifacio Global City, Taguig
City, 1634, Philippines
Coca-Cola Immobilier SCI
France
100%(G)
9 chemin de Bretagne, 92784, Issy-les-Moulineaux, France
Coca-Cola Production SAS
France
100%
Zone d' entreprises de Bergues, 59380, Commune de Socx, France
Compañía Asturiana De Bebidas Gaseosas, S.L.U.
Spain
100%
C/ Nava, 18- 3ª (Granda) Siero - 33006, Oviedo, Spain
Compañía Castellana De Bebidas Gaseosas, S.L.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, (Madrid), Spain
Compañía Levantina De Bebidas Gaseosas, S.L.U.
Spain
100%
Av. Real Monasterio de Sta., Maria de Poblet, 3646930, Quart de Poblet, Spain
Compañía Norteña De Bebidas Gaseosas, S.L.U.
Spain
100%
C/ Ibaizábal, 57, Galdakao, 48960, Bizkaia, Spain
Compañía Para La Comunicación De Bebidas Sin Alcohol, S.L.U.
Spain
100%
C/ Ribera Del Loira 20-22, 2a Planta, 28042, Madrid, Spain
Container Exchange (QLD) Limited
Australia
—%(L)
Level 17, 100 Creek Street, Brisbane QLD 4000, Australia
Cosmos Bottling Corporation
Philippines
60%
28th Floor, Six/NEO Building, 5th Avenue corner 26th Street, Bonifacio Global City, Taguig
City, 1634, Philippines
Crusta Fruit Juices Proprietary Limited
Australia
100%(J)
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Developed System Logistics, S.L.U.
Spain
100%
Av. Henry Ford 25, Manzana 19, Complejo Pq.Ind.Juan, CARLOS I, 46220, Picassent,
Valencia, Spain
Endurvinnslan hf.
Iceland
20%
Knarravogur 4, 104 Reykjavik, Iceland
Exchange for Change (ACT) Pty Ltd
Australia
20%
Building C, Suite 6, Level 1, 1 Homebush Bay Drive, Rhodes NSW 2138, Australia
Exchange for Change (NSW) Pty Ltd
Australia
20%
Building C, Suite 6, Level 1, 1 Homebush Bay Drive, Rhodes NSW 2138, Australia
GR Bottling Holdings UK Limited
United Kingdom
100%(A)
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Infineo Recyclage SAS
France
49%(H)
Sainte Marie la Blanche, 21200, Dijon, France
Innovative Tap Solutions Inc.
United States
21.8%
300 Brookside Avenue, Ambler, PA 19002, USA
Ionech Limited
United Kingdom
15.3%
6th Floor, Manfield House, 1 Southampton Street, London, England, WC2R 0LR
Kollex GmbH
Germany
20%
Kottbusser Damm 25-26, 10967, Berlin, Germany
Lusobega, S.L.
Spain
100%
C/ Ibaizábal, 57, 48960, Bizkaia, Galdakao, Spain
Luzviminda Land Holdings, Inc.
Philippines
24%
28th Floor, Six/NEO Building, 5th Avenue corner 26th Street, Bonifacio Global City, Taguig
City, 1634, Philippines
Madrid Ecoplatform, S.L.U.
Spain
100%
C/Pedro Lara, 8 Pq. Tecnologico de Leganes, 28919, (Leganes), Spain
Mahija Parahita Nusantara Foundation
Indonesia
—%(L)
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak,
South Jakarta, 12430, Indonesia
Matila Nominees Pty. Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Neverfail Bottled Water Co Pty Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Neverfail SA Pty. Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Neverfail Springwater (VIC) Pty Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Name
Country of incorporation
% equity
interest
Registered address
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
240
Notes to the consolidated financial statements continued
Neverfail Springwater Co Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Neverfail Springwater Co. (QLD) Pty. Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Neverfail Springwater Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Neverfail WA Pty. Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Pacbev Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Paradise Beverages (Fiji) Pte Limited
Fiji
100%
122-164 Foster Road, Walu Bay, Suva, Fiji
PEÑA Umbria S.L.U.
Spain
100%
Av. Real Monasterio de Sta., Maria de Poblet, 3646930, Quart de Poblet, Spain
Perfect Fruit Company Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
PETValue Philippines Corporation
Philippines
18%
Wilkins Plant, CM Delos Reyes, Gateway Business Park, Brgy. Javalera, General Trias,
Cavite, Philippines
Philippine Bottlers, Inc.
Philippines
60%
28th Floor, Six/NEO Building, 5th Avenue corner 26th Street, Bonifacio Global City, Taguig
City, 1634, Philippines
PT Amandina Bumi Nusantara
Indonesia
50%
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak,
South Jakarta, 12430, Indonesia
PT Coca-Cola Bottling Indonesia
Indonesia
100%(C)
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak,
South Jakarta, 12430, Indonesia
PT Coca-Cola Distribution Indonesia
Indonesia
100%
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak,
South Jakarta, 12430, Indonesia
Purna Pty. Ltd.
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Quenchy Crusta Sales Pty. Ltd.
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Real Oz Water Supply Co (QLD) Pty Limited
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Refrescos Envasados Del Sur, S.L.U.
Spain
100%
Autovía del Sur A-IV, km.528- 41309, La Rinconada, Sevilla, Spain
Refrige SGPS, Unipessoal, LDA
Portugal
100%
Quinta da Salmoura - Cabanas-2925-362 Azeitão, Setúbal, Portugal
Sale Proprietary Co 1 Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Sale Proprietary Co 2 Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Sale Proprietary Co 3 Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Sale Proprietary Co 4 Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Sale Proprietary Co 5 Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Sale Proprietary Co 6 Pty Ltd
Australia
100%(D)
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Sale Proprietary Co 7 Pty Ltd
Australia
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Samoa Breweries Limited (SBL)
Samoa
100%
Vaitele Industrial Zone, Vaitele Tai, Faleata Sisifo, Samoa
TasRecycle Limited
Australia
—%(M)
Level 9, 85 Macquarie Street, Hobart TAS 7000, Australia
VicReturn Limited
Australia
—%(M)
HWL Ebsworth Lawyers, Level 8, 447 Collins Street, Melbourne VIC 3000, Australia
Name
Country of incorporation
% equity
interest
Registered address
Strategic
Report
Governance and
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Financial
Statements
Further Sustainability
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
241
Notes to the consolidated financial statements continued
WA Return Recycle Renew Ltd
Australia
—%(L)
Unit 2, 1 Centro Avenue, Subiaco WA 6008, Australia
WB Investment Ireland 2 Limited
Ireland
100%
3 Dublin Landings, North Wall Quay, Dublin, D01 C4E0, Ireland
WBH Holdings Luxembourg SCS
Luxembourg
100%
2, Rue des Joncs, L-1818, Howald, Luxembourg
WIH UK Limited
United Kingdom
100%(A)(I) Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Wir Sind Coca-Cola GmbH
Germany
100%
Stralauer Allee 4, 10245, Berlin, Germany
Name
Country of incorporation
% equity
interest
Registered address
A. 100% equity interest directly held by Coca-Cola Europacific Partners plc.
B. Class A and B ordinary shares.
C. Series A, B, C and D shares.
D. Including preference shares issued to the Group.
E. 2% equity interest directly held by Coca-Cola Europacific Partners plc (100% of A ordinary shares in issue).
F. 10% equity interest directly held by Coca-Cola Europacific Partners plc.
G. Group shareholding of 99.99% or greater.
H. Class A and B shares. The Group holds 49% of Class B shares.
I. In liquidation.
J. Class A and F shares.
K. Includes ordinary shares and B Class shares.
L. Company limited by guarantee. CCEP is a member along with one other member.
M. Company limited by guarantee. CCEP is a member along with two other members.
N. Class A, B and C ordinary shares.
O. Includes redeemable preference shares and discretionary dividend shares issued to the Group.
P. Limited partnership.
Q. Registered defined benefit plan entity.
R. Name is changed to Coca-Cola Europacific Aboitiz Philippines, Inc. effective 13 January 2025.
S. Employee Benefit Trust established for the purpose of facilitating the acquisition and distribution of CCEP Shares for the
benefit of satisfying the Group’s share-based payments obligations under its existing and future share-based
compensation plans.
Note 31
Subsidiaries exempt from audit
The following UK subsidiaries will take advantage of the audit exemption set out
within section 479A of the Companies Act 2006 for the year ended
31 December 2024.
Name
Registration number
CCEP Holdings (Australia) Limited
12982568
WIH UK Limited
10140214
Amalgamated Beverages Great Britain Limited
01994995
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
242
Notes to the consolidated financial statements continued
Year ended 31 December
2024
2023
Note
€ million
€ million
Revenue from management fees
52
42
Dividend income
3
9,954
1,275
Investment write down
5
(7,040)
(2)
Administrative expenses
(58)
(68)
Operating profit
2,908
1,247
Finance income
4
14
16
Finance costs
4
(322)
(268)
Total finance costs, net
(308)
(252)
Non-operating items
(3)
(7)
Profit before taxes
2,597
988
Taxes
(17)
3
Profit after taxes
2,580
991
Components of other comprehensive income/(loss):
Cash flow hedges that may be subsequently reclassified to the income statement:
Pre-tax activity, net
(3)
4
Tax effect
—
—
Other comprehensive income/(loss) for the period, net of tax
(3)
4
Comprehensive income for the period
2,577
995
The accompanying notes are an integral part of these Company financial statements.
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2024 Annual Report and Form 20-F
243
Coca-Cola Europacific Partners plc Company financial statements
Statement of comprehensive income
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2024 as filed with the SEC.
Year ended 31 December
2024
2023
Note
€ million
€ million
ASSETS
Non-current:
Investments
5
25,962
27,406
Non-current derivative assets
59
35
Other non-current assets
6
9
Total non-current assets
26,027
27,450
Current:
Current derivative assets
1
47
Cash and cash equivalents
7
12
—
Other current assets
10
11
Total current assets
23
58
Total assets
26,050
27,508
LIABILITIES
Non-current:
Borrowings, less current portion
8
5,270
4,979
Amounts payable to related parties
6
2,427
3,227
Non-current derivative liabilities
55
80
Other non-current liabilities
4
9
Total non-current liabilities
7,756
8,295
Current:
Amounts payable to related parties
6
2,230
4,130
Current portion of borrowings
8
351
1,089
Trade and other payables
70
67
Total current liabilities
2,651
5,286
Total liabilities
10,407
13,581
EQUITY
Share capital
9
5
5
Share premium
307
276
Merger reserves
9
8,466
8,466
Retained earnings
6,865
5,180
Total equity
15,643
13,927
Total equity and liabilities
26,050
27,508
The accompanying notes are an integral part of these Company financial
statements.
The financial statements were approved by the Board of Directors and
authorised for issue on 21 March 2025. They were signed on its behalf by:
Damian Gammell
Chief Executive Officer
21 March 2025
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
244
Statement of financial position
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2024 as filed with the SEC.
Cash flows from operating activities:
Profit before taxes
2,597
988
Adjustments to reconcile profit before tax to net
cash flows from operating activities:
Dividend income
3
(9,954)
(1,275)
Depreciation
1
1
Amortisation of intangible assets
2
2
Share-based payment expense
39
24
Finance costs, net
4
308
252
Investment write down
5
7,040
2
Change in operating assets/liabilities
(170)
(104)
Net cash flows used in operating activities
(137)
(110)
Cash flows from investing activities:
Investments in subsidiaries, net
5
(57)
(282)
Investments in equity instruments
5
—
(5)
Dividend received
3
4,050
1,275
Net cash flows from investing activities
3,993
988
Cash flows from financing activities:
Proceeds from borrowings, net
777
1,114
Repayments on borrowings
(3,650)
(1,125)
Settlement of debt-related cross currency swaps
66
69
Payments of principal on lease obligations
(1)
(1)
Interest paid
(154)
(137)
Dividends paid
(910)
(841)
Exercise of employee share options
31
43
Net cash flows used in financing activities
(3,841)
(878)
Net change in cash and cash equivalents
15
—
Net effect of currency exchange rate changes on
cash and cash equivalents
(3)
—
Cash and cash equivalents at beginning of period
7
—
—
Cash and cash equivalents at end of period
7
12
—
Year ended 31 December
2024
2023
Note
€ million
€ million
The accompanying notes are an integral part of these Company financial
statements.
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2024 Annual Report and Form 20-F
245
Statement of cash flows
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2024 as filed with the SEC.
Share capital
Share premium
Merger reserves
Retained earnings
Total equity
Note
€ million
€ million
€ million
€ million
€ million
As at 31 January 2022
5
233
8,466
4,979
13,683
Issue of shares during the year
—
43
—
—
43
Equity-settled share-based payments
—
—
—
54
54
Total comprehensive income for the period
—
—
—
995
995
Purchases of shares for equity-settled Employee Share Purchase Plan
—
—
—
(4)
(4)
Dividends
—
—
—
(844)
(844)
As at 31 December 2023
5
276
8,466
5,180
13,927
Issue of shares during the year
—
31
—
—
31
Equity-settled share-based payments
—
—
—
42
42
Treasury shares acquired
—
—
—
(7)
(7)
Total comprehensive income for the period
—
—
—
2,577
2,577
Purchases of shares for equity-settled Employee Share Purchase Plan
—
—
—
(16)
(16)
Dividends
—
—
—
(911)
(911)
As at 31 December 2024
5
307
8,466
6,865
15,643
The accompanying notes are an integral part of these Company financial statements.
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Statement of changes in equity
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Note 1
General information and basis of preparation
Coca-Cola Europacific Partners plc (the Company) acts as a holding company
for investments in subsidiaries, as well as a provider of various intragroup
services. In addition, the Company engages in general corporate activities such
as third party borrowings.
The financial statements of the Company have been prepared in accordance
with the UK adopted International Accounting Standards, International Financial
Reporting Standards (IFRS) as adopted by the European Union and International
Financial Reporting Standards as issued by the International Accounting
Standards Board (IASB). The financial statements were approved and signed by
Damian Gammell, Chief Executive Officer, on 21 March 2025, having been duly
authorised to do so by the Board of Directors.
As described in the accounting policies in Note 2, the financial statements have
been prepared under the historical cost convention except for certain items
measured at fair value. Those accounting policies have been applied consistently
in all periods. The functional and presentation currency of the Company is euros,
and amounts are rounded to the nearest million.
The financial statements of the Company have been prepared on a going concern
basis (refer to the Going concern paragraph on page 152).
Note 2
Significant accounting policies
The preparation of these financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates. The significant
judgements made in applying the Company’s accounting policies were applied
consistently across the annual periods.
Investments
Investments in subsidiaries are initially recognised at cost and carried net of any
impairment. Investments are tested for impairment whenever events or changes
in circumstances indicate that the carrying amounts of those investments may
not be recoverable. An asset’s recoverable amount is the higher of an asset’s or
CGU’s fair value less costs to sell and its value in use, and is determined for an
individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying
amount of an asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. Impairment losses on
continuing operations are recognised in the income statement in those expense
categories consistent with the function of the impaired asset.
For assets where an impairment loss subsequently reverses, the carrying amount
of the asset or CGU is increased to the revised estimate of its recoverable
amount, not to exceed the carrying amount that would have been determined,
net of depreciation, had no impairment losses been recognised for the asset or
CGU in prior years. A reversal of impairment loss is recognised immediately in the
income statement.
Share-based payments
The Company has established share-based payment plans that provide for the
granting of share options and restricted stock units, some with performance and/
or market conditions, to certain executive and management level employees that
are employed by the Company and its subsidiaries. These awards are designed to
align the interests of the employees with the interests of the shareholders.
The Company recognises compensation expense equal to the grant date fair
value for all share-based payment awards that are expected to vest. Expense is
generally recorded on a straight-line basis over the requisite service period for
each separately vesting portion of the award. As per IAS 27 “Separate Financial
Statements”, the Company equity settles share-based payments for employees
of subsidiary entities and accounts for the settlement as an addition to the cost
of its investment in the employing subsidiary. Upon vesting, the Company
recharges the costs of the share-based awards to the employing subsidiary and
records a reduction of the investment.
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Notes to the Company financial statements
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2024 as filed with the SEC.
Financial instruments
(i) Financial assets
Initial recognition and measurement
Financial assets within the scope of IFRS 9 “Financial Instruments” are classified
as financial assets at fair value through profit or loss, loans and receivables, or as
derivatives designated as hedging instruments in an effective hedge, as
appropriate. The Company determines the classification of its financial assets at
initial recognition.
All financial assets are recognised initially at fair value plus, in the case of
investments not at fair value through profit or loss, directly attributable
transaction costs.
The Company’s financial assets include cash and short-term deposits, trade and
other receivables, loan notes and derivative financial instruments.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification
as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held
for trading and financial assets designated upon initial recognition at fair value
through profit or loss. Financial assets are classified as held for trading if they are
acquired for the purpose of selling in the near term. This category includes
derivative financial instruments entered into by the Company that are not
designated as hedging instruments in hedge relationships as defined by IFRS 9.
Derivatives, including separated embedded derivatives, are also classified as
held for trading unless they are designated as effective hedging instruments.
Financial assets at fair value through profit and loss are carried in the statement
of financial position at fair value with changes in fair value recognised in finance
income or finance cost in the statement of comprehensive income.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Such assets are
initially recognised at fair value and subsequently measured at amortised
cost using the effective interest rate (EIR) method, less impairment. Amortised
cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is
included in finance income in the statement of comprehensive income. Losses
arising from impairment are recognised in the income statement in other
operating expenses.
(ii) Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IFRS 9 are classified as financial liabilities
at fair value through profit or loss, loans and borrowings, or as derivatives
designated as hedging instruments in an effective hedge, as appropriate.
The Company determines the classification of its financial liabilities at initial
recognition. All financial liabilities are recognised initially at fair value and, in the
case of loans and borrowings, plus directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as
follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities
held for trading and financial liabilities designated upon initial recognition as at
fair value through profit or loss.
Interest bearing loans and borrowings
Obligations for loans and borrowings are recognised when the Company
becomes party to the related contracts and are measured initially at the fair
value of consideration received, less directly attributable transaction costs.
After initial recognition, interest bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest method.
Gains and losses arising on the repurchase, settlement or other cancellation of
liabilities are recognised respectively in finance income and finance cost.
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Notes to the Company financial statements continued
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Trade and other payables
Trade and other payable amounts represent liabilities for goods and services
provided to the Company prior to the end of the reporting period, which are
unpaid as of the balance sheet date. Trade and other payables are presented
as current liabilities unless payment is not due within 12 months after the
reporting period. Trade and other payables are recognised initially at fair
value and subsequently measured at amortised cost using the effective
interest method, as applicable.
Management fees
As the ultimate parent entity of the Group, the Company is involved in
the provision of intragroup services to certain subsidiaries. Specifically, the
Company’s employees are above-market roles, who provide services related
but not limited to strategy, people and culture, finance, legal, and business
process and technology. In addition, certain intragroup services are charged
to the Company by its subsidiaries. Management fees revenue for intragroup
services provided to subsidiaries is recorded in revenue from management fees.
Costs incurred by subsidiaries are recharged to the Company and are recorded
in administrative expenses in the statement of comprehensive income.
Note 3
Dividend income
Dividends are recognised when the right to receive the dividend is established.
During the year the Company has received the following dividends:
Year ended 31 December
2024
2023
€ million
€ million
Coca-Cola Europacific Partners Holdings US Inc
3,037
896
Coca-Cola Europacific Partners APS Pty Ltd
275
270
CCEP Finance (Australia) Limited
103
102
Bottling Holdings Europe Limited
6,167
—
Coca-Cola Europacific Partners Group Services Limited
100
—
Coca-Cola Europacific Partners Nederland B.V.
252
—
Coca-Cola Europacific Partners Deutschland GmbH
20
7
Total
9,954
1,275
In 2024 the Company has received €5,904 million non-cash dividends that are
excluded from the statement of cash flows.
Note 4
Finance income/(costs)
Year ended 31 December
2024
2023
€ million
€ million
Interest income
14
16
Total finance income
14
16
Interest expense
(320)
(266)
Amortisation of debt discount
(2)
(2)
Total finance costs
(322)
(268)
Note 5
Investments
Year ended 31 December
2024
2023
€ million
€ million
Balance at 1 January
27,406
27,099
Subsequent investment in subsidiaries
5,609
282
Investments in equity instruments
—
5
Capitalised/vested share-based payments, net
(13)
22
Investment write down
(7,040)
(2)
Balance at 31 December
25,962
27,406
On 23 February 2024, BNI B.V. issued one share with a nominal value of €1 to the
Company, which resulted in an increase in the Company’s investment of
€57 million.
On 1 October, BNI B.V. issued one share to the Company at a premium increasing
the investment value by €2,353 million. On the same date, the Company acquired
CCEP Group Services Limited and CCEP Services Bulgaria EOOD for €3,002 million
and €197 million, respectively.
During the annual impairment review, the Company concluded it was necessary
to recognise partial write-downs on several of its investments. Specifically, the
Company recorded a write-down of €6,486 million for its investment in Bottling
Holdings Europe Limited. Additionally, a write-down of €100 million was
recognised for CCEP Group Services Limited, €252 million for BNI B.V., €2 million
for CCEP Ventures Europe Limited and €200 million for CCEP Holdings (APS)
Limited.
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In 2024, the Company has made €5,552 million non-cash investments that are
excluded from the statement of cash flows.
Note 6
Amounts receivable from/payable to related parties
Year ended 31 December
2024
2023
€ million
€ million
Non-current amounts payable to related parties:
Borrowings(A)
2,427
3,227
Total non-current amounts payable to related parties
2,427
3,227
Current amounts payable to related parties:
Borrowings(A)
983
—
Cash pool payables(B)
1,198
4,094
Trade and other payables
49
36
Total current amounts payable to related parties
2,230
4,130
Total amounts payable to related parties
4,657
7,357
A. In relation to the acquisition of CCL, the Company borrowed interest bearing euro denominated loan notes from CCEP
Finance (Ireland) DAC due between September 2025 and May 2041 with interest rates between 0.1% and 1.6%. In October
2024, the Company issued a fixed term 2.535% interest bearing loan note to CCEP Group Services Limited with a principal
amount of €183 million payable in May 2025.
B. The Company participates in a cash pooling structure in which its available cash is swept to a cash pool header (CCEP
Finance (Ireland) DAC). Pooling allows the Company to deposit and withdraw cash on a daily basis to meet its working
capital needs.
Transactions with key management personnel
Key management personnel are the members of the Board of Directors and the
members of the Executive Leadership Team that are employed by the Company.
The following table summarises the total remuneration paid or accrued during
the reporting period related to key management personnel:
Year ended 31 December
2024
2023
€ million
€ million
Salaries and other short-term employee benefits(A)
16
17
Share-based payments
2
5
Total
18
22
A. Short-term employee benefits include wages, salaries and social security contributions, paid annual leave and paid sick
leave, paid bonuses and non-monetary benefits.
Employee costs
The following table summarises the total employee costs of the Company during
the reporting period:
Year ended 31 December
2024
2023
€ million
€ million
Wages and salaries
10
12
Social security costs
6
5
Total employee costs
16
17
The average number of persons employed by the Company during the year was
11 (2023: 7).
Note 7
Cash and cash equivalents
Year ended 31 December
2024
2023
€ million
€ million
Cash at banks and on hand
12
—
Total cash and cash equivalents
12
—
As at 31 December 2024, there were €10 million of cash and cash equivalents held
by the Group’s Employee Benefit Trust (refer to Note 9). The funds can be solely
used for the purchases of CCEP shares to satisfy the Group’s award requirements
under its current and future share-based compensation plans.
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Note 8
Borrowings
Year ended 31 December
2024
2023
€ million
€ million
Non-current borrowings:
Loan notes
5,268
4,976
Lease obligations
2
3
Total non-current borrowings
5,270
4,979
Current borrowings:
Loan notes
350
1,088
Commercial paper
—
—
Lease obligations
1
1
Total current borrowings
351
1,089
Total borrowings
5,621
6,068
The loan notes as at 31 December 2024 are due between May 2025 and March
2032. The principal amounts due are €5,659 million (2023: €6,141 million) and the
applicable interest rates are between 0.2% and 3.25%. In May 2024, the Company
repaid €500 million 1.125% notes received in May 2016 as well as US$650 million
0.8% notes received in May 2021. In September 2024, the Company entered into a
new loan agreement with a nominal value of €600 million, interest rate 3.25%, due
in March 2032. The loan notes are stated net of unamortised financing fees of
€14 million (2023: €15 million).
During 2022, the Company entered into interest rate swaps with notional value of
€1 billion, which were designated in a fair value hedge relationship with euro
denominated bonds. As at 31 December 2024, fair value adjustments in respect
of those interest rate swaps were €(55) million (2023: €(80) million) included
within non-current borrowings.
Trade and other payables include interest payable on the borrowings of
€46 million (2023: €45 million).
Lease obligations represent the present value of the Company’s lease
obligations in respect of right of use assets.
The Company has amounts available for borrowing under a €1.80 billion multi currency
credit facility with a syndicate of 12 banks. This credit facility matures in 2030 and
is for general corporate purposes and supporting the working capital needs.
Based on information currently available, there is no indication that the financial
institutions participating in this facility would be unable to fulfil their commitments
to the Company as at the date of these financial statements. The Company’s
credit facility contains no financial covenants that would impact its liquidity or
access to capital. As at 31 December 2024, the Company had no amounts drawn
under this credit facility.
Note 9
Equity
Share capital
As at 31 December 2024, the Company has issued and fully paid 460,947,057
(2023: 459,200,818) ordinary shares with a nominal value of €0.01 per share.
Shares in issue have one voting right each and no restrictions related to
dividends or return on capital. For more details, please refer to Note 18 of the
consolidated financial statements.
Share premium
The balance in share premium as at 31 December 2024 represents the excess
over nominal value of €0.01 for the 228,244,244 Shares issued to CCE
shareholders on 28 May 2016 based on the adjusted closing stock price of
CCE ordinary shares of €33.33 at the time of the CCEP merger. The balance also
includes €220 million (2023: €189 million) excess over nominal value of share-
based payment awarded through to 31 December 2024.
The share premium account increased by cash received for the exercise of
options by €31 million in 2024 (2023: €43 million).
Merger reserves
The Company determined that the consideration transferred in relation to
previous business acquisitions (CCIP and CCEG) qualified for merger relief under
the Companies Act. Therefore, the excess consideration transferred over
nominal value is excluded from the share premium. The cumulative balance of
€8.5 billion includes the consideration transferred in excess of the nominal value
of €0.01 for CCIP and CCEG of €5.5 billion and €2.9 billion, respectively.
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Notes to the Company financial statements continued
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Treasury shares
In December 2024, Coca-Cola Europacific Partners plc Employee Benefit Trust
(referred to as “the Trust”) was established for the purpose of facilitating the
acquisition and distribution of CCEP Shares for the benefit of satisfying the
Group’s share-based payments obligations under its existing and future share-
based compensation plans. The Company has elected to treat the Trust as an
extension of its own operations, and as such, the assets and liabilities of the
Trust are accounted for as assets and liabilities of the Company. CCEP Shares
acquired in the market and held by the Trust are classified as treasury shares for
accounting purposes.The book value of shares held is deducted from retained
earnings. As at 31 December 2024, the total consideration of the Shares acquired
by the Trust of €7 million, including directly attributable costs, was deducted
from retained earnings. As at 31 December 2024, the Company held 92,564 of its
own ordinary shares (31 December 2023: nil) classified as treasury shares for
accounting purposes via the Trust. Dividends are waived on all Shares held with
this classification by the Trust.
Retained earnings
The balance in retained earnings represents the opening balance on
1 January 2024, combined with the result for the period, dividends paid
and the share-based payment reserve.
Dividends
Dividends are recorded in the period in which they are paid. Refer to Note 18 of
the consolidated financial statements.
Note 10
Financial risk management
Financial risk factors, objectives and policies
The Company’s activities expose it to several financial risks, market risk and liquidity
risk. Financial risk activities are governed by appropriate policies and procedures
to minimise the uncertainties these risks create on the Company’s future cash
flows. Such policies are developed and approved by CCEP’s treasury and
commodities risk committee, through the authority delegated to it by the Board.
Market risk
Market risk represents the risk that the fair value of future cash flows of a financial
instrument will fluctuate due to changes in market prices and includes interest
rate risk, currency risk and other price risk such as commodity price risk. Market
risk affects outstanding borrowings, as well as derivative financial instruments.
Interest rates
The Company is subject to interest rate risk for its outstanding borrowings.
To manage interest rate risk, the Company maintains a significant proportion of
its borrowings at fixed rates. The Company also modifies its interest rate
exposure through the use of interest rate swaps.
In the statement of financial position, non-current derivative liabilities reflect the
fair value (Level 2) of these interest rate swaps.
Currency exchange rate
Foreign currency exchange risk can only arise on financial instruments that are
denominated in a currency other than the functional currency in which they are
measured. Translation-related risks are therefore not included in the
assessment of the Company’s exposure to currency risks. Translation exposures
arise from financial and non-financial items held by the Company with a
functional currency different from the Company’s presentation currency (euro).
To manage currency exchange risk arising from future commercial transactions
and recognised monetary assets and liabilities, foreign currency forward and
option contracts with external third parties are used.
The Company is exposed to the risk of changes in currency exchange rates
between US dollar and euro relating to its US dollar denominated borrowings.
In the statement of financial position, non-current derivative assets represent
the fair value (Level 2) of the cross currency swap of the US dollar denominated
debt to euro.
Liquidity risk
Liquidity risk is actively managed to ensure that the Company has sufficient
funds to satisfy its commitments. The Company’s sources of capital include, but
are not limited to, dividend income, public and private issuances of debt and
equity securities, and bank borrowings. The Company believes its operating cash
flow, cash on hand and available short- and long-term capital resources are
sufficient to fund its working capital requirements, scheduled borrowing
payments, interest payments, capital expenditures, benefit plan contributions,
income tax obligations and dividends to its shareholders. Counterparties and
instruments used to hold cash and cash equivalents are continuously assessed,
with a focus on preservation of capital and liquidity. Based on information
currently available, the Company does not believe it is at significant risk of
default by its counterparties.
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Notes to the Company financial statements continued
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Note 11
Auditor’s remuneration
Refer to Note 19 of the consolidated financial statements for details of the
remuneration of the Company’s auditor.
Note 12
Commitments
The Company has fully and unconditionally guaranteed unsecured borrowings
outstanding as at 31 December 2024. These borrowings have been issued by
CCEP Finance (Ireland) DAC for €3.2 billion, Coca-Cola Europacific Partners
(Holdings) Pty Limited for €0.7 billion and BNI (Finance) B.V. for €0.7 billion.
Note 13
Significant events after the reporting period
On 14 February 2025, the Group announced its intention to commence a share
buyback programme of up to €1 billion, to be completed over a 12 month period.
The initial tranche of the programme has commenced and is currently being
executed within the authority granted by the Annual General Meeting of
Shareholders (AGM) on 22 May 2024. Subject to requisite approvals being granted,
it will continue to operate under the authority granted by future general
meetings. All shares repurchased under the programme will be cancelled.
The share buyback programme may be suspended, modified, or discontinued at
any time, subject to compliance with applicable laws and regulations.
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FURTHER
SUSTAINABILITY
INFORMATION
In this section
255 Key performance data related to
ESRS material topics
258 Key performance data related to
other This is Forward topics
260 ESRS methodology and appendices
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2024 Annual Report and Form 20-F
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Notes to the Company financial statements continued
The following metrics relate to our material topics as part of the sustainability statement on pages 23-58. See the full details on the methodology for the metrics
related to ESRS material topics on page 260-272.
Climate (ESRS E1)
ESRS
reference
Group
Europe
APS
2024
2023
2019
baseline
2024
2019
baseline
2024
2019
baseline
Scope 1, 2 and 3 GHG emissions
Scope 1 GHG emissions (tonnes of CO2e)
E1-6 44a, 48a
357,043
362,494
426,017
186,774
229,578
170,269
196,439
Scope 2 GHG emissions — market based approach (tonnes of CO2e)
E1-6 44b, 49a
360,940
361,492
389,265
6,213
8,176
354,726
381,089
Scope 2 GHG emissions — location based approach (tonnes of CO2e)
E1-6 44b, 49b
540,652
514,895
550,847
127,072
169,844
413,580
381,003
Scope 3 GHG emissions (tonnes of CO2e)
E1-6 44c
6,636,384
6,766,069
7,691,794
3,256,428
3,966,012
3,379,956
3,725,782
Significant Scope 3 categories
Scope 3 — Category 1: purchased goods and services (tonnes of CO2e)
E1-6 51
4,702,593
4,751,153
5,011,286
Scope 3 — Category 4: upstream transport and distribution (tonnes of CO2e)
E1-6 51
544,808
559,951
591,889
Scope 3 — Category 13: downstream leased assets (tonnes of CO2e)
E1-6 51
965,968
1,038,612
1,661,755
Other Scope 3 categories (tonnes of CO2e)
E1-6 51
423,015
416,353
426,864
Total GHG emissions
Scope 1, 2 and 3 GHG emissions – Full value chain (tonnes of CO2e) (market based approach)
E1-6 44d, 52b
7,354,367
7,490,054
8,507,076
3,449,415
4,203,766
3,904,952
4,303,311
Scope 1, 2 and 3 GHG emissions – Full value chain (tonnes of CO2e) (location based approach)
E1-6 44d, 52a
7,534,079
7,643,458
8,668,658
3,570,274
4,365,434
3,963,805
4,303,224
Absolute reduction in total value chain(A) GHG emissions (Scope 1, 2, 3) since 2019 (%)
E1-3 29
13.6
12.0
17.9
9.3
GHG intensity ratios
GHG Scopes 1 and 2(A) emissions per litre of product produced (gCO2e per litre)
Entity specific
35.5
36.6
14.7
74.4
Manufacturing energy use ratio (MJ per litre of finished product produced)
Entity specific
0.36
0.36
0.30
0.47
Scope 1, 2 and 3 GHG emissions – Full value chain per litre (gCO2e per litre)(A)
Entity specific
327.2
336.0
393.9
233.8
294.6
505.5
587.1
Scope 1, 2 and 3 GHG emissions – Full value chain per revenue (location based)(B) (gCO2e/€)
E1-6 53
368.6
Scope 1, 2 and 3 GHG emissions – Full value chain per revenue (market based)(B)(gCO2e/€)
E1-6 54
359.8
A. Market based approach only.
B. New metric in 2024 related to ESRS material topic (E1). Metric disclosed at Group level only for 2024.
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Key performance data related to ESRS material topics ♦
ESRS 2 SBM-1 | ESRS 2 MDR-M | E1-3 | E1-4 | E1-6
ESRS
Climate (ESRS E1) continued
ESRS
reference
Group
Europe
APS
2024
2023
2024
2024
Emissions from biologically sequestered carbon
E1 AR 43, 46
104,239
117,126
Tonnes of CO2e offset through carbon credits (tonnes of CO2e)
E1-7 56b, 59a
20,484
41,090
Percentage of electricity purchased that comes from renewable sources (%)
E1-6 49
60.3
59.6
100.0
21.3
Percentage of electricity consumed that comes from renewable sources (%)
Entity specific
60.2
59.3
98.9
23.1
Climate – Energy consumption and mix (ESRS E1)
ESRS
reference
Group
2024
Total energy consumption from activities in high climate impact sectors (MWh)
E1-5 41
2,598,979
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact
sectors (1,000MWh/€)(A)
E1-5 40
0.13
Fuel consumption from petroleum products (MWh)
E1-5 38b
710,950
Energy consumption from natural gas (MWh)
E1-5 38c
610,255
Non-renewable electricity consumption (MWh)
E1-5 38e
493,872
Total energy consumption related to own operations from fossil sources (MWh)
E1-5 38a
1,815,077
Fuel consumption from renewable sources (MWh)
E1-5 37c
8,482
Energy consumption from by self-generated electricity (MWh)
E1-5 37c
22,356
Energy consumption from purchased electricity, heat, steam and cooling (MWh)
E1-5 37c
753,063
Total energy consumption related to own operations from renewable sources (MWh)
E1-5 37c
783,901
Supply chain (ESRS E2, E4, E5)
ESRS
reference
Group
Europe
APS
2024
2024
2024
Percentage of sugar sourced through suppliers in compliance with our Principles for Sustainable Agriculture (PSA) (%)
Entity specific
80.1
99.9
46.9
Percentage of pulp and paper sourced through suppliers in compliance with our PSA (%)
E5-4 31b
97.8
99.9
94.7
Percentage of total supplier spend covered by Supplier Guiding Principles (SGPs) (%)
Entity specific
98.6
98.8
98.1
A. CCEP operates in a high climate impact sector. Net revenue disclosed in Group's consolidated income statement: €20,438 million, see page 173. We only operate in one significant ESRS sector.
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Key performance data related to ESRS material topics♦ continued
ESRS 2 MDR-M | ESRS 2 SBM-1 | E1-5 | E1-6 | E1-7 | E2-3 | E4-4 | E5-4
ESRS
Water (ESRS E3)
ESRS
reference
Group
Europe
APS
2024
2023
2024
2024
Total water withdrawal (1,000m3)
Entity specific
36,740
35,042
21,989
14,751
Total water withdrawals from areas of high or extremely high baseline water stress (1,000m3)
Entity specific
14,278
14,040
11,373
2,905
Percentage of water withdrawn in regions with high or extremely high water stress (%)
Entity specific
39.2
40.5
51.9
20.0
Total volume of water replenished (1,000m3)
Entity specific
24,688
18,160
6,528
Water replenished as percentage of total sales volumes (%)
Entity specific
109.8
123.1
84.5
Manufacturing water use ratio (litres of water per litre of finished product produced)
Entity specific
1.76
1.74
1.59
2.09
Percentage reduction in manufacturing water use ratio since 2019 (%)(A)
Entity specific
-1.3
0.0
1.3
-4.3
Total water consumed (1,000m3)(B)
E3-4 28a
22,703
Total water consumption from areas of high or extremely high baseline water stress (1,000m3)(B)
E3-4 28b
8,753
Water intensity ratio (1,000m3 per net revenue)(B)
E3-4 29
1.11
Packaging (ESRS E5)
ESRS
reference
Group
Europe
APS
2024
2023
2024
2024
Percentage of all primary packaging that is recyclable (%, based on unit case)
E5-5 36c
99.7
99.8
99.5
Percentage of PET used which is rPET (%, based on tonnes of material)
Entity specific
46.0
63.2
23.0
Primary packaging collected for recycling as a percentage of total primary packaging (%, based on individual units)
Entity specific
75.7
Total packaging weight used during the period(B) (tonnes)
E5-4 31a
994,323
Total recycled content in packaging used during the period(B) (tonnes)
E5-4 31c
471,661
Percentage of recycled content in total packaging used during the period(B) (%)
E5-4 31c
47.4
Affected Communities (ESRS 2 SBM-1 and S3)
ESRS
reference
Group
Europe
APS
2024
2023
2024
2024
Total number of employees
ESRS2 SBM-1 40 a
40,657
22,372
18,285
Number of people supported in skills development (number)(C)
S3
A. Negative value indicates an increase vs 2019.
B. New metric in 2024 related to ESRS material topic E3 and E5. Metric disclosed at Group level only.
C. Metric excludes the Philippines and is disclosed on page 259. We aim to integrate in 2025.
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Key performance data related to ESRS material topics♦ continued
ESRS 2 MDR-M | ESRS 2 SBM-1 | E3-4 | E5-4 | E5-5 | S3-4
ESRS
The following metrics relate to our This is Forward commitments, see page 22, and covers all our activities in EU and APS, excluding the Philippines.
In 2025, we will review and update our sustainability action plan to include the Philippines.
This is Forward and other metrics
Target
Group, excluding the
Philippines
Europe
APS, excluding
the Philippines
2024
2023
2024
2024
Climate
Absolute reduction in total value chain(A) GHG emissions (Scope 1, 2, 3) since 2019 (%)
30% by 2030
20.0
16.5
17.9
23.1
Percentage of carbon strategic suppliers(B) having targets approved by SBTi (%)
100% by 2025(B)
45
31
68
23
Relative reduction in total value chain(A) GHG emissions (Scope 1, 2, 3) per litre since 2019 (%)
21.1
18.8
20.6
18.4
Relative reduction in total value chain(A) GHG emissions (Scope 1, 2, 3) per litre since 2021 (%)
14.4
11.9
11.3
15.0
Relative reduction in total value chain(A) GHG emissions (Scope 1, 2, 3) per litre since 2022 (%)
8.0
5.3
5.3
10.3
Percentage of electricity consumed that comes from renewable sources (%)
100% by 2030
79.0
77.1
98.9
38.2
Supply chain
Percentage of sugar sourced through suppliers in compliance with our PSA (%)
100%
99.9
99.4
99.9
100.0
Percentage of pulp and paper sourced through suppliers in compliance with our PSA (%)
100%
99.9
99.8
99.9
100.0
Percentage of total supplier spend covered by SGPs (%)
100%
98.5
97.9
98.8
97.3
Water
Water replenished as percentage of total sales volumes (%)
100% by 2030
113.1
98.7
123.1
71.7
Percentage reduction in manufacturing water use ratio since 2019 (%)
10% by 2030
4.3
4.9
1.3
13.3
Packaging
Percentage of all primary packaging that is recyclable (%, based on unit case)
100% by 2025
99.8
99.1
99.8
99.9
Percentage of PET used which is rPET (%, based on tonnes of material)
50% by 2025(C)
56.0
54.7
63.2
35.4
Primary packaging collected for recycling as a percentage of total primary packaging (%, based on individual units)(D)
100% by 2030
78.7
73.2
A. Market based approach only.
B. 100% of carbon strategic suppliers to set science based targets by 2023 (Europe) and 2025 (APS).
C. EU by 2023/APS by 2025.
D. This metric has not been restated for 2023. In 2024, back-cast data for prior years was calculated via Eunomia, and was used in the re-baselining of our GHG emissions.
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Key performance data related to other This is Forward topics♦
Entity specific
ESRS
This is Forward and other metrics
Target
Group, excluding the
Philippines
Europe
APS, excluding
the Philippines
2024
2023
2024
2024
Drinks
Europe: reduction in average sugar per litre in soft drinks(A)(B) portfolio since 2019 (%)
10% by 2025
6.8
New Zealand: reduction in average sugar per litre in NARTD(A)(C) portfolio since 2015 (%)
20% by 2025
17.1
Australia: reduction in average sugar per litre in NARTD(A)(C) portfolio since 2015 (%)
25% by 2025
15.1
Indonesia: reduction in average sugar per litre in NARTD(A)(C) portfolio since 2015 (%)
35% by 2025
38.9
Percentage of volume sold which is low or no calorie (%)
50% by 2030(D)
49.9
48.4
49.9
49.7
Society
Percentage of women in management positions (senior manager level and above)(E) (%)
45% by 2030
40.3
38.4
Percentage of women in total workforce (%)
33% by 2030
26.1
25.1
Percentage of people self-declaring as having a disability in our workforce (%)(F)
10% by 2030
12.6
Safety – Total incident rate (TIR) (number per 100 full time equivalent employees)
0.84
0.84
0.79
0.93
Safety – Lost time incident rate (LTIR) (number per 100 full time equivalent employees)
0.62
0.60
0.62
0.62
Total number of volunteering hours (number of hours)(G)
41,800
32,500
38,300
3,500
Total community investment contribution (millions of €)
15.0
14.8
12.9
2.1
Number of people supported in skills development (number)(G)
500,000 by 2030
ESRS S3
35,500
16,400
Number of people supported in skills development (cumulative number since base year 2023)(G)
500,000 by 2030
ESRS S3
51,900
A. Volumes are based on RTD litre sales to CCEP customers and reflect changes for new product launches, cessation of products as they occur based on sales timings. Reformulations are captured on a half-yearly basis given high number of beverage
formulas across Europe. Reformulations made in the first half of the year are reflected in the current reporting period calculation. Second half reformulations are reflected in the next reporting period. Please note the data source and methodology on
when to apply recipe changes differ from the calculation of the GHG emissions of our ingredients.
B. Sparkling soft drinks, non-carbonated soft drinks and flavoured water only. Does not include water or juice.
C. Non-alcoholic ready to drink (NARTD), including dairy. Does not include coffee, alcohol, beer or Freestyle.
D. Europe 50% by 2025. Does not include coffee, alcohol, beer or Freestyle. Low calorie beverages ≤20kcal/100ml. Zero calorie beverages <4kcal/100ml.
E. Excludes Fiji and Samoa, as aligned role grades are not available for 2024 reporting. We aim to include these markets for 2025.
F. Calculated based on the total number of employees responding to our voluntary 2023 inclusion survey (representing 38.4% of our workforce) and the number of employees self-declaring as having a disability. Inclusion survey done every two years.
G. We aim to be accurate in our reporting and continue to enhance the way we capture the total value of our community contribution. Figures quoted have been rounded to the nearest 100.
Full details on the methodology for our sustainability indicators are available at
cocacolaep.com/sustainability/download-centre.
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Key performance data related to other This is Forward topics♦
Entity specific | S3-5
ESRS
Our approach to reporting and methodology
CCEP’s carbon footprint is calculated in accordance with the World Resource
Institute (WRI) and World Business Council for Sustainable Development
(WBCSD) Greenhouse Gas (GHG) Protocol Corporate Standard, using an
operational control approach to determine organisational boundaries.
GHG emissions are reported in tonnes of carbon dioxide equivalent (tonnes of
CO2e or tCO2e), accounting for different Global Warming Potentials (GWPs) of the
different GHGs.
Note on sources of data and calculation methodologies
Under the GHG Protocol, we measure our emissions in three Scopes. We disclose
the Scope 1, 2 and 3 carbon emissions of our full value chain, including emissions
related to our production facilities, operational centres, sales offices, distribution
centres, cold drink equipment (CDE), our owned and operated transportation, as
well as third party distribution, business travel, ingredients and packaging. We
also disclose biogenic emissions, which are outside of the three WRI/WBCSD GHG
Protocol Scopes. GHG emissions are reported on a gross basis, independent of
any GHG trades, offsets or carbon credits.
Where we refer to our own operations, unless otherwise indicated, we are
referring to our own production, sales/distribution, combined sales/production
facilities, administrative offices and fleet owned or controlled by CCEP, including
our shared service centres in Bulgaria.
In-scope sales volumes are based on ready to drink (RTD) litre sales to CCEP
customers and reflect changes as they occur, based upon sales timings. Sales
from distribution agreements are excluded as the GHG emissions associated
with these products will be accounted for by the Brand owners which are not
CCEP owned or operated. Alcohol sales volume is included if CCEP manufacture
the alcohol products. Sales volumes from imports/exports from/to non-CCEP
countries are excluded to avoid double counting.
Approximately 1% of our value chain carbon footprint is based on estimated data.
This includes the site energy emissions for small leased offices where energy
invoices or the square metre footage size is not available. Where we do not have
the packaging specifications for a limited number of packaging types (e.g. coffee
bags), these are estimated based on an average of all other packaging
specifications. We also estimate the electricity consumption for the pure electric
and plug-in hybrids in our company car fleet.
2019 baseline and recalculation methodology
Our baseline year is 2019. The acquisition of Australia, Pacific and Indonesia (API)
was completed on 10 May 2021 and the acquisition of Coca-Cola Beverages
Philippines, Inc. (CCBPI), on 23 February 2024. Sustainability metrics are
presented on a full year basis. 2019 baselines and subsequent years have been
calculated on a pro forma basis to allow for better period over period
comparability.
In line with the WRI/WBCSD GHG Protocol guidance, we restate our baseline and
subsequent year data when there are significant acquisitions, new emissions
factors and more accurate data. We apply a significance threshold of 5%, but
also re-baseline in line with best practice, in order to retain consistency and
comparability across years.
In 2024, we have restated our baseline figures for 2019 and 2020-2023 as
necessary, increasing baseline and subsequent year emissions by approximately
2 million tCO2e. Key changes include:
• Acquisition of CCBPI including full value chain emissions for the business. This
has added approximately 1.25 million tCO2e to our baseline year, and
represents the most meaningful change to prior year data.
• Updates to our emissions factors for ingredients, particularly sugar cane, sugar
beet, as well as juices and ingredient CO2.
• Updates to emissions factors for plastic packaging.
• Updates to more accurate packaging collection rates, particularly in Europe.
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ESRS sustainability metrics methodology♦
E1 MDR-M
ESRS
Forward on climate
Scope 1 GHG emissions sources
Includes direct owned and operated sources of emissions such as:
• Stationary combustion sources, such as natural gas, diesel/petrol fuel for back
up boilers/generators and on-site shunting vehicles, light fuel oil, liquid
petroleum gas (LPG) for forklift trucks, wood, compressed natural gas (CNG),
non-biogenic element of biofuels such as HVO100 and biomass.
• Mobile combustion such as diesel and petrol for CCEP operated customer
delivery, vans, motorcycles and car fleet.
• Fugitive emissions of refrigerants.
• Fugitive CO2 emissions from manufacturing processes (i.e. losses occurring
during product carbonisation process).
• On-site renewables including geothermal, solar, water turbine, ground source
heat (listed as GHG emission sources, but zero rated in terms of carbon
emissions).
• Fugitive biogas from anaerobic digesters.
We follow Beverage Industry Environmental Roundtable (BIER) emissions sector
guidance on the emissions source for the source of the CO2 supplied to CCEP to
carbonate soft drinks, and whether these are generated from fossil or biogenic
sources of CO2.
Scope 2 GHG emissions – purchased electricity, heat and steam
We report Scope 2 emissions according to the GHG Protocol Scope 2 Guidance.
We use the Scope 2 market based approach to report our aggregated Scope 1, 2
and 3 GHG emissions, and to set our aggregated targets.
We include indirect sources of GHG emissions from the generation of electricity,
heat and steam we use at our sites.
The carbon emission factors for Scope 2 emissions are applied in terms of the
two methods provided by the GHG Protocol:
(1) Location based: all electricity purchased is converted into CO2 emissions
using the average grid emissions factor for electricity in the country in which it
is purchased. Energy Attribute Certificates (EACs) are not applied to the total
Scope 2 emissions unless these are produced and claimed by CCEP.
(2) Market based: all electricity purchased is converted to CO2 using emissions
factors from contractual instruments which CCEP has purchased or entered
into. EACs are applied based on RE100 guidance which allows for EACs to be
used against electricity consumed in the same market as where the EACs are
purchased.
Any sites with no contractual instruments for renewable electricity supply will
have a residual factor applied (where available), which has had renewable
contractual instruments removed.
The quantity of purchased renewable electricity was verified through renewable
electricity certificates such as Guarantees of Origin (GoOs) in the EU, Renewable
Energy Guarantees of Origin (REGOs) in the UK, Large-scale Generation
Certificates (LGCs) in Australia, Tradable Instruments for Global Renewables
(TIGRs) or Power Purchase Agreements (PPAs) from our electricity suppliers in
each country and through meter readings of renewable electricity generated on-
site.
In leased non-production facilities where we do not control the purchase of the
electricity, we apply the national grid emissions factor for those sites. Where the
landlord has provided evidence that they are purchasing renewable electricity on
our behalf, we will report this in line with the market based approach.
Emissions related to the generation of electricity for these sites are included in
our Scope 2 emissions.
Scope 3 GHG emissions
Data is consolidated from a number of sources across our business and is
analysed centrally. We use a variety of methodologies to gather our emissions
data and measure each part of our carbon footprint.
CCEP uses emission factors relevant to the source data including UK Department
for Energy Security and Net Zero (DESNZ), Australia’s Department of Climate
Change, Energy, the Environment and Water (DCCEEW) factors for state-level
electricity factors, and International Energy Agency (IEA) emission factors for all
other grid factors at a national level.
Data sources include:
• Energy data: from metered sources, supplier invoices or calculations and
estimates based on energy benchmarks published in the Best Practice
Programme’s Energy Consumption Guide 19 (ECON 19).
• Package specifications.
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ESRS sustainability metrics methodology♦ continued
E1 MDR-M
ESRS
• Recipe data for key ingredients: in APS, if a recipe change occurs during a
reporting year, it is applied for the full year’s sales. In Europe, the change is
applied from the date the change is made.
• Packaging collection rates: we have restated prior year 2019-2023 rates in line
with updated European methodology for calculating packaging collection rates.
• Supplier data for recycled content rates.
• CO2 released from carbonated products when opened by consumers.
• Calculations of CDE emissions are based on weighted average daily (kWh/24h)
supplier energy consumption rates and by subtracting any savings achieved
through carbon/energy use reduction initiatives completed during the reporting
period or prior years.
• Transport fuel is calculated according to actual litres, kWh or kgs used, or
kilometres recorded with vehicle fuel efficiency rates provided by suppliers.
• Supply of water, treatment of wastewater and waste management are
calculated by using litre and weight (kg) data respectively.
• Spend data used to calculate Category 1: purchased goods and services
(Marketing and IT spend). Marketing spend includes: sales and marketing
agency, and services spend and trade marketing. IT spend includes fixed and
mobile telecoms, IT hardware and software and outsourced services.
• Employee headcount and job role used to calculate employee commuting data.
Includes Well-To-Tank (WTT) assumptions.
• We have started to use supplier specific emission factors for sugar beet in
Europe. This represents 2.8% of total Scope 3 emissions, calculated using
specific suppliers emission factors. We will extend this to other packaging and
ingredient suppliers over the coming years.
Scope 3 reported categories
The following Scope 3 categories are reported in our total value chain figures,
and are included in our current Science Based Targets initiative (SBTi) target
boundary, representing approximately 90% of our Scope 3 emissions:
• Category 1: purchased goods and services (including the packaging we put on
the market, the ingredients used in our products, purchased water, IT,
telecoms and sales and trade marketing spend).
• Category 3: fuel- and energy-related activities not already included in Scope 1
or Scope 2 (e.g. WTT, transmission and distribution from energy supply to our
sites and assets).
• Category 4: upstream transportation and distribution (transportation of
finished products paid for by CCEP).
• Category 5: waste generated in operations (emissions from disposal of waste
generated at our production facilities).
• Category 6: business travel (including employee business travel by rail and air).
• Category 7: employee commuting (including commuting and home working
emissions).
• Category 8: upstream leased assets (including the home charging of company
plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV)).
• Category 11: use of sold products (including CO2 emissions released by
consumers, in accordance with BIER guidance).
• Category 12: end of life treatment of sold products.
• Category 13: downstream leased assets (including the emissions generated
from the electricity used by our hot and cold drink equipment at our
customers’ premises).
The following Scope 3 categories are not included in our current SBTi target
boundary:
• Category 1: purchased goods and services (additional purchased goods and
services that are not included above).
• Category 2: capital goods.
• Category 15: investments (including investments in joint venture recycling
facilities and CCEP Ventures investments).
All other Scope 3 categories (9, 10, 14) are not currently applicable to CCEP.
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ESRS sustainability metrics methodology♦ continued
E1 MDR-M
ESRS
Scope 1, 2 and 3 GHG emissions – Full value chain
Definitions
Aggregation of Scope 1, 2 and 3 GHG emissions using both the market based and
location based approach for Scope 2 emissions.
Methodologies and boundaries
Calculation = [Total Scope 1 GHG emissions] + [Total Scope 2 GHG emissions] + [Total Scope
3 GHG emissions]
Scope 1, 2 and 3 GHG emissions – Full value chain per litre
Methodologies and boundaries
Calculation = ([Total Scope 1 GHG emissions] + [Total Scope 2 GHG emissions (market based
approach)] + [Total Scope 3 GHG emissions]) ÷ [Total volumes in scope of sales (RTD litres)]
RTD litres equates to the final consumption beverage volume, including diluted
post-mix and Freestyle volumes.
Out of scope sales includes items such as certain brands where we only
distribute the product (e.g. some products within our alcohol portfolio in APS).
In 2024, less than 1% of our Europe and APS reported sales volume were out of
scope for GHG reporting.
Absolute reduction in total value chain GHG emissions (Scope 1, 2 and 3) since 2019
Methodologies and boundaries
Calculation % of = ([2019 Scope 1, 2 and 3 GHG emissions] - [Latest reporting period Scope 1,
2 and 3 GHG emissions]) ÷ [2019 Scope 1, 2 and 3 GHG emissions]
Relative reduction in total value chain GHG emissions (Scope 1, 2 and 3) per litre since
2019
Methodologies and boundaries
Calculation % of = ([2019 Scope 1, 2 and 3 GHG emissions per litre] - [Latest reporting period
Scope 1, 2 and 3 GHG emissions per litre]) ÷ [2019 Scope 1, 2 and 3 GHG emissions per litre]
GHG Scope 1 and 2 emissions per litre of product produced
Definitions
Total production volume is measured in undiluted litres for all inventory
produced at our production facilities. Production facilities are defined as our
bottling and production facilities for beverages under our operational control.
This does not include externally sourced production (or "co-packed") sites or
sites from which we source finished packaged goods.
Methodologies and boundaries
Calculation = ([Total Scope 1 GHG emissions] + [Total Scope 2 GHG emissions (market based
approach)]) ÷ [Total volumes of production from CCEP production facilities (production
litres)]
Metric units are reported as gCO2e/litre.
Scope 1, 2 and 3 GHG emissions – Full value chain per revenue
Methodologies and boundaries
Calculation = ([Total Scope 1, 2 and 3 GHG emissions] ÷ [Total sales revenue (Euros)]
Metric units are reported as gCO2e/€.
GHG emissions (Scope 1 and 2) per euro of revenue
Methodologies and boundaries
Calculation = ([Total Scope 1 GHG emissions] + [Total Scope 2 GHG emissions (market based
approach)]) ÷ [Total sales revenue (Euros)]
For CCEP, “UK and UK offshore” equates to our operations in Great Britain. Metric
units are reported as gCO2e/€.
Emissions from biologically sequestered carbon
Definitions
Biogenic CO2 emissions are defined as CO2 emissions related to the natural
carbon cycle, as well as those resulting from the production, harvest,
combustion, digestion, fermentation, decomposition, and processing of
biologically based materials. Biologically based feedstocks, also referred to as
“biologically sequestered carbon”, are non-fossilised and biodegradable organic
materials originating from modern or contemporarily grown plants, animals or
microorganisms.
Biogenic emissions are inherently accounted for in the atmosphere’s natural
carbon cycle. Reporting them within Scopes 1, 2 or 3 would lead to double
counting of emissions, as the sequestration of CO₂ during the growth of the
biomass is not accounted for in these Scopes.
Methodologies and boundaries
Emissions from biologically sequestered carbon are reported outside of the
three Scopes of our reported GHG emissions, in line with WRI/WBCSD GHG
Protocol guidance. CO2 is used to carbonate our soft drinks, therefore we follow
the BIER guidance on reporting CO2 emissions from biogenic sources for fugitive
losses and release by consumers.
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ESRS sustainability metrics methodology♦ continued
E1 MDR-M
ESRS
Our scope for reporting emissions from biologically sequestered carbon includes:
• Biofuels (HVO100, Bio-CNG, rice husk and wood) used in vehicles and sites.
• Anaerobic biogas (where CO2 is released from combustion of the biogas).
• Biofuel where blended with diesel/petrol (forecourt fuels).
• Biogenic-sourced CO2 ingredient: we follow the BIER emissions sector
guidance.
Each source of biologically sequestered carbon is calculated separately using
appropriate biogenic carbon emission factors and then aggregated to provide our
reported total.
Emissions from the production and transportation of biofuels are accounted for
in Scope 3 as part of Category 3 WTT.
Emissions from conversion of biogenic CO2 to a higher GWP GHG are accounted
for in Scope 1. CCEP uses the most up to date emission factors from DESNZ/
DEFRA for biogenic CO2 and anaerobic biogas and for biofuels and bio blends.
Exclusions
Emissions from carbon removals within our value chain related to biomass
feedstock production for bioenergy are well below the significance threshold for
CCEP, so removals have yet to be estimated. If the level of significance changes
in the future, CCEP will follow the latest guidance from the GHG Protocol on
accounting for removals. Biogenic emissions from electricity generation are
excluded.
Manufacturing energy use ratio
Definitions
This includes the use of electricity, diesel, natural gas, as well as other fuels
used, where used in our manufacturing operations (e.g. heating, forklift trucks).
The fuels used in our distribution fleet (e.g. diesel used in our trucks and vans) are
not captured in the manufacturing energy use ratio.
Total production volume is measured in undiluted litres for all inventory
produced at our production facilities. Production facilities are defined as our
bottling and production facilities for beverages under our operational control.
This does not include externally sourced production (or "co-packed") sites or
sites from which we source finished packaged goods.
Methodologies and boundaries
Calculation of ratio = [Total of all energy consumed (MJ) at production facilities] ÷ [Total
volumes of production from CCEP production facilities (production litres)]
CCEP’s manufacturing energy use ratio is calculated in line with The Coca-Cola
Operating Requirements (KORE). All beverage production facilities calculate
manufacturing energy use ratio (NARTD production facilities, breweries and
distilleries) as well as coffee related facilities (Grinders coffee).
Where CCEP has joint ventures with third parties, e.g. recycled PET (rPET)
production facilities, or PET pre-form production facilities, these are not included.
Geothermal is excluded from our energy consumed (MJ) at production facilities in
Great Britain and Belgium as this is an estimated usage. Anaerobic biogas and
combined heat and power (CHP) electricity output are excluded.
Energy consumption
Definitions
Energy consumption is based upon procurement data from each site, supported
by monthly invoices. We report fuel consumption by fuel type using the
environmental management system (Integrum). Data is captured as part of our
carbon calculation model. Energy and fuel consumption data is collected and
converted using local conversion factors to convert fuel to kWh.
Methodologies and boundaries for energy-related metrics
Total energy consumption within the organisation is the total of:
• Non-renewable fuel consumed.
• Renewable fuel consumed.
• Electricity.
• Imported heat and steam.
• Self-generated electricity which is consumed by CCEP.
• Mobile combustion (litres of diesel and petrol converted into kWhs) for CCEP
owned and leased vehicles.
• Less any electricity, heating, cooling and steam sold.
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Total energy consumption (own operations) from fossil sources is the total of:
• Fuel consumption from petroleum products: light fuel oil/site diesel, diesel and
petrol for CCEP operated customer delivery, vans and car fleet, propane, LPG,
and other petrol.
• Energy consumption from natural gas and CNG.
• Non-renewable electricity consumption: electricity CHP and purchased
electricity from non-renewable sources.
Total energy consumption (own operations) from renewable energy is the total of:
• Electricity solar.
• Purchased renewable electricity, geothermal and ground source heat and
purchased heat and steam.
Total energy consumption per net revenue (from activities in high climate impact sectors)
Calculation = [Total energy consumption from activities in high climate impact sectors] ÷
[Total sales revenue from activities in high climate impact sectors (Euros)]
All CCEP’s activities and net revenue are in high climate impact sectors.
Renewable energy
Definitions
The quantity of renewable electricity was verified through renewable electricity
contracts, EACs from our electricity suppliers in each country, and through meter
readings of renewable electricity generated on site. EACs are applied based on
RE100 technical guidance, which allows for EACs to be used against electricity
consumed in the same market as where the EACs are purchased (e.g. Norway
GoOs being used in Germany). Our production facilities, distribution sites,
warehouse sites and office sites are in scope.
Methodologies and boundaries for renewable energy-related metrics:
Percentage of electricity purchased that comes from renewable sources
Calculation = [Quantity of electricity purchased (in MWh) from renewable sources] ÷ [Total
electricity purchased]
Purchased electricity includes centrally procured electricity bundled or
unbundled with EACS, leased solar facility and water turbines, and PPAs.
Any sites with no contractual instruments for renewable electricity supply will
have a residual factor applied (where available) which has had renewable
contractual instruments removed. Figures in this calculation are based solely on
the amount of electricity that CCEP purchases.
Total renewable electricity is reported in MWh. The energy data purchased is
calculated based on direct measurement of electricity purchases (i.e. invoices
and meter readings).
Percentage of electricity consumed that comes from renewable sources
Calculation = [Quantity of electricity consumed (in MWh) from renewable sources] ÷ [Total
electricity consumed (in MWh)]
This includes centrally procured electricity bundled or unbundled with EACs, on
site solar, leased solar facility and water turbines, and PPAs, as well as owned
assets (solar facilities).
Figures in this calculation are based solely on the amount of electricity that CCEP
consumes (i.e. purchased electricity, self generated electricity and electricity
supplied via a lease agreement).
For non-production sites where we do not control the electricity purchasing,
standard grid electricity is consumed. Emissions related to the generation of
electricity for these sites are included in our Scope 2 emissions. This is the main
driver for the difference between our consumed renewable electricity
percentage and purchased renewable electricity percentage.
In APS, across multiple locations including Australia, Fiji and Indonesia we have
on site solar capacity. In 2024, this helped our percentage of electricity
consumed that comes from renewable sources, exceed our percentage of
electricity purchased that comes from renewable sources.
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Percentage of carbon strategic suppliers having targets approved by the SBTi
Definitions
Carbon strategic suppliers are suppliers which collectively account for approximately
80% of our Scope 3 emissions. All carbon strategic suppliers are directly managed by
our procurement teams. They have been selected based upon their contribution to
our carbon emissions, and our intent to work with them on long-term carbon reduction
programmes. For 2024, CCEP’s carbon strategic suppliers totalled approximately 185
suppliers.
We ensure that our carbon strategic suppliers account for approximately 80% of
our Scope 3 emissions by allocating the emissions of different categories (e.g.
packaging, ingredients and transportation) to the suppliers in those categories,
based on purchased material tonnages or spend.
Methodologies and boundaries
Calculation = [Total number of carbon strategic suppliers with SBTi approved science based
targets] ÷ [Total number of carbon strategic suppliers]
SBTi targets are clearly defined, science based pathways for companies to reduce
GHG emissions, which have been reviewed and validated by the SBTi. Approved targets
are those that have been approved or validated by the SBTi, and there is evidence to
support this on the SBTi website, or through an SBTi validation letter.
Suppliers with a committed status are excluded from the total number of carbon
strategic suppliers with SBTi approved science based targets. However we do track
this list of suppliers separately. Suppliers whose SBTi target status is “committed”
have made a commitment to set a science based target aligned with the SBTi’s target
setting criteria within 24 months. Additionally, we count Small and Medium sized
Enterprises (SME) as “committed”, if they inform us of their plans to submit the SME
Target Setting Form by target year date.
A business with a group science based target approved by the SBTi can consist
of various legal entities or operational divisions. Where these divisions operate
independently, akin to individual suppliers in their dealings with CCEP, they are
designated as independent carbon strategic suppliers for the purpose of this
metric. As a result, several different carbon strategic suppliers may form part of
the same group associated with a singular approved group SBTi science based
target.
Tonnes of CO2e offset through carbon credits
Definitions
Carbon offset credits are defined as centrally purchased certified carbon
credits (e.g. Gold Standard or Verra/VCS). These credits are purchased and
certificates are retired centrally.
In 2022, CCEP purchased approximately 100,000 tCO2e of carbon credits, which
we have retired in 2023 and 2024. In 2024, we retired 20,484 tCO2e from the
VCS-certified Rimba Raya Biodiversity Reserve Project in Indonesia.
Note that CCEP’s GHG emissions are reported on a gross basis, independent of
any offsets or carbon credits.
Methodologies and boundaries
Calculation = Total amount of certificates of Verified Carbon Units retired within the
reporting period
All centrally purchased carbon credits are within scope.
Calculated tonnes of offsets are based upon assessed values as provided on
carbon credit certificates.
Total tonnes of CO2e offsets are based upon retired carbon credit certificates.
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Principles for Sustainable Agriculture (PSA)
Definitions
PSA apply to agricultural ingredients and raw material suppliers, and cover human
rights, environmental protection and sustainable farm management. They also
include forest and biodiversity conservation practices, such as no conversion of
forests for new agricultural production, protection of endangered species, and
where possible, restoration of ecosystem services that our suppliers of
agricultural ingredients and bio-based packaging materials are expected to
implement.
Annual quantities are sourced from supplier declarations. Suppliers also disclose
relevant certifications and third party standards which align to PSA requirements.
CCEP conducts subsequent checks on supplier disclosed quantities to internal
CCEP procurement systems and verifies a sample of third party standards
declarations to relevant websites and public records.
Methodologies and boundaries
Percentage of sugar sourced through suppliers in compliance with our PSA
Calculation = [Total weight (Mt) of product sourced through PSA compliant scheme] ÷ [Total
weight (Mt) of product sourced]
In partnership with The Coca-Cola Company (TCCC), we offer several routes for
sugar beet suppliers to comply with the PSA and meet third party standards.
Cane sugar suppliers can be certified as meeting our PSA though third party
standards such as Bonsucro, FSA Gold and Silver and Redcert 2.
Percentage of pulp and paper sourced through suppliers in compliance with our PSA
Calculation = [Total weight (Mt) of product sourced through PSA compliant scheme] ÷ [Total
weight (Mt) of product sourced]
In partnership with TCCC, we offer several routes for pulp and paper suppliers to
comply with the PSA and meet third party standards. Pulp and paper suppliers
can attain a Sustainable Forest Management accreditation, such as the Forest
Stewardship Council (FSC), or a certification endorsed by the Programme for the
Endorsement of Forest Certification (PEFC). The FSC and PEFC certified logos
represent a global chain of custody system, supported by a chain of custody
certification process and independent inspections. Every new paper, pulp and
cardboard contract now includes a requirement for third party certification.
Percentage of coffee sourced through suppliers in compliance with our PSA
Calculation = [Total weight (Mt) of product sourced through PSA compliant scheme] ÷ [Total
weight (Mt) of product sourced]
We calculate the percentage of coffee sourced sustainably by CCEP for our
Grinders brand in APS. In partnership with TCCC, several routes are available for
coffee suppliers to comply with the PSA and meet third party standards,
including The Rainforest Alliance and Fairtrade certification.
Percentage of total supplier spend covered by our Supplier Guiding Principles (SGPs)
Definitions
The SGPs are a vital pillar of our human rights and workplace accountability
programmes. The SGPs form part of the standard conditions which are attached
to our purchase order process. SGPs compliant suppliers are direct suppliers
who signed terms and conditions (through our purchase orders) which included
our SGPs covering the reporting period.
Methodologies and boundaries
Calculation = [Total € spend with SGPs compliant suppliers ] ÷ [Total € spend across all
direct suppliers]
Data based upon compliance pathway agreements with suppliers in the reporting
period, and percentage of total spend sourced through these suppliers. Spend
excluded from the scope of this measurement:
(1) Brand partner (franchise or distribution agreement partners) spend.
(2) Payments made outside of standardised procurement processes (e.g.
donations, sponsorship, recycling schemes, government institutions and tax
authorities).
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Manufacturing water use ratio
Definitions
Water use ratio is calculated as the total water withdrawals divided by total
production volumes from CCEP’s production facilities within the reporting period.
Methodologies and boundaries
Calculation = [Total water withdrawal (litres)] ÷ [Finished product (production volume
litres)]
Production facilities are for all beverage types. Total water withdrawals is the
total of all water used by production facilities from all sources, including
municipal, borehole and rainwater sources.
This includes water used for production, water treatment, cleaning and
sanitation, backwashing filters, irrigation, washing trucks and other vehicles,
kitchen or canteen, toilets and sinks, and fire control. This does not include return
water (e.g. water used for cooling which is returned to the source after use).
Finished products represent litres of product produced, including all production,
not just saleable products, and excluding externally sourced production (or "co-
packed") or third party sites from which we source finished packaged goods.
Volume is prior to dilution for consumption (e.g. post-mix volume is for syrup
volume, not RTD litres).
Non-production sites are excluded. Production facilities linked to coffee roasting,
PET preforms and recycling are out of scope.
Percentage reduction in manufacturing water use ratio since 2019
Calculation = ([2019 manufacturing water use ratio] - [Latest reporting period
manufacturing water use ratio]) ÷ [2019 manufacturing water use ratio]
Water replenished
Definitions
CCEP’s total water replenishment volumes are sourced from TCCC. The Nature
Conservancy, with support from LimnoTech and the Global Environment and
Technology Foundation, helped TCCC develop methodologies to calculate the
volume of water replenished using an approach based on widely accepted tools
and methodologies.
Water replenishment project factsheets and total replenishment volumes have
been validated by third party consultants on behalf of TCCC, including validation
that the required productivity monitoring has taken place. Depending on the data
availability, project volumes are either measured or estimated using the
Volumetric Water Benefit Accounting (VWBA) methodology.
Sales volumes of company beverage products (in RTD litres) have been used as
disclosed in the latest Annual Report and Form 20-F. RTD litres equate to the final
consumption beverage volume, including diluted post-mix and Freestyle volumes.
Methodologies and boundaries
Water replenished as percentage of total sales volumes
Calculation = [Litres of water replenished] ÷ [RTD litres of finished beverages sold]
Total volume of water replenished
Calculation = The volume of water safely provided to communities and to nature by our
water replenishment projects portfolio (litres)
Water replenishment is based on the volume of water replenished through
replenishment projects. It is the volume of water safely provided to communities
and to nature by the portfolio of water replenishment projects.
Volumetric project benefits are quantified using TCCC’s peer reviewed
methodology, as outlined in the Corporate Water Stewardship: achieving a
Sustainable Balance paper published in the Journal of Management and
Sustainability in November 2013, or the methodology described in VWBA, a
Method for Implementing and Valuing Water Stewardship Activities (2019), which
builds on the 2013 paper. There are three primary water replenishment project
types:
(1) Watershed protection and restoration.
(2) Water access and sanitation (WASH).
(3) Water for productive use.
Total water withdrawal
Definitions
Total gross water withdrawal from all production facilities, calculated prior to
production or water discharges.
Production facilities are defined as our bottling and production facilities for
beverages under our operational control. This does not include externally
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sourced production (or “co-packed”) sites or sites from which we source finished
packaged goods.
Methodologies and boundaries
Calculation = [Water withdrawal from municipal source (Litres)] + [Water withdrawal from
borehole source (Litres)](A) + [Water withdrawal from rainwater source (Litres)]
Water withdrawal from production facilities only. We prepare and report water
withdrawal data from sites where we have operational control, using internally
developed reporting methodologies based on the Global Reporting Initiative
(GRI) Standards.
Water withdrawals are measured primarily based on meter readings and invoices
for the majority of CCEP’s production facilities. In some limited instances,
estimations are used to calculate withdrawals. Water withdrawals are reported
by source at site level using the environmental management system.
Total water consumed
Definitions
Water consumption measures water used by CCEP in our production of
beverages for consumers, so that it is no longer available for use by the
ecosystem or local community in the reporting period.
Production facilities are defined as our bottling and production facilities for
beverages under our operational control. This does not include externally
sourced production (or “co-packed”) sites or sites from which we source finished
packaged goods.
Methodologies and boundaries
Calculation = [Total water withdrawal (Litres)] - [Total water discharge (Litres)]
Water withdrawal and wastewater discharge from production facilities only.
We prepare and report water withdrawal data from sites where we have
operational control, using internally developed reporting methodologies based on
the GRI Standards.
Water withdrawals are measured primarily based on meter readings and invoices
for the majority of our production facilities. In some limited instances,
estimations are used to calculate withdrawals. Water withdrawals are reported
by source at site level using the environmental management system. Water in
storage does not have a significant water-related impact, therefore we do not
report any changes in water storage.
Water intensity ratio
Methodologies and boundaries
Calculation = [Total water consumption] ÷ [Total sales revenue (Euros)]
Metric units are reported as m3/€.
Areas of baseline water stress
Definitions
Production facilities are defined as our bottling and production facilities for
beverages under our operational control. This does not include externally
sourced production (or "co-packed") sites or sites from which we source finished
packaged goods.
All our production facilities are assessed for baseline water stress through a
global Enterprise Water Risk Assessment (EWRA) using the WRI Aqueduct 4.0 tool.
Sites in baseline water stress are those that are in “high” or “extremely high”
water stress, according to the WRI Aqueduct tool.
The EWRA was last carried out in 2024. Through the EWRA, we have identified that
31 of our NARTD sites are in baseline water stress. An assessment of our sites
located in water stressed areas is completed periodically and also on a risk
based basis, as threats evolve and new data becomes available. We include any
new build or acquired sites, and exclude any sites divested.
Methodologies and boundaries
Total water withdrawals from areas of baseline water stress
Calculation = [Water withdrawal from municipal source (Litres)] + [Water withdrawal from
borehole source (Litres)] + [Water withdrawal from rainwater source (Litres)]
Water withdrawal only from NARTD production facilities located in areas of
baseline water stress. Breweries, distilleries and other non-beverage production
facilities are excluded from the scope of this measure.
Percentage of water withdrawals from areas of baseline water stress
Calculation = [Total water withdrawals at NARTD production facilities located in areas of
baseline water stress (Litres)] ÷ [Total water withdrawals at NARTD production facilities
(Litres)]
Breweries, distilleries and other non-beverage production facilities are excluded
from the scope of this measure.
Total water consumption from areas of baseline water stress
Calculation = Total water withdrawal (Litres) - Total water discharge (Litres)
Water withdrawal and wastewater discharge from production facilities only at
NARTD production facilities, located in areas of baseline water stress.
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(A) Until 2023, this excluded return water e.g. water used for cooling which is returned to the source after use. From 2024, this is included to align with ESRS.
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Packaging
Definitions
CCEP’s packaging data is calculated based upon monthly sales volume data
within the reporting periods, standard packaging specifications, material types
and weights by product stock keeping units (SKUs). This information is calculated
for each individual country and subsequently combined to form regional or Group
level reports.
Percentage of all primary packaging that is recyclable
Definitions
Packaging can be considered to be ”recyclable” when it meets the general
reusability criteria and either the global criteria or the local criteria is met:
• Reusability: if more than 70% of the packaging material by weight can be
separated and effectively reused in another application, it meets the criteria
for reusability. For example, in aseptic fibre packaging, consisting mainly of
paper with components like aluminium, glue, and plastic, the paper portion can
be isolated and repurposed. Reusability also includes a recycling process
where materials are transformed into new products of alternative use or
functionality compared to the original product.
• Global criteria - effective recycling at scale: a packaging type is considered
recyclable, if it is widely collected and effectively recycled across a cumulative
geography of 400 million consumers. The extent of recycling is determined not
just by the type of packaging but also by the available collection and recycling
infrastructure. “Effectively recycled” means that the packaging is transformed
into a raw material for use in a new application.
• Local criteria - collected and recycled at scale:
• Accessibility of collection: packaging is considered to be collected at scale if
at least 65% of the population has access to recycling collection facilities.
This threshold of 65% is what CCEP would regard as a minimum standard in
its markets, barring any stricter local regulations; and
• Local recycling rates are met: on a local scale, if at least 30% of the packaging
introduced to the market is effectively recycled, the packaging is deemed
recyclable. This assessment is based on the actual recycling performance of
the packaging material within the local market.
Our preference is for beverage packaging to be converted into secondary raw
material that can be used again in beverage packaging (i.e. bottle-to-bottle).
At present our packs are being recycled into a range of either PET resin or other
materials (such as fibre and plastic strapping). These are also deemed recyclable
under our definitions. Over time, we will aim for all our materials to be recycled
into either new beverage packaging, or have multiple use cycles.
Potential overlap between categories of reused and recycled is addressed
through a review, where each item is reviewed and categorised as recyclable or
not according to our definition.
Packaging which can only be sent for incineration with or without energy recovery
or sent to landfill is not considered to be recyclable by CCEP.
Methodologies and boundaries
Calculation = [Total volumes of sales of products qualifying as recyclable (Unit cases)] ÷
[Total volumes of sales (Unit cases)]
This indicator refers to our primary packaging that is used by the end consumer
and includes bottles and closures, cans, beverage cartons and pouches.
It is calculated based upon the definition of recyclability according to the Ellen
MacArthur Foundation that: “a packaging or packaging component is recyclable if
its successful post-consumer collection, sorting and recycling is proven to work
in practice and at scale.”
A unit case equals approximately 5.678 litres or 24 eight ounce servings, a typical
volume measure used in our industry. Our packaging data is representative of the
material specifications, as of 31 December in each reporting period.
Primary packaging collected for recycling as a percentage of total packaging
Methodologies and boundaries
Calculation = Percentage of RTD primary consumer packages collected for recycling or
collected and refilled expressed as a weighted average based on CCEP individual unit sales
Collection rate represents a weighted average of national collection rates;
collected for recycling rates(A); recycling rates(B) or refillable rates. The
calculation is based on CCEP’s sales of individual units by package type, by
country, and is used to express the overall percentage of equivalent bottles,
cans and other primary consumer packaging types introduced into the market.
This is a calculation to represent the percentage of primary consumer packages
that have been collected and refilled or collected for recycling for the year.
Collection rates are determined by country for each packaging type based on
either national studies of collection or recycling data by packaging material type,
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A. Collection for recycling rate – measures packaging that is collected in a market to then be sorted for recycling.
B. Recycling rate – measures packaging at the point in the sorting process where it does not need to undergo any further processing before it is turned into recycled content, as defined by the EU Packaging and Packaging Waste Regulation (PPWR).
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fact based data from a collection partner, production facility standards for
refillable packs, or internal estimates (approximately <1%).
Given the delay in publication of national collection data and statistics, there is a
time lag between the availability of this data and our reporting. Therefore, the
national collection rates for the latest reporting period (often prior year) are
applied to the reporting period volumes. This means, in some instances, the
collection rates from last year’s reporting have been rolled over to this year’s
reporting as updated recycling rates were not available.
National studies are performed by external third parties, such as governments,
industry organisations, NGOs, recyclers and consultancies, which may include
those engaged by CCEP. Production facility standards are applied for refillable
glass and PET. In some cases internal estimates have also been used where data
and assumptions are dependent on a third party (e.g. recycler or waste picker).
Collection rates - data choices/hierarchy
1) Deposit Return Scheme (DRS): in countries where a DRS is in place, we will use
the national reported figures as made available by the scheme administrator.
These figures are ideally published on a unit basis.
2) No DRS: in countries where no DRS is in place, but there is an Extended
Producer Responsibility (EPR) active:
• For PET bottles, CCEP will look to align with the requirement reporting from the
Single-use Plastics Directive ((EU) 2021/1752). If this rate is not yet available, we
will choose to report calculated rates based on the material sorted for
recycling (or sorting output) as published by the country’s Producer
Responsibility Organisation (PRO). If neither of the above are available, we will
work with an independent third party to check and use the official data that is
made available by the country PRO, and is closest to the point of measurement
as stated in the Single-Use Packaging Directive.
• For all other materials (glass, aluminium, steel, carton), CCEP will look to align
with the revised PPWR methodology ((EU) 2019/665), that now takes into
account only those materials that are ready to be effectively reprocessed into
new raw materials (recycled into new raw materials).
If this is not yet available, we will report calculated rates based on the most
accurate and official published numbers.
In many instances in Europe, this will mean that we will use the recycling rates
reported for packaging waste on Eurostat.
3) In countries where no DRS is in place, and no is EPR active:
• CCEP will use the collection numbers that are generated by our “self-funded
collection efforts”. This is based on data from our collection and/or recycling
partners. With this methodology, it is possible for CCEP to effectively collect
more bottles and/or cans than the number of bottles and/or cans that have
been put onto the market by CCEP within the same year. The total number of
collected bottles and/or cans will be taken into account when calculating the
aggregated collection rate.
• If no “self-funded collection efforts” take place in a certain market, we use
collection data that is made publicly available through official and reliable
sources (e.g. government and NGO studies).
Definitions
The packaging collection rate is based on packaging collection for recycling rates
by material in each of our markets. We then apply these to our own packaging
sales (based on individual units) by pack and by market, and express this
weighted average as the estimate to track our progress against our target to
“Collect and recycle a bottle or a can for each one we sell by 2030” (Note: packs
included extend beyond bottles and cans to include all primary consumer packs).
The way that packaging collection rates are calculated may differ across our
markets. Where these are available, we use collection or recycling rates based on
beverage containers. However in some instances only material data is available
(e.g. total glass, not beverage glass in isolation).
Sales in units are measured for the following select primary consumer packaging
types: aluminium and steel cans, beverage cartons, refillable glass and PET
bottles, non-refillable glass and PET bottles, pouches and aluminium bottles.
The following packaging types are excluded: cups and vessel, refillable HDPE, bag
in box (post-mix), Freestyle and keg.
Production facility standards for refillable are used for refillable glass and
refillable PET markets. For refillable glass, all markets excluding Germany use a
95% collection rate. In Germany, refillable PET collection is set at 98%, and for
refillable glass, the collection rate is set at 99%.
In 2024, back-cast data for prior years was calculated via Eunomia, and was used
in the re-baselining of our GHG emissions. The percentage of all primary
packaging that is recyclable disclosed for 2023 has not been restated.
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Percentage of PET used which is rPET
Methodologies and boundaries for metrics related to packaging
Calculation = [Total weight of rPET used in one-way PET bottle sales (tonnes)] ÷ [Total
weight of one-way PET bottle sales (tonnes)]
Labels and caps are excluded from the calculation. The calculation excludes all
refillable PET and refers to one-way PET bottles only.
To determine the proportion of rPET in our PET bottles, we calculate a weighted
average. This calculation takes into account the monthly sales and the
percentages of rPET, focusing on the PET used in our single use PET bottles. It
involves averaging the amounts of both mechanically and chemically recycled
PET, as well as virgin PET, for each PET product variant on a monthly basis.
Total packaging weight
Methodologies and boundaries for metrics related to packaging
Total weight of packaging (tonnes) includes:
• Primary packaging: PET, glass, aluminium, carton, pouches/multifilm, LDPE, HDPE,
PP and paper.
• Secondary packaging: LDPE, HDPE, cardboard and PP.
• Tertiary packaging: LDPE.
This also accounts for trippage (i.e. the number of re-uses) for our refillable
products.
Total recycled content
Definitions
Recycled material in our packaging refers to post-consumer recycled materials
collected from consumers, which are reused as new raw material in our
packaging.
Methodologies and boundaries for metrics related to packaging
Calculation = Total weight of packaging that is recycled (tonnes)
Includes all packaging: primary, secondary and tertiary (see above).
Forward on society
Number of people supported in skills development
Definitions
Support: this refers to resources that CCEP commits to support skills development
programmes. If a programme has other funding providers, the number of beneficiaries
claimed by CCEP is directly proportional to the funding provided by CCEP.
Skills development: in-person and online interventions to equip people facing
barriers in the labour market with the skills they need to succeed. Interventions
include elements, such as virtual events (e.g. webinar and online training), in-
person events (e.g. careers fair, networking event and speech), training/upskilling
programmes, vocational training (e.g. HoReCa), work experience, apprenticeships,
internships/placements, and mentoring.
Each programme delivery partner is responsible for data collection, including
details of registration of individuals enrolled in each programme and evidence to
support that the programme has supported skills development of that individual.
Data collection can include, but is not limited to, post-event surveys, attendance
lists, proof of completion of online training, register of attendance, schedule/work
diary of beneficiary and signed contracts.
The following groups of individuals do not qualify as beneficiaries in our measurement:
• People who signed up but did not attend/take part in community investment
activities.
• People that were sent information but did not engage with the material.
• People indirectly impacted by an activity, e.g. the whole population of a town
where a learning centre has been set up.
Methodologies and boundaries
Calculation = Cumulative total number of people supported in skills development since
1 January 2023 (base year)
The number of people supported in skills development (“beneficiaries”) via active
participation in skills development activities or programmes supported by CCEP
since 2023, when CCEP started the programme. Activities and programmes can
include those delivered by either external community partnerships or via CCEP
administered programmes which support skills development or apprenticeships.
Full details on the methodology for all our sustainability indicators are
available at cocacolaep.com/sustainability/download-centre.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
272
ESRS sustainability metrics methodology continued♦
E5 MDR-M | S3 MDR-M
ESRS
The following table contains all disclosures in ESRS 2 and our material topical standards. Standards deemed not material are excluded. This table can be used to
navigate the sustainability statement, and to locate ESRS data points located outside the sustainability statement, which have been incorporated by reference
(consistent with ESRS standards), via the following icon throughout the report ♦
.
Cross cutting standards
Disclosure
Section/
report
Reference
Page
Explanatory
notes
ESRS 2 | General disclosures
BP-1
General basis for preparation of the sustainability statement
DS
Basis for preparation and transition
24
BP-2
Disclosures in relation to specific circumstances
DS
ESRS 2 general information, Our DMA outcomes
24, 27
GOV-1
The role of the administrative, management and supervisory bodies
DS, GOV
ESG governance framework, policies and procedures, Board
of directors, Director’s biographies, Governance framework,
Training and development, How the Board monitors culture
26, 30-31, 96, 98,
106, 112
GOV-2
Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
DS
Board-level governance
25, 26
GOV-3
Integration of sustainability-related performance in incentive schemes
REM
2022 Long-Term Incentive Plan, LTIP, Long-term incentives 132, 134-135, 138
GOV-4
Statement on sustainability due diligence
DS
Statement on due diligence
25
GOV-5
Risk management and internal controls over sustainability reporting
DS, PR
Risk management and internal controls, Internal control
procedures and risk management
25, 74, 76
SBM-1
Strategy, business model and value chain
GB, GE,
DS, GOV,
FSI
Our operations, Our business model, Our strategy, Refreshing
customers and consumers, Winning with customers
4-5, 7, 12-13, 20,
22, 61, 256-257
SBM-2
Interests and views of stakeholders
DS, OS
S3 Stakeholder engagement, Our stakeholders
57, 61-64
SBM-3
Material IROs and their interaction with strategy and business model
DS
Our double materiality assessment, Material ESG-related
impacts and risks, E1
27-29, 57
IRO-1
Description of the process to identify and assess material impacts, risks
and opportunities
DS
Our double materiality assessment
27
IRO-2
ESRS disclosures covered by the undertaking’s sustainability statement
Our double materiality assessment
27
MDR-P
Policies adopted to manage material sustainability matters
DS
Policies and procedures
30-31
MDR-A
Actions and resources in relation to material sustainability matters
DS
E1, E2, E3, E4, E5, S3 - Our actions
32-33, 46-47,
49-51, 53-57
MDR-M Metrics in relation to material sustainability matters
DS, FSI
E1, E2, E3, E4, E5, S3 - Metrics and targets, Key performance
data related to ESRS material topics, Methodology
32, 46, 48, 53, 56,
255-257, 260-272
MDR-T
Tracking effectiveness of policies and actions through targets
DS
This is Forward - our sustainability action plan
22
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
273
ESRS 2 - Appendix A
Disclosure reference
GB | Great brands
GP | Great people
GE | Great execution
DS | Done sustainably
FSI | Further sustainability information
GOV | Governance
REM | Remuneration report
OS | Our stakeholders
PR | Principal risks
ESRS E1 | Climate change
SBM-3
Material IROs and their interaction with strategy and business model DS
Risk management, Physical risk
37, 39-45
IRO-1
Description of the processes to identify and assess material IROs
DS
Risk management, Physical risk, Supplier risk management
37, 39-45, 47
E1-1
Transition plan for climate change mitigation
DS
ESG governance framework, Our climate transition plan
26, 32-45
E1-2
Policies related to climate change mitigation and adaptation
DS
Policies and procedures, E1 our strategy
30-32
E1-3
Actions and resources in relation to climate change policies
DS, FSI
Our climate transition plan, business planning
34-45, 255
E1-4
Targets related to climate change mitigation and adaptation
DS, FSI
Metrics and targets, 2030 decarbonisation levers, Key
performance data summary climate
32, 35-36, 255
E1-5
Energy consumption and mix
FSI
Key performance data summary energy consumption and mix 256
E1-6
Gross Scopes 1, 2 and 3 and total GHG emissions
FSI
Key performance data summary climate, ESRS metrics
methodology
255-256
External link to
2024
methodology
E1-7
GHG removals and GHG mitigation projects financed through carbon
credits
DS, FSI
Residual emissions, key performance data summary climate
37, 256
External link to
2024
methodology
E1-8
Internal carbon pricing
DS
Our actions
33
E1-9
Anticipated financial effects from material physical and transition
risks and potential climate-related opportunities
Phase in
allowance
applied
E2 | Pollution
SBM-3
Material IROs and their interaction with strategy and business model DS
Physical risk
41
IRO-1
Description of the processes to identify and assess material IROs
DS
Supplier risk management, What we expect from suppliers
47, 53
E2-1
Policies related to pollution
DS
Policies and procedures, E2 pollution
30-31, 46
E2-2
Actions and resources related to pollution
DS
Ingredients, E2 our actions
35, 46
E2-3
Targets related to pollution
DS / FSI E2 metrics and targets, E2 supplier compliance
requirements, Key performance data
46-47, 256
E2-4
Pollution of air, water and soil
Not material
E2-5
Substances of concern and substances of very high concern
Not material
E2-6
Anticipated financial effects from pollution-related risks and
opportunities
Not financially
material
Cross cutting standards
Disclosure
Section/
report
Reference
Page
Explanatory notes
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
274
ESRS 2 - Appendix A continued
Disclosure reference
GB | Great brands
GP | Great people
GE | Great execution
DS | Done sustainably
FSI | Further sustainability information
GOV | Governance
REM | Remuneration report
OS | Our stakeholders
PR | Principal risks
E3 | Water and marine resources
SBM-3
Material IROs and their interaction with strategy and business model DS
Physical risks
40
IRO-1
Description of the processes to identify and assess material IROs
DS
Increasing water stress and scarcity, E3 our strategy
40, 48
E3-1
Policies related to water and marine resources
DS
Policies and procedures, E3 water use within our supply chain 30-31, 49
E3-2
Actions and resources related to water and marine resources
DS
E3 water usage within our supply chain, E3 our actions
49-50
E3-3
Targets related to water and marine resources
DS
E3 targets and metrics, E3 our strategy
48-50
E3-4
Water consumption
FSI
Key performance data summary total water consumed
257
E3-5
Anticipated financial effects from water and marine-related impacts,
risks and opportunities
Not financially
material
E4 | Biodiversity and ecosystems
SBM-3
Material IROs and their interaction with strategy and business model DS
Transition risks, E4 our impacts and our strategy
43, 51
IRO-1
Description of the processes to identify and assess material IROs
DS
Our communities
64
E4-1
Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
DS
E1 Increasing water stress or water scarcity, changes to
weather and precipitation, E4
40-41, 51-52
E4-2
Policies related to biodiversity and ecosystems
DS
Policies and procedures, our strategy
30-31, 51
E4-3
Actions and resources related to biodiversity and ecosystems
DS
E1 Ingredients, E4 our actions
35, 51
E4-4
Targets related to biodiversity and ecosystems
DS / FSI E4 targets and metrics
51-52, 256
E4-5
Impact metrics related to biodiversity and ecosystem change
DS
E2 targets and metrics, E4 targets and metrics
46, 51
E4-6
Anticipated financial effects from biodiversity and ecosystem-related
risks and opportunities
Not financially
material
E5 | Resource use and circular economy
SBM-3
Material IROs and their interaction with strategy and business model DS
Transition risk
43
IRO-1
Description of the processes to identify and assess material IROs
DS
Transition risk
43, 53-55
E5-1
Policies related to resource use and circular economy
DS
Policies and procedures, E5 our strategy
30-31, 53-54
E5-2
Actions and resources related to resource use and circular economy DS
E1 packaging, E5 our actions
36, 53-55
E5-3
Targets related to resource use and circular economy
DS
E5 targets and metrics
53-55
E5-4
Resource inflows
DS / FSI E1 packaging, E5, Key performance data summary
36, 53-55,
256-257
E5-5
Resource outflows
DS / FSI E5, Key performance data summary
53-55, 257
Cross cutting standards
Disclosure
Section/
report
Reference
Page
Explanatory notes
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
275
ESRS 2 - Appendix A continued
Disclosure reference
GB | Great brands
GP | Great people
GE | Great execution
DS | Done sustainably
FSI | Further sustainability information
GOV | Governance
REM | Remuneration report
OS | Our stakeholders
PR | Principal risks
E5-6
Anticipated financial effects from resource use and circular economy
related impacts, risks and opportunities
Phase in
allowance
applied
S1 | Own workforce
SBM-2
Interests and views of stakeholders
OS
Our stakeholders - our people
61
SBM-3
Material IROs and their interaction with strategy and business model
While not a material topic, we do have targets related to our workforce that can be found in
the further sustainability data section
S2 | Workers in the value chain
While not a material topic, information about workers in our supply chain can be found in the
Great people section.
S3 | Affected communities
SBM-3
Material IROs and their interaction with strategy and business model DS
Our impacts
56
IRO-1
Description of the processes to identify and assess material IROs
DS
Stakeholder engagement
57
S3-1
Policies related to affected communities
GP / DS
Policies and procedures
17, 30-31, 47
S3-2
Processes for engaging with affected communities about impacts
DS / OS
Stakeholder engagement, Our stakeholders - our
communities
57, 64
S3-3
Processes to remediate negative impacts and channels for affected
communities to raise concerns
GP / DS
Respecting human rights, Speak up policy
17, 31
S3-4
Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material
opportunities related to affected communities, and effectiveness of
those actions
GP/ DS
Human rights risk assessment, S3 Our actions
17, 56, 257
S3-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
DS / FSI S3 targets and metrics
56, 259
S4 | Consumers and end users
While not a material topic, we do have targets related to consumers that can be found in the
further sustainability data section
G1 | Business conduct
While not a material topic, information about our business conduct can be found in the
Governance and directors report.
Cross cutting standards
Disclosure
Section/
report
Reference
Page
Explanatory notes
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
276
ESRS 2 - Appendix A continued
Disclosure reference
GB | Great brands
GP | Great people
GE | Great execution
DS | Done sustainably
FSI | Further sustainability information
GOV | Governance
REM | Remuneration report
OS | Our stakeholders
PR | Principal risks
The table below includes all data points that derive from other EU legislations as listed in ESRS 2 – Appendix B. It indicates where the data points can be found in our
report and those deemed non-material.
ESRS 2 GOV-1
21 (d)
Board's gender diversity
x
x
Mandatory GOV
16
ESRS 2 GOV-1
21 (e)
Percentage of board members who are independent
x
Mandatory GOV
96
ESRS 2 GOV-4
30
Statement on due diligence
x
Mandatory DS
25
ESRS 2 SBM-1
40 (d) i
Involvement in activities related to fossil fuel activities
x
x
x
Mandatory N/A CCEP not
involved
N/A
ESRS 2 SBM-1
40 (d) ii
Involvement in activities related to chemical production
x
x
Mandatory N/A CCEP not
involved
N/A
ESRS 2 SBM-1
40 (d) iii Involvement in activities related to controversial weapons
x
x
Mandatory N/A CCEP not
involved
N/A
ESRS 2 SBM-1
40 (d) iv Involvement in activities related to cultivation and production of
tobacco
x
Mandatory N/A CCEP not
involved
N/A
ESRS E1-1
14
Transition plan to reach climate neutrality by 2050
x
Yes
DS
34-36
ESRS E1-1
16 (g)
Undertakings excluded from Paris-aligned benchmarks
x
x
Yes
DS
38
ESRS E1-4
34
GHG emissions reduction targets
x
x
x
Yes
DS
32
ESRS E1-5
38
Energy consumption from fossil sources disaggregated by sources
(only high climate impact sectors)
x
Yes
FSI
256
ESRS E1-5
37
Energy consumption and mix
x
Yes
FSI
256
ESRS E1-5
40-43
Energy intensity associated with activities in high climate impact
sectors
x
Yes
FSI
256
ESRS E1-6
44
Gross Scope 1, 2, 3 and Total GHG emissions
x
x
x
Yes
FSI
255
ESRS E1-6
53-55
Gross GHG emissions intensity
x
x
x
Yes
FSI
255
ESRS E1-7
56
GHG removals and carbon credits
x
Yes
DS
256
ESRS E1-9
66
Exposure of the benchmark portfolio to climate-related physical
risks
x
Yes
N/A phase in
allowance applied
N/A
ESRS E1-9
66 (a);
66 (c)
Disaggregation of monetary amounts by acute and chronic physical
risk; Location of significant assets at material physical risk
x
Yes
N/A phase in
allowance applied
N/A
Disclosure
Data point Description
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law reference
Material
Section
Page
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
277
ESRS 2 - Appendix B
Data points that derive from other EU legislations
GOV | Governance
DS | Done sustainably
FSI | Further sustainability information
ESRS E1-9
67 (c)
Breakdown of the carrying value of its real estate assets by energy
efficiency classes
x
Yes
N/A phase in
option used
N/A
ESRS E1-9
69
Degree of exposure of the portfolio to climate-related
opportunities
x
Yes
N/A phase in
option used
N/A
ESRS E2-4
28
Amount of each pollutant listed in Annex II of the E-PRTR
Regulation emitted to air, water and soil
x
No
N/A
N/A
ESRS E3-1
9
Water and marine resources
x
Yes
DS
48-50
ESRS E3-1
13
Dedicated policy
x
Yes
DS
30-31
ESRS E3-1
14
Sustainable oceans and seas
x
No
N/A
N/A
ESRS E3-4
28 (c)
Total water recycled and reused
x
No
N/A
N/A
ESRS E3-4
29
Total water consumption in m3 per net revenue on own operations
x
Yes
FSI
257
ESRS 2 SBM 3 – E4
16 (a) i
Activities negatively affecting biodiversity sensitive areas
x
No
N/A
N/A
ESRS 2 SBM 3 – E4
16 (b)
Material negative impacts with regards to land degradation,
desertification, or soil sealing
x
No
N/A
N/A
ESRS 2 SBM 3 – E4
16 (c)
Operations that negatively affect biodiversity sensitive areas
x
No
N/A
N/A
ESRS E4-2
24 (b)
Sustainable land / agriculture practices or policies
x
Yes
DS
30-31
ESRS E4-2
24 (c)
Sustainable oceans / seas practices or policies
x
No
N/A
N/A
ESRS E4-2
24 (d)
Policies to address deforestation
x
Yes
DS
30-31
ESRS E5-5
37 (d)
Non-recycled waste
x
No
N/A
N/A
ESRS E5-5
39
Hazardous waste and radioactive waste
x
No
N/A
N/A
ESRS 2 SBM 3 – S1
14 (f)
Risk of incidents of forced labour
x
No
N/A
N/A
ESRS 2 SBM 3 – S1
14 (g)
Risk of incidents of child labour
x
No
N/A
N/A
ESRS S1-1
20
Human rights policy commitments
x
No
N/A
N/A
ESRS S1-1
21
Due diligence policies on issues addressed by the fundamental
International Labour Organization Conventions 1 to 8
x
No
N/A
N/A
ESRS S1-1
22
Processes and measures for preventing trafficking in human beings
x
No
N/A
N/A
ESRS S1-1
23
Workplace accident prevention policy or management system
x
No
N/A
N/A
Disclosure
Data point Description
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law reference
Material
Section
Page
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
278
ESRS 2 - Appendix B continued
Data points that derive from other EU legislations
GOV | Governance
DS | Done sustainably
FSI | Further sustainability information
ESRS S1-3
32 (c)
Grievance / complaints handling mechanisms
x
No
N/A
N/A
ESRS S1-14
88 (b)
and (c)
Number of fatalities and number and rate of work-related
accidents
x
x
No
N/A
N/A
ESRS S1-14
88 (e)
Number of days lost to injuries, accidents, fatalities or illness
x
No
N/A
N/A
ESRS S1-16
97 (a)
Unadjusted gender pay gap
x
x
No
N/A
N/A
ESRS S1-16
97 (b)
Excessive CEO pay ratio
x
No
N/A
N/A
ESRS S1-17
103 (a)
Incidents of discrimination
x
No
N/A
N/A
ESRS S1-17
104 (a)
Non-respect of UNGPs on Business and Human Rights and OECD
x
x
No
N/A
N/A
ESRS 2 SBM 3 – S2
11 (b)
Significant risk of child labour or forced labour in the value chain
x
No
N/A
N/A
ESRS S2-1
17
Human rights policy commitments
x
No
N/A
N/A
ESRS S2-1
18
Policies related to value chain workers
x
No
N/A
N/A
ESRS S2-1
19
Non-respect of UNGPs on Business and Human Rights principles
and OECD guidelines
x
x
No
N/A
N/A
ESRS S2-1
19
Due diligence policies on issues addressed by the fundamental
International Labour Organization Conventions 1 to 8
x
No
N/A
N/A
ESRS S2-4
36
Human rights issues and incidents connected to its upstream and
downstream value chain
x
No
N/A
N/A
ESRS S3-1
16
Human rights policy commitments
x
No
N/A
N/A
ESRS S3-1
17
Non-respect of UNGPs on Business and Human Rights, ILO
principles and/or OECD guidelines
x
x
Yes
DS
17
ESRS S3-4
36
Human rights issues and incidents
x
No
N/A
N/A
ESRS S4-1
16
Policies related to consumers and end-user
x
No
N/A
N/A
ESRS S4-1
17
Non-respect of UNGPs on Business and Human Rights and OECD
x
x
No
N/A
N/A
ESRS S4-4
35
Human rights issues and incidents
x
No
N/A
N/A
ESRS G1-1
10 (b)
United Nations Convention against Corruption
x
No
N/A
N/A
ESRS G1-1
10 (d)
Protection of whistle-blowers
x
No
N/A
N/A
ESRS G1-4
24 (a)
Fines for violation of anti-corruption and anti-bribery laws
x
x
No
N/A
N/A
ESRS G1-4
24 (b)
Standards of anti-corruption and anti-bribery
x
No
N/A
N/A
Disclosure
Data point Description
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU Climate
Law reference
Material
Section
Page
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
279
ESRS 2 - Appendix B continued
Data points that derive from other EU legislations
GOV | Governance
DS | Done sustainably
FSI | Further sustainability information
Ernst & Young LLP (‘EY’) was engaged by Coca-Cola Europacific Partners (CCEP)
PLC (‘the Company’) to perform a limited assurance engagement in accordance
with International Standard on Assurance Engagements (ISAE) 3000 (Revised), to
report if the Sustainability Statement for the year ended 31 December 2024 as
set out on pages 23 to 58 of the Annual Report, including the information
incorporated in the Sustainability Statement by reference (together hereafter
referred to as the ‘Sustainability Statement’ or the ‘Subject Matter’), is in all
material respects in accordance with the European Sustainability Reporting
Standards (‘ESRS’) as adopted by the European Commission) excluding
references to Article 8 of Regulation (EU)2020/852 (Taxonomy Regulation)
(together the ‘Criteria’).
Conclusion
Based on the procedures performed and evidence obtained, nothing has come to
our attention that causes us to believe that the Sustainability Statement is not, in
all material respects:
• in accordance with the European Sustainability Reporting Standards (‘ESRS’) as
adopted by the European Commission, excluding references to Taxonomy
Regulation;
• Inclusive of all material sustainability-related impacts, risks and opportunities
for the Company as identified by the double materiality assessment process
carried out by the Company in compliance with the ESRS.
Basis for our conclusion
We conducted our engagement in accordance with International Standard on
Assurance Engagements 3000 (Revised), Assurance Engagements Other than
Audits or Reviews of Historical Financial Information, as promulgated by the
International Auditing and Assurance Standards Board (IAASB) and the terms of
our engagement letter dated 4 November 2024 and the addendum date 17 March
2025, as agreed with the Company.
In performing this engagement, we have applied International Standard on
Quality Management (‘ISQM’) 1 Quality Management for Firms that Perform Audits
or Reviews of Financial Statements, or Other Assurance or Related Services
engagements, which requires that we design, implement and operate a system of
quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory
requirements.
We have maintained our independence and other ethical requirements of the
Institute of Chartered Accountants of England and Wales (‘ICAEW’) Code of
Ethics (which includes the requirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for
Accountants (‘IESBA’)). We are the independent auditor of the Company and
therefore we will also comply with the independence requirements that are
relevant to our audit of the financial statements in the UK, including the FRC’s
Ethical Standard as applied to listed public interest entities.
Emphasis of matter – The most significant uncertainties affecting the quantitative
metrics and monetary amounts
The Sustainability Statement has been prepared in the context of new
sustainability reporting standards, requiring entity specific and temporary
interpretations and navigating inherent measurement or evaluation uncertainties.
We draw attention to the Sustainability Statement Basis of Preparation on page
24 of the Annual Report that identifies the quantitative metrics and monetary
amounts that are subject to a high level of measurement uncertainty and
discloses information about the sources of measurement uncertainty and the
assumptions, approximations and judgements the Company has made in
measuring these in compliance with the ESRS.
The comparability of sustainability information between entities and over time
may be affected by the lack of historical sustainability information in accordance
with the ESRS and by the absence of a uniform practice on which to draw, to
evaluate and measure this information. This allows for the application of
different, but acceptable, measurement techniques, especially in the initial years.
Emphasis of matter – The double materiality assessment process
The Sustainability Statement, including the disclosure of material impacts, risks
and opportunities in accordance with the ESRS, is prepared on the basis of the
double materiality assessment process carried out by the Company as
described in the section ‘Double Materiality Assessment’ on pages 27 to 29 of the
Annual Report. The double materiality assessment process requires the
Company to make key judgments and use thresholds and it is expected that this
process will be refined over time. The double materiality assessment process
uses quantitative and qualitative thresholds to determine which impacts, risks
and opportunities are identified and addressed by the Company and to
determine which sustainability matters are material for reporting purposes.
Therefore, the Sustainability Statement may not include every impact, risk and
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opportunity or additional entity-specific disclosure that each individual
stakeholder group may consider important in its own particular assessment.
Our conclusion is not modified in respect of these matters.
Responsibilities of the Company for the Sustainability Statement
The directors of the Company are solely responsible for the preparation of the
Sustainability Statement in accordance with the ESRS, including the double
materiality assessment process carried out by the Company as the basis for the
Sustainability Statement and the disclosure of the material impacts, risks and
opportunities in accordance with the ESRS.
The directors of the Company are also responsible for designing and
implementing internal controls, maintaining adequate records, making estimates
that are relevant to the preparation of the Sustainability Statement and other
processes they determine are necessary, such that the Sustainability Statement
is free from material misstatement, whether due to fraud or error.
Responsibilities of EY for the limited assurance engagement on the Sustainability
Statement
It is our responsibility to:
• Plan and perform the engagement to obtain limited assurance in respect of
whether the Subject Matter has not been prepared in all material respects in
accordance with the Criteria;
• Form an independent conclusion on the presentation of the Subject Matter on
the basis of the work performed and evidence obtained; and
• Report our conclusion to the directors of the Company.
What EY has assured
Our limited assurance report only covers the Sustainability Statement,
presented on pages 23 to 58 of the Annual Report including the information
incorporated by reference, which is indicated within table “Information
incorporated by reference consistent with ESRS standards” on page 58 of the
Sustainability Statement.
Other than as detailed above, we did not perform limited assurance procedures
relating to the Subject Matter on any other information included in the Annual
Report, and accordingly, we do not express an opinion or conclusion on any such
other information.
Our approach
The objective of a limited assurance engagement is to perform such procedures
so as to obtain information and explanations in order to provide us with sufficient
appropriate evidence to express a negative conclusion on the Sustainability
Statement. The nature, timing and extent of procedures performed in a limited
assurance engagement is dependent on our judgement, including our
assessment of the risk of material misstatement, and is less in extent than for a
reasonable assurance engagement. Our procedures were only designed to obtain
a limited level of assurance on which to base our conclusion and do not provide
all the evidence that would be required to provide a reasonable level of
assurance.
Although we considered the effectiveness of management’s internal controls
when determining the nature, timing and extent of our procedures, our assurance
engagement was not designed to provide assurance on internal controls. Our
procedures did not include testing controls or performing procedures relating to
checking the aggregation or calculation of data within IT systems.
A limited assurance engagement consists of making enquiries, primarily of
persons responsible for preparing the Sustainability Statement and related
information and applying analytical and other appropriate procedures.
Because a limited assurance engagement can cover a range of assurance, the
detail of the procedures we have performed is included below, so that our
conclusion can be understood in the context of the nature, timing and extent of
the procedures we performed:
• Made inquiries and an analysis of the external environment and obtained an
understanding of relevant sustainability themes and issues, the characteristics
of the Company, its activities, the value chain and its key intangible resources in
order to assess the double materiality assessment process carried out by the
Company as the basis for the Sustainability Statement and disclosure of
material sustainability-related impacts, risks and opportunities in accordance
with the ESRS;
• Obtained, through inquiries, a general understanding of the internal control
environment, the Company’s processes for gathering and reporting entity-
related and value chain information, the information systems and the
Company’s risk assessment process relevant to the preparation of the
Sustainability Statement;
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• Assessed the double materiality assessment process carried out by the
Company and identified and assessed areas of the Sustainability Statement,
where misleading or unbalanced information or material misstatements,
whether due to fraud or error, are likely to arise (‘selected disclosures’);
• Designed and performed further assurance procedures aimed at addressing
risks of material misstatements within the Sustainability Statement responsive
to this risk analysis;
• Considered whether the description of the double materiality assessment
process in the Sustainability Statement made by management appears
consistent with the process carried out by the Company;
• Performed analytical procedures on quantitative information in the
Sustainability Statement, including consideration of data and trends;
• Assessed whether the Company’s methods for developing estimates are
appropriate and have been consistently applied for the selected disclosures.
We considered data and trends, however, our procedures did not include
testing the data on which the estimates are based or separately developing our
own estimates against which to evaluate management’s estimates;
• Analysed, on a limited sample basis, relevant internal and external
documentation (including publicly available information or information from
participants throughout its value chain) for selected disclosures;
• Considered the overall presentation, structure and qualitative characteristics
of sustainability information (relevance and faithful representation: complete,
neutral and accurate) reported in the Sustainability Statement.
We also performed such other procedures as we considered necessary in the
circumstances.
Inherent limitations
Non-financial information is subject to more inherent limitations than financial
information, given the characteristics of the underlying subject matter. Because
there is not yet a large body of established practice upon which to base
measurement and evaluation techniques, the methods used for measuring or
evaluating non-financial information, including the precision of different
techniques, can differ, yet be equally acceptable. This may affect the
comparability between entities, and over time.
Our conclusion is based on historical information and the projection of any
information or conclusions in the Sustainability Statement to any future periods
would be inappropriate.
In reporting forward-looking information in accordance with the ESRS, the
Company is required to prepare the forward-looking information on the basis of
disclosed assumptions about events that may occur in the future and possible
future actions by the Company. Forward-looking information relates to events
and actions that have not yet occurred and may never occur. The actual
outcome is likely to be different since anticipated events frequently do not occur
as expected. We do not provide assurance on the achievability of forward-looking
information.
Use of our report
This report is produced in accordance with the terms of our engagement letter
dated 4th November 2024 and the addendum dated 17 March 2025 solely for the
purpose of reporting to the directors of the Company in connection with the
Sustainability Statement for the period ended 31 December 2024. Those terms
permit disclosure on the Company’s website, solely for the purpose of the
Company showing that it has obtained an independent assurance report in
connection with the Sustainability Statement. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the
Company and the Company's directors as a body, for the procedures performed,
for this report, or for the conclusions we have formed. This engagement is
separate to, and distinct from, our appointment as the auditor to the Company.
Ernst & Young LLP
London
21 March 2025
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OTHERINFORMATION
In this section
284
294
313
315
316
317
321
322
Risk factors
Other Group information
Form 20-F table of cross references
Exhibits
Signatures
Glossary
Useful addresses
Forward-looking statements
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This section examines the risks Coca-Cola Europacific Partners (CCEP) faces as a
business. These risks may change over time. These risks may/would apply under
each jurisdiction subject to its specific rules and regulations, which differ in
scope, application, consequences and other ways, and nothing should be
construed from any reference to one jurisdiction that implies any less risk in
another.
Market
We may not be able to respond successfully to changes in the marketplace.
We operate in the highly competitive beverage industry and face strong
competition from other general and speciality beverage companies. The timing
and effectiveness of our response to continued and increased competitor
and customer consolidations and marketplace competition may result in lower
than expected net pricing of our products. Additionally, the loss of key contracts
or customers to our competitors may decrease our sales volume, revenues and
profitability and damage our reputation.
Changes in our relationships with large customers may adversely impact our financial
results.
A significant amount of our volume is sold through large retail chains, including
supermarkets and wholesalers. Many of these customers are consolidating or
are forming buying groups, which increases their purchasing power. They may
seek to use this to improve their profitability through lower prices or harmonised
prices across customers and/or countries, increased emphasis on generic and
other private label brands, or increased promotional programmes and payment
of rebates.
Competition from hard discount retailers and online retailers continues to
challenge traditional retail outlets. This can increase the pressure on all
customer margins, which may then be reflected in pressure on suppliers such as
CCEP. The increase of B2B platforms could change the dynamics of our route to
market. It could result in weakening our ability to influence our end customers or
having to pay fees to platform owners going forward.
In addition, from time to time, a customer or customers choose(s) to temporarily
or permanently stop selling some of our products as a result of disputes with us.
These factors can have a negative impact on the availability of our products and
our profitability.
Adverse weather conditions could limit the demand for our products.
Our sales are significantly influenced by weather conditions in the countries in
which we operate. In particular, due to the seasonality of our business, cold or
wet weather during the summer months may have a negative impact on the
demand for our products and contribute to lower sales. This could have an
adverse effect on our financial results.
Our business is vulnerable to products being imported from outside our territories,
which adversely affects our sales.
Some of the territories in which we operate permit imports of products
manufactured by bottlers from countries outside our territories. When these
imports come from members of the European Economic Area, we are prohibited
from taking action to stop such imports.
Economic and tax
The deterioration of global and local economic and political conditions could adversely
affect our business performance and share price.
Our performance is closely linked to the global economic cycle as well as macro
and microeconomic conditions in the countries, regions and cities where we
operate. Normally, slow economic growth or economic contraction decreases
demand and drives down sales.
For example, adverse economic conditions decrease individuals’ disposable
income, potentially leading to the purchase of cheaper private label brands or
avoiding buying beverage products altogether.
Currently, many major economies are going through monetary tightening to
contain high inflation following a multi-year monetary and fiscal expansion and
supply chain dislocations. The war in Ukraine is further increasing the uncertainty
and volatility, mainly through energy prices and supply constraints.
The ongoing uncertainties around economic growth, employment, inflation,
commodities, currencies, costs, and the availability of financial resources could
directly impact our business, operating results, financial conditions, cash flows,
liquidity requirements and share price. Geopolitical concerns are higher than last
year, particularly with the ongoing war in Ukraine, the conflict in the Middle East,
the global refugee crisis, and elections resulting in more populist or extremist
parties gaining support and polarised coalition governments, creating a very
volatile macroeconomic environment.
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Risk factors
The US election result will have an impact on the global economy. There is
uncertainty around the impact and extent that the promise to increase tariffs,
decrease taxes in the US and stop immigration will have on CCEP and the markets
in which we operate. These policies may result in adverse consequences such as
higher inflation, higher interest rates, lower growth, change in global trade
dynamics, and changes in the US dollar against G10 currencies. The timing,
magnitude and severity of these policies will shape the short/medium-term
trajectory, reactions of major economies (mainly Europe and China) and the
medium/long-term trajectory. A potential slowdown in China would have a
negative impact on the Australian and New Zealand economies causing lower
growth and weaker currencies. The emerging markets of Indonesia and the
Philippines would also be negatively impacted by a strong US dollar. The
magnitude of the impact would be dependent on the central banks’ decisions
and fiscal power within these countries.
Other key external economic and political factors continue to impact APS,
including ongoing economic challenges in Papua New Guinea (PNG), such as
foreign currency shortages and an overvalued Kina (PGK). While the PNG
government is advancing reforms under IMF supported programmes to address
structural issues, including FX imbalances and governance improvements, risks
remain high. The ongoing orderly devaluation of the PGK is likely to negatively
impact APS' financial results when translating PGK earnings into Australian
dollars. Additionally, geopolitical tensions for example in the Middle East and
Ukraine as well as trade disputes, such as the US-China trade conflict, further
complicate the operating environment.
Increases in costs of raw materials could harm our financial results.
We use supplier pricing agreements and derivative financial instruments to
manage volatility and market risk for certain commodities. Generally, these
hedging instruments establish the purchase price before the time of delivery,
which may lock us into prices that are ultimately higher or lower than the actual
market price at the time of delivery.
We continue to experience volatility in commodity prices and foreign exchange
mainly driven by the US election result, a strong US dollar and the uncertainty
regarding tariffs and potential implications on Europe and China. Supply chain
disruptions due to military conflicts, political uncertainty across key global
powers, and increased protectionist policies are expected to continue.
Changes in interest rates or our debt rating could harm our financial results and financial
position.
We are subject to interest rate risk, and changes in our debt rating could have a
material adverse effect on interest costs and debt financing sources. Our debt
rating can be materially influenced by a range of factors, including our financial
performance, acquisitions and investment decisions, as well as the capital
management activities of The Coca-Cola Company (TCCC) and changes in its
debt rating. If our credit rating declines or interest rates continue to increase, as
they have done in recent years, there is no guarantee that we will be able to
access debt financing on favourable terms, or at all.
The deterioration in political unity within the EU could significantly impact our financial
results and reduce our competitiveness in the marketplace.
There are concerns regarding the short- and long-term stability of the euro and
pound sterling and the euro’s ability to serve as a single currency for a number
of individual countries. These concerns could lead individual countries to revert,
or threaten to revert, to local currencies. In more extreme circumstances, they
could exit the EU, and the Eurozone could be dissolved entirely. Should this occur,
the assets we hold in a country that reintroduces local currency could be subject
to significant changes in value when expressed in euros. Furthermore, the full or
partial dissolution of the euro, the exit of one or more EU member states from the
EU or the full dissolution of the EU could cause significant volatility and disruption
to the global economy. This could affect our ability to access capital at acceptable
financing costs, the availability of supplies and materials, and demand for our
products, all of which could adversely impact our financial results.
If it becomes necessary for us to use additional currencies, we would be subjected
to additional earnings volatility as amounts in these currencies would be translated
into euros.
Default by or failure of one or more of our counterparty financial institutions could cause
us to incur losses.
We are exposed to the risk of default by, or failure of, the counterparty financial
institutions with which we do business. This risk may be heightened during
economic downturns and periods of uncertainty in the financial markets.
If one of our counterparties became insolvent or filed for bankruptcy, our ability
to recover amounts owed from or held in accounts with the counterparty may be
limited. In this event we could incur losses, which could negatively impact our
results and financial condition.
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Risk factors continued
Future changes to tax laws in the countries in which we operate could adversely affect
our business.
We are subject to multiple national, state, regional, and local taxes in the
jurisdictions in which we operate, including corporate income tax and sales tax.
Tax is a complex and evolving area, leading to the risk of increased or unexpected
tax costs, and/or additional tax reporting obligations. Tax laws could change
on a prospective or retroactive basis. Any such changes could adversely affect
our business and its affiliates, and there is no assurance that we would be able
to maintain a particular Group wide effective tax rate. An increase in our effective
tax rate would negatively impact the results of our operations.
The Pillar Two rules were enacted in the UK under the Finance (No.2) Act 2023
introducing a global minimum effective tax rate of 15%. The legislation
implements a domestic top-up tax and a multinational top-up tax effective
for accounting periods starting on or after 31 December 2023 with the first
reporting due in June 2026. The Pillar Two rules have also been implemented in
most of the other countries where we operate.
Additionally, direct or indirect taxes or other charges imposed on the sale of our
products could increase costs or cause consumers to purchase fewer of them.
Many countries in which we operate are looking to implement or increase such
taxes. These may relate, for example, to the use of non-recycled plastic in
beverage packaging, or the use of sugar or other sweeteners in our beverages.
Such changes may arise through the raising of an existing tax or the imposition
of a new one.
Additional taxes levied on us could harm our financial results.
Our tax filings for various periods are or may be subject to current or future audit
by tax authorities. These audits have resulted, and may in the future, result in
assessments of additional taxes, as well as interest and/or penalties, and could
adversely affect our financial results. Changes in tax laws, regulations, court
rulings, related interpretations, and tax accounting standards in countries in
which we operate, or if we are unsuccessful in defending our tax positions, may
adversely affect our financial results. Additionally, amounts we may need to
repatriate for the payment of dividends, share buybacks, interest on debt,
salaries and other costs may be subject to additional taxation when repatriated.
Legal changes could affect our status as a foreign corporation for US federal income tax
purposes, or limit the US tax benefits we receive from engaging in certain transactions.
In general, for US federal income tax purposes, a corporation is considered a tax
resident in the jurisdiction of its organisation or incorporation. Because CCEP is
incorporated under the laws of England and Wales, it would generally be
classified as a non-US corporation (and therefore a non-US tax resident) under
these rules. However, section 7874 of the US Internal Revenue Code of 1986, as
amended (IRC), provides an exception under which a non-US incorporated entity
may, in certain circumstances, be treated as a US corporation for US federal
income tax purposes.
These regulations are complex and there is limited guidance as to their
application. In addition, changes to applicable regulations could adversely affect
CCEP’s status as a foreign corporation for US federal tax purposes, and any
such changes could have prospective or retroactive application. If CCEP were to
be treated as a US corporation for US federal income tax purposes, it could be
subject to a materially greater US tax liability than it would as a non-US
corporation.
Packaging
Waste and pollution, and the legal and regulatory responses to these issues, could
adversely impact our business.
Waste and pollution, particularly plastic and packaging waste, is a global issue
affecting our business. Although the vast majority of our packaging is fully
recyclable, it is not always collected for recycling across our territories, and can
end up as land or marine litter. Concerns regarding the environmental impacts of
packaging have led to governments in countries we operate in implementing laws
and regulations that aim to increase the collection and recycling of our packs,
reduce packaging waste and litter, including through limiting the use of single use
plastic and introduce quotas for refillable packaging, as well as specific
packaging design requirements.
The EU adopted the Packaging and Packaging Waste Regulation which entered
into force in February 2025 and will start applying as of August 2026 across the
entire territory of the EU.
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Risk factors continued
In addition to initiatives at the EU level, several countries in which we operate
also have or are planning other legislative or regulatory measures to reduce the
use of single use plastics, including plastic beverage bottles, and/or increases to
plastic collection and recycling. Such measures may include implementing a DRS
under which a deposit fee is added to the consumer price, which is refunded if
and when the bottle is returned. Other measures may include rules on recycled
content, requirements to purchase packaging recovery notes (PRN) to show that
we meet our responsibilities for recycling and recovery of packaging waste,
individual collection or recycling targets, or a plastic tax. The adoption of new or
more stringent rules could increase our costs and may have a material impact on
the cost and efficiency of our operations.
If we fail to sufficiently address stakeholder concerns about packaging and
recycling, or we are not able to adapt our business to new legislation and
regulation on a timely or cost effective basis, or at all, it could result in higher
costs through packaging taxes, producer responsibility reform, regulatory fines,
damage to corporate reputation or investor confidence, and a reduction of
consumer acceptance of our products and packaging.
Health concerns regarding the contents of our packaging materials, and regulatory
responses to those concerns, could increase our costs and harm our reputation.
We are also subject to regulations governing the contents of our packaging, and
may become subject to more stringent regulations in that regard.
New recycling technologies may not work or may not be developed quickly enough.
We are exploring innovative ways to achieve the packaging targets that we have set
ourselves and those imposed by legislation and regulation, for example by using
plastic that has been recycled via enhanced/chemical recycling technologies. There
is a risk that these new technologies may not be developed quickly enough or may
not work as well as intended, which could limit our ability to mitigate the impact of
restrictions on single use plastics. Also, these technologies may be more expensive
than current solutions, potentially reducing our profitability.
Read more about packaging on pages 53-55
Category perception
Health concerns could reduce consumer demand for some of our products, impacting
our financial performance.
There is a concern that the public health consequences of obesity, particularly
among young people, are increasing. Health advocates and dietary guidelines
suggest that consumption of sugar sweetened beverages is a cause of increased
obesity rates, and are encouraging consumers to reduce or eliminate consumption
of such products. In addition, governments have introduced stronger regulations
around the marketing, labelling, packaging, or sale of sugar sweetened beverages.
These concerns and regulations could reduce demand for, or increase the cost
of, our sugar sweetened beverages.
At the same time, there is additional scrutiny by the World Health Organization,
EFSA and national health authorities on sweeteners, with many studies and
impact assessments on health ongoing. Some of these studies may lead to
additional regulatory constraints or additional tax, like in France, where a soda tax
applies to both products with sugar and those with sweeteners.
Consumer trends have also led to an increased demand for low-calorie soft
drinks, water, enhanced water, isotonics, energy drinks, teas, coffees and
beverages with natural ingredients. If we are unable to meet this demand by
providing a broad enough range of products, our business and financial results
could be negatively impacted.
Geopolitical and global
Global or regional catastrophic events could negatively impact our business and
financial results.
Our business may be affected by prolonged internal and/or external disruptive
events. These may include natural disasters such as hurricanes, floods, fires,
earthquakes and health crises such as pandemics, and man-made events such
as wars and political turmoil. Other potential disruptive events include the loss of
critical assets and infrastructure, the loss of (or loss of access to) critical
employees through industrial disputes, or through government interventions that
may cause territorial supply constraints and place limitations on trade such as
lockdowns or through additional import duties or new regulatory obligations.
There could be major IT outages due to a cyber incident or similar, or the failure
of third party supplied raw materials, critical services or utilities such as
electricity, gas and water. Recent examples of disruptive events include the
current conflicts between Russia and Ukraine, and Israel and Gaza, which have
directly and indirectly impacted us and our consumers.
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Risk factors continued
These disruptive events could have a material adverse impact on our sales
volume, cost of sales, earnings, and overall financial condition.
Cyber and IT/Operational Technology (OT) resilience
Cyber attacks, or a deficiency in our cybersecurity or a customer’s or supplier’s
cybersecurity, could negatively impact our business.
As our reliance on IT and the digitalisation and automation of our supply chain
increases and operational technology (OT) systems become more connected
and integrated with IT networks, so will the risks posed to our internal and third
party systems from cyber incidents.
A cyber incident is considered to be any adverse event that threatens the
confidentiality, integrity or availability of our data or information and OT systems.
It could involve a third party gaining unauthorised access to systems, either
unintentionally or through an intentional attack (such as activities due to war,
state sponsored cyber terrorism, criminal attack, hacking or a computer virus),
which could disrupt operations, compromise or corrupt data, damage our brand
reputation, pose safety hazards, threaten our Company or employees and
negatively impact our financial results.
Our business processes require high levels of integration between our IT/OT
systems and the systems of third parties (suppliers, customers, business
partners, systems providers) and companies that we invest in or acquire. A cyber
incident at any of those entities could either spread to our systems or indirectly
have a negative impact on our ability to operate. Similarly, cyber attacks in one
country might impact our ability to do business in other countries due to the
dependencies on IT/OT systems and applications.
Technology failures could disrupt our operations and negatively impact our business.
We rely extensively on IT systems to process, transmit, store and protect
electronic information. For example, our production and distribution facilities and
inventory management all use IT and OT to maximise efficiencies and minimise
costs. Communication between our employees, customers and suppliers
also depends, to a large extent, on IT.
Our IT and OT systems may be vulnerable to interruptions due to implementation
of new systems or systems upgrades (such as our system applications and
production in data processing (SAP) and its modules) and events that may be
beyond our control. These include, but are not limited to, natural disasters,
telecommunications failures, power outages, hardware failures, human error and
security issues, such as cyber attacks.
Centralisation of IT systems might increase the impact of a failure of IT
applications. We have IT and OT security controls, processes and disaster
recovery plans in place, but they may not be adequate or implemented
effectively enough to ensure that our operations are not disrupted. If we
miscalculate the level of investment needed, our software, hardware and
maintenance practices could become out of date, and this could result in
disruptions to our business. In addition, when we integrate new entities following
investments or acquisitions, the integration of IT/OT systems and applications
for those entities will increase the complexity and the risk level of our IT/OT
infrastructure.
Read more about our cyber security risk management on pages 76-77
Business transformation and digital capability
We may not identify sufficient initiatives to realise our cost saving goals to stay
competitive.
We continue to assess opportunities for improvements as part of the ongoing
business strategy to enable us to remain competitive in the future. This strategic
objective encompasses all the support functions, technology transformation,
supply chain and commercial improvements and working efficiently with our
partners and franchisors.
The initiatives are complex due to their multi functional and multi country nature.
Ineffective coordination and control over single initiatives and interdependent
initiatives could result in us failing to realise the expected benefits.
Miscalculation of our need for infrastructure investment could impact our
financial results.
To support revenue growth, we are investing in our infrastructure, including CDE,
fleet, technology, sales force, digital capability and production equipment. There
is a risk that these investments will not generate the projected returns, either
because of market or technological changes, or ineffective adoption of
capabilities, or because the projected requirements of the investments differ
from actual levels. This could adversely affect our financial results.
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Risk factors continued
We may not be able to execute our strategy to pursue suitable acquisitions or may have
difficulty integrating acquired businesses.
Our strategy involves, in part, pursuing disciplined and attractive investments,
which are intended to create shareholder value. Our efforts to execute this
strategy require us to identify suitable acquisition targets (such as Coca-Cola
Beverages Philippines, Inc.), negotiate, and close acquisition and development
transactions. Further, to the extent that we are able to identify suitable
investments, negotiations may not proceed as anticipated and management
attention may be diverted by such opportunities. We may also encounter
unexpected difficulties, joint venture partner disputes, cost or delays in
restructuring and integrating acquired businesses or bottling operations into our
operating, governance, sustainability and internal control structures, including
extending our Company’s internal control over financial reporting to newly
acquired businesses, which may increase the risk of failure to prevent
misstatements in our consolidated financial statements. There is no guarantee
that these investments will ultimately be accretive, support our growth
or achieve the intended result.
Key supplier
Increases in costs, limitation of supplies, or lower than expected quality of raw
materials could harm our financial results.
The cost of our raw materials, ingredients, packaging materials or energy could
increase over time. If we are unable to pass the increased costs on to our
customers in the form of higher prices, our financial results could be adversely
affected.
Our suppliers could be adversely affected by a number of external events
causing supply disruption. These could include war, strikes, adverse weather
conditions, speculation, abnormally high demand, new taxes, national
emergencies, natural disasters, health crises, such as a pandemic, and
insolvency. The quality of the materials or finished goods we receive could be
lower than expected. If this happens, we may need to substitute those items for
ones that meet our standards, or replace underperforming suppliers. If we are
unable to find an alternative source for our materials, our cost of sales, revenues,
and ability to manufacture and distribute our products could be adversely
affected.
Growing governmental or legal requirements could adversely impact CCEP’s
ability to produce and sell our products or impact CCEP’s reputation in the
market place.
Product quality
Our business could be adversely affected if we, TCCC, other franchisors or the
manufacturers (co-packers) of the products we distribute are unable to maintain a
positive brand image as a result of product safety, product quality, food defence or food
fraud issues.
Adequate and effective quality control methods are vital to ensure the safety
and integrity of the products we manufacture. All ingredients, packaging
materials and products are compliant with all applicable regulations. All our
employees are responsible for ensuring we only make, move and sell safe and
high quality products and are required to follow all relevant policy guidelines,
procedures and processes at our production facilities and across our entire
supply chain. Factors such as improper handling, storage, or inadequate/
inefficient sanitation practices during the manufacturing process can introduce
contaminants, leading to adverse health effects for our consumers.
Additionally, failure to meet stringent quality standards may result in product
recalls, regulatory fines, legal liabilities and associated costs and loss of profit.
Negative publicity surrounding safety and quality issues may jeopardise our
Company's reputation, as it may erode consumer trust and loyalty, affecting our
market share and long-term profitability.
Health, safety and security
Adverse effects on our people’s health, wellbeing and safety could impact
our business.
Failure to adequately manage workplace hazards or comply with our health and
safety policies and guidelines may lead to injuries or fatalities among our people.
This, in turn, could negatively affect employee engagement and productivity.
Increased stress and burnout may also exacerbate mental health challenges
and lead to higher employee absenteeism rates, further impacting business
performance. To address these challenges, wellbeing initiatives require
innovative approaches that effectively reach all employees, particularly during
periods of restructuring. Without these efforts, the risk of long-term absences
and diminished productivity may arise.
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Risk factors continued
Climate and water
Water scarcity and additional regulations on water supply or use could adversely impact
our business.
Water is the primary ingredient in most of our products. It is also vital to our
manufacturing processes and is needed to produce the agricultural ingredients
that are essential to our business. Water scarcity or a deterioration in the quality
of available water sources in our territories or in our supply chain, even if
temporary, may result in increased production costs or capacity constraints,
negative publicity, and a loss in consumer confidence.
CCEP may be unable to identify, prioritise and execute investments into available
technologies and manufacturing processes that deliver both the economic and
water reduction benefits necessary to achieve our 2030 and 2040 targets. The
achievement of existing water reduction targets may also be impacted by the
incorporation of new businesses and territories.
Climate change, and the legal and regulatory responses, could adversely impact our
business.
Climate change is resulting in global average temperature increases and
increasingly frequent and severe extreme weather conditions around the
world, and the effects of this change appear to be accelerating. More frequent
extreme weather events, such as storms or floods in our territories, could disrupt
our facilities and distribution network, further impacting our business. It may
also lead to decreased agricultural productivity in certain regions of the world
that limits the availability or increases the cost of key raw materials that we use
to produce our products. Additional climate laws may affect other areas of our
business, such as production, distribution, packaging or the cost of raw materials.
Concern over climate change has led to more environmental legislative and
regulatory initiatives at an EU and national level. These cover areas such as
GHG emissions, water use and energy efficiency.
Governments and private parties are increasingly filing lawsuits or initiating
regulatory actions based on allegations that certain public statements regarding
sustainability-related matters and practices by companies are greenwashing,
i.e. misleading information or false claims overstating potential benefits. Threat
of such actions and the negative publicity arising from them presents additional
uncertainty regarding the extent to which we may face increased risk of liability
stemming from our climate change or sustainability practices.
As part of our commitment to addressing our climate change impacts, we are
investing in technologies that improve the energy efficiency of our operations
and reduce GHG emissions related to our packaging, manufacturing, CDE and
transportation. In general, the cost of these investments is greater
than investments in less energy efficient technologies, and the period of return is
often longer, and there is a risk that we may not achieve our desired returns.
Read more about climate in ESRS E1 on pages 32-45 and water in ESRS E3 on pages
48-50
Legal, regulatory and compliance
Legislative or regulatory changes that affect our operations, access to raw materials,
products, distribution or packaging could reduce demand for our products or increase
our costs.
Our business model depends on making our products and packages available in
multiple channels and locations. Laws that restrict our ability to do so, including
laws affecting the promotion and distribution of our products, imposing levies on
products with sugar and sweeteners, and limiting our ability to design or market
certain packages, could increase our costs, decrease demand for our products,
and negatively impact our financial results.
For example, our products are subject to, and may in the future be subject to,
additional marketing and commercial restrictions based on ultra-processed food
or nutrition grounds, promotions or marketing to children, or pressure from
customers or regulators to develop discriminatory front of pack labelling.
Additionally, we are subject to licensing and other regulatory requirements in the
jurisdictions in which we operate, and changes in these rules could increase our
compliance costs or impact our ability to operate.
We may not be able to ensure our raw material suppliers comply with
environmental and labour laws, potentially harming our business. The European
Union Deforestation Regulation (EUDR) requires thorough due diligence for
products like coffee, oil palm, rubber, and wood to reduce deforestation and
protect indigenous rights. Non-compliance penalties, effective from December
2025, include fines and confiscation of product. If we fail to comply, we may be
subject to fines and other penalties.
Media campaigns and increased regulatory and customer focus on
environmental, social, and governance (ESG) responsibility could lead to
additional costs or risks for us.
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Risk factors continued
The European Sustainability Reporting Standards (ESRS) will require stricter
reporting on ESG matters starting from the 2025 financial year. Additionally, the
European Corporate Sustainability Due Diligence Directive (CSDDD), expected to
apply from 2027, will introduce further environmental and human rights due
diligence requirements and mandate a climate change transition plan.
Increased focus on ESG practices may lead to higher compliance costs, limit
access to capital, and increase litigation risk, adversely affecting our business
and financial condition. Additionally, our business and reputation could suffer
from increased regulations and actions by governments, advocacy groups, and
other stakeholders questioning our practices and policies.
We may be exposed to risks in relation to compliance with anti-corruption, anti-bribery
and other anti-fraud laws and other key regulations and economic sanctions
programmes.
We and our subsidiaries are required to comply with the laws and regulations of
the various countries in which we conduct business, as well as certain laws
of other countries, including the US. In particular, our operations are subject to
anti-corruption laws such as the US Foreign Corrupt Practices Act of 1977 (the
FCPA) and other key regulations. We are also subject to economic sanction
programmes, including those administered by the United Nations, the EU and the
Office of Foreign Assets Control of the US Department of the Treasury (OFAC),
and regulations set forth under the US Comprehensive Iran Sanctions,
Accountability, and Divestment Act.
Data protection laws apply to CCEP across our geographies and aim to protect
individuals’ fundamental rights and freedom. EU personal data transfers to third
countries are subject to significant and evolving compliance requirements,
including transfer impact assessments and the execution of contractual
arrangements for the protection of personal data. Non-compliance with such
transfer requirements would result in a GDPR violation. We continuously maintain
and improve our inter-company personal data transfer arrangements and high
standards of protection to enable global transfer in compliance with applicable
laws. Regulatory changes and emerging data protection laws continue to develop
across CCEP jurisdictions such as the coming into force of the new Indonesian
PDP law.
The FCPA and other anti-corruption, anti-bribery and anti-fraud regulations of the
countries in which we operate are aimed at preventing fraudulent behaviour in
dealings with local and foreign entities. These rules are complex and may apply
to our interactions with both public and private sector entities and officials. In
our business dealings, we may deal with governments, state owned business
enterprises, and private sector entities. There is a risk we may not detect or
prevent corruption, bribery, or other fraud by those involved in our business.
Violations of anti-corruption, anti-bribery and other anti-fraud laws and sanctions
regulations, and other misconduct by our employees, consultants, agents, or
partners, could have a material adverse effect on our business, reputation,
brand, results of operations and financial condition. In addition, we may be
subject to one or more enforcement actions, investigations, and proceedings by
authorities for alleged infringements of these laws. These proceedings may
result in penalties, fines, sanctions, or other forms of liability and could have a
material adverse effect on our reputation, business, financial condition, and
results of operations.
We do not currently operate in jurisdictions that are subject to territorial
sanctions imposed by OFAC or other relevant sanction authorities. However, such
economic sanction programmes restrict our ability to engage or confirm business
dealings with certain sanctioned countries and with sanctioned parties.
Violations of the above, including anti-corruption, data protection laws, economic
sanctions, competition law or other applicable laws and regulations, are
punishable by civil and sometimes criminal penalties for individuals and
companies. These penalties can include fines, denial of export privileges,
injunctions, asset seizures, debarment from government contracts (and
termination of existing contracts) to revocations or restrictions of licences, as
well as criminal fines and imprisonment. Any violation within one of these
compliance risk areas could have a negative impact on our reputation and on our
ability to win future business.
Due to the fast pace of change in the statutory and regulatory environment, we
cannot guarantee that our compliance programmes, policies and procedures will
be followed at all times, or that we will always detect and prevent violations of
the applicable laws by our employees, consultants, agents or partners.
Implementing new or additional internal compliance systems or oversights may
also increase our operating costs.
Technology maturity on compliance is often lagging behind regulatory
requirements, and IT suppliers are not forced to deliver products including
standard data compliance functionalities. As a result, implementation comes
with high complexity and customisation for detailed data retention and deletion
functionalities to meet local regulations and global company settings.
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Risk factors continued
Legal claims against our suppliers could affect their ability to provide us with products
and services, which could negatively impact our financial results.
Many of our suppliers provide us with products and services that rely on certain
intellectual property rights or other proprietary information, and are subject to
other third party rights, laws and regulations. If these suppliers face legal claims
brought by third parties or regulatory authorities, they could be required to pay
large settlements or even cease providing us with products and services as well
as expose us to risk.
These outcomes could require us to change suppliers or develop replacement
solutions or be subject to third party claims. This could result in business
inefficiencies, delays or higher costs, which could negatively impact our financial
results.
Litigation or legal proceedings could expose us to significant liabilities and damage our
reputation.
We are a party to various litigation claims and legal proceedings. We evaluate
these claims and proceedings to assess the likelihood of unfavourable outcomes
and to estimate, if possible, the amount of potential losses. Based on these
assessments and estimates, we establish reserves or disclose the relevant
claims or proceedings, as appropriate. These assessments and estimates are
based on the information available to management at the time and involve a
significant amount of management judgement. Actual outcomes or losses may
differ materially from those in the current assessments and estimates. Recent
EU legislation has increased the ability to bring claims, including of greenwashing,
against CCEP.
Improper conduct by our employees could damage our reputation or lead to
litigation or legal proceedings that could result in civil or criminal penalties,
including substantial monetary fines, as well as disgorgement of profits.
Talent and corporate social responsibility
Failure to attract, retain and motivate existing and future employees.
Our ability to achieve our strategic objectives is reliant on having the right talent
and people. There is a risk that CCEP may not be able to attract, hire, retain and
develop the top talent required to execute key business objectives due to the
challenging external recruitment market and the declining availability of labour in
the developed markets.
An inability to foster a diverse and inclusive workplace and an environment that
supports employees to perform at their best may also negatively impact
employee productivity, engagement, and job satisfaction. If there was a
perceived lack of career growth opportunities within the Company or a failure by
CCEP, its subsidiaries and its supply chain to adhere to global human rights laws
and regulations, CCEP may be unable to attract and retain diverse talent and/or
create an inclusive work environment free from discrimination or comply
consistently with varying human rights standards across different jurisdictions.
A failure of collective bargaining and negotiated (social plans) agreements
between CCEP and trade unions and/or a failure to consult with the necessary
employee bodies in accordance with the CCEP European Works Council (EWC)
Agreement and/or local country legislations could lead to industrial action or
could lead to the Central Arbitration Committee (CAC) requiring consultation to
start again.
Finally, due to the rapid rate of digital change within the technological era, there
is a risk that CCEP may be unable to fully leverage the commercial and
productivity opportunities and/or manage business legal and ethical risks
associated with AI due to an inability to keep pace of up and reskilling the
workforce with the right technical and non-technical skills.
Read more about our people in Great people on pages 14-17
Relationship with TCCC and strategic partners
Our business success, including our financial results, depends on our relationship with
TCCC and other franchisors.
Around 88% of our revenue for the year ended 31 December 2024 was derived
from the distribution of beverages under agreements with TCCC. We make, sell
and distribute these products through bottling agreements with TCCC, which
typically include the following terms:
• We purchase our entire requirement of concentrates and syrups for Coca-Cola
trademark beverages (sparkling beverages bearing the trademark Coca-Cola or
the Coke brand name) and allied beverages (beverages of TCCC or its
subsidiaries, but not Coca-Cola trademark beverages or energy drinks) from
TCCC. Prices, terms of payment, and other terms and conditions of supply are
determined from time to time by TCCC at its sole discretion.
• There are no limits on the prices that TCCC may charge for concentrate.
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Risk factors continued
• Much of the marketing and promotional support that we receive from TCCC is
at its discretion. Programmes may contain requirements, or be subject to
conditions, established by TCCC that we may not be able to achieve or satisfy.
The terms of most of the marketing programmes do not and will not contain
an express obligation for TCCC to participate in future programmes or continue
past levels of payments into the future.
• We are obligated to maintain sound financial capacity to perform our duties, as
required and determined by TCCC at its sole discretion. These duties include,
but are not limited to, making certain investments in marketing activities to
stimulate the demand for products in our territories and making infrastructure
improvements to ensure our facilities and distribution network are capable of
handling the demand for these beverages.
• Disagreements with TCCC concerning business issues may lead TCCC to act
adversely to our interests with respect to these relationships, which could
have a material adverse effect on our business, results of operations, business
and customer relationships, and reputation.
Other risks
TCCC and Olive Partners, S.A. (Olive Partners) hold significant shareholdings in CCEP,
and their views may differ from those of our public shareholders.
As at 10 March 2025, the latest practicable date prior to publication, around 17%
and 36% of CCEP’s Shares are owned by European Refreshments (ER, a wholly
owned subsidiary of TCCC) and Olive Partners respectively. Five of our Directors,
including the Chairman, were nominated by Olive Partners, and two of our
Directors were nominated by ER. As a result of their shareholdings and Board
seats, TCCC and Olive Partners can influence matters requiring shareholder and
Board approval, subject to our Articles of Association and the Shareholders’
Agreement. The views and interests of TCCC and Olive Partners may not always
align with each other or those of other shareholders.
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Risk factors continued
Shareholder information
The Company was incorporated in England and Wales on 4 August 2015, as
a private company under the Companies Act 2006 (the Companies Act).
On 4 May 2016, the Company was registered as a public company limited by
shares and changed its name from Coca-Cola European Partners Limited to
Coca-Cola European Partners plc. On 10 May 2021, the Company changed its
name from Coca-Cola European Partners plc to Coca-Cola Europacific
Partners plc (CCEP).
It is registered at Companies House, Cardiff, under company number 9717350.
The business address for Directors and senior management is Pemberton House,
Bakers Road, Uxbridge, UB8 1EZ, England.
The Company is resident in the UK for tax purposes. Its primary objective is to
make, sell and distribute ready to drink beverages.
Annual General Meeting
It is intended that the Company’s 2025 Annual General Meeting (AGM) will be held
on 22 May 2025. However, shareholders will be notified if the Company is required
to make alternative arrangements.
Registered shareholders will be sent a Notice of AGM, or notice of availability of
the Notice of AGM, closer to the time of the AGM, and will be notified of any
change affecting the AGM through an appropriate channel.
Directors and senior management
Biographies of the Directors and senior management are set out on pages 97-105.
Sol Daurella and Alfonso Líbano Daurella are first cousins.
Service contracts and loss of office arrangements
It is the Remuneration Committee’s policy that there should be no element of
reward for failure. When considering payments in the event of a loss of office, it
takes account of the individual circumstances, including the reason for the loss
of office, Group and individual performance, contractual obligations of both
parties as well as share and pension plan rules.
Service contracts for Executive Directors provide for a notice period of not more
than 12 months from CCEP and not more than 12 months from the individual.
The standard Executive Director service contract does not confer any right to
additional payments in the event of termination. However, it does reserve the
right for the Group to impose garden leave (i.e. leave with pay) on the Executive
Director during any notice period. In the event of redundancy, benefits would be
paid according to CCEP’s redundancy guidelines for GB prevailing at that time.
Executive Directors may be eligible for a pro rata bonus for the period served,
subject to performance, but no bonus will be paid in the event of gross
misconduct. The treatment of unvested long-term incentive awards is governed
by the rules of the relevant plan and depends on the reasons for leaving. The
cost of legal fees spent on reviewing a settlement agreement on departure may
be provided where appropriate. The Company also reserves the right to pay for
outplacement services as appropriate.
The Non-executive Directors (NEDs), including the Chairman of the Board, do not
have service contracts but have letters of appointment. NEDs are not entitled to
compensation on leaving the Board.
Directors and senior management interest in shares
Other than Sol Daurella, Alfonso Líbano Daurella and José Ignacio Comenge,
who indirectly owned 7.2% (33,385,110 Shares), 1.5% (6,701,540 Shares), and
1.7% (7,855,504 Shares) of the Shares outstanding as of 10 March 2025,
respectively, no Director or member of senior management individually
owned more than 1% of the Company’s Shares as of 10 March 2025.
As at 10 March 2025, there were no share options held by Directors and other
members of senior management.
Insider Trading Policy
CCEP has adopted insider trading policies and procedures that govern the
purchase, sale and other dealings in CCEP securities. These policies and
procedures apply to CCEP’s directors, senior management and employees and
are designed to promote compliance with applicable insider trading laws, rules
and regulations. These policies and procedures are included in CCEP’s Share
Dealing Code, which is filed as Exhibit 11.1 hereto.
Other employee-related matters
Note 19 to the consolidated financial statements provides a breakdown of
employees by main category of activity. As at 31 December 2024, we had around
41,000 employees, of whom none were located in the US. A number of our
employees in Europe and APS are covered by collectively bargained labour
agreements, most of which do not expire. However, in some countries, wage rates
must be renegotiated at various dates throughout 2025. We believe we will be
able to renegotiate these wage rates with satisfactory terms.
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Other Group information
Nature of trading market
The Company has one class of ordinary shares. These shares are traded on the
Nasdaq Stock Market (XNAS), London Stock Exchange (LSE), Euronext Amsterdam
(AEX) and the Spanish Stock Exchanges (of which the lead exchange is Madrid
(MADX)).
Listing information
Ticker symbol (all exchanges)
CCEP
ISIN code
GB00BDCPN049
Legal entity identifier
549300LTH67W4GWMRF57
CUSIP
G25839104
SEDOL number (XNAS)
BYQQ3P5
SEDOL number (LSE)
BDCPN04
SEDOL number (AEX)
BD4D942
SEDOL number (MADX)
BYSXXS7
Share capital
The Articles of Association of the Company (the Articles) contain no upper limit
on the authorised share capital of the Company. Subject to certain limitations
under the Shareholders’ Agreement, the Board has the authority to offer, allot,
grant options over or otherwise deal with or dispose of shares to such persons,
at such times, for such consideration and upon such terms as the Board may
decide, only if approved by ordinary resolution of our shareholders.
As at 31 December 2024, the Company had 460,947,057 Shares, nominal value
€0.01 per share, issued and fully paid. As at 10 March 2025, the Company had
460,780,971 Shares issued and fully paid.
Under the Shareholders’ Agreement and the Articles, the Company is permitted
to issue, or grant to any person rights to be issued, securities, in one or a series of
related transactions, in each case representing 20% or more of our issued share
capital, only if approved in advance by special resolution of our shareholders.
Pursuant to this authority, our shareholders have passed resolutions allowing a
maximum of a further 305,657,524 Shares (as of 10 March 2025) to be allotted
and issued, subject to the restrictions set out below:
(1) pursuant to a shareholder resolution passed on 22 May 2024 regarding the
authority to allot new shares, the Board is authorised to allot shares and to
grant rights to subscribe for or convert any security into shares:
a.
up to a nominal amount of €1,534,263.92 (representing 153,426,392 Shares;
such amount to be reduced by any allotments or grants made under
paragraph 1(b) below in excess of such sum); and
b.
comprising equity securities (as defined in the Companies Act) up to a
nominal amount of €3,068,527.85 (representing 306,852,785 Shares; such
amount to be reduced by any allotments or grants made under paragraph
1(a) above) in connection with an offer by way of a rights issue:
i.
to ordinary shareholders in proportion (as nearly as may be
practicable) to their existing holdings; and
ii.
to holders of other equity securities as required by the rights of those
securities or as the Board otherwise considers necessary,
and so that the Board may impose any limits or restrictions and make any
arrangements which it considers necessary or appropriate to deal with treasury
shares, fractional entitlements, record dates, legal, regulatory or practical
problems in, or under the laws of, any territory or any other matter; and
(2) pursuant to a shareholder resolution passed on 22 May 2024 regarding
authority to disapply pre-emption rights, the Board is authorised to allot
equity securities (as defined in the Companies Act) for cash under the
authority given by the shareholder resolution described in paragraph 1 above
and/or to sell shares held by the Company as treasury shares for cash as if
section 561 of the Companies Act did not apply to any such allotment or sale,
such power to be limited:
a.
to the allotment of equity securities and sale of treasury shares in connection
with an offer of, or invitation to apply for, equity securities (but in the case of
the authority granted under paragraph 1(b) above, by way of a rights issue only):
i.
to ordinary shareholders in proportion (as nearly as may be
practicable) to their existing holdings; and
ii.
to holders of other equity securities, as required by the rights of those
securities, or as the Board otherwise considers necessary,
and so that the Board may impose any limits or restrictions and make any
arrangements which it considers necessary or appropriate to deal with treasury
shares, fractional entitlements, record dates, legal, regulatory or practical
problems in, or under the laws of, any territory or any other matter; and
b.
in the case of the authority granted under paragraph 1(a) above and/or in
the case of any sale of treasury shares, to the allotment of equity
securities or sale of treasury shares (otherwise than under paragraph 2(a)
above) up to a nominal amount of €230,139.58 (representing 23,013,958
Shares).
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Other Group information continued
Shares not representing capital
None.
Shares held by CCEP
We are not permitted under English law to hold our own Shares unless they are
repurchased by us and held in treasury. At our 2024 AGM, our shareholders
passed a special resolution that allows us to buy back our own Shares in the
market as permitted by the Companies Act. On 14 February 2025, the Board
announced a share buyback programme of up to €1 billion. All Shares
repurchased as part of the buyback programme will be cancelled. Details of the
Shares bought back are provided under Share buyback programme below.
History of share capital
The table on page 298 sets out the history of our share capital for the period
from 1 January 2022 until 10 March 2025.
Share buyback programme
The maximum number of Shares authorised for purchase at the 2024 AGM was
46,027,917 Shares, representing 10% of the issued Shares at 3 April 2024, reduced
by the number of Shares purchased, or agreed to be purchased after 4 April 2024
and before 22 May 2024. No shares were bought back under this authority during
2024.
Subsequent to the year end, on 14 February 2025 we announced our intention
(initially under the existing 2024 shareholder authority and subsequently under
renewed authority) to return up to €1 billion to shareholders through a
coordinated share buyback programme on (i) Nasdaq and other applicable US
trading venues and (ii) the London Stock Exchange, CBOE Europe Limited (through
the BXE and CXE order books) and Aquis (the "Programme"). The Programme
began on 18 February 2025 and is expected to be completed prior to the end of
February 2026. The purpose of the Programme is to reduce the issued share
capital of the Company. All shares repurchased as part of the Programme will be
cancelled.
As at 10 March 2025, being the last practicable date prior to publication, 761,202
shares have been purchased under the 2024 AGM authority. The 2024 authority
will expire at the 2025 AGM where we intend to seek shareholder approval to
renew.
US shareholders
To the knowledge of the Company, 203 holders of record with an address in the
US held a total of 460,716,041 Shares (or 99.99% of the total number of issued
Shares outstanding) as at 10 March 2025. However, some Shares are registered in
the names of nominees, meaning that the number of shareholders with
registered addresses in the US may not be representative of the number of
beneficial owners of Shares resident in the US.
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Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
296
Other Group information continued
Share-based payment awards
The table below shows the share-based payment awards outstanding under
each of the CCE 2010 Incentive Award Plan (2010 Plan), the Long-Term Incentive
Plan 2016 and the Long-Term Incentive Plan 2023 (together the “CCEP LTIP”) as
at 31 December 2024 and 10 March 2025.
For more details about the share plans and awards granted see Note 23 to the
consolidated financial statements on pages 228-229
Outstanding share-based payment awards
2010 Plan
05/11/15
Option
24,000
6,000
39.00
05/11/25
CCEP LTIP
10/03/22
PSU
828,842
—
—
10/03/25
10/03/22
RSU
375
—
—
01/03/25
10/03/22
RSU
42,642
—
—
10/03/25
05/09/22
PSU
21,704
—
—
10/03/25
05/09/22
RSU
948
—
—
10/03/25
13/03/23
PSU
5,252
—
—
10/03/25
13/03/23
PSU
690,494
689,210
—
12/03/26
13/03/23
RSU
411
411
—
01/07/25
13/03/23
RSU
38,504
38,250
—
13/03/26
10/08/23
PSU
10,072
10,072
—
13/03/26
10/08/23
RSU
1,524
1,524
—
13/03/26
14/03/24
RSU
3,387
—
—
15/01/25
14/03/24
RSU
4,905
—
— 26/02/25
14/03/24
RSU
3,387
3,387
—
15/01/26
14/03/24
RSU
4,904
4,904
— 26/02/26
14/03/24
RSU
6,780
6,780
—
15/01/27
14/03/24
RSU
4,904
4,904
— 26/02/27
14/03/24
RSU
4,237
4,237
— 26/02/28
24/05/24
PSU
630,616
628,914
—
15/03/27
24/05/24
RSU
1,501
—
—
15/01/25
24/05/24
RSU
1,501
1,501
—
15/01/26
Plan
Date of award
(dd/mm/yy)
Type of
award(A)
Total number of Shares
awarded to employees
outstanding as at
31 December 2024
Total number of Shares
awarded to employees
outstanding as at 10
March 2025(B)
Price per
Share payable
on exercise/
transfer (US$)
Expiration
date
(dd/mm/yy)
CCEP LTIP
24/05/24
RSU
3,009
3,009
—
15/01/27
24/05/24
RSU
33,866
33,660
—
15/03/27
23/08/24
PSU
2,966
2,966
—
13/03/26
23/08/24
PSU
18,642
18,642
—
15/03/27
10/12/24
PSU
21,352
21,352
—
15/03/27
10/12/24
RSU
751
751
—
15/09/26
10/12/24
RSU
206
206
—
15/03/27
10/12/24
RSU
752
752
—
15/09/27
Plan
Date of award
(dd/mm/yy)
Type of
award(A)
Total number of Shares
awarded to employees
outstanding as at
31 December 2024
Total number of Shares
awarded to employees
outstanding as at 10
March 2025(B)
Price per
Share payable
on exercise/
transfer (US$)
Expiration
date
(dd/mm/yy)
A. PSU is performance share unit. RSU is restricted stock unit.
B. When an employee leaves CCEP, the expiration date of their options is shortened so options with a new expiration date
may appear between the year end and the later reporting date. These are not new options but options that have been
moved from another row in the table.
C. The 2022 LTIP award was subject to EPS, ROIC and CO2e reduction performance targets measured over the three year
performance period from 1 January 2022 to 31 December 2024 and vested on 10 March 2025. Read more in the Annual
report on remuneration on page 136.
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2024 Annual Report and Form 20-F
297
Other Group information continued
Share capital history
1 January 2022
Opening balance
456,235,032
N/A
456,235,032
1 January to
31 December
2022
Shares issued in
connection with
the exercise of
stock options
482,420
Exercise price per
Share ranging from
US$23.21 to
US$32.51
456,717,452
1 January to
31 December
2022
Shares issued in
connection with
the fulfilment of
RSU and PSU
share-based
payment awards
389,001
Nil
457,106,453
1 January to
31 December
2022
Shares cancelled
as part of
buyback
programme
—
—
457,106,453
1 January to
31 December
2023
Shares issued in
connection with
the exercise of
stock options
1,323,879
Exercise price per
Share ranging from
US$31.46 to
US$39.00
458,430,332
1 January to
31 December
2023
Shares issued in
connection with
the fulfilment of
RSU and PSU
share-based
payment awards
770,486
Nil
459,200,818
1 January to
31 December
2023
Shares cancelled
as part of
buyback
programme
—
—
459,200,818
Period
Nature of Share issuance
Number of Shares
Consideration
Cumulative balance
of issued Shares
at end of period
1 January to
31 December
2024
Shares issued in
connection with
the exercise of
stock options
924,534
Exercise price per
Share ranging from
US$32.51 to
US$39.00
460,125,352
1 January to
31 December
2024
Shares issued in
connection with
the fulfilment of
RSU and PSU
share-based
payment awards
821,705
Nil
460,947,057
1 January to
31 December
2024
Shares cancelled
as part of
buyback
programme
—
—
460,947,057
1 January to 10
March 2025
Shares issued in
connection with
the exercise of
stock options
18,000
Exercise price per
Share of US$39.00
460,965,057
1 January to
10 March 2025
Shares issued in
connection with
the fulfilment of
RSU and PSU
share-based
payment awards
509,382
Nil
461,474,439
1 January to 10
March 2025
Shares cancelled
as part of
buyback
programme
(693,468)
£46.86 million
460,780,971
Period
Nature of Share issuance
Number of Shares
Consideration
Cumulative balance
of issued Shares
at end of period
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2024 Annual Report and Form 20-F
298
Other Group information continued
Marketing
CCEP relies extensively on advertising and sales promotions to market its
products. TCCC and other franchisors advertise in all major media to promote
sales in the local areas we serve. We also benefit from regional, local and global
advertising programmes conducted by TCCC and other franchisors. Certain
advertising expenditures by TCCC and other franchisors are made pursuant to
annual arrangements.
TCCC and CCEP invest in marketing and sales investments both Above the Line
consumer related and Below the Line shopper related with an annual plan agreed
and reviewed dynamically as the NARTD and ARTD markets evolve. Marketing
support funding programmes entered into with TCCC provide financial support,
principally based on our product sales or on the completion of stated
requirements, to offset a portion of the cost of our marketing programmes.
Except in certain limited circumstances, TCCC has no specified contractual
obligation to participate in expenditures for advertising, marketing and other
support in our territories.
The terms of similar programmes TCCC may have with other licensees and the
amounts paid by TCCC under them could differ from CCEP’s arrangements.
We take part in various programmes and arrangements with customers to
increase the sale of products. These include arrangements under which
allowances can be earned by customers for attaining agreed sales levels or for
participating in specific marketing programmes.
Dependence on franchisors
As a franchise business, CCEP’s business success, including its financial results,
depends upon its relationships with TCCC and its other franchisors.
Read more about our relationships with franchisors, see the Risk factors
on pages 284-293
Competition
CCEP competes mainly in the manufacturing, sale and distribution of non-alcoholic
ready to drink (NARTD) beverages industry and adjacencies, including squashes/
cordials, hot beverages and low alcoholic ready to drink (ARTD) beverages. CCEP
competes in the Western Europe and APS segments, and primarily manufactures,
sells and distributes the products of TCCC, as well as those of other franchisors
such as Monster Energy.
CCEP competes mainly with:
• NARTD and non-alcoholic, non-ready to drink (e.g. squashes/cordials and hot
beverages) brand and private label manufacturers, sellers and distributors.
• Alcoholic beverage manufacturers, sellers and distributors – in the sense that
some of their products may be considered to be substitutes for CCEP’s own
products on certain consumer occasions. More recently, CCEP entered the
ARTD segment with Jack Daniel’s & Coca-Cola RTD, Absolut Vodka & SPRITE and
with further launches such as Bacardi & Coca-Cola RTD planned in the future.
A small number of such companies may also be contracted by CCEP as
manufacturers (e.g. co-packers) or commercial partners (e.g. on behalf of which
CCEP sells and/or distributes, or which sells and/or distributes on CCEP’s behalf).
CCEP sells and distributes to a wide range of customers, including both physical
and online food and beverage retailers, wholesalers and out of retail customers.
The market is highly competitive, and all CCEP customers and consumers may
choose freely between products of CCEP and its competitors. Many of CCEP’s
customers are under increasing competitive pressure, including with the
increasing market share of discounters, the growth of e-commerce food and
beverage players, increase of private label, growth of Food Service Aggregators
and customer consolidation.
CCEP competes with respect to a wide range of commercial factors, including
brand awareness, product and packaging innovations, supply chain efficacy,
customer service, sales strategy, marketing, and pricing and promotions.
The level of competition faced by CCEP may be affected by, for example;
changing customer and consumer product, brand and packaging preferences,
shifts in customers’ industries, competitor strategy shifts, new competitor
entrants, supplier dynamics, the weather and social, economic, political or other
external landscape shifts.
Key factors affecting CCEP’s competitive strength include, for example; CCEP’s
strategic choices, investments, partnerships (e.g. with customers, franchisors
and suppliers), people management, asset base (e.g. property, plant, fleet, and
equipment), technological sophistication and processes and systems.
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2024 Annual Report and Form 20-F
299
Other Group information continued
Impact of governmental regulation
Our business is sensitive to the economic and political action and conditions in
our countries of operation. The risks these can pose to our business are set out in
our Principal risks on pages 66-77 and in our Risk factors on pages 284-293.
Material contracts
Neither the Company (nor any member of the Group) has entered into any
material contracts, for the two years immediately preceding publication of this
report, that are to be performed in whole or in part at or after the filing of this
report, other than contracts entered into in the ordinary course of business.
Articles of Association
For a summary of certain principal provisions of the Company’s Articles of
Association (the Articles), see Other Information – Other Group information –
Articles of Association of the 2018 Annual Report on Form 20-F, filed on
14 March 2019. A copy of the Company’s Articles has been filed as Exhibit 1 to this
Form 20-F.
Documents on display
CCEP is subject to the information requirements of the US Securities Exchange
Act of 1934, as amended (the Exchange Act), applicable to FPIs. In accordance
with these requirements, we file our Annual Report on Form 20-F and other
related documents with the US Securities and Exchange Commission (SEC). It is
possible to read and copy documents that we have filed with the SEC at the
SEC’s office. Filings with the SEC are also available to the public from commercial
document retrieval services, and from the website maintained by the SEC at
www.sec.gov.
Our Annual Report on Form 20-F is also available on our website at
ir.cocacolaep.com/financial-reports-and-results/integrated-reports.
Shareholders may also order a hard copy, free of charge – see Useful addresses
on page 321.
Exchange controls
Other than those individuals and entities subject to economic sanctions that may
be in force from time to time, we are not aware of any other legislative or legal
provision currently in force in the UK, the US, the Netherlands or Spain restricting
remittances to non-resident holders of CCEP’s Shares or affecting the import or
export of capital for the Company’s use.
Taxation information for shareholders
US federal income taxation to US holders of the ownership and disposition of CCEP
Shares
This section summarises the material US federal income tax consequences of
owning Shares as capital assets for tax purposes. It is not, however, a
comprehensive analysis of all the potential US tax consequences for such
holders, and it does not discuss the tax consequences of members of special
classes of holders which may be subject to other rules, including, but not limited
to: tax exempt entities, life insurance companies, dealers in securities, traders in
securities that elect a mark-to-market method of accounting for securities
holdings, holders liable for alternative minimum tax, holders that, directly,
indirectly or constructively, hold 10% or more (by vote or by value) of the
Company’s stock, holders that hold Shares as part of a straddle or a hedging or
conversion transaction, holders that purchase or sell Shares as part of a wash
sale for US federal income tax purposes, or US holders whose functional
currency is not the US dollar. In addition, if a partnership (or an entity treated as
a partnership for US federal income tax purposes) holds Shares, the US federal
income tax treatment of a partner will generally depend on the status of the
partner and the tax treatment of the partnership and may not be described fully
below. This summary does not address any aspect of US taxation other than US
federal taxation (such as the estate and gift tax, the Medicare tax on net
investment income or US state or local tax).
Investors should consult their tax advisors regarding the US federal, state, local
and other tax consequences of owning and disposing of Shares in their particular
circumstances.
This section is based on the IRC, its legislative history, existing and proposed
regulations, published rulings and court decisions, and on the United Kingdom-
United States Tax Treaty (the Treaty), all of which are subject to change, possibly
on a retroactive basis.
A US holder is a beneficial owner of Shares that is, for US federal income tax
purposes, (i) a citizen or individual resident of the US, (ii) a US domestic
corporation, (iii) an estate whose income is subject to US federal income taxation
regardless of its source, or (iv) a trust if (1) a US court can exercise primary
supervision over the trust’s administration and one or more US persons are
authorised to control all substantial decisions of the trust or (2) it was in
existence on August 20, 1996 and treated as a US person and has a valid election
in effect under applicable US Treasury regulations to continue to be treated as a
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Other Group information continued
US person. A non-US holder is a beneficial owner of Shares that is neither a US
holder nor a partnership for US federal income tax purposes.
Taxation of dividends
Subject to the passive foreign investment company (PFIC) rules discussed
below, a US holder is subject to US federal income taxation on the gross amount
of any dividend paid by CCEP out of the Company’s current or accumulated
earnings and profits (as determined for US federal income tax purposes).
Dividends paid to a non-corporate US holder will generally constitute “qualified
dividend income” and be taxable to the holder at a preferential rate, provided
that (i) CCEP is eligible for the benefits of the Treaty, which CCEP believes is the
case, (ii) CCEP is not a PFIC (as discussed below) for either its taxable year in
which the dividend is paid or the preceding taxable year and (iii) certain minimum
holding period and other requirements are met. US holders should consult their
own tax advisors regarding the availability of the preferential dividend tax rate on
dividends paid by CCEP.
For US federal income tax purposes, a dividend must be included in income when
the US holder actually or constructively receives the dividend. Dividends paid
by CCEP to corporate US holders will generally not be eligible for the dividends
received deduction. For foreign tax credit purposes, dividends will generally be
income from sources outside the US and will generally, be “passive” income for
purposes of computing the foreign tax credit allowable to a US holder.
The amount of a dividend distribution (including any UK withholding tax) on Shares
that is paid in a currency other than the US dollar will generally be included in
ordinary income in an amount equal to the US dollar value of the currency
received on the date such dividend distribution is includable in income,
regardless of whether the payment is, in fact, converted into US dollars on such
date. Generally, any gain or loss resulting from currency exchange fluctuations
during the period from the date the dividend payment is includable in income to
the date the payment is converted into US dollars will be treated as ordinary
income or loss and will not be eligible for the preferential tax rate on qualified
dividend income. Generally, the gain or loss will be income or loss from sources
within the US for foreign tax credit purposes.
Distributions in excess of CCEP’s earnings and profits, as determined for US
federal income tax purposes, will be treated as a return of capital to the extent
of the US holder’s basis in its Shares and thereafter as capital gain, subject to
taxation as described below.
Taxation of capital gains
Subject to the PFIC rules discussed below, a US holder will generally recognise
gain or loss on any sale, exchange, redemption or other taxable disposition of
Shares in an amount equal to the difference between the US dollar value of the
amount realised on the disposition and the US holder’s tax basis, determined in
US dollars, in the Shares. Any such capital gain or loss will generally be a long-
term gain or loss, subject to tax at a preferential rate for a non-corporate
US holder, if the US holder’s holding period for such Shares exceeds one year.
Any gain or loss recognised by a US holder on the sale or exchange of Shares will
generally be treated as income or loss from sources within the US for foreign tax
credit limitation purposes. The deductibility of capital losses is subject to
limitations.
PFIC status
A non-US corporation is a PFIC in any taxable year in which, after taking into
account the income and assets of certain subsidiaries, either (i) at least 75% of
its gross income is passive income or (ii) at least 50% of the quarterly average of
its assets is attributable to assets that produce or are held to produce passive
income. Currently, we do not believe that CCEP Shares will be treated as stock of
a PFIC for US federal income tax purposes. However, we review this annually, and
therefore this conclusion is subject to change in the current taxable year or
future taxable years. If CCEP were to be treated as a PFIC for any taxable year
(or portion thereof), that is included in the holding period of a US holder, unless a
US holder elects to treat CCEP as a “qualified electing fund” (QEF) or to be taxed
annually on a mark-to-market basis with respect to its Shares, any gain realised
on the sale or exchange of such Shares would in general be treated as ordinary
income rather than capital gain. Instead, a US holder would be treated as if he or
she had realised such gain rateably over the holding period for Shares and
generally would be taxed at the highest tax rate in effect for each such year to
which the gain was allocated. In this case, an interest charge in respect of the
tax attributable to each such year would apply. Certain distributions would be
similarly treated if CCEP were treated as a PFIC. In addition, each US person that
is a shareholder of a PFIC may be required to file an annual report disclosing its
ownership of shares in a PFIC and certain other information.
We do not intend to provide to US holders the information required to make a
valid QEF election.
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Information reporting and backup withholding
In general, information reporting requirements will apply to dividends received by
US holders of Shares, and the proceeds received on the disposition of Shares
effected within the US (and, in certain cases, outside the US), in each case, other
than US holders that are exempt recipients (such as corporations).
Backup withholding may apply to such amounts if the US holder fails to provide
an accurate taxpayer identification number (generally on an IRS Form W-9
provided to the paying agent or the US holder’s broker) or is otherwise subject to
backup withholding.
Backup withholding is not an additional tax. Any amounts withheld under the
backup withholding rules may be allowed as a refund or credit against a holder’s
US federal income tax liability, if any, provided the required information is given to
the IRS on a timely basis.
Certain US holders may be required to report to the IRS on Form 8938
information relating to their ownership of foreign financial assets, such as the
Shares, subject to certain exceptions (including an exception for Shares held in
accounts maintained by certain financial institutions). US holders should consult
their tax advisors regarding the effect, if any, of these rules on their obligations to
file information reports with respect to the Shares.
US federal income tax consequences to non-US holders of the ownership and disposition
of CCEP Shares
In general, a non-US holder of Shares will not be subject to US federal income
tax or, subject to the discussion below under Information reporting and backup
withholding, US federal withholding tax on any dividends received on Shares or
any gain recognised on a sale or other disposition of Shares including any
distribution to the extent it exceeds the adjusted basis in the non-US holder’s
Shares unless:
• the dividend or gain is effectively connected with such non-US holder’s
conduct of a trade or business in the US (and, if required by an applicable tax
treaty, is attributable to a permanent establishment maintained by the non-US
holder in the US); or
• in the case of gain only, such non-US holder is a non-resident alien individual
present in the US for 183 days or more during the taxable year of the sale
or disposition, and certain other requirements are met.
Special rules may apply to a non-US holder who was previously a US holder and
who again becomes a US holder in a later year.
A non-US holder that is a corporation may also be subject to a branch profits tax
at a rate of 30% (or such lower rate specified by an applicable tax treaty) on
its effectively connected earnings and profits for the taxable year, as adjusted
for certain items.
Information reporting and backup withholding
Dividends with respect to Shares and proceeds from the sale or other disposition
of Shares received in the US or through certain US-related financial
intermediaries by a non-US holder, may be subject to information reporting and
backup withholding unless such non-US holder provides to the applicable
withholding agent the required certification showing its non-US status, such as a
valid IRS Form W-8BEN, IRS Form W-8BEN-E or IRS Form W-8ECI, or otherwise
establishes an exemption, and otherwise complies with the applicable
requirements of the backup withholding rules.
Backup withholding is not an additional tax. Any amounts withheld under the
backup withholding rules may be allowed as a refund or credit against a holder’s
US federal income tax liability, if any, provided the required information is given to
the IRS on a timely basis.
UK taxation consequences for US holders
The following summarises certain UK tax consequences of the ownership and
disposition of Shares for US holders who are not resident in the UK for tax
purposes and to which split year treatment does not apply, which do not carry on
a trade, profession or vocation through a permanent establishment or branch or
agency in the UK, and which are the absolute beneficial owners of their Shares
and hold such Shares as a capital investment.
This information is a general discussion based on UK tax law and what is
understood to be the practice of HMRC, all as in effect on the date of publication,
and all of which are subject to differing interpretations and change at any time,
possibly with retroactive effect. It is not a complete analysis of all potential UK
tax considerations that may apply to a US holder. In addition, this discussion
neither addresses all aspects of UK tax law that may be relevant to particular US
holders nor takes into account the individual facts and circumstances of any
particular US holder. Accordingly, it is not intended to be, and should not be
construed as, tax advice.
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Other Group information continued
Distributions on Shares
No UK tax is required to be withheld from cash distributions on Shares paid to US
holders. In addition, US holders will not be subject to UK tax in respect of their
receipt of cash distributions on their Shares.
Sale, exchange, redemption or other dispositions of Shares
US holders will not be subject to UK tax on capital gains in respect of any gain
realised by such US holders on a sale, exchange, redemption or other disposition
of their Shares (and the UK rules relating to non-resident taxation of disposals of
shares in “UK property rich” companies are not expected to apply with respect to
the Shares, and would in any event only apply to a non-UK holder who holds
(together with connected persons) 25% or more of the shares in a relevant “UK
property rich” company). Special rules may apply to individual US holders which
have ceased to be resident in the UK for tax purposes and who make a
disposition of their Shares while UK non-resident before becoming once again
resident in the UK for tax purposes within five years from departure.
While Shares are held within the DTC clearance system, and provided that DTC
satisfies various conditions specified in UK legislation and has not made an
election for the alternative system of charge under Section 97A of the UK
Finance Act 1986 which applies to the Shares (a Section 97A Election), electronic
book entry transfers of such Shares should not be subject to UK stamp duty, and
agreements to transfer such Shares should not be subject to Stamp Duty
Reserve Tax (SDRT). Confirmation of this position was obtained by way of formal
clearance by HMRC and we are not aware that any Section 97A Election has been
made. Likewise, transfers of, or agreements to transfer, such Shares from the
DTC clearance system into another clearance system (or into a depositary
receipt system) should not, provided that the other clearance system or
depositary receipt system satisfies various conditions specified in UK legislation
and that DTC has not made a Section 97A Election, be subject to UK stamp duty
or SDRT.
In the event that Shares have left the DTC clearance system, other than into
another clearance system or depositary receipt system, any subsequent
transfer of, or agreement to transfer, such Shares may, subject to any available
exemption or relief, be subject to UK stamp duty or SDRT at a rate of 0.5% of the
consideration for such transfer or agreement (in the case of UK stamp duty,
rounded up to the next multiple of £5). Any such UK stamp duty or SDRT will
generally be payable by the transferee and must be paid (and any relevant
transfer document duly stamped by HMRC) before the transfer can be registered
in the books of the Company. In the event that Shares that have left the DTC
clearance system, other than into another clearance system or depositary
receipt system, are subsequently transferred back into a clearance system or
depositary receipt system, such transfer or agreement may, subject to any
available exemption or relief, be subject to UK stamp duty or SDRT at a rate of
1.5% of the consideration for such transfer (or, where there is no such
consideration, 1.5% of the value of such Shares). Notwithstanding the foregoing
provisions of this paragraph, a transfer of securities may in certain
circumstances be subject to UK stamp duty or SDRT based on the market value
of the relevant securities if this is higher than the amount of the consideration for
the relevant transfer.
This summary is not exhaustive of all possible tax consequences. It is not
intended as legal or tax advice to any particular holder of shares and should
not be so construed. Holders of shares should consult their own tax advisor
with respect to the tax consequences applicable to them in their own
particular circumstances.
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2024 Annual Report and Form 20-F
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Other Group information continued
Selected financial data
The following selected financial data has been extracted from, and should be
read in conjunction with, the consolidated financial statements of the Group and
their accompanying notes.
The financial information presented here has been prepared in accordance with
UK adopted International Accounting Standards, International Financial
Reporting Standards (IFRS) as adopted by the European Union and International
Financial Reporting Standards as issued by the International Accounting
Standards Board (IASB).
The financial results presented herein reflect the acquisitions of Coca-Cola
Amatil Limited on 10 May 2021 and Coca-Cola Beverages Philippines, Inc. on
23 February 2024.
2024
2023
2022
2021
2020
Income statement
€ million
€ million
€ million
€ million
€ million
Revenue
20,438
18,302
17,320
13,763
10,606
Cost of sales
(13,227)
(11,582)
(11,096)
(8,677)
(6,871)
Gross profit
7,211
6,720
6,224
5,086
3,735
Selling and distribution
expenses
(3,345)
(3,178)
(2,984)
(2,496)
(1,939)
Administrative expenses
(1,734)
(1,310)
(1,250)
(1,074)
(983)
Other income
—
107
96
—
—
Operating profit
2,132
2,339
2,086
1,516
813
Finance income
85
65
67
43
33
Finance costs
(272)
(185)
(181)
(172)
(144)
Total finance costs, net
(187)
(120)
(114)
(129)
(111)
Non-operating items
(9)
(16)
(15)
(5)
(7)
Profit before taxes
1,936
2,203
1,957
1,382
695
Taxes
(492)
(534)
(436)
(394)
(197)
Profit after taxes
1,444
1,669
1,521
988
498
2024
2023
2022
2021
2020
Statement of financial position
€ million
€ million
€ million
€ million
€ million
Non-current assets
24,462
22,649
22,770
23,330
15,161
Current assets
6,638
6,605
6,543
5,760
4,076
Total assets
31,100
29,254
29,313
29,090
19,237
Non-current liabilities
13,966
14,000
14,553
15,787
9,072
Current liabilities
8,149
7,278
7,313
6,093
4,140
Total liabilities
22,115
21,278
21,866
21,880
13,212
Total equity
8,985
7,976
7,447
7,210
6,025
Total equity and liabilities
31,100
29,254
29,313
29,090
19,237
Capital stock data
Number of Shares (in millions)
461
459
457
456
455
Share capital (in € million)
5
5
5
5
5
Share premium (in € million)
307
276
234
220
192
Per share data
Basic earnings per Share (€)
3.08
3.64
3.30
2.15
1.09
Diluted earnings per Share (€)
3.08
3.63
3.29
2.15
1.09
Dividends per Share (€)
1.97
1.84
1.68
1.40
0.85
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2024 Annual Report and Form 20-F
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Other Group information continued
Operations review
Revenue
Revenue increased by €2.1 billion, or 11.7%, from €18.3 billion in 2023 to
€20.4 billion in 2024. Refer to the Business and financial review for a discussion of
significant factors that impacted revenue in 2024, as compared to 2023.
2023 vs 2022
Refer to Other Information – Other Group information – Operations review of the
2023 Annual Report on Form 20-F, filed on 15 March 2024.
Volume
Refer to the Business and financial review for a discussion of significant factors
that impacted volume in 2024, as compared to 2023.
2023 vs 2022
Refer to Other Information – Other Group information – Operations review of the
2023 Annual Report on Form 20-F, filed on 15 March 2024.
Cost of sales
On a reported basis, cost of sales increased 14.2%, from €11.6 billion in 2023 to
€13.2 billion in 2024. Refer to the Business and financial review for a discussion of
significant factors that impacted cost of sales in 2024, as compared to 2023.
2023 vs 2022
Refer to Other Information – Other Group information – Operations review of the
2023 Annual Report on Form 20-F, filed on 15 March 2024.
Selling and distribution expenses and administrative expenses
The following table presents selling and distribution expenses and administrative
expenses for the periods presented:
2024
2023
€ million
€ million
Selling and distribution expenses
3,345
3,178
Administrative expenses
1,734
1,310
Total
5,079
4,488
On a reported basis, total operating expenses increased by 13.2% from €4.5 billion
in 2023 to €5.1 billion in 2024.
Selling and distribution expenses increased by €167 million, or 5.3%, versus 2023,
primarily driven by the inclusion of CCBPI, continued inflationary pressures on
labour and haulage, as well as optimised investment in sales marketing to
support our top line growth.
Administrative expenses increased by €424 million, or 32.4%, versus 2023, mainly
reflecting the inclusion of CCBPI, increased inflation, the expense recognised in
relation to the impairment of our Indonesia CGU and restructuring charges
related to business transformation activities, partially offset by discretionary
spend optimisation and the delivery of our ongoing efficiency programmes.
2023 vs 2022
Refer to Other Information – Other Group information – Operations review of the
2023 Annual Report on Form 20-F, filed on 15 March 2024.
Finance costs, net
Finance costs, net totalled €187 million and €120 million in 2024 and 2023,
respectively. The following table summarises the primary items impacting our
interest expense during the periods presented:
2024
2023
Average outstanding debt balance (€ million)
11,459
11,761
Weighted average cost of debt during the year
2.1%
1.6%
Fixed rate debt (% of portfolio)
90%
89%
Floating rate debt (% of portfolio)
10%
11%
Non-operating items
Non-operating items represented an expense of €9 million in 2024 and an
expense of €16 million in 2023. Non-operating expenses include remeasurement
gains and losses related to currency exchange rate fluctuations on financing
transactions denominated in a currency other than the subsidiary’s functional
currency. Non-operating items are shown on a net basis and reflect the impact of
any derivative instruments utilised to hedge the foreign currency movements of
the underlying financing transactions. Non-operating items also include the
Group’s share of the profit or loss after tax of equity accounted investments and
impairments.
Tax expense
In 2024, our reported effective tax rate was 25.4%. The increase from 2023 is
largely due to the impact of non-UK operations, which is substantially offset by
prior period adjustments.
In 2023, our reported effective tax rate was 24.2%. The increase from 2022 is
largely due to the increase in the UK statutory tax rate to a weighted average of
23.5% and the review of uncertain tax positions.
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Other Group information continued
Cash flow and liquidity review
Liquidity and capital resources
Our sources of capital include, but are not limited to, cash flows from operating
activities, public and private issuances of debt and equity securities and bank
borrowings. Based on information currently available, we do not believe we are at
significant risk of default by our counterparties.
The Group satisfies seasonal working capital needs and other financing requirements
with operating cash flows, cash on hand, short-term borrowings and a line of credit.
The Group assumed as part of the Acquisition borrowings and leases of
€69 million. In February 2024, in connection with the Acquisition, the Group
entered into a term loan facility agreement with the Bank of Philippine Islands. A
term loan facility in an aggregate amount of US$500 million was made available
under the agreement to be utilised in PHP. On 20 February 2024, the Group drew
down a PHP23.5 billion (US$420 million) loan under the facility with a maturity
date of 20 February 2034. The vast majority of the balance (90% of the total
principal amount) is repayable in full upon maturity. In April 2024, the remaining
undrawn portion of this facility was subsequently cancelled.
In September 2024, the Group issued €600 million 3.250% Notes due 2032.
In December 2024, the Group entered into a short-term loan agreement with
Metropolitan Bank and Trust Company and drew down PHP2.0 billion payable in
full upon maturity in December 2025.
At 31 December 2024, the Group had €1,230 million in third party debt maturities
outstanding in the next 12 months, €1,150 million in the form of Euro denominated
notes, €31 million of Australian dollar denominated notes and €49 million of Philippine
peso denominated loans. No short-term commercial papers were issued as at
31 December 2024. In addition to using operating cash flows and cash on hand, the
Group may repay its short-term obligations by issuing more debt, which may take the
form of commercial paper and/or longer-term debt. Further details regarding the
level of borrowings at the year end are provided in Note 15 of the consolidated
financial statements.
In line with our commitments to deliver long-term value to shareholders, in May
and December 2024 the Group paid interim dividends of €0.74 and €1.23 per
Share, respectively, maintaining an annualised dividend payout ratio of
approximately 50%. For the year ended 31 December 2024, dividend payments
totalled €910 million.
There were no payments related to share buyback activity in 2024.
Credit ratings and covenants
The Group’s credit ratings are periodically reviewed by rating agencies. The ratings
outlook from Moody’s and Fitch is stable and continues to be investment-grade
as at the end of 2024. Changes in the operating results, cash flows or financial
position could impact the ratings assigned by the various rating agencies. The
credit rating can be materially influenced by a number of factors including, but
not limited to, acquisitions, investment decisions, capital management activities
of TCCC and/or changes in the credit rating of TCCC. Should the credit ratings be
adjusted downward, the Group may incur higher costs to borrow, which could
have a material impact on the financial condition and results of operations.
Summary of cash flow activities
2024
During 2024, our primary sources of cash included: (1) €3,061 million from operating
activities, net of cash payments related to restructuring programmes of €105
million and contributions to our defined benefit pension plans of €40 million;
(2) proceeds from borrowings, net of issuance costs of €1,008 million; (3)
proceeds of €66 million related to the settlement of debt-related cross currency
swaps; (4) proceeds of €15 million primarily related to the sales of property, plant
and equipment; (5) proceeds from investments in short-term financial assets of
€420 million and (6) proceeds from a non-controlling shareholder (Aboitiz Equity
Ventures Inc.) relating to the acquisition of CCBPI of €468 million.
Our primary uses of cash were: (1) repayments on borrowings of €1,207 million,
repayments of principal on lease obligations of €157 million (refer to Financing
activities below) and net interest payments of €175 million; (2) dividend payments
of €910 million; (3) spend on property, plant and equipment of €791 million and
software of €148 million and (4) acquisition of CCBPI bottling operations, net of
cash acquired of €1,524 million.
2023
During 2023, our primary sources of cash included: (1) €2,806 million from
operating activities, net of cash payments related to restructuring programmes
of €104 million and contributions to our defined benefit pension plans of
€32 million; (2) proceeds from borrowings, net of issuance costs of €694 million;
(3) proceeds of €69 million related to the settlement of debt-related cross
currency swaps; (4) proceeds of €101 million primarily related to the sales of
property; (5) proceeds of €37 million related to the sale of certain non-alcoholic
ready to drink brands to TCCC and (6) proceeds of €35 million related to the sale
of sub-strata and associated mineral rights in Australia.
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2024 Annual Report and Form 20-F
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Other Group information continued
Our primary uses of cash were: (1) repayments on borrowings of €1,159 million,
repayments of principal on lease obligations of €148 million (refer to Financing
activities below) and net interest payments of €124 million; (2) dividend payments
of €841 million; (3) spend on property, plant and equipment of €672 million and
software of €140 million; (4) investments in short-term financial assets of
€342 million and (5) acquisition of non-controlling interest of €282 million.
The discussion of our 2022 cash flow activities has not been included as this can
be found under Other Information – Other Group information – Cash flow and
liquidity review of the 2022 Annual Report on Form 20-F, filed on 17 March 2023.
Operating activities
2024 vs 2023
Our cash derived from operating activities totalled €3,061 million in 2024 versus
€2,806 million in 2023. This increase reflects the impact of the newly acquired
CCBPI operations, increased revenue performance and working capital
improvements initiatives.
2023 vs 2022
Refer to Other Information – Other Group information – Cash flow and liquidity
review of the 2023 Annual Report on Form 20-F, filed on 15 March 2024.
Investing activities
2024 vs 2023
During 2024, proceeds related to sales of property, plant and equipment totalled
€15 million. Net inflows related to short-term investments were €420 million.
Capital asset investments represent a primary use of cash in our investing
activities. The following table summarises the capital investments for the
periods presented:
2024
2023
€ million
€ million
Supply chain infrastructure
587
532
Cold drink equipment
135
110
Fleet and other
69
30
Total capital asset investments
791
672
Investments in supply chain infrastructure relate to investments in our manufacturing
and distribution facilities. In addition, during 2024, the Group spent €148 million
(2023: €140 million) on capitalised development activity, primarily in relation to the
continuation of our business capability programme and further investments in
technology and digitisation.
During 2025, we expect our capital expenditures to be invested in similar categories
as those listed in the table above. While the level of capital expenditure is
uncertain, we expect that our operating cash flows, cash on hand and available
short-term capital resources will be sufficient to fund future capital
expenditures.
Cash outflows related to the acquisition of CCBPI bottling operations, net of cash
acquired totalled €1,524 million.
2023 vs 2022
Refer to Other Information – Other Group information – Cash flow and liquidity
review of the 2023 Annual Report on Form 20-F, filed on 15 March 2024.
Financing activities
2024 vs 2023
Our net cash used in financing activities totalled €973 million in 2024. In 2023,
net cash used in financing activities totalled €1,822 million.
The following table summarises our financing activities related to the issuances
of and payments on debt for the periods presented (in € millions):
Issuances of debt
Maturity date
Rate
2024
2023
€600 million
March 2032
3.250%
594
—
PHP Term loan
February 2034
6.5516%(C)
382
—
PHP2.0 billion
December 2025
5.750 %
32
—
€700 million
December 2030
3.875 %
—
694
Total issuances of debt,
less short-term borrowings,
net of issuance costs
1,008
694
Net issuances of short-term
borrowings
—
(A)
—
—
Total issuances of debt, net
1,008
694
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2024 Annual Report and Form 20-F
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Other Group information continued
Payments on debt
Maturity date
Rate
2024
2023
€500 million
May 2024
1.125%
(500)
—
US$650 million
May 2024
0.800%
(606)
—
A$100 million
April 2024
3.500%
(61)
—
PHP3.5 billion(B)
February 2025
6.000%
(40)
—
$850 million
May 2023
0.500%
—
(775)
US$25 million
October 2023
4.340%
—
(17)
US$25 million
October 2023
4.340%
—
(17)
€350 million
November 2023
2.625%
—
(350)
Lease obligations
—
(157)
(148)
Total repayments
on third party borrowings,
less short-term borrowings
(1,364)
(1,307)
Net payments of short-term
borrowings
—
(A)
—
—
Total payments on debt
(1,364)
(1,307)
A. These amounts represent short-term euro commercial paper with varying interest rates. In 2024, changes in short-term
borrowings include €10,074 million of newly issued and €10,074 million of repaid euro commercial paper. In 2023, changes
in short-term borrowings included €6,810 million and €6,810 million of newly issued and repaid euro commercial paper,
respectively.
B. In 2024, the Group partially repaid PHP2.5 billion related to PHP3.5 billion 6.00% Loan 2025 assumed as part of the
Acquisition.
C. Interest rate resets after second and fifth year.
Our financing activities during 2024 included dividend payments totalling
€910 million, based on dividend per Share of €0.74 for the first half of 2024 and
dividend per Share of €1.23 for the second half of 2024. In 2023, dividend
payments totalled €841 million.
There were no payments under the share buyback programme in 2024 and 2023.
There were no drawdowns from our credit facility in 2024 and 2023. The facility
remained undrawn as at 31 December 2024 and 31 December 2023, respectively.
During 2024, our financing activities also included proceeds of €468 million
received from a non-controlling shareholder relating to the Acquisition. Further
details are provided in Note 18 of the consolidated financial statements.
Lease obligations
During the year ended 31 December 2024 and 31 December 2023, total cash
outflows from payments of principal on lease obligations were €157 million and
€148 million, respectively.
2023 vs 2022
Refer to Other Information – Other Group information – Cash flow and liquidity
review of the 2023 Annual Report on Form 20-F, filed on 15 March 2024.
Raw materials
CCEP purchases concentrates and syrups from TCCC and other franchisors to
manufacture products. In addition, the Group purchases sweeteners, juices,
coffee, mineral waters, finished product, carbon dioxide, fuel, pallets, ocean
freight, haulage, virgin and recycled PET (plastic) preforms, glass, aluminium and
plastic bottles, aluminium and steel cans, pouches, closures, post-mix and
packaging materials. The Group generally purchases raw materials, other than
concentrates, syrups and mineral waters, from multiple suppliers. The product
licensing and bottling agreements with TCCC and agreements with some of our
other franchisors provide that all authorised containers, closures, cases, cartons
and other packages, and labels for their products must be purchased from
manufacturers approved by the respective franchisor. The principal sweetener
we use is sugar derived from sugar beets in Europe and sugar cane in APS. Our
sugar purchases are made from multiple suppliers. The Group does not
separately purchase low-calorie sweeteners because sweeteners for low-
calorie beverage products are contained in the concentrates or syrups we
purchase.
The Group produces most of its plastic bottle requirements within the
production facilities, approximately 60% from using preforms purchased from
multiple suppliers and the remainder from self-manufactured preforms. The
Group believes the self-manufacture of certain packages serves to ensure
supply and to reduce or manage costs. The Group manages its continuity of
materials and supplies closely, although, the supply and price of specific
materials or supplies are, at times, adversely affected by strikes, weather
conditions, speculation, abnormally high demand, governmental controls, new
taxes, national emergencies, natural disasters, price or supply fluctuations of
their raw material components, and currency fluctuations.
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2024 Annual Report and Form 20-F
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Other Group information continued
Contractual obligations
The following table reflects the Group's contractual obligations as at
31 December 2024:
Total
Less than 1 year
1 to 3 years
3 to 5 years
More than 5 years
€ million
€ million
€ million
€ million
€ million
Borrowings and
interest
obligations(A)
11,886
1,376
2,332
2,916
5,262
Lease
obligations(B)
872
211
287
156
218
Purchase
agreements(C)
466
127
187
120
32
13,224
1,714
2,806
3,192
5,512
A. These amounts represent the Group’s scheduled debt maturities and estimated interest payments related to the Group’s
borrowings, excluding leases. Refer to Note 15 of the consolidated financial statements for further details about the
borrowings of CCEP. Interest on fixed rate debt has been calculated based on applicable rates and payment dates.
Interest on variable rate debt has been calculated using the forward interest rate curve. Refer to Note 28 of the
consolidated financial statements for further details about financial risk management within CCEP.
B. These amounts represent the Group’s future lease payments including amounts representing interest, obligations related
to lease agreements committed to but not yet commenced and lease payments due under non-cancellable short-term or
low value lease agreements.
C. These amounts represent non-cancellable purchase agreements with various suppliers that are enforceable and legally
binding and that specify a fixed or minimum quantity that we must purchase. All purchases made under these agreements
have standard quality and performance criteria. In addition to these amounts, the Group has outstanding capital
expenditure purchase orders of approximately €195 million as at 31 December 2024. The Group also has other purchase
orders raised in the ordinary course of business which are settled in a reasonably short period of time. These are excluded
from the table above. The Group expects that the net cash flows generated from operating activities will be able to meet
these liabilities as they fall due.
The above table does not include the impact of contractual obligations related
to derivative financial instruments. A table containing this information is
presented in Note 28 of the consolidated financial statements. Furthermore, the
exact timing of our tax provisions is not certain and these have been excluded
from the above table. Refer to Note 22 of the consolidated financial statements
for further information.
The above table also does not reflect employee benefit liabilities of €179 million,
which include current liabilities of €7 million and non-current liabilities of
€172 million as at 31 December 2024. Refer to Note 17 of the consolidated
financial statements for further information.
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2024 Annual Report and Form 20-F
309
Other Group information continued
Properties
The Group’s principal properties include production facilities, distribution and logistics centres, shared service centres, business unit headquarter offices and
corporate offices.
The table below summarises the main properties which the Group uses as at 31 December 2024:
Great Britain
France
Belgium/ Luxembourg
Netherlands
Norway
Sweden
Germany
Iberia
Iceland
Total
Production facilities(A)
Leased
1
—
—
—
—
—
2
1
—
4
Owned
4
5
3
1
1
1
14
10
2
41
Total
5
5
3
1
1
1
16
11
2
45
Distribution and logistics facilities
Leased
1
—
1
—
1
—
14
3
—
20
Owned
—
—
—
—
—
—
6
4
—
10
Total
1
—
1
—
1
—
20
7
—
30
Corporate offices and business unit headquarters
Leased
2
1
1
1
—
—
1
3
—
9
Owned
—
—
—
—
—
—
—
—
—
—
Total
2
1
1
1
—
—
1
3
—
9
Australia
New Zealand and Pacific Islands
Indonesia and Papua New Guinea
Philippines
Total
Production facilities(A)(B)
Leased
9
5
—
—
14
Owned
3
6
11
18
38
Total
12
11
11
18
52
Distribution and logistics facilities
Leased
8
5
8
13
34
Owned
2
1
2
8
13
Total
10
6
10
21
47
Corporate offices and business unit headquarters
Leased
1
—
—
1
2
Owned
—
1
1
—
2
Total
1
1
1
1
4
A. All production facilities are a combination of production and warehouse facilities.
B. Production facilities include NARTD, alcoholic beverage and other production facilities.
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Other Group information continued
The Group operates one shared service centre organisation, spread across two
locations in Bulgaria and one in the Philippines.
The Group’s principal properties cover approximately 4.9 million square metres in
the aggregate of which 0.9 million square metres is leased and 4.0 million square
metres is owned. The Group believes that its facilities are adequately utilised and
sufficient to meet its present operating needs.
At 31 December 2024, the Group operated approximately 12,700 vehicles of
various types, the majority of which are leased. The Group also owned
approximately 1.5 million pieces of cold drink equipment, principally coolers and
vending machines.
Disclosure controls and procedures
Evaluation of disclosure controls and procedures
The Group maintains “disclosure controls and procedures”, as defined in Rule
13a-15(e) under the Exchange Act, which are designed to ensure that information
required to be disclosed in reports filed or submitted under the Exchange Act is
recorded, processed, summarised and reported within the time periods specified
in the US SEC’s rules and forms, and that such information is accumulated and
communicated to the Group’s management, including the Chief Executive Officer
(CEO) and Chief Financial Officer (CFO), as appropriate to allow timely decisions
regarding required disclosure. The Group’s management, with the participation of
the CEO and CFO, has evaluated the effectiveness of the Group’s disclosure
controls and procedures pursuant to Exchange Act Rule 13a-15(b) as at
31 December 2024. Based on that evaluation, the Group’s CEO and CFO have
concluded that the Group’s disclosure controls and procedures were effective.
Management’s report on internal control over financial reporting
The Group’s management is responsible for establishing and maintaining
adequate internal control over financial reporting for the Group, as defined in
Rule 13a-15(f) under the Exchange Act. Internal control over financial reporting is
a process designed under the supervision of the principal executive and financial
officers to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of the Group’s consolidated financial statements
for external reporting purposes in accordance with IFRS issued by the IASB.
The Group’s internal control over financial reporting includes policies and
procedures that (i) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the Group’s transactions and dispositions of
assets; (ii) are designed to provide reasonable assurance that transactions are
recorded as necessary to permit the preparation of the Group’s consolidated
financial statements in accordance with IFRS, and that receipts and
expenditures are being made only in accordance with authorisations of
management and the Directors of the Group; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition,
use or disposition of the Group’s assets that could have a material effect on the
Group’s consolidated financial statements. Internal control systems, no matter
how well designed, have inherent limitations and may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that internal controls may become inadequate
because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
The Group has excluded Coca-Cola Beverages Philippines, Inc. (CCBPI), which
was jointly acquired with Aboitiz Equity Ventures Inc. on 23 February 2024
through a special purpose vehicle, CCEP Aboitiz Beverages Philippines, Inc.
(CABPI), from its assessment of the effectiveness of the Company’s internal
control over financial reporting as of 31 December 2024. As a result, 4% and 6% of
total assets and net assets of the Group related to CCBPI, respectively, as of
31 December 2024 and 8% and 7% of revenues and net income of the Group
related to CCBPI, respectively, for the year then ended have been excluded from
the assessment of internal control over financial reporting. Under the guidelines
established by the U.S. Securities and Exchange Commission, companies are
permitted to exclude acquisitions from their assessment of internal control over
financial reporting for the first fiscal year in which the acquisition occurred.
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2024 Annual Report and Form 20-F
311
Other Group information continued
Management, with the participation of the CEO and CFO, assessed the
effectiveness of the Group’s internal control over financial reporting as at
31 December 2024, using the criteria set forth in the Internal Control-Integrated
Framework issued by The Committee of Sponsoring Organizations of the
Treadway Commission. Based on this assessment, management has determined
that the Group’s internal control over financial reporting as at 31 December 2024
was effective. Ernst & Young LLP (EY), the Group’s independent registered public
accounting firm, has issued a report on the Group’s internal control over financial
reporting as at 31 December 2024, which is set out on page 172.
Changes in internal control over financial reporting
There has been no change in the Group’s internal control over financial reporting
(as defined in Rule 13a-15(f) under the Exchange Act) during 2024 that has
materially affected, or is reasonably likely to materially affect, the Group’s
internal control over financial reporting.
Auditor’s fees and services
The Audit Committee of the Company has established policies and procedures
for the engagement of the independent registered public accounting firm,
Ernst & Young LLP (Auditor Firm ID: 1438), to render audit and non-audit services.
The policies provide for pre-approval by the Audit Committee of non-audit
services that are not prohibited by regulatory or other professional requirements.
Ernst & Young are engaged for these services when its expertise and experience
of CCEP are important.
Under the policy, pre-approval is required for all non-audit services including the
following categories: advice on accounting, auditing and financial reporting
matters; internal accounting and risk management control reviews (excluding any
services relating to information systems design and implementation); non-
statutory audit; project assurance and advice on business and accounting
process improvement (excluding any services relating to information systems
design and implementation relating to CCEP’s financial statements or accounting
records); due diligence in connection with acquisitions, disposals and
arrangements in which two or more parties have joint control (excluding valuation
or involvement in prospective financial information); income tax and indirect tax
compliance and advisory services; employee tax services (excluding tax services
that could impair independence); provision of, or access to, Ernst & Young
publications, workshops, seminars and other training materials; provision of
reports from data gathered on non-financial policies and information; and
assistance with understanding non-financial regulatory requirements.
The Audit Committee evaluates the performance of the auditor each year. The
audit fees payable to Ernst & Young are reviewed by the committee in the
context of other global companies for cost effectiveness. The committee keeps
under review the scope and results of audit work and the independence and
objectivity of the auditors. External regulation and CCEP policy require the
auditors to rotate their lead audit partner every five years. Details of fees for
services provided by the auditor are provided in Note 19 of the consolidated
financial statements.
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2024 Annual Report and Form 20-F
312
Other Group information continued
Part I
Item 1
Identity of Directors, Senior Management and Advisors
n/a
Item 2
Offer Statistics and Expected Timetable
n/a
Item 3
Key Information
B – Capitalisation and indebtedness
n/a
C – Reasons for the offer and use of proceeds
n/a
D – Risk factors
284-293
Item 4
Information on the Company
A – History and development of the Company
178, 294, 300, 321
B – Business overview
2, 4, 13, 80-93,
179-180,184-185, 300,
304-309
C – Organisational structure
237-242
D – Property, plants and equipment
190-193, 307, 310
Item 4A
Unresolved Staff Comments
n/a
Item 5
Operating and Financial Review and Prospects
A – Operating results
82-87, 90-91, 304-305
B – Liquidity and capital resources
88-90, 306-308
C – Research and development, patents and licences,
151
D – Trend information
2, 13, 82-93
E – Critical Accounting Estimates
n/a
Item 6
Directors, Senior Management and Employees
A – Directors and senior management
96-105, 294
B – Compensation
132-148, 250
C – Board practices
96-105, 122-129,
132-148, 294
D – Employees
219, 294
E – Share ownership
144-145, 228-229, 294
F – Recovery of Erroneously Awarded Compensation
n/a
Item 7
Major Shareholders and Related Party Transactions
A – Major Shareholders
151
B – Related Party Transactions
220-222
C – Interests of experts and counsel
n/a
Page
Item 8
Financial Information
A – Consolidated Statements and Other Financial
Information
167-242, 304-310
B – Significant Changes
236
Item 9
The Offer and Listing
A – Offer and listing details
295
B – Plan of distribution
n/a
C – Markets
295
D – Selling shareholders
n/a
E – Dilution
n/a
F – Expenses of the issue
n/a
Item 10
Additional Information
A – Share capital
n/a
B – Memorandum and articles of association
150, 300
C – Material contracts
300
D – Exchange controls
300
E – Taxation
300-303
F – Dividends and paying agents
n/a
G – Statement by experts
n/a
H – Documents on display
300
I – Subsidiary Information
237-242
J - Annual Report to Security Holders
n/a
Item 11
Quantitative and Qualitative Disclosures about
Market Risk
233-236
Item 12
Description of Securities Other than Equity Securities
A – Debt Securities
n/a
B – Warrants and Rights
n/a
C – Other Securities
n/a
D – American Depository Shares
n/a
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2024 Annual Report and Form 20-F
313
Form 20-F table of cross references
Part II
Item 13
Defaults, Dividend Arrearages and Delinquencies
n/a
Item 14
Material Modifications to the Rights of Security Holders
and Use of Proceeds
n/a
Item 15
Controls and Procedures
172, 311-312
Item 16A Audit Committee Financial Expert
123
Item 16B Code of Ethics
108
Item 16C Principal Accountant Fees and Services
219, 312
Item 16D Exemptions from the Listing Standards for Audit
n/a
Item 16E Purchases of Equity Securities by the Issuer and
Affiliated Purchasers
n/a
Item 16F Change in Registrant’s Certifying Accountant
n/a
Item 16G Corporate Governance
107-109
Item 16H Mine Safety Disclosure
n/a
Item 16I Disclosure Regarding Foreign Jurisdictions that Prevent
Inspections
n/a
Item 16J Insider Trading Policies
294
Item 16K Cybersecurity
76-77
Part III
Item 17
Financial Statements
167-242
Item 18
Financial Statements
n/a
Item 19
Exhibits
315
Page
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2024 Annual Report and Form 20-F
314
Form 20-F table of cross references continued
The following documents, which form a part of this Annual Report on Form 20-F, have been filed with the US Securities and Exchange Commission (SEC) via its EDGAR
system and can be viewed on the SEC’s website at www.sec.gov
Exhibit 1
Articles of Association of CCEP (incorporated by reference to Exhibit 99.1 to CCEP’s Form 6-K filed with the SEC on May 30, 2019).
Exhibit 2
Description of rights attached to each class of CCEP securities registered under Section 12 of the Exchange Act as at 31 December 2024.
Exhibit 3
Shareholders’ Agreement by and among the Company, Olive Partners, S.A., European Refreshments, Coca-Cola GmbH and Vivaqa Beteiligungs GmbH & Co. KG
(incorporated by reference to Annex C to the proxy statement/prospectus contained in CCEP’s Form F-4/A registration statement filed with the SEC on April 11, 2016).
Exhibit 4.1
Coca-Cola European Partners plc Long-Term Incentive Plan 2016 (incorporated by reference to Exhibit 4.1 to CCEP’s Form S-8 registration statement filed with the
SEC on June 1, 2016).
Exhibit 4.2
Coca-Cola Europacific Partners plc Long-Term Incentive Plan (incorporated by reference to Exhibit 4.1 to the Registrant’s Form 6-K filed with the SEC on April 12, 2023).
Exhibit 4.3
Rules of the Coca-Cola Enterprises Belgium/Coca-Cola Enterprises Services Belgian and Luxembourg Share Savings Plan (incorporated by reference to Exhibit 4.3 to
CCEP’s Form S-8 registration statement filed with the SEC on June 1, 2016).
Exhibit 4.4
Trust Deed and Rules of Coca-Cola Enterprises UK Share Plan (incorporated by reference to Exhibit 4.2 to the Company’s Form S-8 registration statement filed with
the SEC on June 1, 2016).
Exhibit 4.5
The Coca-Cola Enterprises, Inc. 2010 Incentive Award Plan (as amended Effective February 7, 2012) (incorporated by reference to Exhibit 99.1 to Coca-Cola
Enterprises, Inc.’s Current Report on Form 8-K filed on February 9, 2012).
Exhibit 4.6
Deed of Assumption and Replacement relating to Equity Awards of Coca-Cola Enterprises, Inc. (incorporated by reference to Exhibit 4.3 to the Company’s Post-
Effective Amendment No. 1 on Form S-8 to Form F-4 registration statement filed with the SEC on June 1, 2016).
Exhibit 8
List of Subsidiaries of the Company (included in Note 30 of the consolidated financial statements in this Annual Report on Form 20-F).
Exhibit 11.1
Insider Trading Policy.
Exhibit 12.1
Rule 13a-14(a) Certification of Damian Gammell.
Exhibit 12.2
Rule 13a-14(a) Certification of Ed Walker.
Exhibit 13
Rule 13a-14(b) Certifications.
Exhibit 15.1
Consent of Ernst & Young LLP, UK.
Exhibit 97
Coca-Cola Europacific Partners plc Policy on Recoupment of Incentive Compensation (approved by the Board on 18 October 2023) (incorporated by reference to
Exhibit 97 to the Registrant’s Form 20-F filed with the SEC on March 15, 2024).
Exhibit 101.INS
XBRL Instance Document.
Exhibit 101.SCH
XBRL Taxonomy Extension Schema Document.
Exhibit 101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document.
Exhibit 101.DEF
XBRL Taxonomy Extension Definition Linkbase Document.
Exhibit 101.LAB
XBRL Taxonomy Extension Label Linkbase Document.
Exhibit 101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document.
The total amount of long-term debt securities issued by the Company or any subsidiary under any one instrument which requires filing consolidated or
unconsolidated financial statements does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. The Company agrees to
furnish a copy of any long-term debt security instrument which requires filing consolidated or unconsolidated financial statements to the SEC on request.
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2024 Annual Report and Form 20-F
315
Exhibits
The registrant hereby certifies that it meets all of the requirements for filing on
Form 20-F and that it has duly caused and authorised the undersigned to sign the
Annual Report on Form 20-F on its behalf.
Coca-Cola Europacific Partners plc
/s/ Damian Gammell
Damian Gammell
Chief Executive Officer
21 March 2025
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2024 Annual Report and Form 20-F
316
Signatures
Unless the context otherwise requires, the following terms have the meanings shown below.
2010 Plan
CCE 2010 Incentive Award Plan
AEV
Aboitiz Equity Ventures Inc.
the Acquisition
On 23 February 2024, the Group together with Aboitiz Equity
Ventures Inc. (AEV) jointly acquired 100% of Coca-Cola
Beverages Philippines, Inc. (CCBPI) (the Acquisition), a wholly
owned subsidiary of The Coca-Cola Company (TCCC).
AFH
Away from home channel
AGM
Annual General Meeting
AI
Artificial intelligence
API
Australia, Pacific and Indonesia region incorporating
Coca-Cola Amatil Limited and its subsidiaries and business
unit
APS
Australia, Pacific and South East Asia region and renamed APS
business unit following the Acquisition
ARR
Annual report on remuneration
ARTD
alcoholic ready to drink
Articles
Articles of Association of Coca-Cola Europacific Partners plc
ATC
Affiliated Transaction Committee
AWS
Alliance for Water Stewardship
B2B
business to business
BCP
business continuity planning
BIER
Beverage Industry Environmental Roundtable
Board
Board of Directors of Coca-Cola Europacific Partners plc
BPF
Business Performance Factor
BU
a business unit of the Group
Capex
capital expenditure
CCE or Coca-Cola
Enterprises
Coca-Cola Enterprises, Inc.
CCEG or Coca-Cola
Erfrischungsgetränke
Coca-Cola Erfrischungsgetränke GmbH (which changed its
name to Coca-Cola European Partners Deutschland GmbH
from 22 August 2016)
CCEP or the Group
Coca-Cola Europacific Partners plc (registered in England and
Wales number 09717350) and its subsidiaries and subsidiary
undertakings from time to time
CCEP LTIP
the Long-Term Incentive Plan 2016 and the Long Term
Incentive Plan 2023
CCIP or Coca-Cola
Iberian Partners
Coca-Cola Iberian Partners, S.A. (which changed its name to
Coca-Cola European Partners Iberia S.L.U. from 1 January 2017)
CCL
Coca-Cola Amatil Limited
CCO
Chief Compliance Officer
CDE
cold drink equipment
CDP
formerly Carbon Disclosure Project, name shortened to CDP
in 2013
CEO
Chief Executive Officer (of Coca-Cola Europacific Partners plc)
CFO
Chief Financial Officer (of Coca-Cola Europacific Partners plc)
Chairman
the Chairman of Coca-Cola Europacific Partners plc
CHP
Combined heat and power
CGU
cash generating unit
CIO
Chief Information Officer (of Coca-Cola Europacific Partners
plc)
CISO
Chief Information Security Officer (of Coca-Cola Europacific
Partners plc)
CNG
Compressed natural gas
Cobega
Cobega, S.A.
CoC
Code of Conduct
Coca-Cola system
comprises The Coca-Cola Company and around 220 bottling
partners worldwide
the Code
UK Corporate Governance Code 2018
CODM
chief operating decision maker
Committee(s)
the five Committees with delegated authority from the Board:
the Audit, Remuneration, Nomination, Environmental, Social
and Governance and Affiliated Transaction Committees
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2024 Annual Report and Form 20-F
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Glossary
Committee Chairman/
Chairmen or Chair
the Chairman/Chairmen of the Committee(s)
Committee member(s)
member(s) of the Committees
Companies Act
the UK Companies Act 2006, as amended
Company or Parent
Company
Coca-Cola Europacific Partners plc
Company Secretary
Company Secretary (of Coca-Cola Europacific Partners plc)
CRC
Compliance and Risk Committee, a management committee
chaired by the Chief Compliance Officer
Cumulative operating
profit
the Group’s consolidated operating profit aggregated over the
horizon considered
DCCEEW
Department of Climate Change, Energy, the Environment and
Water
Deloitte
Deloitte LLP
DESNZ
Department for Energy Security and Net Zero
Director(s)
a (the) Director(s) of Coca-Cola Europacific Partners plc
DMA
Double materiality assessment
DRS
deposit return scheme(s)
DTC
Depository Trust Company
DTRs
the Disclosure Guidance and Transparency Rules of the UK
Financial Conduct Authority
EACs
Energy Attribute Certificates
EBITDA
earnings before interest, tax, depreciation and amortisation
ECON 19
Energy Consumption Guide 19
EcoVadis
provider of business sustainability ratings
EFRAG
European Financial Reporting Advisory Group
EFSA
European Food Safety Authority
EIR
effective interest rate
ELT
Executive Leadership Team
EPR
Extended Producer Responsibility
EPS
earnings per share
ERA
enterprise risk assessment
ERM
enterprise risk management
ESG
Environmental, Social and Governance
ESPP
Employee Share Purchase Plan
ESRS
European Sustainability Reporting Standards
EU
European Union
European Refreshments
or ER
European Refreshments Unlimited Company, a wholly-owned
subsidiary of TCCC
EWRA
Enterprise Water Risk Assessment
Exchange Act
the US Securities Exchange Act of 1934
Executive Leadership
Team or ELT
the CEO and his senior leadership direct reports
EY
Ernst & Young LLP
FAWVA
Facility Water Vulnerability Assessment
FCPA
US Foreign Corrupt Practices Act of 1977
FLAG
Forest, Land and Agriculture
FMCG
fast moving consumer goods
FSC
Forest Stewardship Council
FPI
foreign private issuer, a term that applies to a company under
the rules of the Nasdaq Stock Exchange that is not a
domestic US company
FRC
the Financial Reporting Council
FX
Foreign exchange
GB
Great Britain
GB Scheme
the Great Britain defined benefit pension plan
GHG
Greenhouse gas
GoOs
Guarantees of Origin
GRI
Global Reporting Initiative
Group or CCEP
Coca-Cola Europacific Partners plc and its subsidiaries and
subsidiary undertakings from time to time
GWPs
Global Warming potentials
HMRC
His Majesty’s Revenue and Customs, the UK’s tax authority
IAS
International Accounting Standards
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Glossary continued
IASB
International Accounting Standards Board
IBR
incremental borrowing rate
ID&E
Inclusion, Diversity & Equity
IEA
International Energy Agency
IFRS
International Financial Reporting Standards
INEDs
Independent Non-executive Directors of
Coca-Cola Europacific Partners plc
IPBES
Intergovernmental Science-Policy Platform on Biodiversity
and Ecosystem Services
IPF
Individual Performance Factor
IRC
the US Internal Revenue Code of 1986, as amended
IRS
US Internal Revenue Service
ISO
International Organization for Standardization
ISO 14001
International standard for environmental management systems
ISO 22301
International standard for Business Continuity and Resilience
IT
information technology
KORE
The Coca-Cola Operating Requirements
KPI
key performance indicator
Leadership locations
NARTD Production Facilities which rely on vulnerable water
sources or have high water dependancy
LGBTQ+
pertaining collectively to people who identify as lesbian, gay,
bisexual, or transgender, and to people who identify as queer
or with gender expressions outside perceived societal norms,
including non-binary, intersex and questioning of their gender
identity and/or sexual orientation, along with their allies
LGCs
Large-scale Generation Certificates
LPG
Liquid petroleum gas
LSE
London Stock Exchange
LTI
long-term incentive
LTIP
Long-Term Incentive Plan
LTIR
lost time incident rate
M&A
merger and acquisition(s)
Merger
the formation of Coca-Cola European Partners plc on
28 May 2016 through the combination of the businesses of
Coca-Cola Enterprises, Inc., Coca-Cola Iberian Partners, S.A.
and Coca-Cola Erfrischungsgetränke GmbH
NARTD
non-alcoholic ready to drink
Nasdaq
The Nasdaq Stock Market
Nasdaq Rules
the corporate governance rules of Nasdaq
NEDs
Non-executive Directors of Coca-Cola Europacific Partners
plc
NGO
non-governmental organisation
OCI
other comprehensive income
OFAC
Office of Foreign Assets Control of the US Department of the
Treasury
Official List
the Official List is the list maintained by the Financial Conduct
Authority of securities issued by companies for the purpose
of those securities being traded on a UK regulated market
such as London Stock Exchange
Olive Partners
Olive Partners, S.A.
Opex
operating expenditure
OT
operational technology
Packageless
Dispensed solutions for serving drinks without packaging such
as fountain or Coca-Cola Freestyle
Pack mix
the packaging portfolio mix of beverages
Parent Company or
Company
Coca-Cola Europacific Partners plc
Paris Agreement
the agreement on climate change resulting from UN COP21,
the UN Climate Change Conference, also known as the 2015
Paris Climate Conference
Partnership
the partnership agreement entered into between the Group,
the GB Scheme and CCEP Scottish Limited Partnership to
support a long-term funding arrangement
PEFC
Programme for the Endorsement of Forest Certification
PET
polyethylene terephthalate
PFIC
passive foreign investment company
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Glossary continued
PHEV
Plug-in hybrid electric vehicles
PPAs
Power Purchase Agreements
PRN
packaging recovery notes
PRO
Producer Responsibility Organisation
PSA
Principles of Sustainable Agriculture
PSU
performance share unit
RAS
Risk appetite statement
RGB
returnable/refillable glass bottle
ROIC
return on invested capital
Recycled material
post-consumer materials collected from consumers which
are reused as new raw material in our packaging
REGOs
Renewable Energy Guarantees of Origin
rPET
Recycled PET
RSP
CCEP’s Responsible Sourcing Policy, launched in 2022
RTD
ready to drink
RSU
restricted stock unit
S&P 500
Standard & Poor’s 500
SBTi
Science Based Targets initiative
SBTN
Science Based Targets Network
SDRT
Stamp Duty Reserve Tax
SEC
Securities and Exchange Commission of the US
SGP
Supplier Guiding Principles
Shares
ordinary shares of €0.01 each of Coca-Cola Europacific
Partners plc
SID
Senior Independent Director
SKU
stock keeping unit
SOX or the Sarbanes-
Oxley Act
the US Sarbanes-Oxley Act of 2002
the Spanish Stock
Exchanges
the Barcelona, Bilbao, Madrid and Valencia Stock Exchanges
SPO
CCEP’s Sustainable Packaging Office
SSC
Sustainability Steering Committee
SSPs
Shared socioeconomic pathways
SVA
Source water vulnerability assessment
TCCC
The Coca-Cola Company
TCCF
The Coca-Cola Foundation
TCFD
Task Force on Climate-related Financial Disclosures
TIGRs
Tradable Instruments for Global Renewables
TIR
total incident rate
TNFD
Taskforce on Nature-related Financial Disclosures
TSR
total shareholder return
UK Listing Rules or UKLRs
the listing rules of the UK Financial Conduct Authority
UKBA
UK Bribery Act 2010
UNESDA
Union of European Soft Drinks Associations
UN
United Nations
unit case
approximately 5.678 litres or 24 eight ounce servings, a typical
volume measurement unit
VAT
value added tax
VWBA
Volumetric Water Benefit Accounting
WBCSD
World Business Council for Sustainable Development
WEEE
EU Directive on Waste from Electrical and Electronic
Equipment
WHO
World Health Organisation
WMP
Water management plan
WRI
World Resources Institute
WRI/WBCSD GHG Protocol
or GHG Protocol
the GHG Protocol is the internationally recognised, standard
framework for measuring greenhouse gas (GHG) emissions
from private and public sector operations and their value
chains
WTT
Well-To-Tank
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2024 Annual Report and Form 20-F
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Glossary continued
Registered office
Coca-Cola Europacific Partners plc
Pemberton House
Bakers Road
Uxbridge
UB8 1EZ
Registered in England and Wales
Company number: 09717350
+44 (0)1895 231313
Share registration
US shareholders:
Shareholders in Europe and outside the US:
Computershare
150 Royall Street
Canton
MA 02021
1-800-418-4223
Computershare
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
+44 (0)370 702 0003
Report ordering
Shareholders who would like a paper copy of the Annual Report, which will be despatched on or around
10 April 2025, can make their request by post to the Company Secretary, Pemberton House, Bakers Road,
Uxbridge UB8 1EZ, United Kingdom or by making a request via ir.cocacolaep.com/financial-reports-and-results/
integrated-reports or by sending an email to sendmaterial@proxyvote.com or by making a request
via www.proxyvote.com or by phoning (in the US) 1-800-579-1639 or (outside the US) +1-800-579-1639 quoting
their 16 digit control number.
Agent for service of process in the US
The Corporation Trust Company
Corporation Trust Center
1209 Orange Street
Wilmington, DE 19801
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Useful addresses
This document contains statements, estimates or projections that constitute
“forward-looking statements” concerning the financial condition, performance,
results, guidance and outlook, dividends, consequences of mergers, acquisitions,
joint ventures, divestitures, strategy and objectives of Coca-Cola Europacific
Partners plc and its subsidiaries (together CCEP or the Group). Generally, the
words “ambition”, “target”, “aim”, “believe”, “expect”, “intend”, “estimate”,
“anticipate”, “project”, “plan”, “seek”, “may”, “could”, “would”, “should”, “might”, “will”,
“forecast”, “outlook”, “guidance”, “possible”, “potential”, “predict”, “objective” and
similar expressions identify forward-looking statements, which generally are not
historical in nature.
Forward-looking statements are subject to certain risks that could cause actual
results to differ materially. Forward-looking statements are based upon various
assumptions as well as CCEP’s historical experience and present expectations or
projections. As a result, undue reliance should not be placed on forward-looking
statements, which speak only as of the date on which they are made. Factors
that, in CCEP’s view, could cause such actual results to differ materially from
forward-looking statements include, but are not limited to, those set forth in the
“Risk Factors” section of this 2024 Annual Report on Form 20-F, including, but not
limited to: changes in the marketplace; changes in relationships with large
customers; adverse weather conditions; importation of other bottlers’ products
into our territories; deterioration of global and local economic and political
conditions; increases in costs of raw materials; changes in interest rates or debt
rating; deterioration in political unity within the European Union; defaults of or
failures by counterparty financial institutions; changes in tax law in countries in
which we operate; additional levies of taxes; legal changes in our status; waste
and pollution, health concerns perceptions, and recycling matters related to
packaging; global or regional catastrophic events; cyberattacks against us or our
customers or suppliers; technology failures; initiatives to realise cost savings;
calculating infrastructure investment; executing on our acquisition strategy;
costs, limitations of supplies, and quality of raw materials; maintenance of brand
image and product quality; managing workplace health, safety and security; water
scarcity and regulations; climate change and legal and regulatory responses
thereto; other legal, regulatory and compliance considerations; anti-corruption
laws, regulations, and sanction programmes; legal claims against suppliers;
litigation and legal proceedings against us; attracting, retaining and motivating
employees; our relationship with TCCC and other franchisors; and differing views
among our shareholders.
Due to these risks, CCEP’s actual future financial condition, results of operations,
and business activities, including its results, dividend payments, capital and
leverage ratios, growth, including growth in revenue, cost of sales per unit case
and operating profit, free cash flow, market share, tax rate, efficiency savings,
achievement of sustainability goals, including net zero emissions and recycling
initiatives and capital expenditures, may differ materially from the plans, goals,
expectations and guidance set out in forward-looking statements. These risks
may also adversely affect CCEP’s share price. CCEP does not undertake any
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise, except as required
under applicable rules, laws and regulations.
Strategic
Report
Governance and
Directors’ Report
Financial
Statements
Further Sustainability
Information
Other
Information
Coca-Cola Europacific Partners plc
2024 Annual Report and Form 20-F
322
Forward-looking statements