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LONDON, 10 November 2016 - Coca-Cola European Partners plc (CCEP) (ticker symbol: CCE) today announces its interim results for the third-quarter ended 30 September 2016, and affirms full-year 2016 outlook. |
• | Third-quarter diluted earnings per share were €0.67 on a reported basis or €0.66 on a pro forma comparable basis, including a negative currency translation impact of €0.03. |
• | Third-quarter reported revenue totaled €3.0 billion. Pro forma comparable revenue was €3.0 billion, flat vs. prior year, or up 3.5 per cent on a pro forma comparable and fx-neutral basis. Volume increased 3.5 per cent on a pro forma basis. |
• | Third-quarter reported operating profit was €405 million; pro forma comparable operating profit was €459 million, up 2.0 per cent or up 7.0 per cent on a pro forma comparable and fx-neutral basis. |
• | CCEP affirms its full-year guidance for 2016, including flat revenue growth, modest mid-single-digit operating profit growth, and diluted earnings per share growth in a mid-teen range, all on a pro forma comparable and fx-neutral basis. After including an expected negative currency impact of approximately 4.5 per cent, pro forma comparable diluted earnings per share is expected in a range of €1.86 to €1.90. |
• | CCEP remains on track to achieve pre-tax savings of €315 million to €340 million through synergies by mid-2019. |
• | Separately today, CCEP announced Damian Gammell will succeed John F. Brock as chief executive officer. |
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Key Financial Measures unaudited, FX impact calculated by recasting current year results at prior year rates | Third Quarter Ended 30 September 2016 | |||||||||||||||||||
€ million | % change | |||||||||||||||||||
As Reported | Pro forma Comparable | Fx-Impact | As Reported | Pro forma Comparable | Fx-Impact | Pro forma Comparable Fx-Neutral | ||||||||||||||
Revenue | 2,986 | 2,986 | (99 | ) | 82.5 | % | — | % | (3.5 | )% | 3.5 | % | ||||||||
Cost of sales | 1,825 | 1,826 | (58 | ) | 80.0 | % | — | % | (3.0 | )% | 3.0 | % | ||||||||
Operating expenses | 756 | 701 | (21 | ) | 90.5 | % | (1.5 | )% | (3.0 | )% | 1.5 | % | ||||||||
Operating profit | 405 | 459 | (20 | ) | 77.5 | % | 2.0 | % | (5.0 | )% | 7.0 | % | ||||||||
Profit after taxes | 327 | 321 | (17 | ) | 124.0 | % | 13.5 | % | (5.5 | )% | 19.0 | % | ||||||||
Diluted earnings per share (€) | 0.67 | 0.66 | (0.03 | ) | 8.0 | % | 14.0 | % | (4.5 | )% | 18.5 | % |
Key Financial Measures unaudited, FX impact calculated by recasting current year results at prior year rates | Nine Months Ended 30 September 2016 | |||||||||||||||||||
€ million | % change | |||||||||||||||||||
As Reported | Pro forma Comparable | Fx-Impact | As Reported | Pro forma Comparable | Fx-Impact | Pro forma Comparable Fx-Neutral | ||||||||||||||
Revenue | 6,528 | 8,232 | (188 | ) | 35.0 | % | (2.0 | )% | (2.0 | )% | — | % | ||||||||
Cost of sales | 4,068 | 5,097 | (113 | ) | 32.5 | % | (2.5 | )% | (2.0 | )% | (0.5 | )% | ||||||||
Operating expenses | 1,741 | 2,073 | (42 | ) | 50.5 | % | (2.0 | )% | (2.0 | )% | — | % | ||||||||
Operating profit | 719 | 1,062 | (33 | ) | 18.0 | % | (0.5 | )% | (3.0 | )% | 2.5 | % | ||||||||
Profit after taxes | 537 | 723 | (24 | ) | 40.0 | % | 4.5 | % | (3.5 | )% | 8.0 | % | ||||||||
Diluted earnings per share (€) | 1.34 | 1.48 | (0.06 | ) | (17.0 | )% | 4.5 | % | (4.0 | )% | 8.5 | % |
Operational Review |
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Outlook |
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Conference Call |
Financial Details |
Contacts |
About CCEP |
Forward-Looking Statements |
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Supplementary Financial Information - Income Statement Third Quarter |
Third Quarter 2016 Unaudited, in millions of € except per share data which is calculated prior to rounding | As Reported | Items Impacting Comparability | Comparable | |||||||||||||
CCEP | Mark-to-market effects(1) | Restructuring Charges(2) | Merger Related Costs(3) | Inventory Step Up Costs(4) | Net Tax Items(5) | CCEP | ||||||||||
Revenue | 2,986 | — | — | — | — | — | 2,986 | |||||||||
Cost of sales | 1,825 | 3 | (5 | ) | — | 3 | — | 1,826 | ||||||||
Gross profit | 1,161 | (3 | ) | 5 | — | (3 | ) | — | 1,160 | |||||||
Operating expenses | 756 | 1 | (48 | ) | (8 | ) | — | — | 701 | |||||||
Operating profit | 405 | (4 | ) | 53 | 8 | (3 | ) | — | 459 | |||||||
Total finance costs, net | 29 | — | — | — | — | — | 29 | |||||||||
Non-operating items | 1 | — | — | — | — | — | 1 | |||||||||
Profit before taxes | 375 | (4 | ) | 53 | 8 | (3 | ) | — | 429 | |||||||
Taxes | 48 | (1 | ) | 20 | 3 | (1 | ) | 39 | 108 | |||||||
Profit after taxes | 327 | (3 | ) | 33 | 5 | (2 | ) | (39 | ) | 321 | ||||||
Diluted earnings per share (€) | 0.67 | 0.66 | ||||||||||||||
Diluted common shares outstanding | 488 |
Third Quarter 2015 Unaudited, in millions € except per share data which is calculated prior to rounding | As Reported | Items Impacting Comparability | Pro Forma and Comparable | |||||||||||||||
CCEP | Total Pro forma Adjustments(6) | Mark-to-market effects(1) | Restructuring Charges(2) | Merger Related Costs(3) | Gain on Property Sale(7) | Inventory Step Up Costs(4) | CCEP | |||||||||||
Revenue | 1,638 | 1,350 | — | — | — | — | — | 2,988 | ||||||||||
Cost of sales | 1,013 | 829 | (8 | ) | (8 | ) | — | — | 2 | 1,828 | ||||||||
Gross profit | 625 | 521 | 8 | 8 | — | — | (2 | ) | 1,160 | |||||||||
Operating expenses | 397 | 433 | (6 | ) | (95 | ) | (28 | ) | 9 | — | 710 | |||||||
Operating profit | 228 | 88 | 14 | 103 | 28 | (9 | ) | (2 | ) | 450 | ||||||||
Total finance costs, net | 28 | 12 | — | — | — | — | — | 40 | ||||||||||
Non-operating items | 3 | 2 | — | — | — | — | — | 5 | ||||||||||
Profit before taxes | 197 | 74 | 14 | 103 | 28 | (9 | ) | (2 | ) | 405 | ||||||||
Taxes | 51 | 32 | 5 | 30 | 8 | (3 | ) | (1 | ) | 122 | ||||||||
Profit after taxes | 146 | 42 | 9 | 73 | 20 | (6 | ) | (1 | ) | 283 | ||||||||
Diluted earnings per share (€) | 0.63 | 0.58 | ||||||||||||||||
Reported diluted common shares outstanding | 232 | |||||||||||||||||
Adjust: Pro forma capital structure share impact related to the Merger | 256 | |||||||||||||||||
Pro forma comparable diluted common shares outstanding | 488 |
(1) | Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges. |
(2) | Amounts represent nonrecurring restructuring charges for CCE, Germany and Iberia. |
(3) | Amounts represent costs associated with the Merger to form CCEP incurred by CCE, Germany and Iberia. |
(4) | Amounts represent the nonrecurring impact of the acquisition accounting step-up in the fair value of finished goods and spare parts inventory for Germany and Iberia. |
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(5) | Amount includes the deferred tax impact related to the enactment of a corporate tax rate reduction in the United Kingdom and the tax impact of applying the full year forecasted pro forma tax rate to the quarterly profit before taxes. |
(6) | Includes the financial results of Germany and Iberia as if the Merger had occurred at the beginning of each period, the impact of acquisition accounting for all periods presented including provisional fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Spain, and additional debt financing cost incurred by CCEP in connection with the Merger. For further details, refer to the CCEP 2016 Interim Half-Yearly Financial Report filed on 22 September 2016. |
(7) | Amount represents the gain associated with the sale of a surplus facility in Great Britain. |
First Nine Months 2016 Unaudited, in millions of € except per share data which is calculated prior to rounding | As Reported | Items Impacting Comparability | Pro Forma and Comparable | |||||||||||||||
CCEP | Total Pro forma Adjustments(1) | Mark-to-market effects(2) | Restructuring Charges(3) | Merger Related Costs(4) | Inventory Step Up Costs(5) | Net Tax Items(6) | CCEP | |||||||||||
Revenue | 6,528 | 1,704 | — | — | — | — | — | 8,232 | ||||||||||
Cost of sales | 4,068 | 1,053 | 17 | (12 | ) | — | (29 | ) | — | 5,097 | ||||||||
Gross profit | 2,460 | 651 | (17 | ) | 12 | — | 29 | — | 3,135 | |||||||||
Operating expenses | 1,741 | 834 | 11 | (386 | ) | (127 | ) | — | — | 2,073 | ||||||||
Operating profit | 719 | (183 | ) | (28 | ) | 398 | 127 | 29 | — | 1,062 | ||||||||
Total finance costs, net | 90 | 12 | — | — | (5 | ) | — | — | 97 | |||||||||
Non-operating items | 5 | (1 | ) | — | — | — | — | — | 4 | |||||||||
Profit before taxes | 624 | (194 | ) | (28 | ) | 398 | 132 | 29 | — | 961 | ||||||||
Taxes | 87 | (27 | ) | (7 | ) | 108 | 31 | 7 | 39 | 238 | ||||||||
Profit after taxes | 537 | (167 | ) | (21 | ) | 290 | 101 | 22 | (39 | ) | 723 | |||||||
Diluted earnings per share (€) | 1.34 | 1.48 | ||||||||||||||||
Reported diluted common shares outstanding | 402 | |||||||||||||||||
Adjust: Pro forma capital structure share impact related to the Merger | 86 | |||||||||||||||||
Pro forma comparable diluted common shares outstanding | 488 |
First Nine Months 2015 Unaudited, in millions € except per share data which is calculated prior to rounding | As Reported | Items Impacting Comparability | Pro Forma and Comparable | |||||||||||||||
CCEP | Total Pro forma Adjustments(1) | Mark-to-market effects(2) | Restructuring Charges(3) | Merger Related Costs(4) | Gain on Property Sale(7) | Inventory Step Up Costs(5) | CCEP | |||||||||||
Revenue | 4,837 | 3,569 | — | — | — | — | — | 8,406 | ||||||||||
Cost of sales | 3,071 | 2,218 | (19 | ) | (12 | ) | — | — | (30 | ) | 5,228 | |||||||
Gross profit | 1,766 | 1,351 | 19 | 12 | — | — | 30 | 3,178 | ||||||||||
Operating expenses | 1,157 | 1,242 | (2 | ) | (260 | ) | (35 | ) | 9 | — | 2,111 | |||||||
Operating profit | 609 | 109 | 21 | 272 | 35 | (9 | ) | 30 | 1,067 | |||||||||
Total finance costs, net | 83 | 40 | — | — | — | — | — | 123 | ||||||||||
Non-operating items | 3 | 6 | — | — | — | — | — | 9 | ||||||||||
Profit before taxes | 523 | 63 | 21 | 272 | 35 | (9 | ) | 30 | 935 | |||||||||
Taxes | 140 | 40 | 9 | 79 | 10 | (3 | ) | 8 | 283 | |||||||||
Profit after taxes | 383 | 23 | 12 | 193 | 25 | (6 | ) | 22 | 652 | |||||||||
Diluted earnings per share (€) | 1.62 | 1.34 | ||||||||||||||||
Reported diluted common shares outstanding | 236 | |||||||||||||||||
Adjust: Pro forma capital structure share impact related to the Merger | 252 | |||||||||||||||||
Pro forma comparable diluted common shares outstanding | 488 |
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(1) | Includes the financial results of Germany and Iberia as if the Merger had occurred at the beginning of each period, the impact of acquisition accounting for all periods presented including provisional fair values of the acquired inventory, property, plant, and equipment and intangibles from Germany and Spain, and additional debt financing cost incurred by CCEP in connection with the Merger. For further details, refer to the CCEP 2016 Interim Half-Yearly Financial Report filed on 22 September 2016. |
(2) | Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges. |
(3) | Amounts represent nonrecurring restructuring charges for CCE, Germany and Iberia. |
(4) | Amounts represent costs associated with the Merger to form CCEP incurred by CCE, Germany and Iberia. |
(5) | Amounts represent the nonrecurring impact of the acquisition accounting step-up in the fair value of finished goods and spare parts inventory for Germany and Iberia. |
(6) | Amount includes the deferred tax impact related to the enactment of a corporate tax rate reduction in the United Kingdom and the tax impact of applying the full year forecasted pro forma tax rate to the year-to-date profit before taxes. |
(7) | Amount represents the gain associated with the sale of a surplus facility in Great Britain. |
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Supplemental Financial Information - Revenue |
Revenue In millions of €, except per case data which is calculated prior to rounding | Third Quarter Ended | Nine Months Ended | |||||||||||
30 September 2016 | 2 October 2015 | % Change | 30 September 2016 | 2 October 2015 | % Change | ||||||||
As reported | 2,986 | 1,638 | 82.5 | % | 6,528 | 4,837 | 35.0 | % | |||||
Add: Pro forma Germany & Iberia(A) | n/a | 1,350 | n/a | 1,704 | 3,569 | n/a | |||||||
Pro forma comparable | 2,986 | 2,988 | — | % | 8,232 | 8,406 | (2.0 | )% | |||||
Adjust: Impact of fx changes | 99 | n/a | n/a | 188 | n/a | n/a | |||||||
Pro forma comparable & fx-neutral | 3,085 | 2,988 | 3.5 | % | 8,420 | 8,406 | — | % | |||||
Revenue per unit case | 4.46 | 4.48 | (0.5 | )% | 4.43 | 4.45 | (0.5 | )% |
(A) | Adjustments to reflect Germany and Iberia revenue as if the Merger had occurred at the beginning of each period. For the third quarter of 2015 this includes the period from 4 July through 2 October. For the first nine months of 2016 this includes the period from 1 January through 27 May and for the first nine months of 2015 this includes the period from 1 January through 1 October. |
Third Quarter Ended | Nine Months Ended | ||||||||||||
Revenue by Geography Pro forma and Comparable | 30 September 2016 | 2 October 2015 | % Change | 30 September 2016 | 2 October 2015 | % Change | |||||||
% of Total | % of Total | % of Total | % of Total | ||||||||||
Iberia | 27.0 | % | 25.5 | % | 6.5 | % | 24.0 | % | 23.0 | % | 3.5 | % | |
Germany | 20.0 | % | 20.0 | % | (1.0 | )% | 20.0 | % | 19.5 | % | (0.5 | )% | |
Great Britain | 18.0 | % | 20.5 | % | (13.0 | )% | 19.0 | % | 21.0 | % | (11.5 | )% | |
France | 15.5 | % | 15.5 | % | 1.0 | % | 17.0 | % | 17.0 | % | (2.5 | )% | |
Belgium/Luxembourg | 8.5 | % | 8.0 | % | 5.0 | % | 8.5 | % | 8.5 | % | (1.5 | )% | |
The Netherlands | 4.5 | % | 4.0 | % | 8.5 | % | 4.5 | % | 4.5 | % | 2.5 | % | |
Norway | 3.5 | % | 3.5 | % | 4.5 | % | 3.5 | % | 3.5 | % | — | % | |
Sweden | 3.0 | % | 3.0 | % | 3.5 | % | 3.5 | % | 3.0 | % | 4.5 | % | |
Total | 100.0 | % | 100.0 | % | — | % | 100.0 | % | 100.0 | % | (2.0 | )% |
Pro forma Volume - Selling Day Shift In millions of unit cases, prior year volume recast using current year selling days | Third Quarter Ended | Nine Months Ended | |||||||||||
30 September 2016 | 2 October 2015 | % Change | 30 September 2016 | 2 October 2015 | % Change | ||||||||
Volume | 691 | 667 | 3.5 | % | 1,899 | 1,897 | — | % | |||||
Impact of selling day shift | n/a | n/a | n/a | n/a | (7 | ) | 0.5 | % | |||||
Pro forma comparable volume | 691 | 667 | 3.5 | % | 1,899 | 1,890 | 0.5 | % |
Third Quarter Ended | Nine Months Ended | ||||||||||||
Pro Forma Volume by Brand Category Adjusted for selling day shift | 30 September 2016 | 2 October 2015 | % Change | 30 September 2016 | 2 October 2015 | % Change | |||||||
% of Total | % of Total | % of Total | % of Total | ||||||||||
Sparkling | 84.0 | % | 84.0 | % | 3.0 | % | 84.5 | % | 85.0 | % | — | % | |
Coca-Cola Trademark | 62.5 | % | 63.0 | % | 2.0 | % | 63.5 | % | 65.0 | % | (1.5 | )% | |
Sparkling Flavors and Energy | 21.5 | % | 21.0 | % | 6.5 | % | 21.0 | % | 20.0 | % | 5.5 | % | |
Stills | 16.0 | % | 16.0 | % | 4.5 | % | 15.5 | % | 15.0 | % | 2.5 | % | |
Juice, Isotonics and Other | 8.0 | % | 8.0 | % | 5.0 | % | 8.0 | % | 8.0 | % | 1.0 | % | |
Water | 8.0 | % | 8.0 | % | 4.0 | % | 7.5 | % | 7.0 | % | 4.0 | % | |
Total | 100.0 | % | 100.0 | % | 3.5 | % | 100.0 | % | 100.0 | % | 0.5 | % |
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Supplemental Financial Information - Cost of Sales and Operating Expenses |
Cost of Sales In millions of €, except per case data which is calculated prior to rounding | Third Quarter Ended | Nine Months Ended | |||||||||||
30 September 2016 | 2 October 2015 | % Change | 30 September 2016 | 2 October 2015 | % Change | ||||||||
As reported | 1,825 | 1,013 | 80.0 | % | 4,068 | 3,071 | 32.5 | % | |||||
Add: Pro forma Germany & Iberia(A) | n/a | 831 | n/a | 1,021 | 2,188 | n/a | |||||||
Adjust: Acquisition accounting | n/a | (2 | ) | n/a | 32 | 30 | n/a | ||||||
Adjust: Total items impacting comparability | 1 | (14 | ) | n/a | (24 | ) | (61 | ) | n/a | ||||
Pro forma comparable | 1,826 | 1,828 | — | % | 5,097 | 5,228 | (2.5 | )% | |||||
Adjust: Impact of fx changes | 58 | n/a | n/a | 113 | n/a | n/a | |||||||
Pro forma comparable & fx-neutral | 1,884 | 1,828 | 3.0 | % | 5,210 | 5,228 | (0.5 | )% | |||||
Cost of sales per unit case | 2.73 | 2.74 | (0.5 | )% | 2.74 | 2.77 | (1.0 | )% |
(A) | Adjustments to reflect Germany and Iberia cost of sales as if the Merger had occurred at the beginning of each period. For the third quarter of 2015 this includes the period from 4 July through 2 October. For the first nine months of 2016 this includes the period from 1 January through 27 May and for the first nine months of 2015 this includes the period from 1 January through 2 October. |
Operating Expenses In millions of € except % change | Third Quarter Ended | Nine Months Ended | |||||||||||
30 September 2016 | 2 October 2015 | % Change | 30 September 2016 | 2 October 2015 | % Change | ||||||||
As reported | 756 | 397 | 90.5 | % | 1,741 | 1,157 | 50.5 | % | |||||
Add: Pro forma Germany & Iberia(A) | n/a | 434 | n/a | 838 | 1,246 | n/a | |||||||
Adjust: Acquisition accounting | n/a | (1 | ) | n/a | (4 | ) | (4 | ) | n/a | ||||
Adjust: Total items impacting comparability | (55 | ) | (120 | ) | n/a | (502 | ) | (288 | ) | n/a | |||
Pro forma comparable | 701 | 710 | (1.5 | )% | 2,073 | 2,111 | (2.0 | )% | |||||
Adjust: Impact of fx changes | 21 | n/a | n/a | 42 | n/a | n/a | |||||||
Pro forma comparable fx-neutral | 722 | 710 | 1.5 | % | 2,115 | 2,111 | — | % |
(A) | Adjustments to reflect Germany and Iberia operating expenses as if the Merger had occurred at the beginning of each period. For the third quarter of 2015 this includes the period from 4 July through 2 October. For the first nine months of 2016 this includes the period from 1 January through 27 May and for the first nine months of 2015 this includes the period from 1 January through 2 October. |
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Third Quarter Ended | Nine Months Ended | |||||||||||
30 September 2016 | 2 October 2015 | 30 September 2016 | 2 October 2015 | |||||||||
€ million | € million | € million | € million | |||||||||
Revenue | 2,986 | 1,638 | 6,528 | 4,837 | ||||||||
Cost of sales | (1,825 | ) | (1,013 | ) | (4,068 | ) | (3,071 | ) | ||||
Gross profit | 1,161 | 625 | 2,460 | 1,766 | ||||||||
Selling and distribution expenses | (500 | ) | (230 | ) | (1,036 | ) | (695 | ) | ||||
Administrative expenses | (256 | ) | (167 | ) | (705 | ) | (462 | ) | ||||
Operating profit | 405 | 228 | 719 | 609 | ||||||||
Finance income | 12 | 7 | 21 | 20 | ||||||||
Finance costs | (41 | ) | (35 | ) | (111 | ) | (103 | ) | ||||
Total finance costs, net | (29 | ) | (28 | ) | (90 | ) | (83 | ) | ||||
Non-operating items | (1 | ) | (3 | ) | (5 | ) | (3 | ) | ||||
Profit before taxes | 375 | 197 | 624 | 523 | ||||||||
Taxes | (48 | ) | (51 | ) | (87 | ) | (140 | ) | ||||
Profit after taxes | 327 | 146 | 537 | 383 | ||||||||
Basic earnings per share (€) | 0.68 | 0.63 | 1.36 | 1.65 | ||||||||
Diluted earnings per share (€) | 0.67 | 0.63 | 1.34 | 1.62 |
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30 September 2016 | 31 December 2015 | |||||
€ million | € million | |||||
ASSETS | ||||||
Non-current: | ||||||
Intangible assets | 8,336 | 3,202 | ||||
Goodwill | 2,246 | 81 | ||||
Property, plant and equipment | 3,957 | 1,692 | ||||
Non-current derivative assets | 3 | 22 | ||||
Deferred tax assets | 292 | 81 | ||||
Other non-current assets | 66 | 35 | ||||
Total non-current assets | 14,900 | 5,113 | ||||
Current: | ||||||
Current derivative assets | 17 | 20 | ||||
Current tax assets | 43 | 13 | ||||
Inventories | 690 | 371 | ||||
Amounts receivable from related parties | 83 | 52 | ||||
Trade accounts receivable | 2,060 | 1,210 | ||||
Cash and cash equivalents | 347 | 156 | ||||
Other current assets | 351 | 61 | ||||
Total current assets | 3,591 | 1,883 | ||||
Total assets | 18,491 | 6,996 | ||||
LIABILITIES | ||||||
Non-current: | ||||||
Borrowings, less current portion | 6,006 | 3,122 | ||||
Employee benefit liabilities | 232 | 142 | ||||
Non-current provisions | 54 | 17 | ||||
Non-current derivative liabilities | 11 | 21 | ||||
Deferred tax liabilities | 2,219 | 769 | ||||
Other non-current liabilities | 83 | 48 | ||||
Total non-current liabilities | 8,605 | 4,119 | ||||
Current: | ||||||
Current portion of borrowings | 397 | 418 | ||||
Current provisions | 211 | 20 | ||||
Current derivative liabilities | 7 | 47 | ||||
Current tax liabilities | 103 | 44 | ||||
Amounts payable to related parties | 226 | 94 | ||||
Trade and other payables | 2,445 | 1,383 | ||||
Total current liabilities | 3,389 | 2,006 | ||||
Total liabilities | 11,994 | 6,125 | ||||
EQUITY | ||||||
Share capital | 5 | 3 | ||||
Share premium | 113 | 2,729 | ||||
Merger reserves | 8,466 | — | ||||
Reverse acquisition reserves | (11,142 | ) | — | |||
Other reserves | — | (180 | ) | |||
Treasury shares | (346 | ) | (3,307 | ) | ||
Retained earnings | 9,401 | 1,626 | ||||
Total equity | 6,497 | 871 | ||||
Total equity and liabilities | 18,491 | 6,996 |
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Nine Months Ended | ||||||
30 September 2016 | 2 October 2015 | |||||
€ million | € million | |||||
Cash flows from operating activities: | ||||||
Profit before taxes | 624 | 522 | ||||
Adjustments to reconcile profit before tax to net cash flows from operating activities: | ||||||
Depreciation | 235 | 168 | ||||
Amortisation of intangible assets | 29 | 20 | ||||
Share-based payment expense | 32 | 25 | ||||
Finance costs, net | 90 | 82 | ||||
Decrease/(increase) in trade and other receivables | (109 | ) | 68 | |||
Decrease/(increase) in inventories | 42 | (21 | ) | |||
Increase/(decrease) in trade and other payables | 210 | (38 | ) | |||
Increase/(decrease) in provisions | (8 | ) | — | |||
Change in other operating assets and liabilities | (50 | ) | 24 | |||
Income taxes paid | (110 | ) | (88 | ) | ||
Net cash flows from operating activities | 985 | 762 | ||||
Cash flows from investing activities: | ||||||
Cash from acquisition of bottling operations | 110 | — | ||||
Purchases of property, plant and equipment | (309 | ) | (238 | ) | ||
Purchases of intangible assets | (26 | ) | (13 | ) | ||
Proceeds from sales of property, plant and equipment | 12 | 12 | ||||
Settlement of net investment hedges | (8 | ) | 29 | |||
Other investing activity | — | (11 | ) | |||
Net cash flows used in investing activities | (221 | ) | (221 | ) | ||
Cash flows from financing activities: | ||||||
Proceeds from borrowings, net of issuance costs | 3,174 | 495 | ||||
Changes in revolving credit facility, net of issuance costs | 15 | — | ||||
Changes in short-term borrowings | (183 | ) | 108 | |||
Repayments on third party borrowings | (232 | ) | (430 | ) | ||
Repayment of loan with TCCC assumed in acquisition | (73 | ) | — | |||
Interest paid | (79 | ) | (83 | ) | ||
Return of capital to CCE shareholders | (2,963 | ) | — | |||
Dividends paid | (203 | ) | (172 | ) | ||
Share repurchases under share repurchase programmes | — | (534 | ) | |||
Exercise of employee share options | 17 | 15 | ||||
Repurchases of share-based payments | (27 | ) | — | |||
Settlement of debt-related cross-currency swaps | — | 50 | ||||
Other financing activities, net | (12 | ) | (5 | ) | ||
Net cash flows used in financing activities | (566 | ) | (556 | ) | ||
Net change in cash and cash equivalents | 198 | (15 | ) | |||
Net effect of currency exchange rate changes on cash and cash equivalents | (7 | ) | 6 | |||
Cash and cash equivalents at beginning of period | 156 | 184 | ||||
Cash and cash equivalents at end of period | 347 | 175 |
COCA-COLA EUROPEAN PARTNERS PLC | |||
(Registrant) | |||
Date: | 10 November 2016 | By: | /s/ Joyce King-Lavinder |
Name: | Joyce King-Lavinder | ||
Title: | Vice President, Treasury |