United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the period ending 30 March 2018

COCA-COLA EUROPEAN PARTNERS PLC

Pemberton House, Bakers Road
Uxbridge, UB8 1EZ, United Kingdom
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F ý Form 40-F D ¨
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))
(Check One) Yes ¨ No ý
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))
(Check One) Yes ¨ No ý




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COCA-COLA EUROPEAN PARTNERS REPORTS
INTERIM RESULTS FOR THE FIRST-QUARTER ENDED 30 MARCH 2018

SOLID START TO 2018 AND ON-TRACK TO DELIVER FULL-YEAR OUTLOOK

LONDON, 26 April 2018 - Coca-Cola European Partners plc (CCEP) (ticker symbol: CCE) today announces its interim results for the first-quarter ended 30 March 2018, and affirms full-year 2018 outlook.
Highlights
First-quarter diluted earnings per share were €0.25 on a reported basis or €0.33 on a comparable basis, including a negligible impact from currency translation.
First-quarter reported revenue totalled €2.4 billion, flat versus prior year, or up 1.0 percent on a comparable and fx-neutral basis. Volume was down 2.5 percent on a comparable basis.
First-quarter reported operating profit totalled €187 million, or €239 million on a comparable basis, up 12.5 percent or up 13.0 percent on a comparable and fx-neutral basis.
CCEP affirms full-year guidance for 2018 including comparable and fx-neutral diluted earnings per share growth of between 6 percent and 7 percent when compared to 2017 comparable results.
CCEP declares quarterly interim dividend of €0.26 per share.

“Our first-quarter results reflect our continued focus on improving our in-market execution and driving profitable revenue growth through strong price and mix realisation,” said Damian Gammell, Chief Executive Officer. “While pleased with our overall performance, volume growth was impacted during the quarter by unfavourable weather, customer challenges, and the effect of some of our brand realignment decisions.
 
“We remain confident that we are making the right strategic decisions for the long term and this is reflected in our 2018 outlook, which we have affirmed today,” Mr. Gammell said. “To achieve this outlook, we are focused on executing our plans over the key summer selling season while navigating through a dynamic trading environment.”

 

Key Financial Measures
Unaudited, fx impact calculated by recasting current year results at prior year rates
First-Quarter Ended 30 March 2018
€ million
 
% change
As Reported
 
Comparable
 
Fx-Impact
 
As Reported
 
Comparable
 
Fx-Impact
 
Comparable Fx-Neutral
Revenue
2,378

 
2,378

 
(24
)
 
 %
 
 %
 
(1.0
)%
 
1.0
 %
Cost of sales
1,491

 
1,462

 
(15
)
 
1.5
 %
 
(2.5
)%
 
(1.0
)%
 
(1.5
)%
Operating expenses
700

 
677

 
(8
)
 
0.5
 %
 
1.0
 %
 
(1.0
)%
 
2.0
 %
Operating profit
187

 
239

 
(1
)
 
(14.5
)%
 
12.5
 %
 
(0.5
)%
 
13.0
 %
Profit after taxes
124

 
162

 
(1
)
 
(15.5
)%
 
15.5
 %
 
(1.0
)%
 
16.5
 %
Diluted earnings per share (€)
0.25

 
0.33

 

 
(16.5
)%
 
14.0
 %
 
 %
 
14.0
 %


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Operational Review
First-quarter 2018 diluted earnings per share were €0.25 on a reported basis, or €0.33 on a comparable basis. Currency translation had a negligible impact on first-quarter comparable diluted earnings per share. First-quarter 2018 reported operating profit totalled €187 million, down 14.5 percent versus prior year. Comparable operating profit was €239 million, up 12.5 percent, or up 13.0 percent on a comparable and fx-neutral basis.
Key operating profit factors in the quarter include modest revenue growth driven by strong revenue per unit case growth. This was offset by a 2.5 percent decline in volume as we continue to optimise promotional effectiveness, focus on smaller pack formats and exit lower margin brands. Operating margins improved as we expanded our gross margin and continued to realise post-merger synergy benefits.
Revenue
First-quarter 2018 reported revenue totalled €2.4 billion, flat versus prior year, or up 1.0 percent on a comparable and fx-neutral basis. Revenue per unit case was up 3.5 percent on a comparable and fx-neutral basis driven by favourable price, promotion and package mix. First-quarter volume decreased 2.5 percent on a comparable basis, reflecting unfavourable weather conditions; the impact from customer disruptions, notably in France; and some of our strategic decisions regarding our portfolio, principally in the water segment.
On a territory basis for the first quarter, Iberia revenues were down 0.5 percent, with a decline in volume partially offset by revenue per unit case growth, supported by favourable channel mix. Revenue in Germany was up 1.5 percent, with strong revenue per unit case growth driven by the impact of pricing and promotional plans, partially offset by volume declines. Revenue in Great Britain grew 3.0 percent with solid gains in revenue per unit case reflecting an ongoing focus on promotional effectiveness and favourable package mix. Revenue in France was down 4.5 percent with modest growth in revenue per unit case more than offset by a decline in volume owing primarily to the impact from customer disruptions as we focus on price realisation and reduction of promotional activity. Revenue in the Northern European territories (Belgium, Luxembourg, the Netherlands, Norway, Sweden, and Iceland) was flat, led by growth in the Netherlands and Sweden.
On a brand basis for first-quarter 2018, volume for sparkling brands was down 1.0 percent. Coca-Cola trademark brands decreased 2.0 percent, with growth of 8.5 percent in Coca-Cola Zero Sugar offset by declines in other trademark brands. Sparkling flavours and energy grew 1.0 percent led by energy brands and Schweppes. Still brands decreased 9.0 percent, with water brands down 10.5 percent and juices, isotonics, and other down 8.0 percent mainly due to strategic decisions regarding our brand portfolio.
Cost of Sales
First-quarter 2018 reported cost of sales were €1.5 billion, up 1.5 percent versus prior year. Comparable cost of sales were €1.5 billion, down 2.5 percent, or down 1.5 percent on a comparable and fx-neutral basis.
First-quarter cost of sales per unit case increased 1.0 percent on a comparable and fx-neutral basis, driven by channel, brand and package mix, as well as year-over-year cost increases in key inputs, principally concentrate as a result of our incidence model, and aluminium. This was partially offset by sweetener and benefits from our synergy programmes.
Operating Expenses
First-quarter 2018 reported operating expenses were €700 million, up 0.5 percent versus prior year. Comparable operating expenses were €677 million, up 1.0 percent, or up 2.0 percent on a comparable and fx-neutral basis. This reflects expense timing and select investments partially offset by synergy benefits and a continued focus on managing expenses.
Restructuring Charges
During the first-quarter 2018, we recognised restructuring charges totaling €44 million. These charges principally relate to proposed restructuring activities under our Integration and Synergy Programme and our recently announced proposal to close our manufacturing site in Milton Keynes and distribution centre in Northampton during the course of 2019. 





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Outlook
For 2018, CCEP affirms prior guidance, including revenue growth in a low single-digit range, with both operating profit and earnings per share growth of between 6 percent and 7 percent. Each of these growth figures is on a comparable and fx-neutral basis when compared to 2017 comparable results. This revenue growth guidance excludes the accounting impact of incremental soft drinks industry taxes. These taxes are expected to add approximately 2 percent to 3 percent to revenue growth and approximately 4 percent to cost of goods growth. At recent rates, currency translation would have a negligible impact on 2018 full-year diluted earnings per share.
CCEP affirms 2018 free cash flow* in the range of €850 million to €900 million, including the expected benefit from improved working capital offset by the impact of restructuring and integration costs. Capital expenditures are expected to be in the range of €525 million to €575 million, including approximately €75 million of capital expenditures related to synergies. Weighted-average cost of debt is expected to be approximately 2 percent. The comparable effective tax rate for 2018 is expected to be approximately 25 percent.
CCEP remains on track to achieve pre-tax run-rate savings of €315 million to €340 million through synergies by mid-2019. Further, CCEP expects to have realised approximately 75 percent of the target by year-end 2018. Restructuring cash costs to achieve these synergies are expected to be approximately 2 1/4 times expected savings and includes cash costs associated with pre-transaction close accruals. Given these factors, currency exchange rates, and our outlook for 2018, CCEP expects year-end net debt to adjusted EBITDA* for 2018 to be towards the low-end of our target range of 2.5 to 3 times. As a result, during 2018, CCEP expects to continue to evaluate returning incremental cash to shareholders.
* Refer to ‘Note Regarding the Presentation of Alternative Performance Measures’ for further details about these measures.
Dividends
The CCEP Board of Directors declared a regular quarterly interim dividend of €0.26 per share. The interim dividend is payable 29 May 2018 to those shareholders of record on 14 May 2018. The Company is pursuing arrangements to pay the interim dividend in euros to shares held within Euroclear Netherlands. Other publicly held shares will be converted into an equivalent US dollar amount using exchange rates issued by WM/Reuters taken at 16:00 BST on 26 April 2018. This translated amount will be posted on our website, www.ccep.com, under the Investor/Shareowner Information section.
Conference Call
CCEP will host a conference call with investors and analysts today at 15:00 BST, 16:00 CEST, and 10:00 a.m. EDT. The call can be accessed through the Company’s website at www.ccep.com.
Financial Details
Financial details can be found in our first-quarter 2018 earnings release on Form 6-K, available within the next 24 hours at www.morningstar.co.uk/uk/NSM (located under effective date 30 March 2018) and available immediately on our website, www.ccep.com, under the Investors tab. This document will include comparable income statements for first-quarter 2018 and 2017. There is also additional supplemental financial information, such as volume and per unit case data. The financial details included in this earnings release and on Form 6-K are unaudited.
Contacts
Investor Relations
Thor Erickson    
+1 (678) 260-3110
Media Relations
Shanna Wendt
+44 7976 595 168


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About CCEP
Coca-Cola European Partners plc is a leading consumer goods company in Western Europe, selling, making and distributing an extensive range of non alcoholic ready-to-drink beverages and is the world’s largest independent Coca-Cola bottler based on revenue. Coca-Cola European Partners serves a consumer population of over 300 million across Western Europe, including Andorra, Belgium, continental France, Germany, Great Britain, Iceland, Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain and Sweden. The Company is listed on Euronext Amsterdam, the New York Stock Exchange, Euronext London and on the Spanish stock exchanges, and trades under the symbol CCE. For more information about CCEP, please visit our website at www.ccep.com and follow CCEP on Twitter at @CocaColaEP.


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Forward-Looking Statements
This document may contain statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, strategy and objectives of Coca-Cola European Partners plc and its subsidiaries (“CCEP”). Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “plan,” “seek,” “may,” “could,” “would,” “should,” “might,” “will,” “forecast,” “outlook,” “guidance,” “possible,” “potential,” “predict” 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 from 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. These risks and uncertainties include but are not limited to those set forth in the “Risk Factors” section of the 2017 Annual Report on Form 20-F, including the statements under the following headings: Risks Relating to Consumer Preferences and the Health Impact of Soft Drinks; Risks Relating to Legal and Regulatory Intervention (such as the impact of sugar taxes being implemented in a number of countries in 2018 and recently announced plans by the UK Government to consider the introduction of some form of deposit return scheme in GB); Risks Relating to Business Integration and Synergy Savings; Risks Relating to Cyber and Social Engineering Attacks; Risks Relating to the Market; Risks Relating to Economic and Political Conditions (such as continuing developments in relation to the UK’s exit from the EU); Risks Relating to the Relationship with TCCC and Other Franchisors; Risks Relating to Product Quality; and Other Risks.

Due to these risks and uncertainties, CCEP’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set out in CCEP’s forward-looking statements. Additional risks and uncertainties that may impact CCEP’s future financial condition and performance are identified in filings with the SEC which are available on the SEC’s website at www.sec.gov. 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. CCEP assumes no responsibility for the accuracy and completeness of any forward-looking statements. Any or all of the forward-looking statements contained in this filing and in any other of CCEP’s respective public statements may prove to be incorrect.




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Note Regarding the Presentation of Alternative Performance Measures
We use certain alternative performance measures (non-GAAP 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 allow 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 GAAP measure.
For purposes of this document, the following terms are defined:
‘Comparable’ represents results excluding items impacting comparability during the periods presented. Items impacting comparability include restructuring charges, merger and integration related costs, out of period mark-to-market impact of hedges, litigation provisions and net tax items relating to rate and law changes. Such items are excluded from our comparable results in order to provide a better understanding of business performance and allow for greater comparability. Additionally, for 2017 periods presented, comparable includes final acquisition accounting related adjustments. Comparable volume is also adjusted for selling days.
‘Fx-neutral’ represents the comparable results excluding the impact of foreign exchange rate changes during the periods presented. Foreign exchange impact is calculated by recasting current year results at prior year exchange rates.
‘Free cash flow’ is defined as net cash flows from operations, less capital expenditures and interest paid, plus proceeds from capital disposals. Management utilises free cash flow as a measure of the Group’s cash generation from operating activities, taking into account investments in property, plant and equipment and non-discretionary interest payments.
‘Adjusted EBITDA’ is defined as profit after tax plus taxes, net finance costs, non-operating items, depreciation, amortisation and adjusted for items impacting comparability.
Unless otherwise stated, percent amounts are rounded to the nearest 0.5%.


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Supplementary Financial Information - Income Statement
The following provides a summary reconciliation of CCEP’s reported and comparable results for the periods presented:
First-Quarter 2018
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]
 
CCEP
Revenue
2,378

 


 
2,378

Cost of sales
1,491

 
(8
)
(21
)
 
1,462

Gross profit
887

 
8

21

 
916

Operating expenses
700

 

(23
)
 
677

Operating profit
187

 
8

44

 
239

Total finance costs, net
21

 


 
21

Profit before taxes
166

 
8

44

 
218

Taxes
42

 
2

12

 
56

Profit after taxes
124

 
6

32

 
162

 
 
 
 
 
 
 
Diluted earnings per share (€)
0.25

 
0.01

0.07

 
0.33

 
 
 
Diluted shares outstanding
 
 
489

First-Quarter 2017
Unaudited, in millions of € except per share data which is calculated prior to rounding
As Reported
 
Items Impacting Comparability
 
Comparable
CCEP
 
Merger effects[3]
Mark-to-market effects[1]
Restructuring
charges[2]
Merger and
integration related
costs[4]
 
CCEP
Revenue
2,382

 




 
2,382

Cost of sales
1,468

 
23

11

(3
)

 
1,499

Gross profit
914

 
(23
)
(11
)
3


 
883

Operating expenses
695

 
(4
)
(2
)
(17
)
(1
)
 
671

Operating profit
219

 
(19
)
(9
)
20

1

 
212

Total finance costs, net
24

 




 
24

Non-operating items

 




 

Profit before taxes
195

 
(19
)
(9
)
20

1

 
188

Taxes
48

 
(5
)
(2
)
7


 
48

Profit after taxes
147

 
(14
)
(7
)
13

1

 
140

 
 
 
 
 
 
 
 
 
Diluted earnings per share (€)
0.30

 
(0.03
)
(0.01
)
0.03


 
0.29

 
 
 
Diluted shares outstanding
 
 
488

___________________________
[1] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[2] 
Amounts represent restructuring charges related to business transformation activities.
[3] 
Adjustments to reflect final acquisition accounting related adjustments and associated impact on depreciation and amortisation expense.
[4] 
Amounts represent costs associated with the Merger to form CCEP.



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Supplemental Financial Information - Revenue
Revenue
In millions of €, except per case data which is calculated prior to rounding
First-Quarter Ended
30 March 2018
31 March 2017
% Change
As reported & comparable
2,378

2,382

 %
Adjust: Impact of fx changes
24

n/a

(1.0
)%
Comparable & fx-neutral
2,402

2,382

1.0
 %
 
 
 
 
Revenue per unit case
4.50

4.36

3.5
 %
 
 
 
 
Revenue by Geography
Comparable
First-Quarter Ended
30 March 2018
31 March 2017
Revenue % Change
% of Total
% of Total
Spain/Portugal/Andorra[1]
22.0
%
22.0
%
(0.5
)%
Germany
20.5
%
20.0
%
1.5
 %
Great Britain
18.5
%
18.5
%
3.0
 %
France/Monaco
17.0
%
17.5
%
(4.5
)%
Belgium/Luxembourg/Netherlands
14.0
%
13.5
%
2.0
 %
Norway
4.0
%
4.0
%
(6.0
)%
Sweden
3.0
%
3.5
%
1.5
 %
Iceland
1.0
%
1.0
%
(6.5
)%
Total
100.0
%
100.0
%
 %
___________________________
[1] 
Spain/Portugal/Andorra is also referred to as Iberia.
Comparable Volume - Selling Day Shift
In millions of unit cases, prior period volume recast using current year selling days[1]
First-Quarter Ended
30 March 2018
31 March 2017
% Change
Volume
533

546

(2.5
)%
Impact of selling day shift
n/a

n/a

n/a

Comparable volume
533

546

(2.5
)%
___________________________
[1] 
A unit case equals approximately 5.678 litres or 24 8-ounce servings, a typical volume measure used in our industry.
Comparable Volume by Brand Segment
Adjusted for selling day shift
First-Quarter Ended
30 March 2018
31 March 2017
Volume % Change
% of Total
% of Total
Sparkling
86.5
%
85.5
%
(1.0
)%
Coca-Cola Trademark
65.5
%
65.0
%
(2.0
)%
Sparkling Flavours and Energy
21.0
%
20.5
%
1.0
 %
Stills
13.5
%
14.5
%
(9.0
)%
Juice, Isotonics and Other
7.0
%
7.5
%
(8.0
)%
Water
6.5
%
7.0
%
(10.5
)%
Total
100.0
%
100.0
%
(2.5
)%


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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
First-Quarter Ended
30 March 2018
31 March 2017
% Change
As reported
1,491

1,468

1.5
 %
Adjust: Total items impacting comparability
(29
)
31

(4.0
)%
Comparable
1,462

1,499

(2.5
)%
Adjust: Impact of fx changes
15

n/a

(1.0
)%
Comparable & fx-neutral
1,477

1,499

(1.5
)%
 
 
 
 
Cost of sales per unit case
2.77

2.75

1.0
 %
Operating Expenses
In millions of €
First-Quarter Ended
30 March 2018
31 March 2017
% Change
As reported
700

695

0.5
 %
Adjust: Total items impacting comparability
(23
)
(24
)
0.5
 %
Comparable
677

671

1.0
 %
Adjust: Impact of fx changes
8

n/a

(1.0
)%
Comparable & fx-neutral
685

671

2.0
 %
Supplemental Financial Information - Free Cash Flow
Free Cash Flow[1]
In millions of €
 
First-Quarter Ended
 
30 March 2018
31 March 2017
Net cash flows from operating activities
 
22

185

Less: Purchases of property, plant and equipment
 
(102
)
(99
)
Less: Purchases of capitalised software
 
(5
)
(3
)
Less: Interest paid
 
(24
)
(22
)
Add: Disposals of property, plant and equipment
 
2


Free cash flow
 
(107
)
61

___________________________
[1] 
Free cash flow is defined as net cash flows from operations, less capital expenditures and interest paid, plus proceeds from capital disposals.
Supplemental Financial Information - Borrowings
Net Debt
In millions of €
As at
 
Credit Ratings
As of 25 April 2018
 
 
 
 
30 March 2018
 
 
Moody’s
 
Standard & Poor’s
Total borrowings
5,842

 
Long-term rating
 
A3
 
BBB+
Add: fx impact of non-EUR borrowings
90

 
Outlook
 
Stable
 
Stable
Adjusted total borrowings
5,932

 
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.
Less: cash and cash equivalents
(245
)
 
Net debt
5,687

 


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Supplemental Financial Information - Adjusted EBITDA
Adjusted EBITDA
In millions of €
 
First-Quarter Ended
 
30 March 2018
Reported profit after tax
 
124

Taxes
 
42

Finance costs, net
 
21

Reported operating profit
 
187

Depreciation and amortisation
 
125

Reported EBITDA
 
312

 
 
 
Items impacting comparability
 
 
Mark-to-market effects[1]
 
8

Restructuring Charges[2]
 
40

Adjusted EBITDA
 
360

___________________________
[1] 
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
[2] 
Amounts represent restructuring charges related to business transformation activities, excluding accelerated depreciation included in the depreciation and amortisation line.
Supplemental Financial Information - Financial Position
Statement of Financial Position

In millions of €
 
As at
 
30 March 2018
 
31 December 2017
 
31 March 2017
Non-current assets
 
14,832

 
14,880

 
15,103

Current assets
 
3,350

 
3,314

 
3,436

Total assets
 
18,182

 
18,194

 
18,539

Non-current liabilities
 
8,247

 
8,222

 
8,334

Current liabilities
 
3,257

 
3,287

 
3,662

Total liabilities
 
11,504

 
11,509

 
11,996

Total equity
 
6,678

 
6,685

 
6,543

Total equity and liabilities
 
18,182

 
18,194

 
18,539

30 March 2018 vs 31 December 2017

Total non-current assets decreased €48 million, or 0.3 percent, from €14.9 billion at 31 December 2017 to €14.8 billion at 30 March 2018. This change was primarily driven by decreases in property, plant and equipment.

Total current assets increased €36 million, or 1.1 percent, from €3.3 billion at 31 December 2017 to €3.4 billion at 30 March 2018. This change was primarily driven by seasonality effects causing an increase of €124 million in inventories, offset by a decrease in cash and cash equivalents of €115 million.

Total current liabilities decreased €30 million, or 0.9 percent, from €3,287 million at 31 December 2017 to €3,257 million at 30 March 2018, primarily driven by a reduction in trade and other payables of €135 million offset by commercial paper issuances in the quarter of €120 million.

30 March 2018 vs 31 March 2017

Total non-current assets decreased €271 million, or 1.8 percent, from €15.1 billion at 31 March 2017 to €14.8 billion at 30 March 2018. This change was partially driven by a decrease of €248 million in deferred tax assets mainly related to US tax law changes enacted in December 2017. Property, plant and equipment reduced by €163 million and was offset by increases in intangible assets and goodwill of €57 million and €93 million, respectively, relating primarily to the finalisation of acquisition accounting for Germany and Iberia and currency effects during the period.



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Total current assets decreased €86 million, or 2.5 percent, from €3,436 million at 31 March 2017 to €3,350 million at 30 March 2018 driven by decreases of €119 million in cash and cash equivalents and €86 million in trade accounts receivables, offset by an increase of €48 million in inventories.

Total non-current liabilities decreased by €87 million, or 1.0 percent, from €8.3 billion at 31 March 2017 to €8.2 billion at 30 March 2018. This change was mainly driven by a reduction of €120 million in employee benefit liabilities due to improved return on underlying assets, a reduction in non-current borrowings of €98 million reflecting early repayments on a term loan of €300 million, foreign exchange movements on our US denominated debt and issuance of €350 million floating rate notes, offset by an increase in our derivative liabilities of €127 million.

Total current liabilities decreased by €405 million, or 11.1 percent, from €3.7 billion at 31 March 2017 to €3.3 billion at 30 March 2018. This change was primarily driven by the repayment of €300 million Eurobond notes in November 2017 and €500 million floating rate notes in December 2017, partially offset by commercial paper issuances of €370 million and an increase in trade and other payables of €67 million, primarily due to working capital initiatives.



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Coca-Cola European Partners plc
Condensed Consolidated Interim Income Statement (Unaudited)
 
 
First-Quarter Ended
 
 
30 March 2018
 
31 March 2017
 
 
€ million
 
€ million
Revenue
 
2,378

 
2,382

Cost of sales
 
(1,491
)
 
(1,468
)
Gross profit
 
887

 
914

Selling and distribution expenses
 
(505
)
 
(494
)
Administrative expenses
 
(195
)
 
(201
)
Operating profit
 
187

 
219

Finance income
 
13

 
14

Finance costs
 
(34
)
 
(38
)
Total finance costs, net
 
(21
)
 
(24
)
Profit before taxes
 
166

 
195

Taxes
 
(42
)
 
(48
)
Profit after taxes
 
124

 
147

 
 
 
 
 
Basic earnings per share (€)
 
0.26

 
0.31

Diluted earnings per share (€)
 
0.25

 
0.30






       image0a19.jpg                                                                                                                                                                                                           
P a g e | 13
 
 

Coca-Cola European Partners plc
Condensed Consolidated Interim Statement of Financial Position (Unaudited)
 
 
30 March 2018
 
31 December 2017
 
31 March 2017
 
 
€ million
 
€ million
 
€ million
ASSETS
 
 
 
 
 
 
Non-current:
 
 
 
 
 
 
Intangible assets
 
8,390

 
8,384

 
8,333

Goodwill
 
2,520

 
2,520

 
2,427

Property, plant and equipment
 
3,787

 
3,837

 
3,950

Non-current derivative assets
 
3

 
2

 
25

Deferred tax assets
 
52

 
56

 
300

Other non-current assets
 
80

 
81

 
68

Total non-current assets
 
14,832

 
14,880

 
15,103

Current:
 
 
 
 
 
 
Current derivative assets
 
11

 
20

 
20

Current tax assets
 
28

 
25

 
19

Inventories
 
774

 
650

 
726

Amounts receivable from related parties
 
84

 
75

 
77

Trade accounts receivable
 
1,747

 
1,732

 
1,833

Other current assets
 
461

 
452

 
397

Cash and cash equivalents
 
245

 
360

 
364

Total current assets
 
3,350

 
3,314

 
3,436

Total assets
 
18,182

 
18,194

 
18,539

LIABILITIES
 
 
 
 
 
 
Non-current:
 
 
 
 
 
 
Borrowings, less current portion
 
5,448

 
5,474

 
5,546

Employee benefit liabilities
 
157

 
162

 
277

Non-current provisions
 
58

 
48

 
71

Non-current derivative liabilities
 
129

 
93

 
2

Deferred tax liabilities
 
2,232

 
2,237

 
2,260

Other non-current liabilities
 
223

 
208

 
178

Total non-current liabilities
 
8,247

 
8,222

 
8,334

Current:
 
 
 
 
 
 
Current portion of borrowings
 
394

 
274

 
875

Current portion of employee benefit liabilities
 
21

 
21

 
23

Current provisions
 
162

 
194

 
172

Current derivative liabilities
 
7

 
1

 
10

Current tax liabilities
 
83

 
86

 
76

Amounts payable to related parties
 
192

 
178

 
175

Trade and other payables
 
2,398

 
2,533

 
2,331

Total current liabilities
 
3,257

 
3,287

 
3,662

Total liabilities
 
11,504

 
11,509

 
11,996

EQUITY
 
 
 
 
 
 
Share capital
 
5

 
5

 
5

Share premium
 
131

 
127

 
118

Merger reserves
 
287

 
287

 
287

Other reserves
 
(499
)
 
(503
)
 
(420
)
Retained earnings
 
6,754

 
6,769

 
6,553

Total equity
 
6,678

 
6,685

 
6,543

Total equity and liabilities
 
18,182

 
18,194

 
18,539








       image0a19.jpg                                                                                                                                                                                                           
P a g e | 14
 
 

Coca-Cola European Partners plc 
Condensed Consolidated Interim Statement of Cash Flows (Unaudited)
 
 
First-Quarter Ended
 
 
30 March 2018
 
31 March 2017
 
 
€ million
 
€ million
Cash flows from operating activities:
 
 
 
 
Profit before taxes
 
166

 
195

Adjustments to reconcile profit before tax to net cash flows from operating activities:
 
 
 
 
Depreciation
 
113

 
108

Amortisation of intangible assets
 
12

 
15

Share-based payment expense
 
3

 
3

Finance costs, net
 
21

 
24

Income taxes paid
 
(46
)
 
(26
)
Changes in assets and liabilities:
 
 
 
 
Decrease/(increase) in trade accounts receivable
 
(11
)
 
26

Decrease/(increase) in inventories
 
(123
)
 
(53
)
Increase/(decrease) in trade and other payables
 
(93
)
 
(69
)
Increase/(decrease) in provisions
 
(22
)
 
(67
)
Change in other operating assets and liabilities
 
2

 
29

Net cash flows from operating activities
 
22

 
185

Cash flows from investing activities:
 
 
 
 
Purchases of property, plant and equipment
 
(102
)
 
(99
)
Purchases of intangible assets
 
(5
)
 
(3
)
Proceeds from sales of property, plant and equipment
 
2

 

Net cash flows used in investing activities
 
(105
)
 
(102
)
Cash flows from financing activities:
 
 
 
 
Repayments on third party borrowings
 
(5
)
 
(5
)
Changes in short-term borrowings
 
120

 

Interest paid
 
(24
)
 
(22
)
Dividends paid
 
(126
)
 
(82
)
Exercise of employee share options
 
3

 
5

Net cash flows used in financing activities
 
(32
)
 
(104
)
Net change in cash and cash equivalents
 
(115
)
 
(21
)
Net effect of currency exchange rate changes on cash and cash equivalents
 

 
(1
)
Cash and cash equivalents at beginning of period
 
360

 
386

Cash and cash equivalents at end of period
 
245

 
364






SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 


 
COCA-COLA EUROPEAN PARTNERS PLC
 
 
(Registrant)
Date: 26 April 2018
By:
/s/ Nik Jhangiani
 
Name:
Nik Jhangiani
 
Title:
Chief Financial Officer