CCEP - Coca-Cola European Partners reports Q3 results upgrading FY22 guidance & raising mid-term objectives

• Coca-Cola European Partners press release ( NASDAQ: CCEP ): Q3 Pro forma revenue per unit case +6.0% to €5.26.
• Revenue of €4.75B (+20.3% Y/Y).
• Comparable volume +11.5% (+5.5% vs 2019) driven by the continued recovery of the away from home (AFH) channel.
• Remain on track to deliver on previously announced efficiency savings & API combination benefits & continued focus on optimising discretionary spend; Operating profit: pro forma comparable growth of 11-12% (previously 9-11%)
• The outlook for FY22 reflects current market conditions: Revenue: pro forma comparable growth of 15-16% (previously 11-13%); Cost of sales per unit case: pro forma comparable growth of ~8.5% (previously ~7.5%);Comparable effective tax rate: ~22% (previously 22-23%); Diluted EPS: pro forma comparable growth of 14-15% based on actual FX rates; Free cash flow: at least €1.8B (previously at least €1.6B) reflecting strong year to date performance & working capital initiatives.
• FY23 Outlook: Top line: Market remaining resilient, mindful of uncertain outlook; Annualisation of FY22 second underlying pricing increases.
• Bottom line: Cost of sales Commodities: expected to be up mid-teens (previously high single digit); ~60% hedge coverage; Concentrate: directly linked to revenue per unit case through the incidence pricing model; Low overall FX transactional exposure (<10%); Continued delivery of efficiency programmes.
• Updated mid-term objectives: Revenue: growth of ~4%(raised, previously low single digit); Comparable operating profit: growth of ~7% (raised, previously mid single digit).

• Free cash flow: ~€1.7B (raised, previously at least €1.25B). Net Debt/Adjusted EBITDA: 2.5X - 3.0X (maintained) & focused on reaching top end of target leverage range by end of FY23. ROIC: ~+50bps p.a. (raised, previously ~+40bps p.a.); Capex: ~4-5% of revenue ^[9] (updated, previously ~5% of revenue).

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