6-K 1 ccepq12021tradingupdate-2n.htm 6-K Document


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 2 April 2021

Commission File Number 001-37791
COCA-COLA EUROPACIFIC 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

THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRANT’S

• REGISTRATION STATEMENT ON FORM F-3 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-241528);
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-211764);
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-208566);
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-233695); AND
• REGISTRATION STATEMENT ON FORM S-8 OF COCA-COLA EUROPACIFIC PARTNERS PLC (REGISTRATION NO. 333-233697)

FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
THIS REPORT ON FORM 6-K INCLUDES SUBSTANTIALLY THE SAME INFORMATION AS THAT REPORTED IN THE REGISTRANT’S REPORT ON FORM 6-K PREVIOUSLY FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION ON MAY 11, 2021, AND IS BEING FILED SOLELY FOR THE PURPOSE OF INCORPORATING BY REFERENCE INFORMATION INTO THE ABOVE-REFERENCED REGISTRATION STATEMENTS AND ANY FUTURE REGISTRATION STATEMENTS IN WHICH THE REGISTRANT IDENTIFIES THIS REPORT ON FORM 6-K AS BEING INCORPORATED BY REFERENCE.






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:

‘‘As reported’’ are results extracted from our consolidated financial statements.

‘‘Comparable’’ is defined as results excluding items impacting comparability, such as restructuring charges, out of period mark-to-market impact of hedges and net tax items relating to rate and law changes. Comparable volume is also adjusted for selling days.

‘‘Fx-neutral’’ is defined as comparable results excluding the impact of foreign exchange rate changes. Foreign exchange impact is calculated by recasting current year results at prior year exchange rates.

Unless otherwise stated, percent amounts are rounded to the nearest 0.5%.


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CHANGE VS Q1 2020
Q1 2021REVENUE
VOLUME
(UNIT CASES
1)
REVENUE PER UNIT CASE2, 3
COMPARABLE VOLUME3
REVENUE PER UNIT CASE2, 3
FX-NEUTRAL REVENUE3
REVENUE
Europe€2,293m489m€4.70(10.0)%(1.5)%(7.5)%(7.5)%



Europe Q1 Reported Revenue -7.5% (Fx-neutral Revenue3 -7.5%)

NARTD value share gains across measured channels both in store4 (+1.2pts) & online5 ( +2.6pts)
Reported volume -6.0% reflecting the benefit of 3 additional selling days
Comparable volume3 -10.0% driven by ongoing pandemic restrictions across our markets
volumes by channel: Away from home (AFH) -34.5% reflecting widespread outlet closures; Home +4.0%.
volumes across Q1: Jan-Feb -14.0%; March -4.5% reflecting the PY introduction of restrictions (timing varied across markets)
Revenue per unit case1 -1.5%2,3 driven by adverse pack & channel mix (e.g. immediate consumption -28.5%), partially offset by underlying favourable price & brand mix

Other

Dividend: to be announced at Q3 for the full-year to reflect the earnings of the enlarged business

FY21: Unable to provide FY21 outlook guidance given on-going COVID-19 uncertainty

Sustainability
Europe:
Germany will transition to 70% rPET in FY21
Netherlands became 100% rPET market in Q1









___________________________________________________________________________________________

[1] A unit case equals approximately 5.678 litres or 24 8-ounce servings; [2] Fx-neutral; [3] Refer to “Note Regarding the Presentation of Alternative Performance Measures” for further details; [4] Nielsen Global Track non-alcoholic ready to drink data YTD to w/e IS 28.Mar.21, GB 03.Apr.21, ES PT DE NL FR BE SE & NO 04.Apr.21; [5] Non-alcoholic ready to drink online: Data to w/e GB 03.Apr.21 (Retailer EPOS+Nielsen), ES FR & NL 04.Apr.21 (Nielsen); Note: Unless stated otherwise, changes are versus equivalent 2020 period



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EUROPE: FIRST-QUARTER REVENUE PERFORMANCE BY GEOGRAPHY
Unaudited, changes versus Q1 2020
REVENUEREVENUE % CHANGEFX-NEUTRAL REVENUE % CHANGE
Great Britain€498m0.5%1.5%
France (France & Monaco)
€411m(0.5)%(0.5)%
Germany€467m(9.5)%(9.5)%
Iberia (Spain, Portugal & Andorra)
€420m(20.5)%(20.5)%
Northern Europe1
€497m(5.0)%(5.5)%
Total€2,293m(7.5)%(7.5)%
[1] Belgium, Luxembourg, Netherlands, Norway, Sweden & Iceland

Great Britain
Modest comparable volume declines impacted by restrictions & outlet closures in HoReCa1 offset by robust Home channel performance. Sparkling volumes were flat, with solid growth in Coca-Cola Zero Sugar, flavours, mixers & energy
Revenue/UC2 was broadly flat as positive underlying price was offset by adverse mix due to outperformance of the home channel, in particular the growth in future consumption packs (e.g. large PET +5.5% & multipack cans +50%), alongside immediate consumption weakness in both channels

France (France & Monaco)
Comparable volume impacted by restrictions & AFH outlet closures partially offset by good growth in the Home channel. Coca-Cola Zero Sugar, Monster & Capri-Sun all outperformed
Revenue/UC2 was broadly flat as adverse channel & pack mix (e.g. glass -76%) was offset by favourable brand mix & underlying price

Germany
Comparable volume impacted by restrictions & AFH outlet closures, offset by good growth in the Home channel. Coca-Cola Zero Sugar & Monster both grew
Revenue/UC2 decline was driven by adverse channel & pack mix which was partially offset by favourable brand mix, in particular the growth in energy & the reorienting of our hydration portfolio

Iberia (Spain, Portugal & Andorra)
Volume impacted by significant exposure to the AFH channel, particularly in Spain given over-indexing in exposure to HoReCa1. The home channel also suffered due to weakness in the cash & carry channel3. Monster & Coca-Cola Zero Sugar both outperformed
Revenue/UC2 significantly impacted by channel mix given the closure of HoReCa1 outlets in addition to negative pack mix (e.g. glass -55%)

Northern Europe
Volume declines driven by AFH, reflecting increased COVID-19 restrictions & HoReCa1 outlet closures (varied by market). This was partially offset by growth in the home channel led by Norway and the Netherlands. Coca-Cola Zero Sugar & Monster grew volumes
Revenue/UC2 decline driven by underlying price reduction due to changes in Norwegian sugar taxes, partially offset by positive country & brand mix (e.g. energy +30.0%)
___________________________________________________________________________________________

[1] HoReCa = Hotels, Restaurants & Cafes; [2] Revenue per unit case; [3] Cash & Carry included in home channel for Iberia (~12.5% of 2019 Iberia volume), elsewhere included in AFH channel; Note: All values are unaudited, changes versus equivalent prior year period; comparable volumes




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EUROPE: FIRST-QUARTER VOLUME PERFORMANCE BY CATEGORY1

COMPARABLE VOLUME % CHANGE
Sparkling(7.5)%
Coca-ColaTM
(8.0)%
Flavours, Mixers & Energy(5.5)%
Stills(29.0)%
Hydration(41.5)%
RTD Tea, RTD Coffee, Juices & Other2
(12.0)%
Total(10.0)%

SPARKLING

Coca-ColaTM

Transactions -11.0%3, reflecting decline in small glass & PET, partially offset by growth in multipack cans
Classic -11.5%; Lights -2.5%, reflecting a decline in Diet/light taste partially offset by growth in the newly reformulated & rebranded Coca-Cola Zero Sugar (+0.5%)
Flavours, Mixers & Energy

Fanta -11.0% driven by impact of COVID-19 on AFH, offset by growth in Home
Energy +34.0% reflecting growth in both channels led by Monster (+39.0%). On track to double energy business4
Schweppes mixers +8.0% driven by growth in the Home channel

STILLS

Hydration

Soft performance reflecting the impact of COVID-19 & its exposure to immediate consumption across both channels

RTD Tea, RTD Coffee, Juices & Other2

Solid value share gains in the RTD tea category driven by Fuze Tea5
Costa RTD growth supported by launch of Vanilla Latte & Flat White
Juice drinks -7.5% reflecting exposure to on-the-go occasions offset by solid growth of Capri-Sun in France


___________________________________________________________________________________________

[1] Adjusted for selling day shift; [2] RTD refers to Ready To Drink; [3] Defined as the serving container that is ultimately used directly by the consumer. It can be a standalone container or one part of a multipack; [4] Base year of 2019; [5] Nielsen Data YTD to w/e - IS 28.Mar.21 | GB 03.Apr.21| ES PT DE NL FR BE SE & NO 04.Apr.21; Note: All values are unaudited, changes versus equivalent prior year period; comparable volumes




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Forward-looking statements

This document contains statements, estimates or projections that constitute “forward-looking statements” concerning the financial condition, performance, results, strategy and objectives of Coca-Cola Europacific Partners plc and its subsidiaries, including Coca-Cola Amatil Limited and its subsidiaries (together "CCL", and CCL with Coca-Cola Europacific Partners plc and its subsidiaries together “CCEP” or the “Group”). Generally, the words “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 from CCEP’s historical experience and present expectations or projections, including with respect to the acquisition of CCL (the “Acquisition”). 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 include but are not limited to:

1. those set forth in the “Risk Factors” section of CCEP’s 2020 Annual Report on Form 20-F filed with the SEC on 12 March 2021, including the statements under the following headings: Business continuity and resilience (such as the adverse impact that the COVID-19 pandemic and related government restrictions and social distancing measures implemented in many of our markets, and any associated economic downturn, may have on our financial results, operations, workforce and demand for our products); Packaging (such as refillables and recycled plastics); Cyber and social engineering attacks and IT infrastructure; Economic and political conditions (such as the UK’s exit from the EU, the EU-UK Trade and Cooperation Agreement, and uncertainty about the future relationship between the UK and EU); Market (such as disruption due to customer negotiations, customer consolidation and route to market); Legal, regulatory and tax (such as the development of regulations regarding packaging, taxes and deposit return schemes); Climate change and water (such as net zero emission legislation and regulation, and resource scarcity); Perceived health impact of our beverages and ingredients, and changing consumer buying trends (such as sugar alternatives and other ingredients); Competitiveness, business transformation and integration; People and wellbeing; Relationship with TCCC and other franchisors; Product quality; and Other risks;

2. those set forth in the "Business and Sustainability Risks" section of CCL's 2020 Financial and Statutory Reports including the statements under the following headings: COVID-19 related risks; The Coca-Cola Company (TCCC) and other brand partners relationship risk; Economic and political risks; Cyber risk; Foreign exchange risk; Key personnel risk; Beverage industry risk; Regulatory risk; Corporate social responsibility risk; Climate change risk; Supply chain risk; Litigation and legal disputes risk; Malicious product tampering risk; Workplace Health & Safety (WHS) risk; Business interruption risk; Product quality risk; Fraud risk; and

3. risks and uncertainties relating to the Acquisition, including the risk that the businesses will not be integrated successfully or such integration may be more difficult, time consuming or costly than expected, which could result in additional demands on CCEP’s resources, systems, procedures and controls, disruption of its ongoing business and diversion of management’s attention from other business concerns; the possibility that certain assumptions with respect to CCL or the Acquisition could prove to be inaccurate; burdensome conditions imposed in connection with any regulatory approvals; ability to raise financing; the potential that the Acquisition may involve unexpected liabilities for which there is no indemnity; the potential failure to retain key employees as a result of the Acquisition or during integration of the businesses and disruptions resulting from the Acquisition, making it more difficult to maintain business relationships; the potential for (i) negative reaction from financial markets, customers, regulators, employees and other stakeholders, (ii) litigation related to the Acquisition.

The full extent to which the COVID-19 pandemic will negatively affect CCEP and the results of its operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic.

Due to these risks, 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 forward-looking statements (including those issued by CCL prior to the Acquisition). These risks may also adversely affect CCEP’s share price. Additional risks 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. Furthermore, 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 or CCL’s public statements (whether prior or subsequent to the Acquisition) may prove to be incorrect.







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 authorised.



COCA-COLA EUROPACIFIC PARTNERS PLC
(Registrant)
Date: May 11, 2021By:/s/ Manik Jhangiani
Name:Manik Jhangiani
Title:Chief Financial Officer