FDBusiness.com

Coca-Cola European Partners, the world’s largest Coca-Cola bottler based on revenue, has reported another solid year of growth with revenue up 4.5% to €12.017 billion for 2019. Comparable operating profit increased by 6.0% to of €1.676 billion and rose by 19.0% on a reported basis, reflecting revenue growth and merger synergies of €55 million.

Coca-Cola European Partners (CCEP) 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.

Damian Gammell, chief executive of Coca-Cola European Partners, comments: “2019 saw our business deliver another solid full-year demonstrating our continued focus on driving profitable revenue growth through managing price and mix across our portfolio, delivering solid in-market execution and a step up in innovation, collectively reflected in market value share gains across all our geographies. 2019 was a great year for our customers too; joint value creation remains a key priority, so it has been great to see that once again we were by far the largest FMCG value creator in the retail channel6. And all of this alongside the successful closure of our merger commitments.”

Damian Gammell, chief executive of Coca-Cola European Partners.

He continues: “Looking ahead to 2020 and beyond, our journey continues to be built on three pillars: great people, great service and great beverages. We continue to build our core business alongside scaling up recent innovations and enhancing our commercial capabilities, by investing to better serve our customers and further improve in-market execution. All underpinned by a 23,500 strong team of talented and engaged people, an aligned relationship with The Coca-Cola Company and a bold and integrated sustainability agenda.”

For 2020, Coca-Cola European Partners is projecting low-single digit revenue growth and mid-single digit operating profit growth. Free cash flow is expect to be about €1 billion after capital expenditures in the range of €650-700 million range, and return on invested capital (ROIC) is predicted to improve by around 40 basis points.

With regard to the group’s sustainability programme, Damian Gammell says: “We are making good progress on carbon and water, as well as packaging, where we are taking robust action and leading innovation. Having already expedited our CCEP recycled plastic (rPET) targets, Sweden will become our first 100% rPET market this year. We do however recognise that we have much more to do as we transition to a lowcarbon, circular business. We look forward to sharing our progress and opportunities in all these areas during our capital markets event in May.”

“It is a fantastic time to be leading CCEP. Our 2020 guidance is firmly in line with our mid-term growth objectives, which when combined with a new €1 billion share buyback programme and a 50% dividend payout ratio, collectively demonstrate our commitment to driving sustainable value for our shareholders.”