US market regulator discusses 12 billion assets of Coca-Cola EP | Companies

The US Securities and Exchange Commission (SEC) has asked about the financial statements of Coca-Cola Europacific Partners for fiscal year 2022, the world’s leading soft drink maker. This involves accounting for almost 12 billion euros classified as indefinite-lived intangible assets, which is in line with the agreements that the bottler has with the Coca-Cola Company.

The company, chaired by Spaniard Sol Daurella, acknowledged this in its annual financial report presented today. In it, he confirms that during 2023 he received a notice signed by the SEC staff, which transferred the audit of the 2022 accounts to them.

“As of February 23, 2024, there is open commentary on the company’s long-term accounting policies and elements related to the treatment of The Coca-Cola Company’s bottling rights as indefinite-lived intangible assets,” the statement reads verbatim. At the end of fiscal year 2022, these assets were valued at $11.874 million. The company says these rights “were recognized as a result of a business combination and are measured on a continuing cash flow basis.” The bottling company adds that it has responded to inquiries and continues to communicate with SEC staff.

The company clarifies that the SEC’s concerns lie in the treatment of bottling contracts as assets with an indefinite duration, and not in their valuation. Additionally, he states that the process does not impact cash flow or the ability to distribute dividends.

Coca-Cola Europacific Partners made a net profit of 1.669 million euros in 2023, up 9.5% from a year earlier. In like-for-like terms, the company’s net profit in 2023 increased by 9% to 1.701 million euros, and accounting profit increased in like-for-like terms to 18.302 million euros, up 5.5% compared to 2022.

Accounting operating profit for 2023 was €2.339 million, up 12%, compared with €2.373 million in like-for-like terms, up 11%.

Coca-Cola Europacific Partners CEO Damian Gammell assured that the company is “well positioned” for this year “and beyond” given that it is “stronger and better, more diverse and more established.” He noted that “we continue to believe in the future and continue to invest for the long term. “Our record dividend in fiscal 2023 and our recent inclusion in the Nasdaq 100, as well as our guidance for this year, demonstrate the strength of our business and our ability to continue to deliver value to shareholders.”

For its part, the company also informed CNMV that the joint acquisition by Coca-Cola Europacific Partners and Aboitiz Equity Ventures (AEV) of bottler Coca-Cola Beverages Philippines has been completed.

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