108
Economic results
annual report 2014
9
FINANCIAL
results
• Analysis of the 2014 financial
year
• Main financial indicators of
the Coca-Cola Iberian Partners
Group
109
110
Financial Results ı Analysis of the 2014 financial year ı Main financial indicators
Analysis of the 2014 financial year
A good result
in a difficult context
Albert Pérez
Corporate Director of
Planning, Control
and Finances
The 2014 financial year has confirmed
the upwards trend of the economy that
started at the end of 2013, following
six full years of recession. The Spanish
GDP has once again started to record
positive figures, having grown by 1.4%,
principally driven by exports and a
slight increase in domestic demand.
The monetary policy decisions
carried out by the Central European
Bank for stimulating the euro zone
economy during the past year, have
especially helped to ease the Spanish
risk premium and have contributed
to restoring part of the trust of the
economic actors. However, public debt
continues to rise and it is estimated
that through 2015 it will account for
over 100% GDP. Private sector debt
continues to be a concern, and Spain
is on the brink of deflation. All this,
together with high levels of national
unemployment which continue to sit at
above 24%, has prevented this initial
recovery from being reflected in the real
economy.
In this complicated context, the
financial results that we have achieved
as Coca-Cola Iberian Partners have
been positive.
The lowered standard of living provoked
by the crisis still remains. For this
reason, our business is among those
which will feel the effects of recovery
further down the line.
Ultimately, this has been a good result
in a difficult context, which has only
been possible thanks to Portugal’s
positive performance, with a higher
turnover, the upward trend of net
market prices and, mainly, thanks to the
efforts realized by Coca-Cola Iberian
Partners in the successful handling of
its consolidation process.
The main impact that we are absorbing
right now comes from the general fall
of prices in our sector, as the volume of
sales has remained at levels which are
similar to those of previous years.
Turnover in Spain declined by -0.6%,
while in Portugal it increased by 5.4%.
This has meant that the company’s final
turnover result stands at -0.2%.
With respect to consolidated revenue,
we ended the financial year with a
figure of 177 million euros and an
EBITDA of 322 million.
Throughout 2014 the company has
worked to unite the structures and
processes at the eight bottling plants
which have combined to create the
current company. This integration
project has been the year's main focus
and its synergies have brought about
the good result that has been achieved,
thanks to the economies of scale and
better negotiation with suppliers, the
rationalization and optimization of
annual report 2014
Main financial indicators of the Coca-Cola Iberian Partners Group
Thousands of euros
INCOME STATEMENT (1)
2014
2013
Net Revenue figures
3,009,592
1,834,713
Operating costs (2)
-2,678,079
-1,701,746
-92,996
-60,848
238,517
72,119
Allocation for depreciation of fixed assets
Operating costs
Financial results
Results of common business activities
Extraordinary results
Pre-tax earnings
Corporation tax
Consolidated revenue for the financial year
Earnings attributed to minority interests
-830
-1,471
237,687
70,648
-
-
237,687
70,648
-60,851
37,334
176,836
107,982
267
-147
Earnings attributed to the parent company
177,103
107,835
EBITDA
331,513
132,967
BALANCE(3)
Fixed assests
2014
2013
802,507
840,683
Consolidated goodwill
816,211
816,211
Deferred tax assests
103,255
127,748
Current assets
620,763
660,321
Liquid assets(4)
228,968
110,015
Total assets
2,571,704
2,554,978
Net worth
2,071,708
1,894,896
External stakeholders
788
2,043
Long-term provisions
8,584
9,892
Deferred tax liabilities
37,696
46,560
Short-term provisions
14,764
105,868
Debts to credit institutions, capital lease and other financial assets.
54,616
94,793
Short-term debts to multigroup companies
Lenders
Total liabilities
CASH FLOW STATEMENT (5)
Consolidated result for the year before taxes
-
3,089
383,548
397,837
2,571,704
2,554,978
2014
2013
237,687
70,648
Adjustments of the consolidated result
9,612
174,693
Changes to the consolidated working capital
21,583
-199,743
Other cash flows from consolidated operations.
-67,903
-1,683
Total cash flows from consolidated operations
200,979
43,915
Investment payables
-72,742
-3,740
Divestment receipts
67,985
5,151
Total cash flows from consolidated operations
-4,757
1,411
Receivables and payments for equity instruments
-
-282
-28,169
-50,446
Receivables and payments for financial liability instruments
Payments of dividends and renumeration of other equity instruments
Total cash flows from consolidated financial activities
Effect of changes in exchange rates
Net increase/decrease in cash and cash equivalents
-10
-79
-28,179
-50,807
-16
-3
168,027
-5,484
Cash and cash equivalents at the beginning of the year
48,087
53,571
Cash and cash equivalents at the end of the year
216,114
48,087
(1) Statement from the consolidated profit and loss account of Coca-Cola Iberian Partners, S.A. and Subsidiary Companies corresponding to the financial year that ended
December 31st, 2014.
(2) Without amortizations.
(3) Statement from the consolidated balance sheet of Coca-Cola Iberian Partners, S.A. and Subsidiary Companies at December 31st, 2014.
(4) Including short-term investments.
(5) Consolidated cash flow statement of Coca-Cola Iberian Partners, S.A. and Subsidiary Companies at December 31st, 2014.
111
112
Financial Results ı Analysis of the 2014financial year ı Main financial indicators
capacities, and the extension of best
practices to the whole organisation.
The results obtained in the first year
of operation as one single bottling
company demonstrate that integration
yields the expected results in terms of
financial capacity and management,
allowing us to deal with the growth
and development challenges that the
company will have to face in the next
few years.
Mª Carmen capilla
Director of Administration and Finance
“The 2014 result has been possible thanks to Portugal’s
positive performance, the upward trend of net market
prices and, mainly, thanks to the efforts realized by
Coca-Cola Iberian Partners in the successful handling
of its consolidation process”.
B) CONSOLIDATED STATEMENT OF CHANGES IN TOTAL
EQUITY
Opening balance May 31st, 2013
Profit distribution
Non-monetary contribution
Business combination
Adjustments from converstion (IFRS 1)
Final balance May 31st, 2013
Total recognized income and expense
Capital
Share
premium
Parent Company reserves
Results from previous financial
years
60
-
-
-
-
(1)
1,517,000
275,262
-
-
-
-
-
-
(5,323)
1,517,060
275,262
(5,324)
-
-
-
-
-
-
Transactions with stakeholders:
Acquisition of treasury shares
Capital reduction by amortization of own shares
(60)
Changes to the consolidated group
-
-
114
Dividends
-
-
-
1,517,000
275,262
(5,210)
Total recognized income and expense
-
-
-
Profit distribution
-
-
6,294
Balance May 31st, 2013
Transactions with stakeholders:
Changes to the consolidated group
-
-
-
Dividends
-
-
85,000
Other
Balance May 31st, 2014
-
-
(47)
1,517,000
275,262
86,037
annual report 2014
Main financial indicators of the Coca-Cola Iberian Partners Group
Thousands of euros
A) CONSOLIDATED STATEMENT OF RECOGNIzED INCOME AND EXPENSE
Consolidated result from the income statement (i)
2014
2013
176,836
107,982
Total income and expenditure directly allocated to net assets (ii)
Subsidies, gifts and legacies
Tax effect
Total transfers to the consolidated income statement (iii)
-
-
-
-
-
-
-
-
176,836
107,982
Total consolidated recognized income and expense attributed to the Parent company
177,103
107,835
Total consolidated recognized income and expense attributed to the external partners
267
(147)
Total consolidated recognized income and expense (i+ii+iii)
Reserves in fully consolidated
companies
Treasury
shares
Net income attributable to the
Parent company
Adjustments
for Changes in
Value
External
stakeholders
Total
-
-
(1)
-
-
59
-
-
1
-
-
-
-
-
-
-
-
1,792,262
-
-
-
9
2,310
2,319
-
-
-
-
-
(5,323)
-
-
-
9
2,310
1,789,317
-
-
107,835
-
147
107,982
-
(60)
-
-
-
(60)
60
-
-
-
-
-
(335)
(221)
-
-
-
-
(79)
(79)
-
-
107,835
9
2,043
1,896,939
-
-
177,103
-
(267)
176,836
101,541
-
(107,835)
-
-
-
-
-
-
-
(978)
(978)
(85,000)
-
-
-
(10)
(10)
(244)
-
-
-
-
(291)
16,297
-
177,103
9
788
2,072,496
113