11. Cash flow information
This note includes information about the Group’s cash flows as well as non-cash transactions. Where more relevant for the understanding of a transaction, cash inflows and outflows are described in the notes on the respective assets or liabilities to which the cash flows relate. The same applies to non-cash transactions.
Net capital expenditure
The Group’s capital expenditure primarily relates to investments in own production, plant and equipment (PP&E capital expenditure, excluding filling lines and other related equipment) and to the assembly and deployment of filling lines and other related equipment with customers under contracts accounted for as operating leases (filling lines and other related equipment capital expenditure). The Group’s investments in intangible assets are less significant. To better reflect the Group’s investments in production plants and production equipment via leases, management also considers lease payments as part of capital expenditure. Lease payments are defined as payment of lease liabilities.
Net capital expenditure is defined by the Group as capital expenditure (net of proceeds from sales of PP&E, other than filling lines and other related equipment, and intangible assets) less upfront cash. Upfront cash is defined as consideration received as an upfront payment for filling lines and other related equipment from customers. Net capital expenditure is not a defined performance measure in IFRS (see note 9).
Management uses net capital expenditure as it demonstrates better than capital expenditure how cash-generative the business is. As the Group typically receives a portion of the total consideration for a filling line and other related equipment as an upfront payment from the customer (see also notes 18 and 20), the cash outflow relating to filling lines and other related equipment is generally lower than implied by the gross filling lines and other related equipment capital expenditure figure. Payments received for filling lines and other related equipment (including upfront payments) are included in cash flows from operating activities.
The following table reconciles capital expenditure to net capital expenditure and to net capital expenditure, including lease payments.
(In € million) |
|
Year ended |
|
Year ended |
||||
|---|---|---|---|---|---|---|---|---|
PP&E and intangible assets (net of sales and excluding filling lines and other related equipment) |
|
126.6 |
|
163.7 |
||||
Filling lines and other related equipment |
|
180.6 |
|
232.9 |
||||
Capital expenditure |
|
307.2 |
|
396.6 |
||||
Upfront cash |
|
(143.3) |
|
(146.0) |
||||
Net capital expenditure |
|
163.9 |
|
250.6 |
||||
Lease payments1 |
|
51.7 |
|
47.2 |
||||
Net capital expenditure, including lease payments |
|
215.6 |
|
297.8 |
||||
|
||||||||
Free cash flow
Free cash flow is used by management to evaluate the performance of the Group. Free cash flow is defined by the Group as net cash from operating activities plus dividends received from joint ventures less capital expenditure (net of proceeds from sales of PP&E, other than filling lines and other related equipment, and intangible assets) and payments of lease liabilities. Free cash flow is not a defined performance measure in IFRS (see note 9).
The following table reconciles net cash from operating activities to free cash flow.
(In € million) |
|
Year ended |
|
Year ended |
|---|---|---|---|---|
Net cash from operating activities |
|
649.2 |
|
663.3 |
Acquisition of property, plant and equipment and intangible assets (net of sales) |
|
(307.2) |
|
(396.6) |
Payment of lease liabilities |
|
(51.7) |
|
(47.2) |
Free cash flow |
|
290.3 |
|
219.5 |
Non-cash transactions
Non-cash transactions include the initial recognition of leases on the statement of financial position (see notes 13 and 23) and the granting of instruments under the Group’s 2024 and 2023 share-based plans and arrangements (see note 30).
Notably for the year ended December 31, 2024, the lease of the Group’s new chilled carton production plant in China (with an initial lease liability and related right-of-use asset recognized of approximately €39 million each) and the lease of the Group’s first aseptic carton production plant in India (with an initial lease liability and related right-of-use asset recognized of approximately €37 million each) commenced. The other new leases mainly relate to production equipment for closures.
For the year ended December 31, 2023, non-cash transactions also included a €14.7 million reversal of an acquisition-related provision (see notes 9 and 19). The new leases mainly related to production equipment for closures.
There are no other material non-cash transactions for the years ended December 31, 2024 and December 31, 2023.
Cash outflows under lease contracts
The total cash outflow for the Group’s lease contracts for the year ended December 31, 2024 was €76.7 million (€68.8 million for the year ended December 31, 2023).