Financial instruments | 8. Financial instruments The Group’s Treasury function aims to protect the Group’s financial investments, while maximising returns. The fair value of financial assets is the same as the carrying amount for 2024 and 2023. The Group’s cash resources and 30 June 2024 31 December 2023 30 June 2023 Current Non-current Total Current Non-current Total Current Non-current Total Cash and cash equivalents Cash at bank and in hand 3,601 – 3,601 2,862 – 2,862 2,790 – 2,790 Short-term deposits (a) 981 – 981 1,181 – 1,181 1,804 – 1,804 Other cash equivalents (b) 388 – 388 116 – 116 400 – 400 4,970 – 4,970 4,159 – 4,159 4,994 – 4,994 Other financial assets Financial assets at amortised cost (c) 835 560 1,395 961 454 1,415 727 352 1,079 Financial assets at fair value through other comprehensive income (d) 61 525 586 151 458 609 – 438 438 Financial assets at fair value through profit or loss: Derivatives 79 39 118 37 75 112 36 31 67 Other (e) 470 382 852 582 399 981 613 399 1,012 1,445 1,506 2,951 1,731 1,386 3,117 1,376 1,220 2,596 Total financial assets (f) 6,415 1,506 7,921 5,890 1,386 7,276 6,370 1,220 7,590 (a) Short-term deposits typically have maturity of up to 3 months. (b) Other cash equivalents include investments in overnight funds and marketable securities. (c) Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities. Non-current financial assets at amortised cost include judicial deposits of €212 million (31 December 2023: €227 million; 30 June 2023: €228 million). (d) Included within non-current financial assets at fair value through other comprehensive income are equity investments. (e) Other financial assets at fair value through profit or loss include money market funds, marketable securities, other capital market instruments (f) Financial assets exclude trade and other current receivables. Notes to the condensed consolidated financial statements (unaudited) 8. Financial instruments (continued) The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following tables summarise the fair values and carrying amounts of financial instruments and the fair value calculations by category. € million Fair value Carrying amount As at 30 June 2024 As at 31 December 2023 As at 30 June 2023 As at 30 June 2024 As at 31 December 2023 As at 30 June 2023 Financial assets Cash and cash equivalents 4,970 4,159 4,994 4,970 4,159 4,994 Financial assets at amortised cost 1,395 1,415 1,079 1,395 1,415 1,079 Financial assets at fair value through other comprehensive income 586 609 438 586 609 438 Financial assets at fair value through profit and loss: Derivatives 118 112 67 118 112 67 Other 852 981 1,012 852 981 1,012 7,921 7,276 7,590 7,921 7,276 7,590 Financial liabilities Bank loans and overdrafts (460) (506) (606) (460) (506) (606) Bonds and other loans (27,836) (26,112) (26,265) (28,729) (26,692) (27,599) Lease liabilities (1,358) (1,395) (1,428) (1,358) (1,395) (1,428) Derivatives (537) (494) (618) (537) (494) (618) Other financial liabilities (570) (535) (457) (570) (535) (457) (30,761) (29,042) (29,374) (31,654) (29,622) (30,708) € million As at 30 June 2024 As at 31 December 2023 As at 30 June 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets at fair value Financial assets at fair value through other comprehensive income 70 4 512 163 4 442 14 3 421 Financial assets at fair value through profit or loss: Derivatives (a) – 192 – – 149 – – 142 – Other 470 – 382 582 – 399 613 – 399 Liabilities at fair value Derivatives (b) – (586) – – (559) – – (718) – Contingent consideration – – (8) – – (157) – – (123) (a) Includes €74 million (31 December 2023: €37 million; 30 June 2023: €75 million) derivatives, reported within trade receivables, that hedge trading activities. (b) Includes €(49) million (31 December 2023: €(65) million; 30 June 2023: €(100) million) derivatives, reported within trade creditors, that hedge trading activities. There were no significant changes in classification of fair value of financial assets and financial liabilities since The fair value of trade receivables and payables is considered to be equal to the carrying amount of these items due to their short-term nature. The fair value of financial assets and financial liabilities (excluding listed bonds) is considered to be same as the carrying amount for 2024 and 2023. Calculation of fair values The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used in the year ended 31 December 2023. |