Financial instruments

6 Months Ended

Jun. 30, 2026

Disclosure of detailed information about financial instruments [abstract]

9.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 2026 and 2025. The Group’s cash resources and

other financial assets are shown below.


	30 June 2026			31 December 2025			30 June 2025
€ million	Current	Non- current	Total	Current	Non- current	Total	Current	Non- current	Total
Cash and cash equivalents
Cash at bank and in hand	2,983	–	2,983	2,490	–	2,490	3,112	–	3,112
Short-term deposits(a)	1,180	–	1,180	1,066	–	1,066	883	–	883
Other cash equivalents(b)	563	–	563	385	–	385	349	–	349
	4,726	–	4,726	3,941	–	3,941	4,344	–	4,344
Other financial assets
Financial assets at amortised cost(c)	765	370	1,135	541	368	909	478	467	945
Financial assets at fair value through other comprehensive income(d)	–	2,447	2,447	–	2,216	2,216	–	537	537
Financial assets at fair value through profit or loss:
Derivatives	177	101	278	50	140	190	157	203	360
Other(e)	380	404	784	530	341	871	488	363	851
	1,322	3,322	4,644	1,121	3,065	4,186	1,123	1,570	2,693
Total financial assets(f)	6,048	3,322	9,370	5,062	3,065	8,127	5,467	1,570	7,037

(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, fixed income securities and loans to joint venture entities. Non-current financial assets at amortised cost

include judicial deposits of €200 million (31 December 2025: €175 million; 30 June 2025: €174 million).

(d)Included within non-current financial assets at fair value through other comprehensive income are equity investments. This includes an amount of €1,852

million (31 December 2025: €1,655 million) related to the Group's retained investment in TMICC, recognised following the demerger of our ice cream

business in December 2025.

(e)Other financial assets at fair value through profit or loss include money market funds, marketable securities, other capital market instruments

and investments in financial institutions.

(f)Financial assets exclude trade and other current receivables.

Notes to the condensed consolidated financial statements

(unaudited)

9.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.


	Fair value			Carrying amount
€ million	As at 30 June 2026	As at 31 December 2025	As at 30 June 2025	As at 30 June 2026	As at 31 December 2025	As at 30 June 2025
Financial assets
Cash and cash equivalents	4,726	3,941	4,344	4,726	3,941	4,344
Financial assets at amortised cost	1,135	909	945	1,135	909	945
Financial assets at fair value through other comprehensive income	2,447	2,216	537	2,447	2,216	537
Financial assets at fair value through profit and loss:
Derivatives	277	190	360	277	190	360
Other	785	871	851	785	871	851
	9,370	8,127	7,037	9,370	8,127	7,037
Financial liabilities
Bank loans and overdrafts	(214)	(233)	(529)	(214)	(233)	(529)
Bonds and other loans	(29,193)	(25,655)	(28,696)	(29,675)	(26,038)	(29,169)
Lease liabilities	(1,308)	(1,326)	(1,524)	(1,308)	(1,326)	(1,524)
Derivatives	(532)	(452)	(614)	(532)	(452)	(614)
Other financial liabilities	(381)	(229)	(189)	(381)	(229)	(189)
	(31,628)	(27,895)	(31,552)	(32,110)	(28,278)	(32,025)


	As at 30 June 2026			As at 31 December 2025			As at 30 June 2025
€ million	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	1,858	4	586	1,663	4	549	10	4	523
Financial assets at fair value through profit or loss:
Derivatives(a)	–	349	–	–	210	–	–	420	–
Other	381	–	404	530	–	341	488	–	363
Liabilities at fair value
Derivatives(b)	–	(597)	–	–	(503)	–	–	(672)	–
Contingent consideration	–	–	(20)	–	–	(46)	–	–	(46)

(a)Includes €72 million (31 December 2025: €20 million; 30 June 2025: €60 million) derivatives, reported within trade receivables, that hedge trading

activities.

(b)Includes €(65) million (31 December 2025: €(51) million; 30 June 2025: €(58) 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

31 December 2025. There were also no significant movements between the fair value hierarchy classifications since 31

December 2025.

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 2026 and 2025.

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 2025.