Property, plant and equipment

12 Months Ended

Dec. 31, 2025

Property, plant and equipment [abstract]

10. Property, plant and equipment


The Group’s property, plant and equipment is comprised of owned assets (note 10A) and leased assets (note 10B). Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated impairment losses. Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is necessary. If an indication of impairment exists, the asset’s or cash-generating unit’s recoverable amount is estimated and any impairment loss is charged to the income statement as it arises.
Owned assets Owned assets are initially measured at historical cost. Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values and useful lives are reviewed at least annually. The review of residual values and useful lives has taken into consideration the impacts of climate change and the actions we undertake to mitigate and adapt against these climate-related risks. There is no material impact on the income statement for this year. Estimated useful lives by major class of assets are as follows:
■freehold buildings (no depreciation on freehold land)		40 years
■leasehold land and buildings		40 years (or life of lease if less)
■plant and equipment		2-20 years
Leased assets The cost of a leased asset is measured as the lease liability at inception of the lease contract and other direct costs less any incentives granted by the lessor. The Group has not capitalised leases which are less than 12 months or leases of low-value assets. These mainly relate to IT equipment, office equipment, furniture and fitting and other peripheral items. When a lease liability is remeasured, the related lease asset is adjusted by the same amount. Depreciation is provided on a straight-line basis from the commencement date of the lease to the end of the lease term.


Property, plant and equipment	Notes	€ million 2025	€ million 2024
Owned assets	10A	7,826	10,259
Leased assets	10B	1,166	1,410
Total		8,992	11,669

10A. OWNED ASSETS


Movements during 2025	€ million Land and buildings	€ million Plant and equipment	€ million Total
Cost
1 January 2025	5,104	15,800	20,904
Additions through business combinations	–	15	15
Additions	345	1,356	1,701
Disposals and other movements	(134)	(412)	(546)
Hyperinflationary adjustment	(59)	(122)	(181)
Distributed through demerger	(1,035)	(4,006)	(5,041)
Reclassification as held for sale	(10)	(113)	(123)
Currency retranslation	(327)	(1,033)	(1,360)
31 December 2025	3,884	11,485	15,369
Accumulated depreciation
1 January 2025	(1,717)	(8,928)	(10,645)
Depreciation charge for the year	(125)	(872)	(997)
Disposals and other movements	25	348	373
Hyperinflationary adjustment	13	118	131
Distributed through demerger	426	2,498	2,924
Reclassification as held for sale	2	43	45
Currency retranslation	99	527	626
31 December 2025	(1,277)	(6,266)	(7,543)
Net book value 31 December 2025(a)	2,607	5,219	7,826
Includes capital expenditures for assets under construction	262	1,399	1,661

(a)Includes €496 million of freehold land.

The Group has commitments to purchase property, plant and equipment of €511 million (2024: €694 million).

10A. OWNED ASSETS continued


Movements during 2024	€ million Land and buildings	€ million Plant and equipment	€ million Total
Cost
1 January 2024	4,671	14,957	19,628
Additions through business combinations	–	1	1
Additions	319	1,421	1,740
Disposals and other movements	(116)	(1,073)	(1,189)
Hyperinflationary adjustment	223	441	664
Reclassification as held for sale	(27)	(69)	(96)
Currency retranslation	34	122	156
31 December 2024	5,104	15,800	20,904
Accumulated depreciation
1 January 2024	(1,599)	(8,652)	(10,251)
Depreciation charge for the year	(119)	(886)	(1,005)
Disposals and other movements	45	893	938
Hyperinflationary adjustment	(33)	(246)	(279)
Reclassification as held for sale	15	50	65
Currency retranslation	(26)	(87)	(113)
31 December 2024	(1,717)	(8,928)	(10,645)
Net book value 31 December 2024(a)	3,387	6,872	10,259
Includes capital expenditures for assets under construction	234	1,368	1,602

(a)Includes €556 million of freehold land.

10B. LEASED ASSETS


Movements during 2025	€ million Land and buildings	€ million Plant and equipment	€ million Total
Cost
1 January 2025	2,706	587	3,293
Additions through business combinations	18	–	18
Additions	333	130	463
Disposals and other movements	(316)	(79)	(395)
Hyperinflationary adjustment	8	–	8
Distributed through demerger	(310)	(47)	(357)
Reclassification as held for sale	(11)	(35)	(46)
Currency retranslation	(194)	(59)	(253)
31 December 2025	2,234	497	2,731
Accumulated depreciation
1 January 2025	(1,592)	(291)	(1,883)
Depreciation/Impairment charge for the year	(258)	(109)	(367)
Disposals and other movements	238	66	304
Distributed through demerger	211	29	240
Reclassification as held for sale	1	6	7
Currency retranslation	108	26	134
31 December 2025	(1,292)	(273)	(1,565)
Net book value 31 December 2025	942	224	1,166


Movements during 2024	€ million Land and buildings	€ million Plant and equipment	€ million Total
Cost
1 January 2024	2,625	583	3,208
Additions	404	143	547
Disposals and other movements	(373)	(149)	(522)
Hyperinflationary adjustment	(4)	–	(4)
Reclassification as held for sale	(2)	(1)	(3)
Currency retranslation	56	11	67
31 December 2024	2,706	587	3,293
Accumulated depreciation
1 January 2024	(1,578)	(300)	(1,878)
Depreciation/Impairment charge for the year	(271)	(106)	(377)
Disposals and other movements	292	120	412
Reclassification as held for sale	–	1	1
Currency retranslation	(35)	(6)	(41)
31 December 2024	(1,592)	(291)	(1,883)
Net book value 31 December 2024	1,114	296	1,410

Our leases mainly comprise of land and buildings and plant and equipment. The Group leases land and buildings for manufacturing, warehouse facilities and office

space and also sublets some property. Plant and equipment includes leases for vehicles.

The Group has recognised in the income statement, a charge of €114 million (2024: €121 million) for short-term leases and €47 million (2024: €57 million) on leases

for low-value assets.

During the year, the Group recognised income of €11 million (2024: €10 million) from sublet properties.

The total cash outflow relating to leases was €380 million (2024: €411 million).

Lease liabilities are shown in note 15 on pages 161 and 165.