Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages.
Coca-Cola Europacific Partners (CCEP) posted a steady first-quarter result, reporting revenue of €4.69 billion, in line with expectations, though just shy of the consensus estimate of €4.73 billion. Comparable revenue also came in at €4.69 billion, with revenue per unit case rising 3.1% when adjusted for currency movements, with shares rising 1.03% following the results.
The modest Q1 performance wasn’t a surprise, with the timing of Easter, two fewer trading days, and softer consumer sentiment all contributing. Despite this, April saw stronger sales momentum, giving the company the confidence to reaffirm its full-year guidance of 4% revenue growth and a 7% lift in operating profit. The board also declared an interim dividend of €0.79 per share and reiterated its target of a 50% annual dividend payout ratio.
Looking ahead, CCEP’s success may depend on convincing consumers to stick with higher-margin single-serve and sparkling drinks, which can fetch up to double the revenue of larger pack sizes. However, with households across Europe becoming more cost-conscious, many are shifting to multi-serve options to stretch their dollar further.
There’s potential for growth in Asia, particularly in Indonesia and the Philippines, where demand continues to build. At the same time, stabilising input costs and supply chains means the company is less reliant on further price hikes to drive performance.
A warm summer in Europe could also provide a boost, especially through sales at restaurants, hotels, and cafes, channels that only edged up 0.7% in the first quarter but offer high margins.
If consumer habits hold steady and economic conditions remain supportive, CCEP appears well-positioned to deliver on its earnings outlook, with high-single-digit growth in profit and earnings per share still on the cards for 2025.
