Coca-Cola Europacific Partners (CCEP) Barclays 17th Annual Global Consumer Staples Conference summary

Business transformation and diversification

• Expanded from a Western European focus to a balanced presence across Europe, Australia, New Zealand, Indonesia, and the Philippines, now operating in 31 countries with 42,000 employees and €20 billion in revenue, serving over 600 million consumers.

• Strategic acquisitions, including Coca-Cola Amatil and the joint acquisition of Coca-Cola Beverages Philippines, have driven diversification and value creation, supporting a 4% revenue growth guidance.

• Revenue is now more balanced between retail and non-retail channels, with over 50% from non-retail, providing resilience and profitability.

• Portfolio includes leading brands like Coke, Sprite, Fanta, Monster, Costa Coffee, and new entries in alcohol ready-to-drink and energy categories.

• Strong partnership with The Coca-Cola Company and Monster underpins innovation, execution strength, and sustainable value creation.

Financial performance and guidance

• Achieved total shareholder returns exceeding €6.4 billion since 2016, with a €0.74 interim dividend per share and 160% total shareholder return.

• Midterm targets include ~4% comparable revenue growth, ~7% operating income growth, and ~€1.7 billion in free cash flow.

• CapEx guidance raised to 4-5% of revenue to support growth, especially in the Philippines and ongoing investments in efficiency.

• Dividend payout ratio maintained at ~50% for 2024 and beyond, with a disciplined capital allocation framework and focus on technology and data-driven insights.

• Productivity program targeting over €350 million in savings to support margin expansion.

Regional market dynamics and strategy

• Europe: Sustainable growth of 2-3% expected, with a focus on value packs and affordability as inflation moderates; pricing actions continue in Germany and the UK.

• Pacific: Higher growth in Australia and New Zealand, with innovation in flavors and energy drinks; execution focus on brands like Diet Coke, Fanta, and Powerade.

• Indonesia and Philippines: High single-digit value growth, with restructuring, affordability initiatives, and a shift to a distributor model in Indonesia; strong growth and margin improvement in the Philippines leveraging European best practices.

• Maintains a diverse product and channel mix, with significant expansion in Asia-Pacific markets following recent acquisitions.

• Focuses on balancing price/mix and healthy volume growth, leveraging consumer insights and innovation to drive performance.