Coca-Cola Europacific Partners (CCEP) H1 2024 earnings summary

Executive summary

• Achieved solid top and bottom line growth in H1 2024, with strong free cash flow and robust APS and Philippines performance offsetting softer European volumes due to strategic delistings and adverse weather.

• Seamless integration of the Philippines business (CCBPI) completed, delivering double-digit volume growth and record value share in sparkling and NARTD categories.

• Maintained focus on portfolio simplification, geographic diversification, and innovation, supporting both volume and value growth.

• Reaffirmed full-year guidance, confident in continued profitable growth and stakeholder value creation.

• Interim dividend of €0.74 per share declared and paid in May 2024.

Financial highlights

• Total revenue reached €10.1 billion, up 3.5% year-over-year on an adjusted comparable and FX-neutral basis; operating profit rose 9% to €1.3 billion.

• Comparable diluted EPS was €1.97, up 7% on a comparable and FX-neutral basis.

• Free cash flow for H1 was €539 million, with full-year guidance of €1.7 billion reaffirmed.

• Revenue per case grew 2.9%, driven by pricing, promotional optimization, and brand mix.

• Adjusted comparable EBITDA reached €1,708m, up from €1,538m in H1 2023.

Outlook and guidance

• Reaffirmed full-year 2024 guidance: revenue growth of ~4%, operating profit growth of ~7%, and free cash flow of ~€1.7 billion.

• Cost of sales per unit case now guided to the lower end of the 3%-4% range or broadly flat, with commodity inflation expected to be flat and 90% hedged.

• Effective tax rate expected at ~25% for the year.

• Dividend payout ratio targeted at approximately 50% of comparable EPS.

• Capex to be ~5% of revenue, supporting long-term growth.