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 performance offsetting softer European volumes due to strategic delistings and adverse weather.

• Seamless integration of the Philippines business (CCBPI) completed in February 2024, delivering double-digit growth and significant value share gains.

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

• Reaffirmed full-year guidance and continued investment in growth, innovation, and sustainability initiatives.

Financial highlights

• Adjusted comparable revenue for H1 2024 was €10.1 billion, up 3.5% year-over-year; 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 was €539 million in H1, with full-year guidance of €1.7 billion reaffirmed.

• Interim dividend of €0.74 per share paid, calculated as 40% of the full-year 2023 dividend.

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

Outlook and guidance

• Reaffirmed full-year 2024 guidance: revenue growth around 4%, cost of sales per unit case at ~3%, and operating profit growth of ~7%.

• Comparable free cash flow guidance of €1.7 billion; capex to be ~5% of revenue.

• Dividend payout ratio targeted at approximately 50%.

• Commodity inflation now expected to be flat, with 90% hedged for the year.

• Effective tax rate anticipated at 25% for the year.