Coca-Cola Europacific Partners (CCEP) Q3 2024 TU earnings summary

Executive summary

• Achieved year-over-year growth in both volume and revenue, with market share gains in resilient NARTD categories across Europe and APS, despite challenging weather in Europe impacting volumes.

• Revenue per unit case grew, driven by pricing and promotional optimization, especially in developed markets; APS growth, led by the Philippines, offset softer European volumes.

• Integration of the Philippines business has been seamless, with increased investment planned for future growth.

• Strong brand execution and activation, including UEFA Euros and Olympics, supported underlying growth.

• Recognized for top service in supplier surveys and secured new major customers in Spain, GB, and Indonesia.

Financial highlights

• Q3 adjusted comparable revenue up 2.4% year-over-year to €5,358m; YTD up 2.7% to €15,454m.

• Q3 total volumes were flat year-over-year; underlying volumes (excluding Capri-Sun exit) up ~1%.

• European volumes down 1.4%, offset by APS volumes up 3.3%, driven by the Philippines.

• Revenue per unit case in Europe grew 3.2% in Q3, reflecting price increases and favorable mix.

• Sports and energy categories saw strong growth, with sports up 7% and energy up 4.5%.

Outlook and guidance

• Full-year operating profit growth expected around 7%, with free cash flow of ~€1.7 billion.

• Slightly lowered full-year revenue guidance to ~3.5% (from ~4%) due to softer Q3 volumes and weather impacts.

• Full-year COGS per unit case growth now expected at ~2.5%, lower than previous guidance, aided by positive mix from the Philippines.

• Second-half dividend of €1.23 per share declared, maintaining a 50% payout ratio and a full-year dividend increase of just over 7%.

• Confident in category resilience for 2025, with detailed guidance to be provided in February.