Coca-Cola Europacific Partners (CCEP) Q4 2024 earnings summary

Executive summary

• Achieved robust top- and bottom-line growth in FY24, with revenue up 11.7% to €20.7bn and adjusted comparable revenue up 3.5%, driven by strong APS performance and the Philippines integration.

• Seamless integration and acquisition of the Philippines business delivered double-digit volume growth and significant value share gains.

• Announced a €1bn share buyback over the next 12 months and healthy dividend growth, reflecting strong free cash flow and early return to leverage target.

• Maintained focus on stakeholder value creation, resuming share buybacks and investing for profitable growth.

• Geographic diversification enhanced resilience and market share gains.

Financial highlights

• FY24 revenue reached €20.7bn, up 3.5% year-over-year; adjusted comparable operating profit rose 8% to €2,673m.

• Comparable free cash flow was €1.8bn, supporting a dividend per share of €1.97 (+7.1%).

• Diluted EPS increased 6.5% to €3.95 on a comparable and FX-neutral basis.

• Net debt to EBITDA improved to 2.7x, returning to target leverage range a year ahead of plan.

• Adjusted comparable ROIC increased to 10.8%.

Outlook and guidance

• FY25 guidance: revenue growth of ~4%, operating profit growth of ~7%, and comparable free cash flow of at least €1.7bn.

• Cost of sales per unit case projected to grow ~2%; effective tax rate rising to 26%.

• Dividend payout ratio expected at ~50%; €1bn share buyback planned over next 12 months.

• CapEx to remain at ~5% of revenue; continued focus on midterm objectives and high-growth markets.

• Commodity inflation expected to be broadly flat, with 80% hedged for FY25.