COCA-COLA EUROPACIFIC PARTNERS Plc current report, Q4 FY2025

Business Context and Reporting Period

Company: Coca-Cola Europacific Partners Plc (CCEP)
Filing Type: Form 6-K (Preliminary Unaudited Results)
Reporting Period: Full year ended 31 December 2025
Overview: CCEP reported resilient top-line growth and strong profit delivery driven by productivity gains and a refreshed portfolio. The company serves nearly 600 million consumers across 31 countries in Europe and the Asia Pacific region. Key strategic highlights include the full-year integration of the Coca-Cola Beverages Philippines acquisition and the announcement of a new €1 billion share buyback program.

Key Financial Metrics

Metric FY 2025 (As Reported) FY 2025 (Comparable) Change vs FY 2024 (Comparable)
Revenue (€M) 20,901 20,901 +2.3%
Operating Profit (€M) 2,793 2,808 +5.4%
Profit After Tax (€M) 1,979 1,916 +3.6%
Diluted EPS (€) 4.26 4.11 +4.1%
Comparable Free Cash Flow (€M) 1,836 1,836 N/A
Dividend Per Share (€) 2.04 2.04 +3.6%
Net Debt (€M) 9,823 9,823 N/A
Net Debt / Comparable EBITDA 2.7x 2.7x Flat

Note: Comparable metrics exclude items impacting comparability such as restructuring charges, impairments, and acquisition-related costs. Adjusted Comparable metrics include the Philippines acquisition as if it occurred at the start of 2024.

Material Changes vs. Prior Period

  • Revenue Growth: Reported revenue increased 2.3% to €20.9 billion. On an adjusted comparable FX-neutral basis, revenue grew 2.8%, driven by a 2.9% increase in revenue per unit case (pricing and mix) and a 0.2% increase in adjusted comparable volume.
  • Profitability: Reported operating profit surged 31.0% to €2.79 billion, primarily due to the full-year inclusion of the Philippines business, the annualization of prior-year impairments in Indonesia, and lower transformation costs. On a comparable basis, operating profit grew 5.4%.
  • Volume Performance: Total volume was 3,958 million unit cases. Adjusted comparable volume grew 0.2%. Europe volumes declined slightly (-0.2%) due to consumer focus on value and sugar tax impacts in France, while APS volumes grew 1.0% driven by Australia/Pacific momentum.
  • Cost Structure: Comparable cost of sales per unit case increased 2.7% due to higher concentrate costs (linked to revenue per case), manufacturing inflation, and tax increases in France and Great Britain.
  • Shareholder Returns: The company maintained a dividend payout ratio of approximately 50% and completed a €1 billion share buyback in 2025, reducing the share count.

Guidance, Outlook, and Risks

FY 2026 Guidance (Comparable & FX-Neutral)

  • Revenue: Growth of 3% to 4%.
  • Operating Profit: Growth of approximately 7%.
  • Cost of Sales per UC: Comparable growth of approximately 1.5%.
  • Comparable Free Cash Flow: At least €1.7 billion.
  • CAPEX: Approximately 5% of revenue.
  • Dividend Payout Ratio: Approximately 50%.

Management Commentary

CEO Damian Gammell highlighted strong performance in vibrant categories and the success of productivity programs. The company is investing in growth initiatives, including the 2026 FIFA World Cup. A new €1 billion share buyback program was announced, subject to shareholder approval at the 2026 AGM.

Risks and Contingencies

  • Market Conditions: Consumer focus on value in Europe (particularly Germany and France) and a weaker macroeconomic backdrop in Indonesia.
  • Regulatory: Impact of sugar taxes in France and Great Britain on volumes and costs.
  • Operational: Exit of Suntory alcohol distribution in Australia and New Zealand, impacting revenue by approximately 0.5% in FY26.
  • Legal/Tax: Ongoing tax assessments regarding concentrate purchases in certain jurisdictions; the company is vigorously defending its position.

Key Facts for Investor Verification

  • Share Buyback Approval: Verify the outcome of the 2026 AGM regarding the new €1 billion buyback program announced in February 2026.
  • Philippines Integration: Confirm the full-year financial impact of the Coca-Cola Beverages Philippines acquisition, which significantly boosted reported operating profit in 2025.
  • Indonesia Turnaround: Monitor the execution of the route-to-market transformation in Indonesia following double-digit volume declines in 2025.
  • FX Sensitivity: Assess the impact of foreign exchange rates, particularly the Australian Dollar and British Pound, on future revenue and profit given the company's geographic exposure.
  • Cost Inflation: Track the trajectory of concentrate costs and manufacturing inflation against the guidance of ~1.5% cost of sales growth per unit case for 2026.