Business Context and Reporting Period
Company: Coca-Cola Europacific Partners Plc (CCEP)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Six months ended 27 June 2025 (H1 2025)
Business Overview: CCEP is a leading consumer goods group in Western Europe and the Asia Pacific region, manufacturing, selling, and distributing non-alcoholic ready-to-drink beverages. The period includes the full impact of the acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI), completed in February 2024, with "Adjusted Comparable" metrics presented to reflect the acquisition as if it occurred at the beginning of 2024.
Key Financial Metrics
| Metric | As Reported (€M) | Comparable (€M) | Adjusted Comparable (€M) | YoY Change (Comparable) |
|---|---|---|---|---|
| Revenue | 10,274 | 10,274 | 10,274 | +4.5% |
| Operating Profit | 1,364 | 1,390 | 1,390 | +7.3% |
| Profit After Taxes | 937 | 951 | 951 | +15.5% |
| Diluted EPS (€) | 1.99 | 2.02 | 2.02 | +15.0% |
| Volume (M Unit Cases) | 1,932 | 1,932 | 1,932 | +4.1% |
| Net Debt (€M) | 10,032 | - | - | - |
| Operating Cash Flow (€M) | 986 | - | - | - |
Note: "Comparable" excludes items impacting comparability (e.g., restructuring, litigation). "Adjusted Comparable" further assumes the CCBPI acquisition occurred at the start of 2024.
Material Changes vs. Prior Period
- Revenue Growth: Reported revenue increased 4.5% to €10.27 billion. On an Adjusted Comparable FX-neutral basis, revenue grew 2.5%, driven by a 3.8% increase in revenue per unit case (pricing and mix) and a 0.3% increase in volume.
- Profitability: Reported operating profit surged 19.4% to €1.36 billion, primarily due to lower business transformation costs compared to H1 2024. On a comparable basis, operating profit grew 7.3%.
- Volume Dynamics: Total volume grew 4.1% (comparable).
- Europe: Volume declined 1.9% (comparable) or -0.3% (adjusted comparable), impacted by the French sugar tax and the strategic de-listing of Capri Sun.
- APS (Australia, Pacific, Southeast Asia): Volume grew 17.1% (comparable) or 1.5% (adjusted comparable), driven by strong performance in the Philippines and Australia/Pacific, offset by declines in Indonesia due to a weaker consumer backdrop.
- Cost Structure: Comparable cost of sales per unit case increased 1.6% due to higher concentrate costs (linked to revenue per case), manufacturing inflation, and tax increases in France and Great Britain.
Guidance, Outlook, and Risks
- Dividends: An interim dividend of €0.79 per share was declared and paid in May 2025.
- Capital Allocation: The Group launched a €1 billion share buyback programme in February 2025; approximately €365 million was utilized in H1 2025.
- Tax Outlook: The effective tax rate for H1 2025 was 26%. Management expects the full-year 2025 comparable effective tax rate to be approximately 26%.
- Key Risks:
- Geopolitical: Ongoing tensions in the Middle East and Ukraine impacting supply chains and consumer sentiment, particularly in Indonesia.
- Regulatory: Potential increases in taxes on soft drinks and plastics, and evolving regulations on sweeteners and packaging (Deposit Return Systems).
- Macroeconomic: Volatility in foreign exchange rates and commodity prices, though the Group maintains a strong hedging policy.
- Cybersecurity: Increasing focus on protecting IT/OT systems and preparing for quantum computing risks.
- Post-Balance Sheet Events: A Spanish Supreme Court ruling in July 2025 regarding VAT jurisdiction resulted in a €250 million receivable from Spanish authorities and a €280 million payable to Basque authorities, with a net impact of €30 million already reflected in prior balances.
Investor Verification Checklist
- Volume Adjustments: Verify the impact of the "Adjusted Comparable" metric, which assumes the CCBPI acquisition occurred at the start of 2024, versus the actual reported volume which includes CCBPI only from February 2024.
- Indonesia Performance: Assess the sustainability of volume declines in Indonesia and the potential for recovery given the cited "weaker consumer backdrop" and geopolitical factors.
- Cost Inflation: Monitor the trajectory of cost of sales per unit case, specifically the impact of concentrate costs and regional tax increases (France, GB) on future margins.
- Share Buyback Execution: Track the remaining €635 million of the €1 billion buyback programme and its impact on earnings per share.
- Regulatory Exposure: Review developments regarding sugar taxes and packaging regulations in key European markets (France, Iberia, GB) and their potential impact on pricing power and volume.