CCEP

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 3 July 2026
Overview: CCEP reported a strong first-half performance characterized by balanced revenue growth, continued market share gains, and disciplined cost management. The company operates across Europe and the Asia Pacific (APS) region, serving nearly 600 million consumers. Management reaffirmed full-year 2026 guidance despite a challenging consumer environment and geopolitical uncertainties in the Middle East.

Key Financial Metrics

Note: Volume growth of 5.6% reported includes six additional consumption days versus the prior period. Days-adjusted growth is 2.2%.

Material Changes vs. Prior Period

• Revenue Growth: Driven by a 0.4% increase in revenue per unit case (pricing and mix) and 2.2% volume growth. Europe revenue grew 5.9% (reported), while APS grew 0.4% (reported), impacted by the exit of Suntory alcohol distribution.
• Profitability: Operating profit margin expanded due to productivity programs and efficiency gains, offsetting higher concentrate costs and manufacturing inflation. Cost of sales per unit case increased 0.6% on a comparable basis.
• Geographic Performance:
  • Europe: Volume +1.6% (days adjusted). Strong performance in Great Britain and Iberia. Germany saw slight volume decline due to affordability pressures.
  • APS: Volume +3.5% (days adjusted). Southeast Asia (Philippines and Indonesia) showed solid growth. Australia/Pacific was impacted by the Suntory exit but showed growth in PNG and Pacific Islands.
• Category Trends: Energy drinks grew 18.6% (H1) driven by innovation (e.g., Viking Berry). Sports drinks grew 12.1%. Coca-Cola Zero Sugar volumes increased 10.7%.

Guidance, Outlook, and Risks

Full-Year 2026 Guidance (Reaffirmed)

• Revenue: Growth of 3% to 4% (Comparable, FX-neutral).
• Operating Profit: Growth of ~7% (Comparable, FX-neutral).
• Cost of Sales per UC: Comparable growth of ~1.5%.
• Free Cash Flow: At least €1.7 billion (Comparable).
• CAPEX: ~5% of revenue.
• Dividend Payout: ~50% of comparable EPS.
• Share Buyback: €1 billion program; €593 million completed as of 31 July 2026.

Management Commentary

CEO Damian Gammell highlighted the resilience of the business model, citing strong execution, innovation in zero-sugar and energy categories, and successful activations (e.g., FIFA World Cup). The company is investing in AI and technology to drive future growth and efficiency.

Risks and Contingencies

• Geopolitical: Ongoing conflict in the Middle East creates uncertainty in energy markets, supply chains, and inflation. This is the primary driver of increased volatility.
• Consumer Environment: Cost-of-living pressures may impact affordability and demand, particularly in Europe.
• Regulatory: Evolving regulations on packaging, taxes (e.g., sugar tax in France), and data governance.
• Cybersecurity: Elevated threat environment with increased state-aligned cyber activity.

Key Facts for Investor Verification

• Volume Adjustments: Verify the distinction between reported volume growth (5.6%) and days-adjusted growth (2.2%) due to six extra consumption days in H1 2026.
• Suntory Exit Impact: Confirm the revenue impact of the Suntory alcohol distribution exit in Australia and New Zealand, estimated at ~0.5% to full-year group revenue.
• FX Headwinds: Note the expected full-year FX headwind of ~40 basis points to revenue and ~10 basis points to operating profit based on current spot rates.
• Restructuring Costs: Review the €46 million in restructuring charges recognized in H1 2026 related to the efficiency program.
• Share Buyback Progress: Track the execution of the €1 billion buyback program, with €593 million completed as of late July 2026.