Latest news with #CocaColaEuropacificPartners
Yahoo
4 days ago
- Business
- Yahoo
Coca-Cola Europacific Partners PLC (CCEP) (H1 2025) Earnings Call Highlights: Strong Profit ...
Revenue: EUR10.3 billion, up 2.5%. Operating Profit: EUR1.4 billion, up 7.2%. Operating Margin: 13.5%, an expansion of around 60 basis points. Comparable Free Cash Flow: EUR425 million in H1. Dividend: EUR0.79 per share for the first half. Share Buybacks: EUR460 million completed out of EUR1 billion planned. Revenue Per Unit Case Growth: 3.8%. Cost of Sales Per Unit Case: Increased by 3.6%. Comparable Diluted Earnings Per Share: EUR2.02, up 3.1% on an FX-neutral basis. Volume Growth: Comparable volumes up 0.3%, excluding Indonesia up around 1%. Monster Volume Growth: Up nearly 15%. Fanta Zero Volume Growth: Up around 7%. Sprite Zero Volume Growth: Up around 13%. ARPD Category Volume Growth: Up around 9%. Full-Year Revenue Growth Guidance: Updated to a range of 3% to 4%. Effective Tax Rate: Increased to 26%. Warning! GuruFocus has detected 1 Warning Sign with BOM:531508. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) delivered solid top and bottom-line growth, with a 7.2% increase in operating profit and a 2.5% increase in revenue for the first half of 2025. The company completed around EUR460 million of share buybacks and paid a dividend in line with its annualized payout policy, demonstrating strong cash returns to shareholders. CCEP's strategic focus on resilient categories such as ARTD and Hot Coffee, which are structurally growing and profitable, supports its long-term growth strategy. The company has made significant investments in technology and digital capabilities, enhancing productivity and supporting future growth. CCEP's strong brand portfolio, including successful campaigns like 'Share a Coke' and the launch of new products, has driven consumer engagement and market share gains. Negative Points The company's revenue growth guidance for the full year was adjusted to a range of 3% to 4%, down from approximately 4%, due to slower-than-expected performance in Indonesia. CCEP faced challenges in Indonesia, with a weaker consumer backdrop impacting volumes, although there are signs of stabilization. The exit from the Beam Suntory relationship in Australia created a near-term headwind, affecting revenue per unit case. The company experienced some delays in landing commercial agreements in Europe, particularly in Germany and Sweden, impacting Q2 results. CCEP anticipates a full-year FX headwind of around 150 basis points to revenue and almost 200 basis points to operating profit, affecting financial performance. Q & A Highlights Q: You lowered the top line guidance slightly, but it still implies acceleration in the second half. Can you provide more color on the drivers of this growth and the expected contribution from price/mix versus volume growth? A: We have seen our business accelerate coming out of Q1, with a strong Q2 in both Europe and APS. We expect this to continue, driven by volume growth and price/mix per case. Our pricing is in place through the end of the year, giving us confidence in our top-line number. The bottom line changes between the halves are due to more volume contribution and some OpEx phasing. Q: Can you elaborate on the stronger Q3 trading you've seen, particularly in Europe, and the impact of flooding in the Philippines on APS performance? A: We've seen stabilization in Indonesia and strong performance in Australia, New Zealand, and the Pacific Islands. In Europe, good weather has positively impacted our July business, and we expect this to continue through August. The flooding in the Philippines is reflected in our guidance, but overall, we are seeing positive trends. Q: How do you view the medium-term growth algorithm given the headwinds in Indonesia? A: We are not assuming a significant turnaround in Indonesia for our 4% top-line growth target. While Indonesia presents a long-term opportunity, it is a relatively small part of our business. We have enough levers elsewhere to offset the weakness, and our midterm objectives remain unchanged. Q: Can you provide an update on the Australian margin turnaround story and the potential for it to return to previous high levels? A: We are pleased with the progress in Australia, with revenue growing at an 8% CAGR since 2021 and operating profit margin accretion. Investments in capacity, promo, RGM capabilities, and portfolio rationalization have contributed to this. The shared services capabilities in Manila will further support margin expansion. Q: How has the "Share a Coke" campaign been received, and what metrics do you track to analyze its success? A: The "Share a Coke" campaign has been well received, driving improvements in display share, distribution, and consumption metrics. It focuses on single-serve, supporting price mix and away-from-home growth. The campaign has been innovative across our Cola portfolio and is positively impacting our volume and price mix numbers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Daily Mail
5 days ago
- Business
- Daily Mail
Shares in Coca-Cola bottling firms shattered as tariffs hit
Shares in London-listed firms that bottle Coca-Cola outside of the US plunged on Wednesday as investors weighed the impact of weaker consumer strength as well as trade tariffs. Coca-Cola HBC and Coca-Cola Europacific Partners, which bottle Coca-Cola and other drinks in different regions, have been raising prices to shield margins from elevated costs and lower spending. The pair were the biggest fallers on the FTSE 100 by early afternoon despite solid first half trading updates, as each firm's chief executive acknowledged a challenging backdrop. HBC, which bottles drinks in 29 counties including Italy, Russia and Nigeria, forecast annual organic revenue growth at the top end of its 6 to 8 per cent guidance range but fell short of average market estimates of 8.8 per cent. Its first half volumes were broadly in line with last year, despite 'low-single digit' declines in fizzy drinks and coffee sales, amid 'ongoing headwinds from consumer sensitivity in some markets'. Coca-Cola HBC shares were down 7 per cent to 3,650p by midafternoon. That was despite UBS analysts describing volume growth as 'best in class' and the firm hiking prices to offset prior year foreign exchange devaluations. Meanwhile, Coca-Cola Europacific Partners, which operates in 31 countries in Western Europe, Australia, Asia Pacific and Southeast Asia, guided investors to expect revenue growth of 3 to 4 per cent, down from an earlier forecast of about 4 per cent. The group cited 'uncertainty and volatility from the impact and extent of actual and promised tariff adjustments' among its principal risks, but reiterated full-year profit guidance. Boss Damian Gammel said: 'While the global macroeconomic environment is volatile, we remain resilient. Strong cash generation is supporting record investment in future growth.' Coca-Cola Europacific Partners fell 7 per cent to 6,730p. The bottlers have over the past year also faced backlashes from consumers in Indonesia, where CCEP operates, and Egypt, where HBC operates, as consumers shied away from US brands due to Israel's war in Gaza.
Daily Mail
5 days ago
- Business
- Daily Mail
Shares in Coca-Cola bottling firms shattered as tariffs hit and consumer demand loses its fizz
Shares in London-listed firms that bottle Coca-Cola outside of the US plunged on Wednesday as investors weighed the impact of weaker consumer strength as well as trade tariffs. Coca-Cola HBC and Coca-Cola Europacific Partners, which bottle Coca-Cola and other drinks in different regions, have been raising prices to shield margins from elevated costs and lower spending. The pair were the biggest fallers on the FTSE 100 by early afternoon despite solid first half trading updates, as each firm's chief executive acknowledged a challenging backdrop. HBC, which bottles drinks in 29 counties including Italy, Russia and Nigeria, forecast annual organic revenue growth at the top end of its 6 to 8 per cent guidance range but fell short of average market estimates of 8.8 per cent. Its first half volumes were broadly in line with last year, despite 'low-single digit' declines in fizzy drinks and coffee sales, amid 'ongoing headwinds from consumer sensitivity in some markets'. Coca-Cola HBC also said US tariffs imposed on Chinese and European goods are expected to 'drive inflation and slow growth'. Boss Zoran Bogdanovic added: 'We are mindful of what is a challenging and unpredictable macroeconomic and geopolitical environment.' Coca-Cola HBC shares were down 7 per cent to 3,650p by midafternoon. That was despite UBS analysts describing volume growth as 'best in class' and the firm hiking prices to offset prior year foreign exchange devaluations. Meanwhile, Coca-Cola Europacific Partners, which operates in 31 countries in Western Europe, Australia, Asia Pacific and Southeast Asia, guided investors to expect revenue growth of 3 to 4 per cent, down from an earlier forecast of about 4 per cent. The group cited 'uncertainty and volatility from the impact and extent of actual and promised tariff adjustments' among its principal risks, but reiterated full-year profit guidance. Boss Damian Gammel said: 'While the global macroeconomic environment is volatile, we remain resilient. Strong cash generation is supporting record investment in future growth.' Coca-Cola Europacific Partners fell 7 per cent to 6,730p The bottlers have over the past year also faced backlashes from consumers in Indonesia, where CCEP operates, and Egypt, where HBC operates, as consumers shied away from US brands due to Israel's war in Gaza.
CNA
5 days ago
- Business
- CNA
Coca-Cola Europacific Partners tempers annual revenue forecast on Indonesia weakness
Coca-Cola Europacific Partners tempered its annual revenue forecast on Wednesday, citing softer demand in Indonesia due to geopolitical tensions in the Middle East and a challenging macroeconomic environment. The bottler, which operates across Western Europe, the Middle East, Australia and New Zealand, said Southeast Asia volumes were hit by brand boycotts in Indonesia, a Muslim-majority country, in response to the conflict in Gaza. Coca-Cola Europacific Partners expects annual comparable revenue to be between 3 per cent and 4 per cent, compared with a prior forecast of about a 4 per cent rise.
Reuters
5 days ago
- Business
- Reuters
Coca-Cola Europacific Partners tempers annual revenue forecast on Indonesia weakness
Aug 6 (Reuters) - Coca-Cola Europacific Partners tempered its annual revenue forecast on Wednesday, citing softer demand in Indonesia due to geopolitical tensions in the Middle East and a challenging macroeconomic environment. The bottler, which operates across Western Europe, the Middle East, Australia and New Zealand, said Southeast Asia volumes were hit by brand boycotts in Indonesia, a Muslim-majority country, in response to the conflict in Gaza. Coca-Cola Europacific Partners expects annual comparable revenue to be between 3% and 4%, compared with a prior forecast of about a 4% rise.
