Coca-Cola Europacific reaffirms full-year guidance after solid Q1

(Sharecast News) - Coca-Cola Europacific Partners reaffirmed its full-year guidance on Tuesday after reporting a rise in first-quarter revenue, helped by stronger volumes, calendar phasing and an earlier Easter. The FTSE 100 drinks bottler said reported revenue rose 6.7% to €5.00bn in the quarter ended 3 April, while foreign-exchange neutral revenue increased 9.4%.

Reported volume rose 8.5% to 970m unit cases, although comparable group volumes increased 1.6% after adjusting for six additional consumption days versus the prior-year period.

Revenue in Europe rose 9.1% on a reported basis to €3.55bn, with foreign-exchange neutral revenue up 9.8%.

Volumes in the region increased 1.4% on a comparable basis, reflecting in-market execution, an earlier Easter, share gains and growth in large-format packs in the home channel.

Revenue in the Asia Pacific segment rose 1.1% to €1.45bn, or 8.6% on a foreign-exchange neutral basis, with comparable volumes up 1.9%.

Chief executive Damian Gammell said the company had made "a good start to the year with more balanced topline delivery".

"Although stronger volumes benefitted from calendar phasing and an earlier Easter, we delivered solid comparable volume growth and share gains driven by great execution," he said.

"Our consumers continued to enjoy a wonderful portfolio of beverages; our revenue growth reflecting the ongoing demand for value from consumers but also for exciting innovation and premiumisation across a broad pack offering."

Revenue per unit case increased 0.8% at group level, reflecting positive mix, headline pricing, the exit from Suntory alcohol distribution and the French sugar tax.

In Europe, revenue per unit case rose 1.3%, supported by brand mix, price increases in France, Iberia and Germany, and the French sugar tax, partly offset by negative pack mix from growth in large-format packs.

In Asia Pacific, revenue per unit case fell 0.3%, as positive brand and pack mix and pricing were offset by an approximately 3% impact from the Suntory alcohol exit.

CCEP said it remained the number one value creator for retail customers, delivering more revenue growth than all fast-moving consumer goods peers, while the non-alcoholic ready-to-drink category grew 4% in value and 3% in volume.

Year-to-date value share increased by 30 basis points, with Europe up 30 basis points and Asia Pacific flat.

By category, Coca-Cola volumes rose 0.7%, with Zero Sugar up 10% and Original Taste down 3.2%.

Flavours and mixers volumes increased 1.2%, water, sports, ready-to-drink tea and coffee rose 1.7%, and other drinks including energy grew 9.2%.

Energy volumes increased 21.3%, supported by innovation, distribution gains and growth in multipacks and original variants.

Gammell said the consumer backdrop remained difficult and that the full impact of the situation in the Middle East was uncertain, but added that the business was "resilient".

"We continue to actively manage pricing, promotions, discretionary spend and efficiencies alongside bringing excitement to customers and consumers, like the FIFA World Cup," he said.

"We are also investing more than ever in growth, from technology and AI, to more coolers and our new plant in the Philippines."

The company maintained its 2026 guidance for comparable foreign-exchange neutral revenue growth of 3% to 4%, cost of sales per unit case growth of about 1.5%, and operating profit growth of about 7%.

It also reiterated expectations for a comparable effective tax rate of about 26%, capital expenditure of about 5% of revenue including leases, and comparable free cash flow of at least €1.7bn.

CCEP declared a first-half interim dividend of €0.82 per share, payable on 27 May to shareholders on the register on 15 May.

The company reaffirmed guidance for an annualised total dividend payout ratio of about 50% of comparable earnings per share, and said it had completed €500m of a planned €1bn share buyback for the year, subject to further shareholder approval at its 2026 annual meeting.

"Today's dividend declaration, reaffirmation of our full year guidance for 2026 and ongoing share buybacks demonstrate the strength of our business and our ability to deliver continued shareholder value," Gammell said.

"We are confident we have the right strategy, executed sustainably, to deliver on our mid-term objectives."

At 1027 BST, shares in Coca-Cola Europacific Partners were up 2.25% at 7,285p.

Reporting by Josh White for Sharecast.com.

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