CCEP · Coca-Cola Europacific Partners PLC

Coca-Cola Europacific Partners’ Q1 2026 trading update reflects solid top-line execution amid macroeconomic and structural headwinds. Revenue growth was driven by disciplined pricing — including headline increases in France, Iberia, Germany, and the Philippines — as well as favorable brand and product mix, particularly from Monster, Coca-Cola Zero Sugar, and energy innovations like Viking Berry and Ultra Ruby Red. The 9.4% FX-neutral revenue growth significantly outpaced the 6.7% reported figure, underscoring material foreign exchange headwinds, especially in APS where FX impact reduced reported revenue growth by 7.5 percentage points. Volume performance was modest on a comparable basis (+1.6%), constrained by six additional consumption days inflating the reported +8.5% figure; underlying demand remained resilient, with Home channel growth (+2.9%) outpacing AFH (+0.7%), and strong regional variation — Southeast Asia volumes declined 3.4% on a reported basis (though FX-neutral revenue there rose 10.1%). Category-level strength emerged in Energy (+21.3% volume) and Water/Sports (+3.9% and +5.9%), while RTD Tea & Coffee declined 8.2%. Management reaffirmed full-year guidance for a ~50% dividend payout ratio, signaling confidence in cash flow generation despite the Suntory alcohol exit’s persistent impact on APS revenue per unit case. Sustainability progress — including updated SBTi-validated GHG targets covering the Philippines and FLAG emissions — reinforces long-term operational resilience, though no financial or ESG metrics were quantified beyond prior disclosures.