Coca-Cola Europacific Partners Q1 2025 TU Earnings Report

Coca-Cola Europacific Partners EPS Results

• Actual EPS: N/A
• Consensus EPS: $2.03
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Coca-Cola Europacific Partners Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $10.98 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Coca-Cola Europacific Partners Announcement Details

• Quarter: Q1 2025 TU
• Date: 5/9/2025
• Time: Before Market Opens
• Conference Call Date: N/A
• Conference Call Time: N/A

Coca-Cola Europacific Partners (NASDAQ:CCEP), together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. It offers flavours, mixers, and energy drinks; soft drinks, waters, enhanced water, and isotonic drinks; and ready-to-drink tea and coffee, juices, and other drinks. The company provides its products under the Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, Sprite, Monster Energy, Coca-Cola Energy, Relentless, nalu, URGE, BURN, Kuli, REIGN, POWERADE, Appletiser, Schweppes, FINLEY, mezzo mix, Royal Bliss, Lift, Vio SCHORLE, Coca-Cola Signature Mixers, NORDIC MIST, smartwater, Chaudfontaine, AQUARIUS, VILAS del Turbon, BONAQUA, Apollinaris, Krystal, Honest, Costa Coffee, Fuzetea, CHAQWA, NESTEA, Capri-Sun, Oasis, Minute Maid, MER, and Tropico brands. In addition, it engages in the bottling and other operations. The company was formerly known as Coca-Cola European Partners plc and changed its name to Coca-Cola Europacific Partners PLC in May 2021. The company was founded in 1904 and is based in Uxbridge, the United Kingdom.

Coca-Cola Europacific Partners Q1 2025 TU Earnings Call Transcript

Presentation

[Operator]

Hello, and thank you for standing by, and welcome to today's Coca Cola Euro Pacific Partners Q1 Trading Update Conference Call. At this time, all participants are in a listen only mode. After the speakers' remarks, there will be a question and answer session. I must advise you this conference call is being recorded today. I'd now like to hand the conference over to Vice President of Investor Relations and Corporate Strategy, Sarah Willett.

[Sarah Willett, VP - IR & Corporate Strategy at Coca-Cola Europacific Partners]

Please go ahead, Thank you all for joining us today. I'm here with Damien Gammon, our CEO and our CFO, Ed Walker. Before I hand over to Damien, reminder of our cautionary statements. This call will contain forward looking comments, management comments and other statements reflecting our outlook. These comments should be considered in conjunction with the cautionary language contained in today's release as well as the detailed cautionary statements found in reports filed with The UK, US Dutch and Spanish authorities.

[Sarah Willett, VP - IR & Corporate Strategy at Coca-Cola Europacific Partners]

A copy of this information is available on our website at www.cocoapolep.com. Ahead of remarks will be made by Damian. We will then turn the call over to your questions. Unless otherwise stated, metrics presented today will be on a comparable and FX neutral basis throughout. They will also be presented on an adjusted comparable basis, thus reflecting results of CCP and our Australia Pacific and South East Asia business unit as if the Coca Cola Philippines transaction had occurred at the beginning of last year, rather than in February when the acquisition completed.

[Sarah Willett, VP - IR & Corporate Strategy at Coca-Cola Europacific Partners]

Volume movements also adjust for the impact of two less selling days in quarter when compared to the same period last year. Following the call, a full transcript will be made available as soon as possible on our website. I will now turn the call over to our CEO, Damian.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Thank you, Sarah, and many thanks for everyone joining us today. I'm pleased with how the year started, reflecting our great brands and great in market execution, as always, all delivered by our great people. So I'd like to start by thanking them for their energy, hard work and continued dedication to our customers and to our business. And as always, underpinned by our strong aligned relationships with The Coca Cola Company and our other brand partners. Performance during the first quarter has been broadly as expected in what is traditionally our smallest quarter of the year.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

We've continued to grow share ahead of the market, create value for our customers and deliver solid gains in revenue per unit case, up just over 3% through our ongoing revenue and margin growth management activities. While reported volumes were down 3.8%, this reflects calendar related phasing, driven by a later Easter and two less selling days versus last year. Adjusting for this calendar impact, comparable volumes were marginally down with a decline of 0.6% reflecting last year's strategic exit from our Capri Sun business, which is now from now on has annualized. So underlying volumes were broadly flat. Given the timing of Easter, we've seen a stronger April.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And as I look to the rest of the year, we have solid commercial programs in place supported by a great pipeline of innovation, fantastic activation plans, including more cooler investments across our Coke trademark and Monster. Importantly, our full year 2025 pricing is substantially in place. And with softer comparables over the summer given the adverse weather in Europe last year, I remain confident that we are well placed for 2025 and beyond. This across our geographically diverse footprint in our core NARTD category, which remains resilient and continue to grow across our markets. So looking a little more closely at Q1, starting with Europe where the impact of the Easter phasing was most prominent.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Comparable volumes overall were down by 2.1% with some growth in away from home supported by softer comparables. In the home channel, where we traditionally see more Easter related spending, volumes were down 3.6%. This was most notable in Germany and France, which at short notice also saw the sugar tax increase from the March. Outperforming was GB, where we've seen fantastic in market execution around several new launches. Highlights were Coca Cola Zero, Monster Rio Punch, supporting double digit energy growth and the new limited edition Doctor.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Doctor. Pepper Cherry Crush, which was very well received by consumers. And we've seen an improved trajectory for Diet Coke following the launch of the This Is My Taste campaign. In flavors, we've introduced a range of new Fanta variants including Apple, Raspberry and Tutti Frutti, supported by the Colorful Rainbow Wanna Fanta campaign. And in ARTD, we've started a rollout of Bacardi and Coke, Absolut Sprite watermelon and Jack Daniel's and Cherry Coke.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

In addition to innovating through collaborations and flavor extensions, we continue to support our great brands with the return of an old favorite, the search for name cans, which will soon begin in earnest as the iconic Share A Co campaign rolls out across our markets. In Iberia, we've seen good growth in both energy and sports categories, mitigating the Easter effect and the impact of some weather in March. The transition from Nestea diffuses ahead of expectations, driven by a strong performance in grocery where we secured listings with Aldi, Lidl and Mercadona. And revenue per unit case for Europe was up just over 4%, supported by headline price increases and the continued growth of our energy and sports brands. Turning now to APS, where volumes were up 2.1%.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

In the Australia Pacific regions, volumes saw a slight decline driven by Easter timing and Cyclone Alfred, which impacted our business on the East Coast Of Australia in March. This was largely offset by the Pacific Islands and P And G, where we've continued to see strong volume growth. Positive mix driven by the growth of mini cans, new Monster Multi Packs and the launch of Monster Ultra Ruby Red all contributed to an increase in revenue per case, alongside the recent headline pricing increase in Australia. Growing volumes in Southeast Asia were driven by the modern trade channel in The Philippines, which continues to see good growth, particularly in Coca Cola Original Taste and Water, despite cycling strong overall comparables across the first half of last year. This was partly offset by a weaker performance in Indonesia, reflecting wider macroeconomic softness and the ongoing geopolitical situation, which we are now beginning to cycle.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Revenue per unit case for APS grew by 2.1% with headline price increases in Australia and The Philippines offset by geographic mix. So in summary, given Q1 calendar impacts for the year to date, including April, we're broadly where we expected to be. In that context and the confidence they have in our plans for the rest of the year, I'm pleased to be reaffirming our guidance for the full year, which reflects our current assessment of the market conditions. While the global macroeconomic environment is volatile, we remain resilient with leading market positions and locally driven operations across our 31 markets. Almost all of our drinks we sell are sourced regionally and produced locally.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Our commodity input costs are over 90% hedged for the year, with our cost per unit case expectations unchanged at around 2% compared to last year. We expect 4% revenue growth, more balanced between healthy underlying volume and revenue per case growth, implying that we do expect volume growth in the year to go. And we expect 7% operating profit growth and comparable free cash flow of at least 1,700,000,000.0 Although our guidance is provided on an adjusted comparable and FX neutral basis, we are seeing some FX adversity, but given we are early in the year, we will update on this as the year progresses. Today's dividend declaration and our ongoing $1,000,000,000 share buyback program collectively demonstrate the strength of our business and our ability to deliver continued shareholder value. So on that note, we look forward to sharing more with you on our future plans taking place in Manila in two weeks' time.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Thank you for your time today, and Ed and I will now be very happy to take any questions. Over to you, operator.

[Operator]

Thank you. We will now begin the question and answer session. As a reminder, we kindly request only one question per analyst. If you would like to ask a question, please press star one and one on your telephone and wait for your name to be announced. Thank you.

[Operator]

We'll now take our first question, which is from the line of Bonnie Herzog from Goldman Sachs. Please go ahead.

[Bonnie Herzog, Managing Director at Goldman Sachs]

Hi, everyone. How are you? I have a question on volume. Damian, you just sort of touched on this, but as I think about Q1, you're fully lapped some of the strategic delistings in Europe. So with that behind us, could you touch on sort of your volume growth expectations for the rest of the year in terms of phasing?

[Bonnie Herzog, Managing Director at Goldman Sachs]

Should we assume volumes will inflect positively in Q2? And then maybe as you look at your portfolio in the region, are you happy with where things stand currently? Or do you see opportunities for further potential trimming? Thank you.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Hi, Bonnie. Thank you. Yes, so clearly, you look at our full year guidance, as I said, that implies volume growth for the rest of the year. So Q1 with all of the impacts that I talked about, clearly, that wasn't the case. But as we look to our full year guidance in the 4%, that is based on volume growth, particularly in Europe going forward.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So feel pretty good about that. Feel pretty good about April, which we kind of called out to try and give some more color around the impact of Easter. And as we look through May, certainly, we see share of coke hitting all of our markets, and that gives us confidence on volume going forward. Also, we've got some software comparables, which we believe will help going forward. But fundamentally, it's really on the back of some great commercial plans, both with the Coke company and Monster in particular, strong share of Coke campaign, strong summer activation.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And also, that goes for our markets in The Philippines, Australia, New Zealand, where we also see volume growth coming through as well. So yes, ongoing, I mean, to get to our 4%, we really believe that volume is a key part of that. We've done a good job securing pricing. Our revenue per case, think, is fantastic, particularly in Europe. So that does leave that volume number being the key to our growth year to go, and that's really what we're focused on.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And, yeah, we feel pretty good about that today.

[Bonnie Herzog, Managing Director at Goldman Sachs]

Okay. Thank you. And then just in terms of your overall portfolio, Damian, I mean, maybe not even just in in Europe, you know, just thinking about the broader portfolio in in all of your markets. Are you pretty happy right now with where things stand or, you know, should

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

we have maybe No. I think we've gone through those strategic, you know, decisions. We're cycling out most of them now, so it'll be a much cleaner read for all of you. So that will be easier. And we'll be adding more now.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And what we're adding, I think, is really value accretive, particularly in ARTV. We're seeing that perform better than we expected, and we're building out a very nice portfolio. We've just acquired a business in Australia, Bilson's, which gives us another platform in what is a really big ARTD category. So we're probably moving to a phase now where you'll see more additions to our portfolio, Bonnie. Most of the decisions we made on bulk water, juice, Capri Sun are behind us.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Clearly, the big one was Nestea and Fuse. That's gone better than we expected. And then the ones to come is really the Centauri change that we'll see middle of the year in Australia. And then we're through. So I think it'll be a much cleaner read going forward.

[Bonnie Herzog, Managing Director at Goldman Sachs]

All right. Thanks. I'll pass it on.

[Operator]

Thank you. We'll now take our next question. This is from Nadine Sarwat from Bernstein. Please go ahead.

[Nadine Sarwat, Analyst at Bernstein]

Yes, hi. Thank you for taking my questions. Two for me. One pretty straightforward on the full year reiteration of guidance. Could you break down what you're assuming in terms of end consumer demand or more broadly health of consumer spending?

[Nadine Sarwat, Analyst at Bernstein]

Is it a status quo versus today, improvement, baking in some weakening? Any color there would be appreciated. And then on The Philippines, which I know you touched on in your prepared remarks, and I'm sure you will touch on even more in two weeks' time. But with some time now since the acquisition, Steven, could you comment on some things that you've learned about the business since the acquisition that have perhaps surprised you to the upside versus your expectations? And then what are some areas where you believe there are opportunities for improvement?

[Nadine Sarwat, Analyst at Bernstein]

Thank you.

[Ed Walker, Chief Financial Officer at Coca-Cola Europacific Partners]

Hi Nadine, it's Ed here. Maybe I'll take the first part of the question and I think Damian will talk about The Philippines. So from the consumer perspective, we're really assuming no change versus what we're seeing today out in our markets and also really what we assumed for the year as a whole when we gave guidance, which is one of the reasons why we are reaffirming guidance today. Clearly, it's volatile and so we monitor the situation very carefully in all of the markets, including looking at pricing and making sure that we have the right price points, the right affordable offerings for our consumers and our customers. But today we see no major change in the overall consumer environment.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Thanks Ed. Nadine, I don't want to steal the thunder from our Capital Markets event in Manila, where we will obviously talk a lot more detail about The Philippines. But broadly speaking, a lot more on the positive side since we acquired that business, both in terms of underlying performance, but then opportunity for margin expansion. I think what surprised us also is the diversity of our business there regionally. We've added a few more brands to our portfolio, particularly in energy, AORTD, so that's great.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

But overall, when you just look at the relevant share of our business there, the macroeconomic environment is positive, the consumer demographics are positive. So a lot more on the upside. And then clearly, we'll talk a bit more next week in a bit more detail around The Philippines specifically. But broadly speaking, I think it's been a great addition to the CCP family, lots of long term opportunity, both in terms of growth and most importantly, in terms of margin.

[Nadine Sarwat, Analyst at Bernstein]

All right, perfect. Looking forward to it. Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Matthew Ford from BNP Paribas. Please go ahead.

[Matthew Ford, Equity Research Analyst at BNP Paribas]

Afternoon, Damien, Ed. My question was just on Indonesia. Clearly, we're now cycling the initial boycotting, and now I suppose it's more of a weakening macro backdrop that's driving the softer trends there. But I suppose any comments you can make how the last quarter went, how Ramadan went? Clearly, you call out a fairly soft Ramadan, but if you can get into some of the detail there, what was driving that in particular?

[Matthew Ford, Equity Research Analyst at BNP Paribas]

And I suppose the same question as last year, maybe do you see any light at the end of the tunnel and any signs of improvement there?

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Yes. Thanks, Matthew. I mean, I think it's been a challenging couple of years. I would say as we've come into this year, it's stabilized somewhat. So I would say, when Ed and I look at our business and some of the more internal processes around forecasting, we see it being much more predictable.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So I think that's good news. We clearly see light at the end of the tunnel. I mean, the macros, despite the current headwinds, don't really change in terms of a fit for our great portfolio, in terms of population, age, the economic outlook, although it's a bit under pressure at the moment. So we've seen our business stabilize. Ramanan was a bit mixed.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

I would say it was better than we expected, particularly in the home channel. So as you recall last year, we talked about moving from a 1.5 liter to a one liter and that's working. So we've seen transactions growing. Probably where we've seen more weakness was really out of home. So our smaller packs are three ninety was probably weaker than we would have liked.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So a bit of a mixed bag, but overall, it's getting, I would say, more consistent. As we will talk about as well, Javi, our GM will be with us in Manila. It is giving us the opportunity to accelerate some of our transformation on the cost side of the business, which we'll talk a bit more to changing our route to market, which is encouraging. And then ultimately working with the Coca Cola Company in particular on how we pivot our comms around our brands as we go forward. So would say overall, more stable.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Ramenan was a bit mixed, positive in home market, bit weaker in away from home. Long term outlook still super exciting. And when we look at our business there, sparkling soft drinks is probably more relevant than people appreciate, particularly if you look at water in Indonesia, which is really a necessity because of the domestic water. And when you look at NARTD, actually sparkling is very, very relevant, and we want to keep that going. So lots to be optimistic about, but clearly a challenging couple of years, but stabilizing as we move into the second quarter this year.

[Matthew Ford, Equity Research Analyst at BNP Paribas]

Great. Thanks, Damian.

[Operator]

Thank you. We'll now take our next question. This is from Eric Sarotta from Morgan Stanley. Please go ahead.

[Eric Serotta, Executive Director at Morgan Stanley]

Great. Thanks, guys. Can you talk a little bit about away from home trends? You got some positive away from home volumes, which a small victory in this or no small victory in the current environment. So I guess what drove the away from home growth and what are you seeing particularly in away from home in Europe, given the macro headlines that we see?

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Yeah, thanks, Eric. I mean, is encouraging. I think we talked last year about us not being passive in the face of some of those away from home headwinds, so we called out on our full year results call that we were investing more in coolers. We're actually ahead of our plan year to date in cooler placements. We've pivoted our consumer marketing with the Coke company, particularly to more away from home.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Share of Coke really resonates well on our IC, media consumption business, so that's helping. We've won some new business across our markets in Europe in 2024, so we start to see the benefit of that in 2025. And then clearly, particularly in GB, we had a very dry March, I think more people were out and about. So that was always good for our business. And I think it's a combination of those factors.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And as Ed talked to, probably maybe not a massive improvement in consumer sentiment, but somewhat of a stable. And I think with that, people are probably a bit more confident. So we're also hearing a lot more noise about returning to office in some of our cities. Clearly, that will have an impact. That's been a bit of a drag.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Yes, so overall, it's nice to see. It's our smallest quarter, so we got to make sure that momentum continues into Q2 and into Q3, but a nice change of direction after a number of quarters where we were, you know, where we'd like to be in away from home. So, yeah, pretty positive and great for our teams in particular because we've put a lot of effort and a lot of focus into winning new business and investing in that part of our business. So that's always good to get some return.

[Eric Serotta, Executive Director at Morgan Stanley]

Great. Thanks. I'll pass it on.

[Operator]

Thank you. We'll now take our next question. This is from Edward Mundy from Jefferies. Please go ahead.

[Edward Mundy, Managing Director - Beverages Research at Jefferies LLC]

Afternoon, guys. So I think you sort of touched on some of the initiatives in your opening remarks, Damien, around getting volume growth back in Europe. And outside of easy comps and hopefully getting a summer in Europe this year, could you talk about some of the two or three things that your teams are really focused on to really drive that volume growth within Europe? And I guess as part of that same question, just to confirm, your European ARP is still very strong. Are you seeing anything in a consumer environment as we speak that's leading you to drive that affordability lever yet?

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Thanks, Ed. So I think we've been on a journey around volume growth for quite a while. So I think a number of elements are playing out beyond some of those comps and some of those macros. So you'll see transactions growing ahead of volume. So clearly, one element is we are driving more volume at household penetration, and that's on the back of some of the changes we made in some of our pack pricing architecture, very much focused on below a €2 or £2 price point.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

We see that working. We continue to partner well with our retailers in terms of getting more listings, displays, execution and growing Sovi. So a lot of the fundamentals of our business in terms of what we know supports longer term volume growth, and that will continue. Clearly, the back of a stronger away from home, that also will come through more in transactions and volume, but it will support our volume growth. Good pipeline of innovation across our Coke portfolio, Flavors and Monster in particular, that will play to volume growth year to go and into 2026.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And then obviously, in volume, but good in revenue, the moves we're making on AORTD, when you look at it's all single serve, it's well priced, good cash margin. I think that will also support that top line. So yes, no silver bullet, but a combination of a lot of the fundamentals of our business and that's what we'll keep focused on. And then clearly, we have invested over the last number of years in our supply chain and in our tech platform. And clearly, that's allowing us to be more productive and efficient, which indirectly helps drive volume.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So our case fill rate, our customer service levels are all times high, so we're not missing any cases. And for a bottler, that's critically important. So yes, so volume will be part of our growth story rest of this year into 2026 and we'll touch more on that when we're together in Manila.

[Edward Mundy, Managing Director - Beverages Research at Jefferies LLC]

Thanks, Damon. And you're not seeing anything so far in the consumer environment, is sort of pivoting more towards the affordability lever at this stage?

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

No, not more than we've seen, Ed. I think that was definitely a bigger dynamic in 2023, '20 '20 '4. We pivoted some of our promo investments, as I said, the smaller packs, smaller price points, but also value. So we've got some extra fill, but it hasn't got any more challenging than it was last year. I still think there is an affordability play that were addressing, but it's certainly not increasing at the moment.

[Edward Mundy, Managing Director - Beverages Research at Jefferies LLC]

Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Mitch Collett from Deutsche Bank. Please go ahead.

[Mitch Collett, Director at Deutsche Bank]

Hi, Damien. Hi, Ed. Hi, Sarah. I've noticed a very divergent performance within Europe. And so I wondered if you could give a bit of additional context on the strength in GB versus what you're seeing in the other European geographies?

[Mitch Collett, Director at Deutsche Bank]

I know you mentioned weather a minute ago, but what's driving the difference between your European geographies? Thanks.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Yeah, I mean, think the call out, Mitch, is definitely GB is leading the pack, which is great. And we talked to a number of the initiatives, whether it's our Doctor Pepper business, Monster, Coke Zero. We pivoted last year with the company to reinvest in Diet Coke. We're seeing that early days, but that's paying out. And if you look at, you know, while there is a difference, obviously Easter is bigger in some of the markets like Germany, so it's a bigger holiday event, it's a bigger consumer event, so you know, but that kind of played out in April.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So year to date April numbers, you don't see as big a diversion in Europe. I'd say the outlier is France, early days, but clearly we had that tax increase in March. So we've seen our away from home business less affected, but obviously shelf pricing has gone up in France. So that's probably the one outlier and that's really on the back of that tax in the home market. Spain is a little bit behind the rest, but again, there's nothing structural there.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

The fused tea to nest tea transition is better than expected. Yeah, as I called out my comments, it was just a bit wetter in Spain than we would have liked for the first quarter. But again, it's not a massive divergence from the overall European performance. I suppose I'd call out the positive, which is really GB, and we're really happy with that and it's great for our team. Put a lot of work in last year, we're starting to see the benefits of that in '25.

[Mitch Collett, Director at Deutsche Bank]

Helpful. Thank you.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

But there's no there's no major customer issue. There's nothing in our supply. You know, there's nothing, you know, that's that different across our European markets, Mitch, to be honest. And pricing is pretty much in everywhere. So yeah.

[Mitch Collett, Director at Deutsche Bank]

Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Charlie Higgs from Redburn Atlantic. Please go ahead.

[Charlie Higgs, Equity Research Analyst at Redburn Atlantic]

Yes. Hi, Damian. It's Sarah. Hope you're all well. I've got a question on energy drinks, where volume is up nearly 12%, given the selling days and given you're lapping 7.5 last year with the launch of Monster Green Zero, very strong.

[Charlie Higgs, Equity Research Analyst at Redburn Atlantic]

I was wondering if you could give a bit more color on where the strength was, particularly in Europe, and then also how the launch of the more affordable brands Predator was doing in The Philippines and Indonesia? Thanks.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Yes. So maybe I'll take the second part. I mean, I think it's early days in Philippines, Indonesia. We're really pleased to be in that category in those two markets. We think long term or midterm, it's going to be a big play for us.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So we'll give a bit more color. I think our pricing on Predator, we took some adjustment coming out of last year in The Philippines. So we made some changes and we'll see the benefit of that this year. So overall, great to be in those categories in those markets. I think in Europe, the energy category continues to be very buoyant.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

It's very competitive. I think that's driving a lot of the growth. Both ourselves and a number of the other brands are investing in the category, and you can see that. And I think that coupled with the innovation pipeline is just really making it a very attractive category for consumers. We expect that to continue.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Think last year people talked to a little bit of a slowdown mid year. Certainly that's kind of turned around and we'd expect that to continue for the rest of this year and into 2026. I think there's a great pipeline of innovation in that category that we can bring to market. We'll review whether our new pricing on Predator in The Philippines has landed where we'd like it to, but early days in that, but probably get a bit more color on that when we're down there in a couple of weeks.

[Charlie Higgs, Equity Research Analyst at Redburn Atlantic]

Thank

[Operator]

you. We'll now take the next question. This is from Sanjit Aujla from UBS. Please go ahead.

[Sanjeet Aujla, Managing Director at UBS Group]

Hi, Damien, Ed. Just coming back to Europe price mix, the the 4.1. Can you help us unpack that between what's what's rate versus brand and category mix within that component? And then on France, called out the sugar tax implemented in March. What sort of pricing is going through to offset that?

[Sanjeet Aujla, Managing Director at UBS Group]

And have you seen any impact from boycotts in France in recent weeks? Thanks.

[Ed Walker, Chief Financial Officer at Coca-Cola Europacific Partners]

So Sanjit, yes. In terms of the 4% for Europe, so we expect volume growth as we said earlier to be present certainly for this year. We haven't guided exactly to the breakdown of volume, price and mix, but we think volume should be around 1%. And then the majority of the rest of the revenue per case growth coming from price. There will be some mix benefit coming from things like energy as Damian just referenced, but certainly price itself will be the biggest element.

[Ed Walker, Chief Financial Officer at Coca-Cola Europacific Partners]

Of course in H1, we still benefited from some of the pricing that we took in H2 last year, notably in GB in Germany. So we've got the benefits of that in H1. So we'll probably see the revenue per case a little bit lower in the second half than the first half. So that's how we see the breakdown of the revenue per case and the revenue across Europe.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And just on France, the tax, it's basically it's been passed on. So the shelf prices generally have moved. Obviously, that's up to the retailers. But what we've seen is that pricing has moved to reflect the tax. That's about a 10% to 12% increase on the packs that are affected.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Clearly, that's something that we will manage throughout the rest of the year. Effects mainly retail, we haven't seen that much price movement in Away From Home. And clearly, that's been the biggest disruption in our French business compared to boycotts or anything else in the first quarter. Came in at quite short notice, so it's already in market. And clearly, as we go forward, we are working with our teams on looking at some of our OBPC options around packaging and sizes to offset it.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Clearly, it doesn't affect our Xero portfolio. Yes, so that's probably been probably the biggest disruptive factor in France compared to boycotts or anything else the first quarter.

[Sanjeet Aujla, Managing Director at UBS Group]

Thank you.

[Operator]

Thank you. We have one more question. This is from Lauren Lieberman from Barclays. Please go ahead.

[Lauren Lieberman, Managing Director at Barclays]

Great. Thanks. Good morning. I apologize if you already touched on it, but I was just curious if you could speak a little bit about progress on cooler placements. I know that was a big focus for this year.

[Lauren Lieberman, Managing Director at Barclays]

Know earlier in

[Lauren Lieberman, Managing Director at Barclays]

your answer to Ed, you

[Lauren Lieberman, Managing Director at Barclays]

were sort of talking about, you know, volume drivers. This may have come up before I was able to jump on. But cooler placements and then also summer plans, because I think that was another area that heading into the year, you talked about expectations for you to be able to put up a better summer this year, notwithstanding what weather might do to you, but just curious to hear a little bit more about that. Thanks.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Hi, thanks Lauren. Yes, so I mean, we've called out that coming out of last year to have a very focused plan, particularly in away from home. While there were some headwinds in that area, we felt it was appropriate to take leadership as a category leader to drive volume and transactions. A big part of that, as you called out, Lauren, was cooler placements. So we set out '25 to be a record year for us in terms of cooler placements across all of our markets, but particularly in Europe and particularly in away from home.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Year to date, we're ahead of our plans, so we're very happy with that. On top of that, we've, as I mentioned earlier, pivoted a lot of our consumer investment into that environment. I think Share A Coat will be in retail, but clearly on all of our single serve packaging, it gives a great consumer connection and away from home. So that's going through and that will really continue through the summer. So both with our Coca Cola brands and with Monster, a big emphasis on our single serve business as we go through the summer.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And obviously, cooler placements just provides that extra piece of real estate and impact in store to get the off take. So that's what we're focused on. We've seen the benefits in Q1, small quarter. So I think Q2 will be even more significant. But I think it was the right decision to pivot our investment and to support our customers who've had a challenging time and away from home.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

And then on top of that, we've been very active in winning new business. And with that business comes more cooler placements and more outlets. So I think we feel pretty good about that supporting what Ed talked about in terms of mix year to go, but also volume. And for us, depending on the market, but away from home can be 40% of our revenues. So it's a significantly important part of our business.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

So we're really happy to see it coming back to growth. Thanks, Lauren.

[Operator]

Thank you. And I would now like to hand the conference back over to Damian Gammel for his closing remarks. Damian, please go ahead.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

Thank you, operator. And again, a big thank you to everybody for joining us on what we know is a busy day. So as Ed and I have kind of talked to, we're pleased with our performance year to date, and it's broadly as expected, particularly as we take into account our April performance as we move through to Q2. That gives us the confidence to be reaffirming our full year guidance, both in terms of revenue, profit and free cash flow. As you would expect, we're very busy at the moment finalizing our investor event in Manila.

[Damian Gammell, CEO & Executive Director at Coca-Cola Europacific Partners]

There we'll get a great opportunity to update you on the CCEP journey, spend a bit more time with you around our great business in The Philippines, talk to you about our progress in Indonesia, and give you a really good flavor of how we're thinking of the next period of CCP's growth. So for those of you who are traveling, I look forward to seeing you there. And for everybody else, we look forward and hope that you can connect. So until then, thank you, and thanks again for joining.

[Operator]

That concludes our conference for today. Thank you for participating. You may all disconnect.

Participants

Executives

• Sarah Willett, VP - IR & Corporate Strategy
• Damian Gammell, CEO & Executive Director
• Ed Walker, Chief Financial Officer

Analysts

• Bonnie Herzog, Managing Director at Goldman Sachs
• Nadine Sarwat, Analyst at Bernstein
• Matthew Ford, Equity Research Analyst at BNP Paribas
• Eric Serotta, Executive Director at Morgan Stanley
• Edward Mundy, Managing Director - Beverages Research at Jefferies LLC
• Mitch Collett, Director at Deutsche Bank
• Charlie Higgs, Equity Research Analyst at Redburn Atlantic
• Sanjeet Aujla, Managing Director at UBS Group
• Lauren Lieberman, Managing Director at Barclays