Coca-Cola Europacific Partners NASDAQ: CCEP reported third-quarter revenue growth of 5.8% on a comparable, foreign-exchange-neutral basis, supported by a 3.6% increase in volume and improved revenue per unit case. Chief Executive Officer Damian Gammell said the company’s performance remained balanced across regions, channels and product categories, while management reaffirmed its full-year guidance.
Gammell said volume and revenue growth reflected promotional optimization, pricing, and favorable brand and package mix. He also cited favorable European weather during the quarter, innovation, customer wins and in-market execution. The company said it has not seen a material increase in value-conscious consumer behavior, though it continues to balance affordability with premiumization across its pack offerings.
Europe and APS Deliver Volume Growth
European volume rose 2.3% in the third quarter, while revenue increased 5.2% and revenue per unit case rose 2.9%. Gammell said revenue-per-case growth accelerated from the prior quarter partly because promotional spending was weighted toward the first half and because of a lower second-half comparison.
Performance in Iberia and Great Britain stood out, according to management. Germany had a strong July and August, but its third-quarter results were affected by temporary customer disruption in September as the company negotiated new commercial terms. Gammell said the matter was resolved within the month and that trading returned “more or less in line with expectations” in October.
“Pricing [is] in place, not just for the end of this year, but clearly that flows into 2027,” Gammell said of Germany.
In the Asia-Pacific and Southeast Asia, or APS, segment, volume grew 6.4% and revenue increased 7.8%. Revenue in Australia and the Pacific Islands rose 7.2%, with the prior impact from the company’s Suntory alcohol exit in Australia fully annualized during the first half.
The Philippines continued to deliver volume growth in line with the company’s midterm expectations, Gammell said, driven by Coca-Cola Original Taste, double-digit growth in Coke Zero and continued double-digit growth in water led by Wilkins Pure. Management said it expects disciplined volume, margin and profitability management in the Philippines to continue into the fourth quarter and next year.
Indonesia recorded strong double-digit volume growth in the quarter. Gammell attributed the improvement to innovation, smaller and more affordable packs, broader distribution and route-to-market changes. He said traditional tea remains under pressure in Indonesia, while sparkling beverages and sports drinks are growing ahead of the broader nonalcoholic ready-to-drink category.
Zero Sugar, Energy and Sports Drinks Drive Portfolio Growth
Coca-Cola trademark volume grew 2% in the quarter. Coke Zero Sugar was up 10% year to date, while Diet Coke volume rose 5% year to date in Great Britain. Gammell also cited the performance of Coke Zero Caffeine and 500-milliliter “super cans,” which have been expanded to Coke Cherry, Dr Pepper, Fanta and Sprite.
Sprite continued to grow in Europe, supported by Sprite Zero Chill, and in APS, where Nipis Mint in Indonesia contributed to performance. The company also pointed to its global Sprite-NBA marketing tie-up.
The sports portfolio, including Powerade, Aquarius and BodyArmor, delivered double-digit volume growth. Energy volume increased 17% during the quarter, with Monster growing more than 20% in many key markets. Gammell said energy growth has been supported by sugar-free offerings, flavor innovation, distribution gains and increased cooler placements.
Management said approximately three-quarters of total energy growth is now being generated by Monster Ultra. Gammell said the energy category is expanding into more occasions during the day and that CCEP still sees opportunities to increase both category participation and market share.
Fanta volume declined 1.5% in the quarter, according to a question from an analyst. Gammell acknowledged that the brand has slowed in recent periods and said the company plans to use flavor and packaging innovation, including expansion into 500-milliliter cans, to support the brand next year.
Cost Inflation Expected to Remain Manageable
Management said geopolitical uncertainty, including the situation in the Middle East, has contributed to a more inflationary backdrop and higher commodity and operating costs during the second half. However, the company said hedging, productivity initiatives, discretionary cost controls, pricing and promotional discipline have provided flexibility to absorb the additional pressure while maintaining investment in growth.
Chief Financial Officer Ed Walker said cost headwinds in 2027 are expected to be higher than in 2026, but well below the levels experienced in 2022 and 2023. He said the company plans to address inflation through its transformation program, management of discretionary spending, mix improvement, revenue and margin growth management, promotional optimization and pricing.
Walker said CCEP expects to be up to 80% covered on hedgeable commodities by year-end and is “very well covered” in aluminum and sugar. Oil-, fuel- and energy-related costs are more challenging because indirect supplier exposure is harder to hedge, he said. Commodities represent about 25% of the company’s total cost of goods, according to Walker.
The company said third-quarter revenue-per-case growth was slightly more weighted toward rate than mix. Management cited energy, smaller packs, premiumization and a consumer shift away from large PET packages toward cans as contributors to mix improvement.
Capital Returns and 2027 Planning
CCEP declared a second-half dividend of €1.42 per share. Combined with its €0.82 first-half dividend, the payment maintains an annualized payout ratio of approximately 50%, Gammell said. The company’s current €1 billion share repurchase program is expected to conclude this year.
Looking ahead, management said the fourth quarter started well despite six fewer consumption days than the prior year. The company expects support from Christmas trading in its European markets and the summer season in Australia and New Zealand. It also cited preparations for Ramadan in Indonesia next year.
Gammell said the company will provide more detail on capital allocation and 2027 guidance when it reports full-year results in February. He said investment priorities will continue to include production capacity, technology, artificial intelligence applications and cooler placements to expand single-serve availability and support portfolio mix.
About Coca-Cola Europacific Partners (NASDAQ:CCEP)
Coca-Cola Europacific Partners plc NASDAQ: CCEP is a consumer beverage company and one of the world's largest Coca-Cola bottlers. The company manufactures, distributes and sells a broad portfolio of branded beverages, including Coca-Cola, Coca-Cola Zero Sugar, Diet Coke, Fanta, Sprite, Schweppes, Fuze Tea, Powerade, Monster Energy and Costa Coffee products, depending on the market.
CCEP serves customers across Europe and the Asia-Pacific region. Its territories include Great Britain, France, Germany, Spain, Portugal, Belgium, the Netherlands, Norway, Sweden and Iceland, as well as Australia, New Zealand, Indonesia, Papua New Guinea and several Pacific island markets.
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