Coca-Cola Europacific Partners(CCEP) - 2025 Q2 - Quarterly Report

Financial Performance - H1 2025 reported revenue reached €10,274 million, reflecting a 4.5% increase compared to H1 2024[3] - Operating profit for H1 2025 was €1,364 million, a 19.4% increase year-over-year, with adjusted comparable operating profit at €1,390 million, up 7.2%[11] - Diluted EPS for H1 2025 was €1.99, representing a 15.0% increase, while comparable diluted EPS was €2.02, up 3.1%[11] - Total volume for H1 2025 was 1,932 million unit cases, a 4.1% increase compared to H1 2024[3] - Comparable profit after tax for the first half of 2025 was €951 million, up from €924 million in 2024, indicating a 2.9% increase[43] - Reported profit after tax for the six months ended 27 June 2025 was €937 million, compared to €811 million for the same period in 2024, reflecting a growth of 15.5%[70] - Profit after taxes for the six months ended 27 June 2025 was €913 million, compared to €797 million for the same period in 2024, representing a 14.6% increase[121] Cash Flow and Dividends - Comparable free cash flow generated in H1 2025 was €425 million, supported by strong net cash flows from operating activities of €986 million[11] - The interim dividend per share declared for H1 2025 was €0.79, calculated as 40% of the FY24 dividend[7] - The Group declared a first half dividend of €0.79 per share for the first six months of 2025, an increase from €0.74 per share in the same period of 2024, representing a 6.8% increase[143] Cost and Expenses - Adjusted comparable cost of sales per unit case increased by 3.6%, driven by higher concentrate costs and inflation[11] - Total cost of sales for the first half of 2025 was €6,637 million, a 4.8% increase from €6,332 million in 2024[50] - Comparable operating expenses increased to €2,241 million, up 1.3% from €2,212 million in 2024, reflecting the impact of acquired CCBPI operations and inflation, partially offset by efficiency programs[52] - Reported operating expenses for the six months ending June 27, 2025, were €2,303 million, a decrease of 2.2% compared to €2,354 million in 2024, primarily due to lower business transformation costs[52] Market and Volume Insights - H1 volumes were broadly flat, excluding the Q1 impact of Capri Sun de-listing[8] - Double-digit volume growth in Monster across all markets, driven by innovation with new listings for Monster Green & Ultra in the Netherlands[8] - H1 low single-digit volume growth in Great Britain, driven by improved performance in AFH and better weather in June[15] - Mid-single-digit increase in H1 volumes in Australia and the Pacific Islands, with strong growth in Coca-Cola Zero Sugar and Fanta[19] - Strong double-digit volume increase for Dr. Pepper in Great Britain, driven by the new Cherry Crush variant[22] - H1 energy volumes grew by 14.6%, supported by new variants and continued strength of Ultra[22] - H1 juices declined by 13.6% due to the strategic de-listing of Capri Sun in Europe[22] Strategic Initiatives and Guidance - The company reaffirmed its full-year profit and cash guidance, expecting revenue growth of 3% to 4% for FY25[11] - The company plans to execute a share buyback program of €1 billion over 12 months starting February 2025[11] - The company announced a new efficiency program aimed at further supply chain efficiencies, with expected restructuring charges of €40 million for the first half of 2025[53] - The company is focusing on enhancing its technical footprint through transformation projects and acquisitions, particularly in cybersecurity and AI integration[77] - The company is actively monitoring geopolitical tensions and their impact on supply chains, particularly in the Middle East and Ukraine, to mitigate risks[76] Financial Position and Debt - Total borrowings increased to €12,012 million as of 27 June 2025, up from €11,331 million at the end of 2024, indicating a rise of 6.0%[68] - Net debt rose to €10,032 million as of 27 June 2025, compared to €9,672 million at the end of 2024, marking an increase of 3.7%[68] - The net debt to comparable EBITDA ratio is a key metric used by investors and analysts to assess the company's financial leverage[41] Sustainability and Compliance - CCEP aims to reduce GHG emissions by 30% compared to 2019 as part of its climate change roadmap[85] - The implementation of a Corporate Sustainability Due Diligence Directive (CS3D) is planned to enhance corporate social responsibility efforts[86] - CCEP is prioritizing water security and long-term water rights through partnerships and investments in low carbon technologies[85] - The company is committed to maintaining compliance with legal and regulatory requirements to avoid punitive actions that could negatively impact financial results[85] Tax and Provisions - The effective tax rate for the six months ended June 27, 2025, was 26%, compared to 22% in 2024[63] - The company expects a comparable effective tax rate of approximately 26% for the full year 2025[64] - The Group maintains tax provisions of €295 million as of 27 June 2025, an increase from €267 million at the end of 2024, reflecting ongoing audits by tax authorities[155]