Coca-Cola Europacific Partners(CCEP)2025-02-14 18:13Financial Data and Key Metrics Changes - The company reported revenue of €20.7 billion, an increase of 3.5% year-over-year, aligning with guidance [32] - Comparable volumes were flat, while underlying volumes increased by 0.7%, accounting for strategic delistings [33] - Operating profit grew by 8% to €2.7 billion, with an operating margin of 12.9%, reflecting a 50 basis point expansion [36][100] - Diluted earnings per share increased by 6.5% to €3.95 on a comparable and FX-neutral basis [37][100] - Comparable free cash flow generation was €1.8 billion, with a return on invested capital rising by 50 basis points to 10.8% [38][101] Business Line Data and Key Metrics Changes - The non-alcoholic ready-to-drink (NARTD) category experienced volume and value growth in both Europe and the Asia-Pacific (APS) regions [14][78] - Value share in the home channel increased by 40 basis points, with gains also in away-from-home and online channels [15][79] - The Philippines market delivered double-digit volume growth, achieving a record high of 75% in sparkling and 50% in NARTD share [26][89] Market Data and Key Metrics Changes - Volumes in Europe decreased by 2.4%, while APS volumes increased by 4.9%, driven by strong performance in the Philippines and other Pacific markets [34][97] - The company faced adverse weather impacts in Europe, particularly affecting the away-from-home channel [33][34] Company Strategy and Development Direction - The company continues to focus on geographic diversification, with strong performance in higher growth APS markets offsetting softer volumes in Europe [11][75] - There is a commitment to invest in the Philippines to support long-term growth expectations, with accelerated CapEx plans [27][91] - The company aims to deliver approximately 4% revenue growth in 2025, balancing underlying volume and revenue per unit case growth [56][119] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering mid-term growth objectives, supported by strong investment and commercial plans [12][76] - The company acknowledged inflationary pressures, particularly in labor, but remains optimistic about driving efficiencies [40][116] - Management highlighted the importance of customer relationships and in-market execution to drive brand visibility and distribution [61][124] Other Important Information - The company announced a new €1 billion share buyback program to be executed over the next 12 months [48][117] - Sustainability efforts continue to be recognized, with the company maintaining high ESG ratings and investing in technology for decarbonization [24][87] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects approximately 4% revenue growth in 2025, driven by balanced volume and revenue per case growth [52][56] Question: How is the company addressing inflationary pressures? - The company anticipates inflationary pressures in labor but is confident in continuing to drive efficiencies in line with plans [40][116] Question: What are the key markets contributing to growth? - The Philippines and other high-growth markets like Papua New Guinea and the Pacific Islands are seen as significant contributors to organic top-line growth [65][66]