Coca-Cola Europacific Partners (CCEP) - Company Research

Last Updated: 29 April 2026

Coca-Cola Europacific Partners plc (NASDAQ: CCEP, LSE: CCEP.L) is the world's largest Coca-Cola bottler by revenue, with operations spanning Western Europe (the legacy Coca-Cola Enterprises franchises) and the Asia-Pacific region (Australia, New Zealand, Pacific island states, Indonesia and the Philippines after the API and Coca-Cola Beverages Philippines acquisitions). FY25 revenue was €20.9 bn and reported operating profit was €2.79 bn, +31% YoY (the comparable adjusted figure was +7.1% to €2.8 bn at a 13.4% margin, +50bp). The Q1 2026 trading update (released 28 April 2026) showed revenue +6.7% reported / +9.4% fx-neutral to €5.001 bn, with Europe +9.1% to €3,549 m and Asia-Pacific (APS) +1.1% reported / +8.6% fx-neutral to €1,452 m. Underlying volume momentum was modest after adjusting for six extra consumption days (Average Daily Sales volume +1.6% group / +1.4% Europe / +1.9% APS), but category mix continued to shift towards higher-value Energy (volume +21.3%), Coke Zero, Sports/RTD Tea/Coffee, and Premium Spirits in Australia. CCEP reaffirmed FY26 guidance: revenue +3–4%, operating profit ~+7%, comparable free cash flow ≥€1.7 bn, with a new €1 bn share buyback announced. The first-half interim dividend of €0.82 (~40% of FY25 DPS) is payable 27 May 2026. Ownership remains concentrated: Olive Partners (Daurella family) ~36.2%, The Coca-Cola Company ~19.2%, public/institutional ~44.6%. CCEP is the NASDAQ-listed share class — share price ~$98 closing late April 2026, market cap ~$45–46 bn equivalent.

1. Company Snapshot

2. Bull Case vs Bear Case

3. What Does This Company Actually Do?

CCEP is a franchised Coca-Cola bottler — it manufactures, sells and distributes The Coca-Cola Company's branded beverages plus a number of partner brands across two reporting segments:

By category (Q1 2026 volumes): Coca-Cola brand +0.7%; Flavours & Mixers +1.2%; Water/Sports/RTD Tea & Coffee +1.7%; Other (incl. Energy) +9.2%, with Energy alone +21.3%. Capri-Sun was strategically delisted in Europe in 2024; the juice category drag is now fully annualised.

Brand portfolio: Coca-Cola, Coca-Cola Zero Sugar, Diet Coke, Sprite, Fanta, Schweppes, Powerade, Glaceau Vitaminwater, Smartwater, Costa Coffee RTD, Monster, Relentless, Burn (energy), Capri-Sun (where retained), Jack Daniel's & Coca-Cola RTD (premium spirits), plus regional franchise brands.

4. The Business Model

• Franchise structure: CCEP buys concentrate from The Coca-Cola Company (TCCC), bottles, distributes and merchandises across ~31 markets. TCCC owns brand equity; CCEP owns plant, fleet, route-to-market and customer relationships.
• Revenue per unit case: Q1 2026 €5.29, +0.8% — supported by pricing, mix and packaging tax effects; total volume 970 m unit cases (+8.5% reported, but +1.6% on Average Daily Sales basis after adjusting for six extra consumption days).
• Margins: FY25 reported op margin 13.3% (vs 13.4% adj comparable); FY26 guidance implies ~+50bp adjusted comparable margin expansion (revenue +3–4%, op profit ~+7%).
• Capital allocation: Annualised total dividend payout ratio of ~50% of comparable EPS reaffirmed. New €1 bn share buyback programme announced with FY25 results.
• Subsidy/regulatory credit dependency: Negligible — CCEP earns no material government subsidy or regulatory credit revenue. Sugar / packaging taxes (e.g. UK Soft Drinks Industry Levy, Spain plastics tax) are pass-through pricing items.
• Synergies / M&A integration: The Coca-Cola Beverages Philippines acquisition (completed 2024) was the largest single integration project and the principal 2025 profit driver; full-year integration delivered the +31% reported operating profit growth in FY25.
• FX: APS exposed to AUD/IDR/PHP; Q1 2026 APS reported revenue +1.1% on currency translation vs +8.6% fx-neutral — FX is a meaningful translation drag.

5. Financial Health

Five-year financials (calendar year-end):

Quarterly trajectory (revenue):

(Quarterly H2 numbers are derived from interim disclosures and may not exactly match later restatements after audit adjustments.)

6. Valuation & Market Data

7. What Are They Building / What's Coming?

• FY26 guidance (reaffirmed at Q1 2026 update on 28 April 2026): Revenue +3–4%, comparable operating profit ~+7%, comparable free cash flow ≥€1.7 bn.
• Energy: Energy volumes +21.3% in Q1 2026; Monster and Relentless continuing to take share, supported by innovation and listings.
• Premium Spirits: Jack Daniel's & Coca-Cola RTD continues to scale across Australia / New Zealand and selected European markets.
• Coke Zero Sugar: Continued accelerator volume in Europe; sugar-free mix shift sustained.
• 2026 FIFA World Cup: Sponsorship activation across Europe and Asia-Pacific markets.
• Buyback: €1 bn programme announced with FY25 results — complementary to the ~50% dividend payout ratio.
• Capital markets event: Held 14 May 2025 (CMD); next investor day cadence to be confirmed by management.
• Philippines integration: Continuing to deliver synergies and unit-case growth as the principal volume contributor in APS.

8. Competitive Landscape

Within the franchised Coca-Cola system, CCEP and Coca-Cola HBC are the two large publicly-listed European-headquartered bottlers, with non-overlapping geographic footprints (CCEP: Western Europe + APS; CCH: South-Eastern Europe + Russia + Africa post-CCBA).

9. Leadership and Ownership

CEO: Damian Gammell (since December 2016). Tenure ~9.4 years; led integrations of legacy CCE/Coca-Cola Iberian Partners, Coca-Cola Amatil (2021) and Coca-Cola Beverages Philippines (2024).

Chair: Sol Daurella Comadrán (representing Olive Partners SA — the Daurella family vehicle, 36.2% holder).

CFO: Manik (Nik) Jhangiani.

Major shareholders (per CCEP disclosures, late 2025):

Insider transactions are reported under UK PDMR rules and Section 16 (NASDAQ). At time of writing the most recent material disclosures relate to RSU vestings and standard senior-management share-plan settlements rather than discretionary purchases or sales of size.

10. Risks and Challenges

• Concentrated ownership: Olive Partners (~36.2%) and The Coca-Cola Company (~19.2%) together control ~55% of equity. Strategic decisions can be steered by the large holders; takeover-premium optionality is limited.
• Franchise dependence: CCEP is a bottler, not a brand owner. Concentrate pricing, marketing budgets and innovation pipeline are TCCC decisions; renegotiations or shifts in TCCC strategy are out of CCEP's control.
• Sugar / packaging taxes: Continued legislative pressure across Europe (UK SDIL, Spain plastics tax, EPR regimes); pass-through pricing tends to compress volumes.
• Health / wellness pressure: Long-running consumer shift away from full-sugar carbonates; CCEP's reliance on energy & pricing rather than core volume growth signals this dynamic in the data.
• FX translation: APS exposed to AUD, IDR, PHP, NZD; Q1 2026 reported APS revenue +1.1% vs +8.6% fx-neutral illustrates the drag.
• Regulatory action on energy drinks: Energy is now the fastest-growing category but is subject to incremental regulation (age limits, marketing restrictions, taxes) in several markets.
• Macroeconomic / consumer trade-down: European consumer softness and Australia/NZ slowdown could compress volume growth and pricing power.
• Russia / sanctions exposure: CCEP has no Russia exposure (this is a CCH issue, not a CCEP issue) — one of the structural advantages over the European peer.
• Capital structure: Net debt / EBITDA ~2.3×. Manageable but constrains M&A flexibility absent equity issuance.
• Litigation / regulatory: Routine product-liability and competition matters; large bottler scale invites regulatory scrutiny on pricing and trade terms.

11. Recent Developments

• 28 April 2026 — Q1 2026 trading update: Revenue €5,001 m (+6.7% reported / +9.4% fx-neutral). Europe +9.1% to €3,549 m; APS +1.1% reported / +8.6% fx-neutral to €1,452 m. Volume 970 m unit cases (+8.5% reported, +1.6% ADS basis). Coca-Cola brand +0.7%; Energy +21.3%. Revenue per unit case €5.29 (+0.8%). H1 interim dividend €0.82 (payable 27 May 2026). FY26 guidance reaffirmed.
• Mid-February 2026 — FY 2025 results: Revenue €20.9 bn (+2.3% comparable, +4.5% fx-neutral). Reported op profit €2.79 bn (+31%); adj comparable op profit €2.8 bn (+7.1%) at 13.4% margin (+50bp). Diluted EPS €4.26. Comparable FCF €1.84 bn. New €1 bn share buyback announced.
• Late 2025: Coca-Cola Beverages Philippines integration completed first full year inside CCEP — principal driver of FY25 reported op profit growth.
• 14 May 2025: Capital Markets Event held by management for analysts and investors.
• Throughout 2025: Energy category roll-out (Monster + Relentless + Burn) accelerated across Europe; Premium Spirits (J&C RTD) continued in AU/NZ; Capri-Sun Europe delisting fully annualised by H2 2025.

12. Key Dates Coming Up

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