COCA-COLA EUROPACIFIC PARTNERS plc

Coca-Cola Europacific Partners plc (CCEP) is a leading global consumer goods company that manufactures, distributes, and sells a wide range of non-alcoholic ready-to-drink (NARTD) beverages across 31 markets, serving approximately 600 million consumers and 4 million customers ¹. The company's operations span Western Europe and the Asia Pacific region, with 85 production facilities ². CCEP's business model is built on strong partnerships with franchisors like The Coca-Cola Company (TCCC) and Monster Energy Corporation (MEC), combining global brand strength with local execution ³. The company emphasizes a customer and consumer-led approach, leveraging technology, innovation, and investment to drive profitable growth ⁴.

CCEP's core business model involves partnering with franchisors to purchase concentrates and syrups, which are then used to make, distribute, and sell beverages to various customers and vending partners ⁵. The company sources ingredients and packaging, prioritizing local suppliers where possible, with 86% of its supplier spend supporting local economies in 2025 ⁶. Production primarily occurs locally, with over 90% of drinks in Europe made in the country of consumption ⁷. Distribution is managed directly and through logistics partners, with a focus on optimizing networks for speed, flexibility, and sustainability ⁸. A significant aspect of the business model is the commitment to increasing packaging collection and promoting a circular economy, with 99.8% of bottles and cans being recyclable ⁹.

The company's product portfolio is diverse, featuring global icons such as Coca-Cola, Fanta, Sprite, and Monster, alongside local favorites ¹⁰. CCEP is actively expanding into high-growth categories like coffee, sports, and alcohol ready-to-drink (ARTD), offering a variety of choices including low and no-calorie options ¹¹. In 2025, Coca-Cola Zero Sugar volumes grew by 5.3% ¹², sports volumes increased by 4.5% ¹³, and energy volumes saw an 18.8% ¹⁴ rise, driven by innovation and distribution gains. The company also met its 2025 targets in Europe to reduce the average amount of sugar per liter by 10% (versus 2019) and sell over 50% of volume in low or no-calorie options ¹⁵.

For the fiscal year ended December 31, 2025, CCEP reported total revenue of €20.9 billion ¹⁶, an increase of 2.3% ¹⁷ on a reported basis. Reported operating profit was €2.8 billion ¹⁸, up 31.0% ¹⁹. Net cash flows from operating activities amounted to €3.0 billion ²⁰. Diluted earnings per share (EPS) were €4.26 ²¹. The company's Return on Invested Capital (ROIC) increased by 280 basis points to 10.9% ²². Total borrowings stood at €10.694 billion ²³, with net debt at €9.823 billion ²⁴.

On a year-over-year basis, reported revenue increased by 2.3% ¹⁷, while adjusted comparable and FX neutral revenue grew by 2.8% ²⁵. Reported operating profit surged by 31.0% ¹⁹, and on an adjusted comparable and FX neutral basis, it increased by 7.1% ²⁶. Adjusted comparable volume was up 0.2% ²⁷ versus 2024. Revenue per unit case increased by 2.9% ²⁸ on an adjusted comparable and FX neutral basis. Europe's revenue grew by 2.9% ²⁹ on a reported basis, while APS revenue was up 0.5% ³⁰ on a reported basis.

During 2025, CCEP made several significant operational developments. The company invested approximately €1 billion ³¹ across its business, expanding manufacturing capacity, evolving its packaging portfolio, and advancing digital transformation through SAP S/4HANA and a new Integrated Shared Services (ISS) center in Manila ³². A new production facility was broken ground in the Philippines, and a new can line was opened in Australia to support Monster's growth ³³. Aseptic lines in Europe are also underway to accelerate growth in sports and tea categories ³⁴. The company also completed a €1 billion ³⁵ share buyback program announced in February 2025 ³⁶.

CCEP has provided full-year guidance for fiscal year 2026, anticipating 7% operating profit growth on a comparable and FX neutral basis ³⁷. This outlook is underpinned by the company's focus on driving profitable growth through a customer and consumer-led approach, powered by technology, innovation, and investment ³⁸.

A major growth area for CCEP is the acceleration of its sparkling beverage portfolio in 2026, alongside elevating execution during key selling moments such as Halloween and Christmas, and creating impactful retail moments during the FIFA World Cup ³⁹. The company plans to continue focusing on its core brands, driving the distribution of Coke flavors, and supporting the growth of Diet Coke ⁴⁰. Monster's momentum is expected to be maintained through a raft of exciting innovations, and Fanta's growth will be reinvigorated via campaigns like "Wanta Fanta" ⁴¹. The company is also expanding into high-growth categories like coffee, sports, and alcohol ready-to-drink (ARTD) ⁴².

Operationally, CCEP plans to accelerate investment in execution capabilities, building on the strong foundations established in 2025 ⁴³. This includes bringing Coca-Cola and Powerade to the world stage during the FIFA World Cup, leveraging new brand ambassadors and localized activations ⁴⁴. The company will invest in next-generation energy-efficient coolers and expand its "Coke and Go" vending innovation for growth ⁴⁵. Supply chain investments will continue with new production lines and infrastructure to support demand and growing categories like sports and tea ⁴⁶. The company also aims to further enhance its Integrated Shared Services (ISS) capabilities in Bulgaria and the Philippines ⁴⁷.

Regarding capital allocation, CCEP invested around €1 billion ³¹ across its business in 2025, expanding manufacturing capacity, evolving its packaging portfolio, and advancing digital transformation ³². The company has announced a further €1 billion ⁴⁸ share buyback program to be executed over the coming year ⁴⁹. Dividend payments for the year ended December 31, 2025, totaled €927 million ⁵⁰, maintaining a payout ratio of approximately 50% ⁵¹ in line with its dividend policy ⁵².

Management has explicitly flagged several structural headwinds and execution risks. The company continues to navigate a complex macroeconomic landscape marked by geopolitical volatility, legislative changes, and inflationary pressures ⁵³. Consumer sentiment is affected by the economic environment, leading to a greater focus on price relevance, particularly in retail ⁵⁴. The company is responding by offering diverse pack sizes and price points that balance affordability with premium options and smarter promotions ⁵⁵. Additionally, the risk of an inability to deliver environmentally sustainable packaging solutions may lead to increased taxes and regulations, a shift in consumer and customer preferences, increased production and compliance costs, and potential reputational damage ⁵⁶.

CCEP faces several material risks, including market and product-related risks such as changes in the competitive environment, fluctuations in foreign exchange and commodity prices, and evolving consumer and regulatory preferences for products ⁵⁷. Packaging-related risks include the inability to deliver environmentally sustainable packaging solutions, which could lead to increased taxes and regulations, shifts in consumer preferences, higher production costs, and reputational damage ⁵⁸. Geopolitical and global events, such as regional conflicts, global pandemics, and natural disasters, pose risks of supply chain disruptions, reduced profitability, and reputational harm ⁵⁹. Cybersecurity and IT/operational technology (OT) resilience risks have increased in 2025 due to more sophisticated cyber attacks, exacerbated by AI, potentially leading to operational disruption, regulatory intervention, financial losses, or reputational damage ⁶⁰. Business transformation and digital capability risks involve the failure to successfully execute the business transformation agenda, which could divert management focus, disrupt operations, and prevent the delivery of expected value ⁶¹. Key supplier risks include the inability of critical suppliers to provide necessary raw materials and services, leading to delivery delays, financial losses, and reputation damage ⁶². Product quality risks, such as failure to meet food safety and regulatory requirements, could harm consumers, result in litigation and fines, and damage brand and reputation ⁶³. Health, safety, and security risks encompass harm to employees, contractors, and third parties, as well as theft, damage, or fraudulent loss of assets ⁶⁴. License to operate risks include climate and water-related issues, where an inability to manage physical and transition risks associated with climate change could result in supply chain disruption, reputational damage, regulatory fines, and litigation ⁶⁵. Legal, regulatory, and compliance risks involve the inability to identify, advocate for, and comply with new or changing legal requirements, leading to higher taxes, stricter controls, punitive actions, or litigation ⁶⁶. Finally, talent and social responsibility risks include the inability to attract, develop, retain, and motivate employees, leading to increased turnover, reduced engagement, and reputational damage from failing to act responsibly towards social commitments ⁶⁷.

The overall tone of management's message to shareholders is one of continued progress and momentum, emphasizing a strong year for CCEP marked by delivering results today while building for tomorrow ⁶⁸. Management's specific forward-looking guidance for fiscal year 2026 is 7% operating profit growth on a comparable and FX neutral basis ³⁷. The strategic priorities emphasized for the period ahead include driving profitable growth through a customer and consumer-led approach, powered by technology, innovation, and investment ⁶⁹. This is underpinned by a long-term strategy focused on "great brands, great people and great execution – all done sustainably" ⁷⁰. Management also highlighted the commitment to returning value to shareholders, noting a further €1 billion ⁴⁸ share buyback to be executed over the coming year ⁴⁹.