20-F: Coca-Cola Europacific Partners Reports Solid Growth in 2024, Driven by Strategic Diversification

Coca-Cola Europacific Partners (CCEP) demonstrates robust financial performance in 2024, marked by strategic initiatives and geographic expansion.

Summary

• Coca-Cola Europacific Partners (CCEP) reported a revenue of €20.4 billion for 2024.
• Adjusted comparable revenue, excluding foreign exchange impacts, reached €20.7 billion, a 3.5% increase.
• Reported operating profit decreased by 8.8% to €2.1 billion, due to higher business transformation costs and a non-cash impairment in Indonesia.
• Adjusted comparable operating profit increased by 8.0% to €2.7 billion, driven by revenue growth and efficiency programs.
• Comparable diluted earnings per share (EPS) reached €3.95.
• Comparable free cash flow was reported at €1.8 billion.
• The company invested approximately €405 million in emissions reduction initiatives between 2024 and 2026.
• CCEP achieved a recycled PET (rPET) usage of 46% across the Group, exceeding its target in Europe with 63.2%.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with solid financial results and strategic initiatives, indicating a strong and stable investment opportunity.

Positives

• CCEP achieved consistently robust top and bottom-line growth.
• The company led value creation, growing share ahead of the market and achieving best-ever customer satisfaction scores.
• Diversification into faster-growing markets has made CCEP more resilient.
• CCEP is supporting its people through leadership, training, wellbeing, and accessibility initiatives, achieving a high engagement score.
• The company is making more investment than ever in sustainable growth, alongside gains in productivity and impressive free cash flow.

Negatives

• Reported operating profit decreased by 8.8% due to higher business transformation costs and a non-cash impairment of the Indonesian business unit.
• Volumes were flat despite solid underlying performance, impacted by mixed summer weather in Europe and strategic SKU rationalisation.

Risks

• Geopolitical volatility and legislative changes continue to evolve, with the potential for impact in our markets and on our business.
• The economic environment continues to impact consumer sentiment in multiple markets, requiring a focus on price relevance.
• Government commitments to new climate change targets, as well as evolving regulations for ingredients and packaging, continue to impact our business.
• There is a risk of increased regulation related to plastic packaging, including restrictions on the use of single use plastic, taxation on the use of virgin plastic or the introduction of extended producer responsibility regulation.

Future Outlook

CCEP is well-placed for 2025 and beyond, with the right strategy to deliver on its mid-term growth objectives and the platform and momentum to continue being a great partner for customers and a great place to work for colleagues.

Management Comments

• The care and energy they put into our great brands and delivering great execution every day and with every customer drives our success.
• We have the ability and know-how to ignite and scale growth in both emerging markets and developing categories, while also growing our core brands in mature markets.
• We have the platform and momentum to go even further while continuing to be a great partner for our customers and a great place to work for our colleagues.

Industry Context

CCEP operates in resilient and growing categories within the beverage industry, driving growth with core brands and expanding into faster-growing segments like hydration, coffee, and alcohol ready-to-drink (ARTD).

Comparison to Industry Standards

• CCEP was included on CDP’s ‘A’ List for Climate for the ninth year, and maintained its MSCI AAA environmental, social and governance (ESG) rating.
• CCEP was also included in Sustainalytics’ list of ESG top-rated companies for 2025.
• In the Advantage Group survey of our customers, CCEP was recognised as a top tier supplier in 90% of our markets.
• CCEP had 10 out of its 12 markets surveyed in the top tier ranking in 2024, and secured the number one position within FMCG in three of our markets.

Management Changes

Corporate Governance

Related Party Transactions

• The Group has entered into transactions with TCCC and Cobega, which are related parties due to their significant influence over the Group.
• These transactions include the purchase of concentrate, syrup, mineral water and juice from TCCC, and the purchase of packaging materials and maintenance services from Cobega.

Stakeholder Impact

• The company aims to create value for customers and shareholders and refresh consumers, all done in the most sustainable way possible.
• The company is committed to having a positive impact by supporting economic mobility and building resilience in our local communities.

Next Steps

• Update This is Forward to include the Philippines.
• Continue to develop 2030 roadmaps on climate, water, packaging and community.
• Work to secure water replenishment projects at all new high water risk locations.
• Continue to engage with customers on our packaging strategy and explore new packaging solutions which meet changing consumer trends and comply with legislation.
• Work to deepen our relationships within our communities and expand our community partnerships to build skills and resilience.

Key Dates

Keywords

Coca-Cola Europacific Partners, financial results, sustainability, revenue, operating profit, EPS, rPET, emissions reduction, share buyback, CCEP, acquisition