Coca-Cola Europacific Partners PLC

CCEP reported first-half revenue of EUR 10.7 billion, up 6.1%; volumes rose 5.6%, or 2.2% on a days-adjusted basis; revenue per case increased 0.4%; cost of sales per unit case increased 0.6%; OpEx as a percentage of revenue improved to 21.4%; operating profit was EUR 1.5 billion, up 8.1%; operating margin was 13.8%, up around 30 bps; diluted EPS was EUR 2.20, up 10.6%; and free cash flow was EUR 435 million, slightly ahead of last year. Management also said around EUR 600 million of the full-year EUR 1 billion share buyback had been completed. For guidance, the company reaffirmed full-year 2026 guidance, including comparable free cash flow of at least EUR 1.7 billion, and said the full-year outlook already reflects 6 fewer trading days in the second half and higher commodity costs that will mostly fall in 2H.

Damian Gammell framed the quarter as evidence that CCEP’s strategy is working, emphasizing broad-based growth, share gains, disciplined costs and strong cash generation. He highlighted execution in fast-growing categories like zero sugar, energy, sports and hydration, plus innovation, cooler rollout, customer wins and FIFA activation as key drivers. His tone was confident and forward-looking, repeatedly saying the company is well positioned to continue compounding growth and to benefit in 2027 from current innovation and strategic investments.

Ed Walker backed up the operating update with specific financial detail: cost of sales per unit case was up 0.6% versus a full-year guide of 1.5%, OpEx fell to 21.4% of revenue, operating margin reached 13.8%, and free cash flow was EUR 435 million after investment in coolers, a Powerade warmfill line in Australia, can fillers in Sweden and the Manila greenfield site. He said the company remains on track for at least EUR 1.7 billion of comparable free cash flow for the year and reiterated that around EUR 600 million of the EUR 1 billion buyback is already complete. On hedging, he said CCEP is aiming to be 80% covered for the coming year and has not delayed hedging despite Middle East-related volatility.

Analysts focused on whether pricing can keep supporting growth, whether the second half guidance is conservative, and how much of the strong Q2 volume was pulled forward by FIFA or weather. Management said there was “zero pull forward” into Q3, that Q2 momentum continued into July, and that the softer H2 outlook mainly reflects timing, fewer selling days, and the fact that some commodity and Middle East-related costs land later in the year. Questions also centered on Europe revenue per case, Indonesia’s turnaround, coolers, and AI; management said Europe’s Q2 revenue per case was 1.4%, mix remained healthy, Indonesia’s sparkling performance and route-to-market changes are encouraging, cooler returns are typically within a couple of years, and KIRA AI is already speeding up promo, pack and customer decisions.