Coca-Cola Europacific Partners PLC

What they do

The company produces, distributes, and markets non-alcoholic ready-to-drink beverages under licenses from The Coca-Cola Company. It operates across two segments: Europe and Australia, Pacific & Southeast Asia. Its portfolio includes sparkling soft drinks, water, sports drinks, juice, and other beverages.

Revenue drivers

• Europe Segment — Includes operations in Germany, Great Britain, Spain, Portugal, Andorra, France, Monaco, Belgium, Luxembourg, the Netherlands, Nordic countries, and others. Represents the majority of revenue, with Germany and Great Britain being the largest markets.
• Australia, Pacific & Southeast Asia Segment — Covers Australia, New Zealand, Pacific Islands, Indonesia, Papua New Guinea, the Philippines, and other Asian markets. This segment was expanded significantly with the acquisition of Coca-Cola Beverages Philippines Inc.
• Sparkling Soft Drinks — Carbonated soft drinks are the core product category, generating the bulk of volume and revenue. Coca-Cola trademark products are the primary driver.

Recent performance

For the full year 2025, the company reported revenue of €19.4 billion (per the 20-F). The Europe segment contributed the majority of revenue, while the Australia, Pacific & Southeast Asia segment grew following the Philippine acquisition. Comparable volume and revenue grew in both segments, partly driven by price and mix. The company reported improved profitability with strong free cash flow.

Strategy

The stated strategy centers on driving revenue growth through innovation, premiumization, and channel expansion. Management emphasizes increasing penetration in the Philippines and other Southeast Asian markets. Investments are directed at supply chain efficiency, digital capabilities, and sustainability initiatives. The company also focuses on returning cash to shareholders through dividends and buybacks while maintaining investment-grade debt.

Risks

• Currency Volatility — The company reports in euros but earns significant revenue in pounds, dollars, Australian dollars, and Asian currencies, creating translation and transaction risk.
• Concentration with The Coca-Cola Company — As a franchise bottler, CCEP is highly dependent on The Coca-Cola Company's brand portfolio, pricing, and terms of the bottling agreements.
• Regulatory and Tax Changes — Sugar taxes, plastic packaging taxes, and other environmental regulations across its markets could raise costs and affect demand.
• Macroeconomic Pressures — Inflation, rising interest rates, and potential consumer downturns in its European and Asia-Pacific markets could reduce consumption and strain margins.

Outlook

Management expects continued revenue growth, with a focus on the Philippines and Southeast Asian expansion. Plans include further price/mix initiatives and productivity improvements. The company sees ongoing headwinds from currency and cost inflation, but remains committed to margin growth and strong free cash flow.