Coca-Cola Europacific Partners (CCEP) stated yesterday that it had made an “encouraging start” to the year with revenue growth and value share gains both in-store and online.
The world’s largest Coca-Cola bottler saw adjusted comparable revenue climb 5.3% to €4.73bn over the first quarter period to 29 March, with volumes increasing 2.0%.
In Europe, volumes slipped 1.4%, with the company blaming “strategic de-listings” of some water and Capri Sun lines, and tough comparatives with a strong Q1 the previous year. In the UK, revenues were up 1.7%, but volumes edged down due “softness” in the AFH (Away From Home) channel, adverse weather, the de-listing of Capri Sun.
Meanwhile, CCEP’s Australia, Pacific and Southeast Asia (APS) business unit saw revenues climb 8.3% and volumes grow 8.1%
Chief Executive Damian Gammell said: “Our first quarter delivered good volume and revenue growth despite cycling strong growth in Europe, albeit more than offset by a great start to the year in APS, especially in the Philippines.
“This demonstrates how our diversity makes us a stronger and more robust business, operating in categories that remain resilient despite ongoing macroeconomic and geopolitical volatility. We grew both share and household penetration ahead of the market. And our focus on revenue growth management and our headline price and promotion strategy across a broad pack offering also drove solid gains in revenue per unit case.”
Looking ahead, CCEP expects comparable annual growth of around 4%, in line with its mid-term strategic objectives, and more balance between volume and price/mix than last year.
It also forecasts operating profit growth of around 7% in comparable terms as it focuses on “optimising discretionary spending and delivering efficiency programmes”.
The group noted that it was set to benefit from its activation plans for the Paris Olympics and the UEFA Euros.
Gammell concluded: We remain focused on driving profitable revenue growth, to actively manage our pricing and promotional spend to remain affordable and relevant to our consumers, alongside our focus on productivity and free cash flow. In that context, we confidently reaffirm our full-year guidance for 2024, despite a dynamic outlook.”
