Soft drinks bottler Coca-Cola Europacific Partners (CCEP) has delivered what it describes as “solid” first-half results after its price and promotion strategy helped it offset the effects of adverse weather conditions.
Reported revenues rose 9.5% to €9.83bn, with adjusted comparable figures (excluding the acquisition of Coca-Cola Beverages Philippines) up 3.5%. Total volumes rose 13.8% but increased only 0.6% on an adjusted basis.
Adjusted comparable operating profit rose 9.0% to €1.31bn, reflecting top-line growth, efficiency programmes, and efforts on “discretionary spend optimisation”.
In Europe, volumes slipped 2.8%, impacted by adverse weather, tough comparables, and “strategic de-listings”.
In Britain, CCEP’s revenues edged down 0.9% with a “moderate” volume decline due to softness in the away-from-home (AFH) channel, adverse weather, and a de-listing of the Capri Sun brand. However, the group noted that it saw strong volume growth for both Coca-Cola Zero Sugar and Powerade, while the Monster brand continued to outperform with high single-digit growth.
In its APS (Australia, Pacific & Southeast) division, CCEP’s volumes rose 7.5%, reflecting “strong in-market execution”.
Chief Executive Damian Gammell commented: “We are really pleased to have delivered a solid first half performance reflecting great brands and great execution … Our focus on revenue growth management, headline price and promotion strategy across a broad pack offering also drove solid gains in revenue per unit case.”
Looking ahead, he said: “We are well placed operating in categories that remain resilient. We continue to invest for growth and have strong commercial plans in place for the rest of this year and beyond to engage customers and consumers.
“We remain focused on driving profitable revenue growth, actively managing 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 reaffirm our full year guidance for 2024.”
NAM Implications:
- With the exception of APS (Australia, Pacific & Southeast) division, where CCEP’s volumes rose 7.5%…
- …the overall business appears to be operating at near-plateaued volumes…
- …albeit their Price & Promo strategy appears to be delivering gains in revenue per unit case.
- In the long term, companies may face increasing pressure to report more detail on volume performance?
