CCEP reports encouraging first quarter

Coca-Cola Europacific Partners (CCEP) has had an encouraging start to the year, as reflected in its first quarter trading update.

CCEP’s Australia, Pacific and Southeast Asia (APS) business unit delivered strong volume growth – adjusted comparable volume grew 8.1 per cent vs 2023 in the region, while volume declined in Europe (-1.4 per cent) following a strong Q1 last year.

Coca-Cola Classic grew 4.4 per cent and Sprite grew 8.7 per cent, thanks to great execution across all key markets and strong consumer demand. Powerade drove 4.3 per cent growth in the sports category.

A slight volume decline reflects tough comparables across Australia and New Zealand, reflecting industry-wide supply constraints last year alongside strategic bulk water de-listings in Australia, which started in Q2 2023. Excluding de-listings, volume would have been broadly flat in Q1.

Home channel volume performed slightly ahead of the AFH channel. Coca-Cola Classic, Coca-Cola Zero Sugar, Fanta and Monster performed well in all markets supported by innovation, including the launch of Monster Energy Zero Sugar and Fanta Pineapple Zero Sugar in Australia.

Damian Gammell, Chief Executive Officer, said CCEP has had an encouraging start to the year reflecting its great brands and great execution.

“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.

“Although our first quarter has set us up well for the rest of the year, it is typically our smallest. We are building on this momentum supported by fantastic activation plans, including the Paris Olympics and the UEFA Euros, to engage customers and consumers. 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.

“We are well placed for FY24 and beyond, continuing to invest for the long-term. We are confident that we have the right strategy, done sustainably, to deliver on our mid-term growth objectives which combined with today’s interim dividend declaration, demonstrate the strength of our business, and our ability to deliver continued shareholder value.”

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