(Sharecast News) – Coca-Cola Europacific partners reaffirmed their full-year guidance on Tuesday after reporting an increase in first-quarter revenue, helped by strong volumes, calendar suspensions and an earlier Easter.
The FTSE 100 drinks bottler said reported revenue rose 6.7% to €5.00bn in the quarter ended April 3, while net foreign exchange revenue rose 9.4%.
Reported value increased by 8.5% to 970m, although comparable group values increased by 1.6% after adjusting for six more days of consumption compared to the previous period.
Revenue in Europe increased by 9.1% on a reported basis to €3.55bn, while net foreign trade revenue increased by 9.8%.
Volumes in the region increased by 1.4% in comparison, reflecting the market performance, early Easter, share gains and the growth of large-format packages on the home channel.
Revenue in the Asia Pacific segment rose 1.1% to €1.45bn, or 8.6% on a foreign exchange neutral basis, with comparable volumes up 1.9%.
CEO Damian Gammell said the company “started the year well with the delivery of quality services”.
“Although strong volumes benefited from the calendar split and an earlier Easter, we delivered strong volume growth and shared benefits driven by large executions,” he said.
“Our consumers have continued to enjoy a good portfolio of beverages; our revenue growth reflects continued consumer demand for value but also exciting innovation and creating a premium across the wide-pack offering.”
Revenue per unit rose 0.8% at group level, reflecting positive synergies, headline pricing, exit from Suntory alcohol distribution and French sugar tax.
In Europe, revenue per unit increased 1.3%, supported by product mix, price increases in France, Iberia and Germany, and the French sugar tax, partially offset by negative pack mix from the growth of large-format packs.
In Asia Pacific, revenue per unit decreased by 0.3%, as positive product and package mix and prices were offset by a nearly 3% impact of Suntory’s alcohol output.
CCEP said it remained the number one value creator for retail customers, delivering revenue growth above all fast-moving consumer goods peers, while the non-alcoholic ready-to-drink category grew 4% in value and 3% in volume.
Year-to-date price share is up 30 points, with Europe up 30 points and Asia Pacific flat.
By category, Coca-Cola volumes were up 0.7%, with Zero Sugar up 10% and Original Taste down 3.2%.
Flavors and mixers increased by 1.2%, water, sports, ready-to-drink tea and coffee increased by 1.7%, and other energy drinks increased by 9.2%.
Capacity increased by 21.3%, supported by innovation, distribution gains and the growth of more packs and original variants.
Gammell said the consumer environment remained difficult and the full impact of the situation in the Middle East was uncertain, but added that business was “strong”.
“We continue to actively manage prices, promotions, discretionary spending and efficiency and bring joy to customers and consumers, such as the FIFA World Cup,” he said.
“We are also investing more than ever in growth, from technology and AI, to more coolers and our new plant in the Philippines.”
The company maintained its 2026 guidance for comparable revenue growth of 3% to 4%, cost per unit growth of approximately 1.5%, and operating profit growth of approximately 7%.
It reiterated expectations for a comparable effective tax rate of around 26%, capital expenditure of around 5% of revenue including leases, and comparable free income of at least €1.7bn.
CCEP paid an interim dividend in the first quarter of €0.82 per share, payable to shareholders on 15 May on 27 May.
The company also confirmed guidance for an annual net dividend payout ratio of around 50% of comparable earnings per share, and said it has completed €500m of a planned €1bn dividend for the year, subject to further shareholder approval at its 2026 annual meeting.
“Today’s budget announcement, reaffirmation of our guidance for the full year 2026 and continued share repurchases demonstrate the strength of our business and our ability to deliver continued shareholder value,” Gammell said.
“We hope we have the right strategy, executed in a sustainable way, to achieve our mid-year goals.”
At 1027 BST, shares in Coca-Cola Europacific Partners were up 2.25% at 7,285p.
Josh White of Sharecast.com reports.
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