CCEPConsumer DefensiveBeverages - Bottlers·Sep 3, 2026·5 min read

[CCEP] Coca-Cola Europacific Partners Thesis 2026: Record Year Sets Up Sustainable Growth Ahead

Coca-Cola Europacific Partners FY25 (Dec 31, 2025; EUR) at €20.90B revenue (+3%). NI €1.94B; EPS €4.09 (+33%). Op margin 13.4% (+290bp YoY). Revenue per case +2.9% (>1/3 from brand/pack mix). FCF ~€1.95B. New EUR 1B buyback program imminent. FY26 guide: revenue +3-4%, COGS/case +~1.5%, 80% commodity hedged.

CCEP 2025-26: Record Year, FY26 Rev +3-4%, EUR 1B Buyback

FY25 (EUR) revenue €20.90B (+3%); Op income €2.79B (+31%); NI €1.94B (+37%); EPS €4.09 (+33%). Comparable volumes marginally ahead. Revenue per case +2.9% (>1/3 from brand/pack mix). Operating margin 13.4% (+90bp). FCF €1.95B. Buyback €1.0B. FY26 guide: revenue +3-4%, COGS/case +~1.5%, ~80% hedged on commodities, new EUR 1B buyback program imminent.

Key takeaways

  • Record year on revenue + profit + FCF + returns. FY25 op profit +31% to €2.79B; op margin 13.4% (+90bp). Revenue +3%, but operating leverage strong on mix shift + cost discipline.
  • Revenue per case +2.9% with >1/3 from brand + pack mix. Strategic shift toward higher-margin formats + brand premiumization paying off.
  • Region-by-region strength. Europe (esp. GB) revenue growth nearly 6% with both channel volume growth. APS (Australia + Pacific + Indonesia + Philippines) ex-alcohol top line +7%. NARTD category benefitting.
  • FY26 guide: revenue +3-4% growth. Driven by volumes + revenue per case. Reflects Suntory exit impact (Indonesia/Vietnam alcohol divestiture). 80% hedged on FY26 commodities (relatively benign).
  • New EUR 1B buyback announced. Imminent commencement. Material capital return for a name that historically focused on dividend + debt management.

Business

Coca-Cola Europacific Partners (CCEP) is the largest Coca-Cola bottler globally, serving 2 regions:

  • Europe (~70% of revenue): GB + Germany + France + Iberia + Belgium + Netherlands + Sweden + Norway + Iceland + Eastern Europe. Largest segment with FY25 strong volume growth.
  • API + Australia (APS) (~30% of revenue): Australia + Pacific Islands + Indonesia (now ex-alcohol post-Suntory exit) + Philippines + New Zealand. Emerging market growth + Australia maturity.

Brand portfolio: Coca-Cola + Coca-Cola Zero + Diet Coke + Sprite + Fanta + Powerade + Schweppes + Costa + Innocent + Smartwater + Costa Coffee. CCEP also bottles other 3rd-party brands (Monster Energy in some markets).

Strategic positioning: largest CCBSS (Coca-Cola Bottler) globally with diversified mature + emerging market mix. Ex-alcohol exit from Suntory venture refines strategic focus on NARTD (non-alcoholic ready-to-drink).

FY25 financial performance (EUR)

Metric (FY)202320242025
Revenue (€B)18.3020.4420.90
Gross profit (€B)6.737.287.44
Op income (€B)2.342.132.79
Op margin12.8%10.4%13.4%
EBITDA (€B)3.233.243.43
Net income (€B)1.671.421.94
Diluted EPS (€)3.643.084.09
FCF (€B)2.132.271.95
Capex (€M)-672-791-720
Total debt (€B)11.4011.3310.79
Dividends (€M)-841-910-890
Buyback (€M)00-1,005

The earnings print: Revenue +3%, op margin +290bp to 13.4%, EPS +33% to €4.09. Major operating leverage on mix shift + cost discipline + Suntory exit.

Buyback initiated FY25 at €-1.0B — first major buyback in CCEP history.

Capital allocation

  • Capex: -€720M FY25 (3.4% of revenue). Capital-light bottler model.
  • Dividends: -€890M FY25 (-2% YoY due to Suntory exit timing).
  • Buybacks: -€1.0B FY25 — first major buyback. New €1B program announced for imminent start.
  • M&A / Divestitures: Indonesia / Vietnam alcohol exit via Suntory — refines NARTD focus.
  • Debt management: €10.79B (-€0.54B YoY).

FY26 outlook (per Q4 2025 call, 2026-02-17)

FY26 guideRange
Revenue growth+3-4% (volumes + revenue per case)
Cost of sales per case+~1.5%
FX-neutral comparable revenueReflects Suntory exit
Commodity hedging~80% for full year
New buyback programEUR 1B, imminent commencement
Midterm objectivesRemain unchanged

The +3-4% revenue growth + +1.5% COGS/case = continued margin expansion thesis. New €1B buyback adds capital return mix.

Key risks

  • European consumer: GB + Germany + France soft-drink consumption tied to consumer health + economic conditions.
  • Commodity cycle: PET (resin), aluminum, sugar, paperboard inputs. 80% hedged FY26 reduces but doesn't eliminate exposure.
  • APS / Asia consumer: Indonesia + Philippines emerging market consumer dynamics.
  • Sugar tax + regulatory: Multiple geographies have or considering sugar/sweetener taxes.
  • Coca-Cola Co. franchise relationship: Bottler relationship terms + product allocation matter.
  • FX: Multi-currency exposure (GBP + AUD + IDR + others).

Bottom line

CCEP FY25 is the record year + buyback initiation. Revenue +3%, op margin +290bp to 13.4%, EPS +33%. New €1B buyback program imminent. FY26 guide +3-4% revenue + +1.5% COGS/case + commodity hedging + Suntory exit clean. The structural read: largest global Coca-Cola bottler with mature + emerging mix + strategic refocus on NARTD + buyback initiation. Risks are European consumer + commodity cycle + sugar tax + FX.

Citations

  • Coca-Cola Europacific Partners PLC FY25 Annual Report (filed February 2026, UK FCA + SEC 20-F).
  • CCEP Q4 2025 earnings call, 2026-02-17 — record year revenue/profit/FCF/returns; revenue €20.9B (+2.8%), revenue per case +2.9% (>1/3 from brand/pack mix), op margin 13.4%, FCF €1.8B+; FY26 guide (+3-4% revenue, COGS/case +~1.5%, 80% hedged commodities, new EUR 1B buyback imminent).
  • Internal financial_statements view (consolidated annual + cash flow + capital structure; reflects EUR reporting).
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