Coca-Cola Europacific Partners plc Q1 FY2024 earnings call

• Q1 Performance: Achieved solid top-line growth of 5.3% with volume growth of 2% and revenue per case of 3.4%, reflecting balanced revenue growth between volume and price mix.
• Portfolio and Innovation: Invest in core brands; Monster outperformed, sports volumes grew 4.3%, launched new products like Monster Green Zero, Jack Daniel's and Coca-Cola in ARTD.
• Market Events: Leveraging Euros in Germany, Paris Olympics/Paralympic Games, and 37th America's Cup in Barcelona for brand engagement.
• Sustainability: Disciplined investments in people, portfolio, digital capabilities, and sustainability, with highlights in the release.

Europe: Volumes down 1.4% (cycling toughest comps of last year), but home channel volumes grew. Revenue per unit case up 5.6% due to pricing taken in H2 2023 and successful pricing across most markets. APS (Australia, Pacific, Southeast Asia): Volume growth 8.1%. Australia and Pacific: underlying volume flat excluding strategic bulk water exit, revenue per unit case grew more in line with Europe. Southeast Asia: Philippines had double-digit volume growth with share gains, Indonesia had over 10% Sparkling volume growth; revenue per unit case in APS up 0.2% due to geographic mix (strong volume growth in Philippines at lower revenue per unit case).

• Reaffirmed full-year 2024 guidance: anticipates revenue growth of around 4%, operating profit growth of around 7%, and strong free cash flow generation of around EUR 1.7 billion.

• Macro political challenges and cost of living pressures impacting consumer confidence.
• Commodity costs, especially aluminum for can costs, though currently not an immediate concern.

Q: Southeast Asia performance, extrapolation of growth A: Strong Q1 due to early Ramadan, Philippines comps, but underlying momentum strong; integrated Philippines well, Indonesia's Sparkling growth continues, built into guidance.

Q: Europe Q2 start, consumer confidence, event impact A: Q2 start slower in out-of-home, but summer events like Olympics and Euros will boost away-from-home; brand-building with event leverage.

Q: Consumer affordability, KPIs A: Track household penetration, transaction growth; category robust, but cost of living pressures monitored.

Q: Philippines acquisition, accretion A: Strong brand love, passionate team, refillable business; accretive top and bottom line, learnings for Indonesia.

Q: Commodity costs, phasing A: Can costs monitored but no immediate impact; phasing with half 2 weighted due to events boosting Q3.

Q: Promotional intensity, competitor behavior A: No dramatic increase, promotional strategy smart with data, supporting revenue per case growth.

Q: Portfolio, BODYARMOR, London listing A: Simplifying SKUs, evaluating BODYARMOR for future, no update on London listing