Coca-Cola Europacific Partners PLC Q4 FY2025 earnings call

• Thanked colleagues for hard work and dedication. - Executing on value creation strategy, generating value for retail customers and shareholders, and delivering strong TSR. - 2025 was a record year for revenue, profit, free cash flow, and returns. - Highlighted progress on mix, productivity efficiency, and profit growth. - Recognized as Top Employer, welcomed new colleagues in Manila, and accelerated digital and AI training. - Talked about great brands like Coke, Diet Coke, Monster, Nestea, and sports categories. - Focused on great execution through selling to more people, increased penetration, incidents, and spend per trip. - Mentioned sustainability efforts, remaining on CDP's Climate A list, and packaging collection progress.

In 2025, revenue was EUR 20.9 billion, up 2.8% with comparable volumes marginally ahead. Revenue per case grew 2.9%, with over 1/3 from brand and pack mix. Operating profit was EUR 2.8 billion, up 7.1% with an operating margin of 13.4%. Free cash flow was just over EUR 1.8 billion. Europe and APS saw margin expansion. For example, in Europe, GB had revenue growth almost 6% with volume growth in both channels; in APS and Australia, top line performance excluding alcohol was 7%. NARTD category was profitable and growing, up around 6% in value terms with Europe up 2% and APS up 5%.

• Expect revenue growth of 3% to 4% in 2026 driven by volumes and revenue per unit case, reflecting Suntory exit impact. - Expect cost of sales to grow by around 1.5% per case. - Approximately 80% hedged for full year '26 on relatively benign commodities. - New EUR 1 billion share buyback program to commence imminently. - Midterm objectives remain unchanged with confidence in 4% top line and 7% profit growth sustainable over midterm.

Q: Sanjeet Aujla asked about Europe's quarter performance, headwinds in Germany and France, and free cash flow guidance.

A: Damian Gammell discussed Europe's quarter momentum, World Cup and EPL activations, and Ed Walker explained free cash flow guidance.

Q: Bonnie Herzog asked about World Cup tailwind and top line guidance.

A: Damian Gammell talked about World Cup activations, and Ed Walker explained revenue growth composition.

Q: Edward Mundy asked about underlying growth after portfolio changes and impact of Coca-Cola Company's guard change.

A: Damian Gammell discussed underlying growth and positive impact of guard change.

Q: Matthew Ford asked about energy growth quantum.

A: Damian Gammell and Ed Walker talked about energy category growth potential.

Q: Nadine Sarwat asked about Indonesia's quarter performance and revenue growth management in mature markets.

A: Damian Gammell discussed revenue growth management opportunities and Indonesia's performance.

Q: Lauren Lieberman asked about revenue build balance and second half performance.

A: Damian Gammell talked about revenue build balance and second half performance.

Q: Andrea Pistacchi asked about operating profit drivers and away-from-home momentum.

A: Ed Walker and Damian Gammell discussed operating profit drivers and away-from-home momentum.

Q: Richard Withagen asked about sports drink brand positioning and growth drivers.

A: Damian Gammell talked about sports drink brand positioning and growth drivers.

Q: Eric Serotta asked about selling day impact and mix drivers.

A: Ed Walker and Damian Gammell discussed selling day impact and mix drivers.

Q: Charlie Higgs asked about Manila shared service center and leverage.

A: Ed Walker talked about Manila shared service center and leverage.

Q: Robert Ottenstein asked about promo money spending opportunity and Germany's learnings.

A: Damian Gammell discussed promo money spending opportunity and Germany's learnings.

Q: Usama Tariq asked about M&A interest.

A: Damian Gammell talked about M&A interest and considerations.