Coca-Cola Europacific Partners PLC Q1 FY2026 earnings call

CEO Damien thanked colleagues for their hard work. Q1 was a good start with CCEP leading in FMCG, delivering broadly in line with expectations. Revenue benefited from mixed drivers like more coolers and Monster growth. Positive comparable volume growth. Focus on price relevance, balancing premiumization with affordability. Innovation in flavors, pack, and promo, leveraging AI. Strong share gains in Europe in various categories. Good in-market execution for new innovations, e.g., Coke trademark innovations. Progress in away-from-home with customer wins and adding coolers. Planning for the rest of the year with solid commercial programs and upcoming events like FIFA World Cup.

In Q1, Europe volumes grew by 1.4% on a comparable basis, primarily driven by growth in Germany and GB, particularly in the home channel. APS volumes grew by 1.9% on a comparable basis, driven by the Philippines, double-digit growth in the Pacific Islands and PNG, and further improvement in Indonesia. Revenue in the quarter benefited from areas like more coolers and growth in Monster. For example, volume growth beyond the benefit of a slightly earlier Easter, and solid comparable volume growth. Revenue contribution from different segments: Europe and APS with respective growth drivers.

Reaffirming guidance for full year 2026: between 3% and 4% revenue growth, around 7% operating profit, and comparable free cash flow of at least 1.7 billion, half-year weighted. Dividend declaration and share buyback program demonstrate strength.

Macroeconomic environment uncertainty, particularly the situation in the Middle East. Input price impact, but hedged commodities position at around 85%, ongoing efficiency programs, and control of discretionary spend provide visibility. Monitoring consumer impact closely and will adapt plans accordingly.

Q: Edward Mundy from Jefferies asked about current inflation vs 2022, and how innovation helps.

A: Damien and Ed discussed learnings from 2022, hedging, supply chain security, and innovation's role.

Q: Bonnie Herzog from Goldman Sachs asked about APS volume improvement and sparkling in Indonesia.

A: Damien talked about APS volume drivers like Australia, Philippines, Indonesia's Ramadan impact.

Q: Matt Ford from BNP Paribas asked about portfolio, original taste Coke vs zero sugar.

A: Damien discussed sugar-free offerings' growth, Coke original taste trends.

Q: Simon Hales from Citi asked about Europe channel performance.

A: Damien talked about Europe channel trends, away-from-home focus.

Q: Richard Withergen from Kepler Shifra asked about Europe price mix.

A: Ed discussed Europe price mix components.

Q: Nadine Sawat from Bernstein asked about Pepsi-Botling agreement and Coke market gain.

A: Damien talked about CCEP's ambition to be a bigger bottler.

Q: Lauren Lieberman from Barclays asked about price pack architecture and GB momentum.

A: Damien discussed GB momentum and price pack balancing.

Q: Charlie Higgs from Rothschild and Co. asked about Philippines performance and energy shortages.

A: Damien talked about Philippines performance and energy contingency.

Q: Robert Ottenstein from Evercore ISI asked about AI implementation.

A: Damien talked about AI use in planning, promo optimization.

Q: Andrea Pistacchi from Bank of America asked about Germany and France performance.

A: Damien talked about Germany and France performance.