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Coca-Cola Europacific Partners Reaffirms Growth Strategies

Coca-Cola Europacific Partners is hosting a Capital Markets Event to reaffirm its 4% revenue growth and 7% operating profit targets. The outlook includes a solid FCF and ROIC growth, indicating a commitment to sustained value for investors.

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AI Rating:   7

Coca-Cola Europacific Partners Overview

Coca-Cola Europacific Partners plc (CCEP) is actively engaging with its investor community by hosting a Capital Markets Event, affirming its financial growth strategy. The company has laid down its mid-term objectives, which include a projected comparable FX-neutral revenue growth of approximately 4%. This metric is critical for investors seeking stability and predictability, as it reflects the company's sales performance regardless of currency fluctuations.

In addition to revenue growth, CCEP targets a comparable operating profit growth of around 7%. This is a significant factor for assessing profitability, showing that the company not only expects an increase in sales but also in its ability to manage costs effectively.

Moreover, the company estimates its comparable free cash flow to reach at least €1.7 billion, showcasing strong cash generation capabilities, which are crucial for funding dividends and reinvesting in the business. With a dividend payout ratio around 50%, CCEP is positioning itself as an attractive investment option for those looking for income alongside growth.

The forecasted net debt to EBITDA ratio within the range of 2.5-3.0x remains stable, signaling a manageable debt level in relation to earnings before interest, taxes, depreciation, and amortization. Investors typically favor lower ratios, as they indicate the company’s ability to cover its debt obligations.

Further, an estimated comparable Return on Invested Capital (ROIC) growth of about 50 basis points per annum reinforces the company’s efficiency in allocating capital, suggesting a robust strategy focusing on productivity and long-term investment benefits.

Overall, CCEP appears committed to sustaining shareholder value by pursuing strategic initiatives that leverage growth potential across its operations while maintaining financial health. Investors should monitor these developments closely, as they collectively point towards a positive outlook for the company.

Stocks:  CCEP