Coca-Cola Europacific Partners Reports Q3 Revenue Growth

Coca-Cola Europacific Partners plc has showcased significant growth in its third-quarter revenues, although some metrics have experienced mixed results, according to a recent report. The company anticipates an overall positive outlook, despite a slight adjustment in growth expectations.

Date: 05-11-2024

AI Rating: 6

Coca-Cola Europacific Partners plc has reported a third-quarter revenue increase of 11.5%, up to 5.36 billion euros from 4.81 billion euros last year. This positive development indicates a healthy demand for the company's products, potentially influencing investor confidence.

On an adjusted comparable basis, the revenue growth stands at 2.4%. Breaking it down, the revenue from Europe saw a modest growth of 2.1%, reaching 4.04 billion euros, whereas revenue from the APS region surged by 54.9% to 1.32 billion euros. The substantial growth in the APS region demonstrates strength in newer markets or offerings.

The total volume for the company was reported at 1.01 billion, showcasing a 19.1% growth on a comparable basis. This is especially significant as it highlights robust performance in certain segments, despite a 1.4% volume decline in Europe. The adjusted comparable volume remained flat while underlying volume grew by around 1%.

Coca-Cola Europacific has declared an interim dividend of 1.23 euros per share, expected to be distributed in December 2024, which results in a full-year dividend of 1.97 euros—a notable increase of 7.1% from the previous year. This might provide reassurance to investors looking for income from dividends.

Looking forward, the company reaffirms its fiscal 2024 profit and cash guidance, with an operating profit growth expectation of around 7% on a comparable basis. However, there is a revision in the comparable revenue growth expectation, now anticipated at around 3.5%, down from the earlier expectation of 4%. This slight adjustment could introduce cautious sentiment among investors.

CEO Damian Gammell expresses confidence in the company's long-term strategy, positioning for potential growth beyond 2025, which signals a commitment to sustainable development and performance.

Stocks: CCEP