Coca-Cola Europacific Reports Drop in Profit Despite Revenue Growth

Coca-Cola Europacific Partners reports mixed results with profit down but revenue up. Earnings per share decline highlights challenges. Investors should assess future growth projections.

Date: 14-02-2025

AI Rating: 5

Earnings Per Share (EPS): The report indicates that Coca-Cola Europacific Partners plc (CCEP) saw a decline in EPS, which fell to 3.08 euros from 3.63 euros in the previous year. This significant drop might raise concerns among investors, as it shows a direct impact on shareholders' earnings. Revenue Growth: On a positive note, the company's revenue increased by 11.7%, reaching 20.44 billion euros compared to 18.30 billion euros the prior year. Additionally, adjusted comparable revenues saw a growth of 3.3%. This indicates that despite the drop in profit, the company continues to attract more sales, which is a critical factor for ongoing operations. Future Projections: The company has projected a revenue growth of about 4% for fiscal 2025 on an adjusted comparable and FX-neutral basis. Additionally, they expect operating profit growth of approximately 7% in the same period. This provides a positive outlook that may bolster investor confidence moving forward. Share Buyback Program: Announcing a share buyback program of up to 1 billion euros over the next 12 months could be viewed positively by the market. This move often signals that the company believes its shares are undervalued, which could also enhance shareholder value. In summary, despite a drop in profit and EPS, CCEP's revenue growth, future projections, and a share buyback program suggest a mixed but potentially bullish outlook that could impact stock prices positively due to the anticipated revenue growth and shareholder return initiatives.

Stocks: CCEP