Coca-Cola Europacific Partners (NASDAQ:CCEP) reported higher first-half revenue, operating profit and earnings per share, citing broad-based volume growth, market-share gains and continued momentum in zero-sugar, energy, sports and hydration beverages.
Chief Executive Officer Damian Gammell said the company delivered a “strong first half” as brand partnerships, customer relationships and in-market execution supported growth across its European and Australia-Pacific operations. Management reaffirmed its full-year 2026 guidance, while noting that the second half includes six fewer trading days than the first half.
First-Half Revenue and Profit Growth
CCEP reported first-half revenue of €10.7 billion, up 6.1%. Volume increased 5.6%, or 2.2% after adjusting for six additional consumption days in the first half. Growth occurred in both Europe and Australia-Pacific, and Gammell said June was the company’s largest volume month on record.
Revenue per case rose 0.4%, compared with nearly 4% growth in the prior-year period. Headline price increases, promotional optimization, energy-category growth and additional cooler placements helped revenue per case, but those factors were partly offset by increased sales of larger formats in Europe. The company also faced a revenue headwind from its Suntory alcohol exit in Australia-Pacific, which represented slightly more than 1% of total first-half revenue. Excluding alcohol, Australia-Pacific revenue rose 10%.
- Operating profit was €1.5 billion, up 8.1%.
- Operating margin rose about 30 basis points to 13.8%.
- Cost of sales per unit case increased 0.6%, below the company’s full-year expectation of around 1.5%.
- Operating expenses represented 21.4% of revenue, improving about 40 basis points, aided by discretionary-spending savings and productivity gains.
- Diluted earnings per share rose 10.6% to €2.20.
- Free cash flow was €435 million, slightly above the prior-year period.
The company said it has completed about €600 million of its planned €1 billion full-year share repurchase program. It continues to target comparable free cash flow of at least €1.7 billion for 2026.
Portfolio Growth Led by Zero Sugar and Energy
Gammell said CCEP is expanding its portfolio in faster-growing categories while continuing to invest in core Coca-Cola brands. Zero-sugar volume increased 10% in the first half, supported by Coke Zero Sugar, Sprite, Fanta, sports drinks and energy offerings.
Sports and hydration volume rose 12%, with Aquarius performing strongly in Iberia and Powerade posting double-digit growth, supported by FIFA-related activation. Energy volume increased 19%, while Monster grew at roughly twice the category rate and gained 230 basis points of share, according to the company.
Management also highlighted growth in water, including smartwater in Great Britain and Wilkins in the Philippines. In Australia, Grinders became the top coffee-bean brand in retail, with sales exceeding AUD 100 million.
New product launches included Coca-Cola Cherry Float in Great Britain, Sprite Chill, Coke Zero Caffeine Free, new Fanta zero-sugar flavors, Sprite Nipis Mint and Coke Zero Vanilla in Indonesia, and Powerade’s introduction in Indonesia. Gammell said 500-milliliter “Supercans” had exceeded the company’s expectations, particularly among younger consumers.
Customer Wins, Coolers and FIFA Activation
CCEP added more than 80,000 coolers during the year to date, a 5% increase, and more than 10% above the level in place when its accelerated cold-availability program began last year. Chief Financial Officer Ed Walker said well-placed coolers can generate returns within a couple of years, with connected equipment providing information on purchases, product assortment and sales rates.
The company cited customer wins including selected McDonald’s markets, Domino’s in Australia, Parkdean Resorts, Papa John’s and Leeds United in Great Britain, as well as Marriott International. The Marriott agreement covers more than 600 hotels in CCEP markets and is scheduled to begin rolling out in the second half.
Gammell said the company’s FIFA World Cup 2026 program was its largest activation effort to date. CCEP delivered more than 500,000 displays, activated more than 47,000 outlets among its top European home-market customers, distributed 163 million packs featuring Panini promotions, and produced more than 135 million team and player cans. More than 1.3 million FIFA items were awarded to shoppers through purchases of its products.
Southeast Asia and Outlook
Management described Indonesia and the Philippines as an emerging Southeast Asia growth engine. In Indonesia, sparkling beverages continued to outgrow the overall category, helped by a revised go-to-market model, distribution-partner execution and product launches. Gammell said tea remains an area of weakness, though the company expects continued sparkling growth in the second half.
In the Philippines, a Coke Zero campaign supported double-digit volume growth, while Wilkins benefited from new listings. CCEP said construction of a new Philippines facility remains on track for production in 2027 and that local margins are approaching its 10% target.
During the question-and-answer session, executives said second-half trading had started well, with favorable weather in many markets and momentum continuing from June. However, they maintained guidance rather than raising it, citing five months remaining in the year, six fewer trading days in the second half, and uncertainty around costs related to the Middle East. Walker said the majority of those costs are expected to fall in the second half and are incorporated in existing guidance.
Looking ahead, Gammell said CCEP expects continued benefits from innovation, cooler placements, customer wins, pricing and revenue-growth management, as well as investments in technology and artificial intelligence. The company is using AI tools to analyze commercial and manufacturing data, support promotional pricing decisions and improve supply-chain productivity.
About Coca-Cola Europacific Partners (NASDAQ:CCEP)
Coca-Cola Europacific Partners is a major independent bottler and distributor of nonalcoholic ready-to-drink beverages, operating under a long-standing franchise relationship with The Coca-Cola Company. The business manufactures, bottles, sells and delivers a broad portfolio of global and local beverage brands, including still and sparkling soft drinks, waters, juices, sports drinks and ready-to-drink teas and coffees. Its activities encompass production, packaging, marketing and route-to-market distribution for retail, foodservice, convenience and vending customers.
The company was created through the combination of Coca-Cola European Partners and Coca-Cola Amatil in 2021, bringing together beverage operations across Europe and the Asia-Pacific region.
