Coca-Cola Europacific Partners PLC (CCEP) (Full Year 2025) Earnings Call Highlights: Record …

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Wed, February 18, 2026 at 4:01 AM GMT+9 5 min read

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CCEP

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**Revenue:** EUR20.9 million, an increase of 2.8%.

**Operating Profit:** EUR2.8 billion, up 7.1%.

**Operating Margin:** 13.4%, an expansion of around 50 basis points.

**Earnings Per Share (EPS):** EUR4.11, up 6.2% on a comparable basis.

**Free Cash Flow:** Just over EUR1.8 billion.

**Capital Expenditure (CapEx):** Nearly EUR1 billion.

**Return on Invested Capital (ROIC):** Up 70 basis points to 11.5%.

**Shareholder Returns:** EUR1.9 billion returned, including EUR1 billion in share buybacks.

**Net Debt to EBITDA:** Just below 2.7x.

**Revenue Per Case Growth:** 2.9%.

**Cost of Sales Per Unit Case:** Increased by 2.7%.

**OpEx as a Percentage of Revenue:** 22.1%, an improvement of 40 basis points.

**Volume Growth:** Europe up 2%, APS up 5%.

**Market Share:** #1 in FMCG with value share up 20 basis points.

**Coolers Installed:** Over 75,000 more coolers in 2025.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) delivered robust top-line growth in 2025, particularly in the away-from-home channel, and increased market share.

The company generated strong free cash flow of over EUR1.8 billion, enabling significant shareholder returns, including a EUR1 billion share buyback.

CCEP achieved record financial metrics for revenue, profit, free cash flow, and returns in 2025, marking a successful year as it approaches its tenth anniversary.

The company made significant progress in mix improvement, supported by productivity efficiency, leading to operating profit growth of 7.1% and margin expansion.

CCEP continued to invest in digital and AI capabilities, enhancing operational efficiency and equipping employees with skills to unlock value from tech investments.

Negative Points

CCEP faced challenges in Germany and France due to higher sugar taxes, impacting volumes and requiring adjustments in commercial strategies.

The company experienced softer trends in Indonesia, with NARTD volumes excluding water down double digits, although there was an improving performance in the second half.

The exit from Suntory distribution created a near-term headwind, impacting revenue growth by approximately 0.5 to 1 point.

CCEP's cost of sales per unit case increased by 2.7%, driven by higher concentrate costs and increased soft drink taxes in key markets.

The company anticipates a modest increase in annual interest expense due to refinancing maturing debt at higher interest rates.

 






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Q & A Highlights

Q: How did Europe perform in the last quarter, and what are the plans for stabilizing growth in Germany and France for 2026? A: Damian Gammell, CEO, noted that Europe exited the quarter well, with strong campaigns in Europe and Asia Pacific. While markets like GB exceeded expectations, France and Germany faced challenges. In France, the sugar tax impacted Coke Classic, but plans are in place to push the Zero portfolio and adjust pack architecture. In Germany, higher promotional prices affected the first half, but reinvestment in value helped in the second half. Plans are in place to improve promotional strategies in 2026.

Q: Can you explain the free cash flow guidance for 2026, which seems flat compared to 2025 despite EBIT growth? A: Edward Walker, CFO, explained that the guidance of at least EUR1.7 billion reflects increased net investment in CapEx for 2026, as there are strong business cases with great returns. The company prefers not to constrain investment opportunities by setting a higher free cash flow target.

Q: What impact do you expect from the World Cup on your European business, and can you elaborate on your 2026 top-line guidance? A: Damian Gammell, CEO, highlighted that World Cup activations have already begun and will continue through July, with significant consumer engagement plans. The 2026 guidance reflects the impact of exiting high-revenue Suntory products, which accounts for a 0.5 to 1 point growth impact. The company expects a balanced contribution from volume, mix, and price.

Q: How do you view the potential for further revenue growth management in mature European markets? A: Damian Gammell, CEO, sees immense opportunities for revenue and margin growth management. The company is focusing on smarter decisions around pack pricing and offerings, leveraging AI and analytics to optimize promotional spend and enhance demand forecasting. There is still significant potential in pack innovation and promotional efficiency.

Q: What are the expectations for the energy category growth in 2026 and beyond? A: Damian Gammell, CEO, expects the energy category to maintain mid-teen growth levels, driven by distribution expansion, cooler placements, and strong innovation from the Monster brand. The category remains a leading growth area in NARTD, with potential for continued strong performance.

Q: Can you provide more details on the shared service center in Manila and its impact on margins? A: Edward Walker, CFO, explained that the Manila center provides global capabilities, centralizing activities and reducing risk by complementing the existing Bulgaria center. It supports productivity and transformation but does not specifically impact margins in the Philippines.

Q: How are you approaching capital allocation, particularly regarding M&A opportunities? A: Damian Gammell, CEO, stated that the company remains open to value-accretive M&A opportunities but does not see any immediate prospects. The focus is on delivering value from existing markets like the Philippines and Indonesia, with a strong balance sheet to consider future opportunities.

Q: What lessons were learned from promotional strategies in Germany, and how do you plan to improve promo effectiveness? A: Damian Gammell, CEO, emphasized the importance of promo effectiveness, noting that higher promotional prices in Germany led to consumer hesitation. The company is focusing on smarter promo investments, using data and AI to optimize strategies and improve returns for both customers and shareholders.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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