Breaking Down Coca-Cola Europacific Partners PLC (CCEP) Financial Health: Key Insights for Investors

Are you keeping a close watch on Coca-Cola Europacific Partners PLC (CCEP) and wondering about its financial stability? Did you know that in 2024, the company reported revenue of €20.44 billion, marking an 11.67% increase from the previous year? But what does this mean for investors like you? Dive in to uncover key insights into CCEP's financial performance, from revenue growth and operating profits to strategic initiatives and future outlook, helping you make informed decisions.

Coca-Cola Europacific Partners PLC (CCEP) Revenue Analysis

Understanding where Coca-Cola Europacific Partners PLC (CCEP) generates its revenue is crucial for investors. The company's financial health and growth potential are directly linked to its ability to effectively manage and diversify its income streams. Here's a detailed look at CCEP's revenue streams:

Breakdown of Primary Revenue Sources:

Coca-Cola Europacific Partners PLC (CCEP) primarily generates revenue through the sale of its beverage products. These can be categorized as:

• Sparkling Beverages: This includes well-known brands like Coca-Cola, Fanta, and Sprite.
• Still Beverages: This segment features water, juices, iced tea, and energy drinks.
• Other Drinks: This may include dairy and plant-based beverages, and coffee.

These products are sold across various regions, which also constitute a key aspect of revenue source breakdown.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides insights into the company's performance trends. For instance, CCEP reported revenue of €18.3 billion for the year 2024. This reflects the overall financial performance and market dynamics impacting the company.

Contribution of Different Business Segments to Overall Revenue:

The contribution of each business segment to CCEP's overall revenue can vary. A detailed breakdown helps in understanding which segments are driving growth and which may need improvement. For example, sparkling beverages might contribute a larger percentage due to their popularity, while emerging categories like energy drinks could be growing faster. Here is a general overview:

• Sparkling Beverages: Typically the largest contributor, driven by flagship brands.
• Still Beverages: A significant portion, with growth potential in health-conscious markets.
• Emerging Categories: Smaller but growing segments like energy drinks and coffee.

Analysis of Any Significant Changes in Revenue Streams:

Significant changes in revenue streams can occur due to various factors, such as:

• Acquisitions and Divestitures: Buying or selling business units can alter revenue streams.
• Market Trends: Shifts in consumer preferences towards healthier options can impact sales.
• Economic Factors: Economic downturns or booms can affect consumer spending on beverages.

Keeping an eye on these shifts is essential for understanding the company's strategic moves and their impact on financial performance.

For additional insights into the company's values and direction, review the Mission Statement, Vision, & Core Values of Coca-Cola Europacific Partners PLC (CCEP).

Coca-Cola Europacific Partners PLC (CCEP) Profitability Metrics

Understanding Coca-Cola Europacific Partners PLC (CCEP)'s financial health requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Key indicators include gross profit, operating profit, and net profit margins, which reveal different facets of the company's financial performance.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Coca-Cola Europacific Partners PLC (CCEP)'s gross profit and gross profit margin highlight the company's efficiency in managing its cost of goods sold (COGS). For instance, a higher gross profit margin indicates that CCEP is effectively controlling production costs and/or commanding premium pricing for its products.

Operating profit, also known as earnings before interest and taxes (EBIT), is a profit from business operations before deduction of interest and taxes. It takes into account not only the cost of goods sold but also operating expenses such as sales, general, and administrative costs. Coca-Cola Europacific Partners PLC (CCEP)'s operating profit margin provides a clear view of the company's profitability from its core business operations, excluding the effects of financing and taxation.

Net profit represents the actual profit earned by the business. Net profit is calculated by deducting all expenses from its total revenue. Coca-Cola Europacific Partners PLC (CCEP)'s net profit margin is a critical indicator of overall profitability, reflecting the percentage of revenue that remains after all expenses, including interest and taxes, are accounted for. A consistently healthy net profit margin signals effective cost management and pricing strategies.

Analyzing the trends in these profitability metrics over time is crucial for investors. Consistent improvement in gross, operating, and net profit margins suggests enhanced operational efficiency and stronger financial health. Conversely, declining margins may indicate challenges such as rising costs, increased competition, or pricing pressures.

Comparing Coca-Cola Europacific Partners PLC (CCEP)'s profitability ratios with industry averages provides valuable context. If CCEP's margins are higher than its peers, it may indicate a competitive advantage. Conversely, lower margins may signal areas needing improvement.

Operational efficiency is a key driver of profitability. Effective cost management and favorable gross margin trends directly impact Coca-Cola Europacific Partners PLC (CCEP)'s bottom line. Monitoring these aspects helps in assessing the company's ability to maintain and improve its financial performance.

Here is a sample table illustrating how these metrics might be tracked and compared (Note: This is a hypothetical example and not actual CCEP data):

Investors should closely monitor these profitability metrics to gain a comprehensive understanding of Coca-Cola Europacific Partners PLC (CCEP)'s financial health and its ability to deliver sustainable returns.

• Gross Profit Margin: Reflects efficiency in production costs.
• Operating Profit Margin: Shows profitability from core operations.
• Net Profit Margin: Indicates overall profitability after all expenses.

For more insights into the investor profile of Coca-Cola Europacific Partners PLC (CCEP), you can explore: Exploring Coca-Cola Europacific Partners PLC (CCEP) Investor Profile: Who’s Buying and Why?

Coca-Cola Europacific Partners PLC (CCEP) Debt vs. Equity Structure

Coca-Cola Europacific Partners PLC (CCEP) employs a mix of debt and equity to finance its operations and growth initiatives. Understanding the company's debt levels, ratios, and financing activities is crucial for investors assessing its financial health and risk profile. Here’s a breakdown:

As of the fiscal year 2024, Coca-Cola Europacific Partners PLC (CCEP) demonstrates the following financial structure:

• Overview of Debt Levels:

Coca-Cola Europacific Partners PLC (CCEP) has a substantial debt portfolio, including both short-term and long-term obligations. As of December 31, 2023, the company’s total borrowings amounted to €10.3 billion. This includes:

• Short-term debt: €1.7 billion, representing obligations due within one year.
• Long-term debt: €8.6 billion, covering liabilities extending beyond one year.

These figures reflect the company's reliance on debt to fund its operations, acquisitions, and other strategic initiatives.

• Debt-to-Equity Ratio:

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. As of 2023, Coca-Cola Europacific Partners PLC (CCEP) reported a debt-to-equity ratio of approximately 0.73. This ratio indicates that for every €1 of equity, the company holds €0.73 of debt. While this level of leverage is considerable, it is within a range that is generally considered manageable for companies in the beverage industry.

Comparison to Industry Standards:

The beverage industry exhibits varying debt-to-equity ratios depending on company size, growth strategy, and market conditions. Some peer companies may operate with lower leverage, while others might employ more aggressive debt financing. Coca-Cola Europacific Partners PLC (CCEP)’s ratio of 0.73 is fairly typical for established players in the sector.

• Recent Debt Issuances, Credit Ratings, or Refinancing Activity:

In recent years, Coca-Cola Europacific Partners PLC (CCEP) has been active in managing its debt portfolio through issuances, repayments, and refinancing activities.

Credit Ratings:

Credit ratings provide insights into the company's creditworthiness. Coca-Cola Europacific Partners PLC (CCEP) currently holds an investment-grade credit rating from major rating agencies, reflecting its stable financial outlook and capacity to meet its debt obligations.

• Balancing Debt Financing and Equity Funding:

Coca-Cola Europacific Partners PLC (CCEP) strategically balances debt financing with equity funding to optimize its capital structure. While debt allows the company to leverage growth opportunities and enhance shareholder returns, equity provides a stable funding base and reduces financial risk.

The company’s approach includes:

• Maintaining a target capital structure that aligns with its long-term strategic goals.
• Evaluating market conditions and interest rate environments to make informed financing decisions.
• Using free cash flow to reduce debt and strengthen its balance sheet.

By carefully managing its debt and equity mix, Coca-Cola Europacific Partners PLC (CCEP) aims to maintain financial flexibility and support sustainable growth.

More insights into Coca-Cola Europacific Partners PLC (CCEP)’s financial health are available here: Breaking Down Coca-Cola Europacific Partners PLC (CCEP) Financial Health: Key Insights for Investors

Coca-Cola Europacific Partners PLC (CCEP) Liquidity and Solvency

When evaluating the financial health of Coca-Cola Europacific Partners PLC (CCEP), understanding its liquidity and solvency is crucial. Liquidity refers to CCEP's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Let's delve into key financial metrics to assess CCEP's liquidity position.

To assess Coca-Cola Europacific Partners PLC (CCEP)'s liquidity, we look into the current and quick ratios, working capital trends, and cash flow statements.

Current and Quick Ratios:

The current and quick ratios are essential indicators of a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity. The current ratio includes all current assets, while the quick ratio excludes inventory, which is less liquid.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a measure of a company's operational liquidity. Monitoring the trends in working capital can provide insights into how efficiently CCEP is managing its short-term assets and liabilities. A positive and increasing working capital balance typically suggests improving liquidity, while a negative or declining balance may raise concerns.

Cash Flow Statements Overview:

Analyzing the cash flow statements provides a clear picture of how Coca-Cola Europacific Partners PLC (CCEP) generates and uses cash. The cash flow statement is divided into three main sections:

• Operating Activities: Cash flow from the company's core business operations.
• Investing Activities: Cash flow from the purchase and sale of long-term assets.
• Financing Activities: Cash flow from debt, equity, and dividends.

By examining these cash flow trends, investors can gain insights into Coca-Cola Europacific Partners PLC (CCEP)'s ability to generate cash, invest in its business, and manage its financing obligations. Positive operating cash flow is particularly important as it indicates that the company is generating sufficient cash from its core operations to fund its activities.

Potential Liquidity Concerns or Strengths:

Based on the analysis of these metrics, potential liquidity concerns or strengths can be identified. For example, a declining current ratio coupled with negative operating cash flow may indicate liquidity issues. Conversely, a strong current ratio, increasing working capital, and positive operating cash flow suggest a healthy liquidity position.

For more insights into Coca-Cola Europacific Partners PLC (CCEP)'s mission and vision, you can explore: Mission Statement, Vision, & Core Values of Coca-Cola Europacific Partners PLC (CCEP).

Coca-Cola Europacific Partners PLC (CCEP) Valuation Analysis

Determining whether Coca-Cola Europacific Partners PLC (CCEP) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst opinions. Here's a breakdown:

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of April 2025, CCEP's P/E ratio is approximately 25.7 to 47.4. A high P/E ratio suggests that investors expect higher earnings growth in the future, but it could also indicate overvaluation.
• Price-to-Book (P/B) Ratio: The P/B ratio for CCEP as of April 2025 is around 4.27. This ratio compares a company's market cap to its book value, with a higher ratio potentially indicating overvaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: CCEP's EV/EBITDA ratio has fluctuated over the past few years. The latest twelve months ev/ebitda is 14.3x. The EV/EBITDA ratio for fiscal years ending December 2020 to 2024 averaged 13.8x.

Stock Price Trends:

• Over the last 12 months, Coca-Cola Europacific Partners’ stock price has risen by approximately 30.69%.
• The stock traded at $89.31 on April 17, 2025.
• The 52-week high is $91.29 and the 52-week low is $67.80.

Dividend Information:

• Dividend Yield: CCEP's dividend yield is approximately 2.34% to 3.05%.
• Dividend Amount: The company pays a dividend of $1.34 per share.
• Payout Ratio: CCEP's dividend payout ratio is 47.62%, suggesting that the dividend is sustainable based on current earnings.

Analyst Consensus:

• The consensus rating for Coca-Cola Europacific Partners is 'Moderate Buy'.
• Analysts' recommendations consider a mix of 'buy', 'hold', and 'sell' ratings.
• The average analyst rating score is 2.64, based on 6 buy ratings, 3 hold ratings and 1 sell rating.
• The 12-month stock price forecast is $89.0.

Here is a table summarizing key valuation ratios for Coca-Cola Europacific Partners PLC:

Considering these factors, Coca-Cola Europacific Partners PLC's valuation appears to be above the market valuation of its sector. The EV/EBITDA NTM ratio of Coca-Cola Europacific Partners PLC is slightly higher than the median of its peer group: around 12.00. Mission Statement, Vision, & Core Values of Coca-Cola Europacific Partners PLC (CCEP).

Coca-Cola Europacific Partners PLC (CCEP) Risk Factors

Understanding the risks Coca-Cola Europacific Partners PLC (CCEP) faces is crucial for investors. These risks can stem from both internal operations and external market dynamics. Examining these factors provides a clearer picture of the company's financial health and potential challenges.

Here’s a breakdown of key risk areas:

• Industry Competition: The beverage industry is highly competitive. CCEP faces competition from other major beverage companies, as well as smaller, regional players. This competition can impact market share and profitability.
• Regulatory Changes: Changes in regulations regarding beverage content, packaging, and distribution can significantly affect CCEP's operations. For example, taxes on sugary drinks or new environmental regulations could increase costs or alter consumer demand.
• Market Conditions: Economic downturns, changing consumer preferences, and health trends can all impact the demand for CCEP’s products. Shifts in consumer behavior, such as a move towards healthier beverages, require CCEP to adapt its product offerings and marketing strategies.

Operational, financial, and strategic risks are often highlighted in CCEP's earnings reports and filings. These can include:

• Supply Chain Disruptions: Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or other factors, can impact CCEP's ability to produce and distribute its products.
• Fluctuations in Raw Material Costs: Changes in the cost of raw materials, such as sugar, aluminum, and packaging, can affect CCEP's profit margins.
• Currency Exchange Rate Volatility: As a multinational company, CCEP is exposed to currency exchange rate volatility, which can impact its financial results when translating earnings from different countries.

Mitigation strategies are crucial for managing these risks. While specific plans can vary, common strategies include:

• Hedging: Using financial instruments to mitigate the impact of currency exchange rate fluctuations and raw material price volatility.
• Diversification: Expanding product offerings and entering new markets to reduce reliance on specific products or regions.
• Efficiency Improvements: Implementing measures to improve operational efficiency and reduce costs, helping to offset the impact of increased expenses.

Understanding these risks and how CCEP plans to mitigate them is essential for investors. For more insights into CCEP and its investors, check out: Exploring Coca-Cola Europacific Partners PLC (CCEP) Investor Profile: Who’s Buying and Why?

Coca-Cola Europacific Partners PLC (CCEP) Growth Opportunities

Coca-Cola Europacific Partners PLC (CCEP) has several key growth drivers that suggest a positive outlook. These include product innovations, expansion into new markets, strategic acquisitions, and the leverage of competitive advantages.

Product innovation remains a central tenet of CCEP's growth strategy. The company consistently invests in and introduces new products and flavors to cater to evolving consumer preferences. This includes healthier options, low-sugar variants, and innovative packaging solutions. These efforts not only attract new consumers but also maintain the interest of existing customers, contributing to sustained revenue growth.

Market expansion, particularly within the Asia-Pacific region, presents significant opportunities. CCEP's established presence in Europe provides a strong foundation, and its expansion into new territories allows it to tap into high-growth markets. Strategic acquisitions further bolster this expansion, enabling CCEP to integrate new capabilities and increase its market share swiftly. For example, the acquisition of Coca-Cola Amatil in 2021 significantly expanded CCEP's reach into Australia, New Zealand, and the Pacific Islands.

Strategic initiatives and partnerships also play a crucial role in driving future growth. CCEP collaborates with various partners to enhance its distribution network, improve operational efficiency, and promote sustainability. These partnerships often lead to innovative solutions that provide a competitive edge. Here are some factors driving future growth:

• Product Innovations: Development and introduction of new beverages and flavors.
• Market Expansion: Extending reach into high-growth markets, especially in the Asia-Pacific region.
• Strategic Acquisitions: Integrating new capabilities and increasing market share through acquisitions.
• Sustainability Initiatives: Focusing on sustainable practices and packaging solutions to meet consumer and regulatory demands.

Future revenue growth projections and earnings estimates for CCEP reflect these growth drivers. Analysts project a steady increase in revenue, supported by both organic growth and strategic initiatives. Earnings estimates are also positive, driven by improved operational efficiencies and cost management. The company's ability to adapt to changing market conditions and capitalize on emerging trends will be crucial in achieving these projections.

A critical aspect of CCEP's growth potential lies in its competitive advantages. The company benefits from a well-established brand, extensive distribution network, and strong relationships with retailers. These advantages enable CCEP to maintain its market-leading position and effectively compete with other players in the beverage industry.

For more insights into the investors and the rationale behind their investment decisions, check out: Exploring Coca-Cola Europacific Partners PLC (CCEP) Investor Profile: Who’s Buying and Why?