Coca-Cola EP reports 'solid' first-half results

Soft drinks bottler Coca-Cola Europacific Partners (CCEP) has delivered what it describes as “solid” first-half results after its price and promotion strategy helped it to offset the effects of adverse weather conditions.

Reported revenues rose 9.5 per cent while total volumes rose 13.8 per cent but increased only 0.6 per cent on an adjusted basis, stated reports today (7). Adjusted comparable operating profit rose 9.0 per cent, reflecting top-line growth, efficiency programmes, and efforts on “discretionary spend optimisation”.

In Britain, CCEP’s revenues edged down 0.9 per cent with a “moderate” volume decline due to softness in the away-from-home (AFH) channel, adverse weather, and a de-listing of the Capri Sun brand. However, the group noted that it saw strong volume growth for both Coca-Cola Zero Sugar and Powerade, while the Monster brand continued to outperform with high single-digit growth.

Chief Executive Damian Gammell commented, “We are really pleased to have delivered a solid first half performance reflecting great brands and great execution … Our focus on revenue growth management, headline price and promotion strategy across a broad pack offering also drove solid gains in revenue per unit case.”

“We are well placed operating in categories that remain resilient. We continue to invest for growth and have strong commercial plans in place for the rest of this year and beyond to engage customers and consumers.

“We remain focused on driving profitable revenue growth, actively managing our pricing and promotional spend to remain affordable and relevant to our consumers, alongside our focus on productivity and free cash flow. In that context, we reaffirm our full year guidance for 2024.”

Meanwhile, the business innovation arm of Coca-Cola Europacific Partners, CCEP Ventures, is investing in a tech startup turning wastewater into clean electricity.

CCEP Ventures has led an investment round for Pipeline Organics, a climate tech company focused on converting sugar-rich wastewater into “a continuous supply of planet-friendly electricity” that will help power its food and drink production operations.

Pipeline Organics, which manufactures industrial fuel cells that can generate electricity and heat through an electrochemical reaction, secured £800,000 in the round led by CCEP, as well as additional grant funding from the government’s agency Innovate UK.

The investment will also streamline development for more applications of this “cleaner and cheaper” energy within the food and drink industry, according to the company, with their first commercial product on track to be launched by the end of 2025.