UK – Coca-Cola Europacific Partners (CCEP) has reported a 2.8 percent decline in volume in Europe, totalling 1.27 billion cases for the six months ended June 28, 2024.
This decrease is attributed to adverse weather conditions that impacted sales.
Despite the volume dip, the company’s revenues in Europe rose by 2.4 percent year-on-year to €7.2 billion (US$7.86 billion).
Operating profits were relatively stable, with a slight decrease of 0.6 percent on a reported basis to €882 million (US$962.5M). However, on a comparable basis, operating profits increased by 6 percent to €979 million (US$1.1B).
Overall, CCEP’s first-half performance remained strong, bolstered by significant growth in the Australia, Pacific, and Southeast Asia (APS) region.
In this market, unit-case volumes surged by 80.9 percent to 586 million, and revenues climbed 36.2 percent to €2.54 billion (US$2.77B).
Operating profits in the APS region saw an 8.1 percent decline on a reported basis to €260 million (US$283.68M), jumping 31.5 percent to €317 million (US$345.9M) on a comparable basis.
For the entire group, total volumes increased by 13.8 percent to 1.85 billion unit-cases, and revenues rose by 9.5 percent to €9.82 billion (US$10.7B).
However, operating profits declined by 2.4 percent on a reported basis to €1.14 billion (US$1.2B), increasing 11.2 percent on a comparable basis to €1.29 billion (US$1.4B).
Despite the challenges in Europe, CCEP remains optimistic about future performance in the region.
CEO Damian Gammell acknowledged the weaker volume quarter in Europe but anticipated a stronger second half of the year for volume revenue in the region.
“We are really pleased to have delivered a solid first half performance reflecting great brands and great execution. The strong performance in APS, led by the Philippines, offset the softer volumes in Europe caused by adverse weather,” Gammell said.
In November 2022, CCEP launched an efficiency program aimed at enhancing supply chain efficiencies, global procurement, and leveraging next-generation technology.
During the first half of 2024, the group announced restructuring proposals resulting in €90 million (US$98.2M) of operating expenses, mainly related to severance payments.
Looking forward, CCEP plans to focus on driving profitable revenue growth, managing pricing and promotional spending, and improving productivity and free cash flow.
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