Coca-Cola Europacific Partners PLC (CCEP)

Coca-Cola Europacific Partners PLC (CCEP) Consumer Business Overview

Coca-Cola Europacific Partners PLC (CCEP) is a leading bottler and distributor of non-alcoholic beverages, holding exclusive rights to Coca-Cola brands across key European and Pacific markets. With a vast portfolio including soft drinks, waters, and energy drinks, CCEP leverages its extensive distribution network to serve a large consumer base.

What Is the Investment Thesis for CCEP?

Coca-Cola Europacific Partners PLC (CCEP) presents a stable investment opportunity within the consumer defensive sector. With a P/E ratio of 19.8 and a dividend yield of 2.47%, CCEP offers a blend of value and income. The company's extensive distribution network and strong brand portfolio, including Coca-Cola, Fanta, and Sprite, provide a competitive advantage. Growth catalysts include expansion into new markets within its existing geographic footprint and continued innovation in product offerings. Potential risks include changing consumer preferences and increased competition from alternative beverage brands. The company's beta of 0.51 indicates lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

CCEP Key Highlights

• Market capitalization of $47.21B, reflecting its significant presence in the beverage industry.
• P/E ratio of 19.8, suggesting a reasonable valuation compared to its earnings.
• Profit margin of 9.3%, indicating efficient operations and profitability.
• Gross margin of 35.6%, showcasing its ability to manage production costs effectively.
• Dividend yield of 2.47%, providing a steady income stream for investors.

Who Are CCEP's Competitors?

CCEP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CCEP's Key Strengths?

• Strong brand portfolio with iconic brands like Coca-Cola.
• Extensive distribution network across Europe and the Pacific.
• High brand recognition and customer loyalty.
• Efficient operations and supply chain management.

What Are CCEP's Weaknesses?

• Dependence on the Coca-Cola brand.
• Exposure to changing consumer preferences and health trends.
• Competition from alternative beverage brands.
• Geographic concentration in Europe and the Pacific.

What Could Drive CCEP Stock Higher?

• Continued product innovation and expansion of the beverage portfolio.
• Expansion into new markets within its existing geographic footprint.
• Implementation of sustainability initiatives and responsible consumption programs.
• Potential acquisitions and partnerships to expand geographic reach and product offerings.
• Launch of new digital marketing and e-commerce strategies.

What Are the Key Risks for CCEP?

• Changes in consumer preferences and increasing health consciousness.
• Intense competition from other beverage companies.
• Economic downturns and fluctuations in consumer spending.
• Regulatory changes and taxes on sugary drinks.
• Supply chain disruptions and rising input costs.

What Are the Growth Opportunities for CCEP?

• Expansion into Emerging Markets: CCEP has the opportunity to expand its presence in emerging markets within its existing geographic footprint. These markets offer significant growth potential due to increasing disposable incomes and rising demand for non-alcoholic beverages. Investing in distribution infrastructure and tailoring product offerings to local tastes can drive revenue growth in these regions. This expansion could contribute to a 5-10% increase in revenue over the next 3-5 years.
• Product Innovation and Portfolio Diversification: CCEP can drive growth through continuous product innovation and diversification of its beverage portfolio. This includes developing new flavors, low-sugar options, and functional beverages that cater to evolving consumer preferences. Investing in research and development and strategic partnerships can accelerate product innovation and enhance CCEP's competitive advantage. New product launches could contribute to a 3-5% increase in annual revenue.
• Strategic Acquisitions and Partnerships: CCEP can pursue strategic acquisitions and partnerships to expand its product portfolio, geographic reach, and distribution capabilities. Acquiring smaller beverage companies or partnering with complementary brands can provide access to new markets and customer segments. These strategic moves can enhance CCEP's competitive position and drive long-term growth. Acquisitions and partnerships could add 2-4% to annual revenue growth.
• Enhanced Digital Marketing and E-commerce Strategies: CCEP can leverage digital marketing and e-commerce channels to enhance brand awareness, engage with consumers, and drive online sales. Investing in targeted digital advertising, social media marketing, and e-commerce platforms can increase brand visibility and reach a wider audience. A strong digital presence can contribute to a 1-3% increase in annual revenue.
• Sustainability Initiatives and Responsible Consumption: CCEP can strengthen its brand reputation and appeal to environmentally conscious consumers by implementing sustainability initiatives and promoting responsible consumption. This includes reducing its carbon footprint, using sustainable packaging materials, and promoting responsible drinking habits. These initiatives can enhance CCEP's brand image and drive customer loyalty. Sustainability initiatives could contribute to a 1-2% increase in brand value and customer retention.

What Opportunities Does CCEP Have?

• Expansion into emerging markets within its existing geographic footprint.
• Product innovation and diversification of its beverage portfolio.
• Strategic acquisitions and partnerships.
• Enhanced digital marketing and e-commerce strategies.

What Threats Does CCEP Face?

• Increasing health consciousness and demand for low-sugar beverages.
• Intense competition from other beverage companies.
• Economic downturns and fluctuations in consumer spending.
• Regulatory changes and taxes on sugary drinks.

What Are CCEP's Competitive Advantages?

• Strong brand recognition and loyalty for Coca-Cola and other brands.
• Extensive distribution network across Europe and the Pacific.
• Exclusive bottling and distribution agreements with The Coca-Cola Company.
• Economies of scale in production and distribution.

What Does CCEP Do?

Coca-Cola Europacific Partners PLC (CCEP) was founded in 1986 and is headquartered in Uxbridge, United Kingdom. The company is the result of several mergers and acquisitions, evolving into one of the world's largest Coca-Cola bottlers. CCEP produces, distributes, and sells a wide range of non-alcoholic ready-to-drink beverages, including soft drinks, waters, enhanced waters, isotonic drinks, ready-to-drink tea and coffee, and juices. Its portfolio includes iconic brands such as Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, and Sprite, as well as other popular beverages like Monster Energy, Relentless, and Appletiser. CCEP operates across Europe and the Pacific, serving approximately 600 million consumers as of March 15, 2022. The company also engages in bottling and other operational activities to support its distribution network. Formerly known as Coca-Cola European Partners plc, the company changed its name to Coca-Cola Europacific Partners PLC in May 2021 to reflect its expanded geographic footprint. CCEP's extensive distribution network and strong brand portfolio position it as a key player in the non-alcoholic beverage industry.

What Products and Services Does CCEP Offer?

• Produces a wide range of non-alcoholic ready-to-drink beverages.
• Distributes beverages through an extensive network across Europe and the Pacific.
• Sells beverages under well-known brands like Coca-Cola, Fanta, and Sprite.
• Offers a variety of beverage categories, including soft drinks, waters, and energy drinks.
• Engages in bottling and other operational activities to support its distribution network.
• Serves approximately 600 million consumers as of March 15, 2022.

How Does CCEP Make Money?

• Produces and bottles non-alcoholic beverages.
• Distributes products through a network of retailers, restaurants, and other outlets.
• Generates revenue through the sale of beverages to consumers and businesses.
• Focuses on brand management and marketing to drive demand.

What Industry Does CCEP Operate In?

Coca-Cola Europacific Partners PLC operates in the competitive non-alcoholic beverage industry. The market is characterized by evolving consumer preferences, increasing health consciousness, and the rise of alternative beverage options. CCEP competes with other major beverage companies, including ABEV: Ambev S.A., and KDP: Keurig Dr Pepper Inc., as well as smaller regional players. The industry is also influenced by trends such as the growing demand for low-sugar and functional beverages. CCEP's strong brand portfolio and extensive distribution network position it well to navigate these trends and maintain its market share.

Who Are CCEP's Key Customers?

• Retail consumers who purchase beverages for personal consumption.
• Restaurants, cafes, and bars that serve beverages to their customers.
• Retail stores, supermarkets, and convenience stores that sell beverages to consumers.
• Wholesale distributors who supply beverages to smaller retailers and businesses.

ROE 24%Key Financial Metrics

Return on equity for Coca-Cola Europacific Partners PLC stands at 24.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.5%, showing how much profit it generates from its asset base. CCEP trades at a trailing price-to-earnings ratio of 19.84, below the Consumer Defensive sector average of ~29x. Its free cash flow yield is 5.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.80 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.1%, the inverse of the P/E and a quick read on earnings relative to price.

Coca-Cola Europacific Partners PLC (CCEP) Valuation Context

Valued at $47.21B, CCEP is classified as a large-cap stock. Relative to its peer group, CCEP's quantitative score of 52/100 is roughly in line with the peer average of 60/100.

Company Profile

Coca-Cola Europacific Partners PLC operates in the Beverages - Non-Alcoholic industry within the Consumer Defensive sector. It is headquartered in Uxbridge, GB. The company is led by CEO Damian Paul Gammell. CCEP has traded publicly since 1986.

F-Score 6/9Financial Health

Coca-Cola Europacific Partners PLC's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.48 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2026 estForward Outlook

Wall Street analysts project Coca-Cola Europacific Partners PLC revenue of about $21.48B for fiscal 2026, with EPS near $4.45. The estimate reflects 9 contributing analysts.

CCEP Financials

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CCEP Analyst Consensus

CCEP MoonshotScore

What Investors Ask About Coca-Cola Europacific Partners PLC (CCEP) — Consumer Defensive

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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