Coca-Cola Europacific Partners Q2 2025: Navigating Contradictions in European Growth, Pricing Strategies, and Market Performance

Volume growth trends in Europe, volume growth assumptions, impact of competitive pricing, impact of weather on sales, and Indonesia market performance are the key contradictions discussed in Coca-Cola Europacific Partners PLC's latest 2025Q2 earnings call.



Revenue Growth and Profitability:
- Coca-Cola Europacific Partners (CCEP) reported revenue of EUR 10.3 billion for H1 2025, up 2.5%.
- The company delivered a solid operating profit growth of 7.2%, with operating margin expansion in both Europe and APS.
- Growth was driven by sustainable revenue and margin management, strong commercial plans, and a focus on price and promotional strategies.

Regional Performance and Challenges:
- Excluding Indonesia, CCEP's volumes were up around 1%, supported by Europe returning to volume growth in Q2.
- However, Indonesia impacted CCEP's Q2 performance, with a 1% decline in group volumes due to a slower-than-expected pace.
- These regional dynamics reflect macroeconomic challenges in Indonesia affecting household consumption, while Europe benefited from Easter timing and better weather.

Digital and Technological Investments:
- CCEP has seen significant improvements in digital capabilities, with 70% visibility on fragmented trade revenue at an outlet level in Europe.
- This has been achieved through investments in technology and data-driven tools, enhancing customer engagement and market development.
- The company continues to leverage technology for revenue management, customer engagement, and operational efficiency.

Sustainability and External Recognition:
- CCEP retained its inclusion on the CDP's A-List for Climate for the ninth year, reflecting ongoing progress in packaging collection and sustainable technology investments.
- The company is integrating more sustainable practices, such as trialing wastewater-to-electricity conversion technology.
- This focus on sustainability supports the decarbonization journey and aligns with long-term brand positioning.

Shareholder Returns and Capital Allocation:
- CCEP paid a first-half dividend of EUR 0.79 per share and completed around EUR 460 million in share buybacks.
- The company is committed to delivering continuous value to shareholders, balancing capital allocations between dividends and share buybacks.
- The disciplined capital allocation strategy supports continued cash returns without compromising strategic investments in future growth.