Coca-Cola Europacific Partners Earnings: Nice Profitability Expansion in a Challenging Year

Why It Matters

The earnings showcase CCEP’s ability to expand margins in a soft market, influencing investor sentiment and setting a benchmark for bottler profitability amid industry pricing pressures.

Key Takeaways

• Revenue grew 2.3% YoY, volume up 2.7%.
• Operating profit rose 5.4% despite market headwinds.
• Fair‑value estimate increased to GBX 6,300.
• Ready‑to‑drink alcohol sales jumped 10% YoY.
• 2026 outlook: 3‑4% revenue, 7% profit growth.

Pulse Analysis

Coca‑Cola Europacific Partners delivered a modest top‑line gain in 2025, posting 2.3 % revenue growth and 2.7 % volume expansion despite lingering headwinds in Germany and Indonesia. The bottler’s operating profit climbed 5.4 %, a performance boost driven by disciplined pricing and cost‑efficiency programs that offset weaker demand. By leveraging its narrow economic moat, CCEP managed to improve margins while the broader non‑alcoholic beverage market faced pricing pressure. The results illustrate how a well‑executed pricing strategy can sustain profitability in a challenging macro environment.

Morningstar responded by lifting its fair‑value estimate to GBX 6,300, up from GBX 5,400, reflecting the lower operating‑expense outlook. Nevertheless, the analyst team flags a roughly 15 % premium on the current share price, suggesting limited upside unless gross‑margin expansion materialises. The bottler’s pricing levers are constrained by The Coca‑Cola Company’s control over bottling contracts, which caps the potential for margin improvement. Investors must weigh the valuation gap against the risk that tighter contract terms could dampen future earnings acceleration.

Looking ahead, CCEP’s 2026 guidance targets 3‑4 % revenue growth and a 7 % rise in operating profit, buoyed by the FIFA World Cup activation and a strong ready‑to‑drink alcohol segment that posted a 10 % revenue jump. Emerging‑market expansion remains a core growth engine, with competitors such as Coca‑Cola HBC also pursuing African acquisitions. While competition in the RTD‑alcohol space intensifies, CCEP’s diversified portfolio and strategic market positioning should support steady cash‑flow generation, making it a focal point for investors tracking bottler dynamics.

Coca-Cola Europacific Partners Earnings: Nice Profitability Expansion in a Challenging Year

Verushka Shetty · 17 Feb 2026

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Key Morningstar Metrics for Coca‑Cola Europacific Partners

• Fair Value Estimate: GBX 6,300

• Morningstar Rating: ★★

• Morningstar Economic Moat Rating: Narrow

• Morningstar Uncertainty Rating: Medium

What We Thought of Coca‑Cola Europacific Partners’ Earnings

CCEP’s 2025 results included comparable year‑over‑year revenue growth of 2.3 % and volume growth of 2.7 %. Operating profit increased 5.4 %, with bottom‑line improvement in both segments. Shares were flat at the market open on Feb. 17.

Why it matters: Revenue came in below our expectations, with third‑quarter headwinds from Germany and Indonesia carrying into the fourth quarter. However, full‑year profitability growth exceeded our forecasts, driven by effective pricing and efficiency initiatives.

• Full‑year 2026 targets are broadly similar to 2025 guidance, with revenue growth of 3 %–4 % and operating profit growth of 7 %. We think the firm can meet its targets, with an added revenue boost from 2026 FIFA World Cup activations.

• CCEP’s ready‑to‑drink alcohol category performed strongly despite industry weakness in the spirits sector, with revenue up 10 %. We expect continued growth in the ready‑to‑drink alcohol category; however, we are cognizant of intensifying competition.

The bottom line: We are raising our fair‑value estimate for narrow‑moat CCEP to GBX 6,300 from GBX 5,400. At current levels, shares are around 15 % overvalued. Our fair‑value increase stems from lower operating‑expense forecasts; however, we remain cautious about the potential for gross‑margin expansion given The Coca‑Cola Company’s control over bottling contracts.

• Our revenue‑growth projections are broadly unchanged and in line with management’s medium‑term target of 4 %.

• We continue to view CCEP’s emerging‑market expansion favorably for driving long‑term growth and see other bottlers following suit; Coca‑Cola HBC is acquiring Coca‑Cola Beverages Africa.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.