Coca-Cola Europacific Partners Reports Strong FY2024 Results, Announces €1bn Share Buyback
Why we think this is good
The company has delivered robust financial performance in FY2024, demonstrating resilience and growth in challenging market conditions. Revenue increased by 11.7% to €20,438 million, while comparable operating profit grew by 12.2% to €2,663 million. The strong free cash flow generation of €1,817 million and early achievement of the leverage target (2.7x) underscore the company's financial strength. Shareholder returns have been prioritized with a 7.1% increase in dividend per share and the announcement of a €1 billion share buyback program. However, the decline in reported operating profit by 8.8% and the €189 million impairment charge, primarily related to the Indonesia business, temper the overall positive sentiment. The geographic diversification through the Philippines acquisition presents new growth opportunities, but also highlights challenges in certain markets.
Key Points
- Revenue increased by 11.7% to €20,438 million
- Comparable operating profit grew 12.2% to €2,663 million
- Free cash flow of €1,817 million
- Dividend per share increased 7.1% to €1.97
- Announced €1 billion share buyback program
- Early return to leverage target (2.7x vs 3.0x in FY23)
- Reported operating profit declined 8.8% to €2,132 million
- €189 million impairment charge, mainly for Indonesia business
- Acquisition of Coca-Cola Beverages Philippines completed
- FY25 guidance in line with mid-term strategic objectives
Summary
Coca-Cola Europacific Partners has reported its FY2024 results, showing strong revenue growth of 11.7% to €20,438 million and comparable operating profit growth of 12.2% to €2,663 million. The company demonstrated financial strength with free cash flow of €1,817 million and an early return to its leverage target of 2.7x. Shareholder returns were prioritized with a 7.1% increase in dividend to €1.97 per share and the announcement of a €1 billion share buyback program. However, reported operating profit declined by 8.8% to €2,132 million, and the company recorded an impairment charge of €189 million, mainly related to its Indonesia business. The acquisition of Coca-Cola Beverages Philippines has expanded the company's geographic footprint, potentially offsetting challenges in other markets. Despite global economic headwinds, CCEP's performance indicates resilience and adaptability in its diverse markets.