CCEP reports solid 2023 growth, MD – Aus hints at renewed focus on alcohol category

February 26, 2024
By Cody Profaca

Coca-Cola Europacific Partners’ 2023 full year results, published yesterday, reveal strong growth for the company despite difficult trading conditiions. Highlights include an 8% growth in revenue and a 13.5% increase in operating profit. 

“2023 was a great year for CCEP,” said Damian Gammell, CEO. 

“We are stronger and better, more diverse and robust, and our categories remain resilient despite ongoing macroeconomic and geopolitical volatility.”

“This is testament to the hard work of our colleagues to whom we are extremely grateful, alongside our customers and brand partners. Our focus on leading brands, strong customer relationships and solid in-market execution served us well.”

Total revenue of the company for 2023 was €18.3 billion (over AUD $30 billion) and operating profit was €2.4 billion (just under AUD $4 billion). The report also recognised that CCEP products made more revenue for its Australian and New Zealand retail customers in 2023 than any of its non-alcoholic RTD peers. 

“Australia, like the rest of the word, emerged from the shadow of COVID-19 [in 2023], with a renewed sense of resilience and adaptability, as consumers eagerly returned to bars and venues, reflecting a sector poised for a vibrant future,” said Orlando Rodriguez, Managing Director – Australia, in a Drinks Trade exclusive.

Rodriguez also indicated that CCEP would be renewing its focus on its alcohol portfolio over coming years. 

“At CCEP, we’re proud to be in a unique position to provide customers with a beverage for every occasion, from soft drinks to alcohol,” he said.

“Looking ahead, I’m excited by the potential growth opportunities for CCEP in the alcohol category, particularly spirits and RTD, while we continue to execute our growth plans for soft drinks and our broader non-alcohol portfolio. 

“Together with our brand partners and customers, we’ve been able to deliver significant value across these growth areas including innovation with the RTD brand -196 – with an exciting new flavour coming soon – the rising popularity of Asian-inspired spirits like Japanese Whisky and our much-loved Big Brands like Jim Beam and Canadian Club that we’ve seen customers return to through challenging times.”

CCEP’s current Australian liquor portfolio includes Beam Suntory, Feral Brewing Co., Rum Co. of Fiji, Rekorderlig Cider, and the Australian Bitters Company, however it is scheduled to end its 16 year partnership with Beam Suntory in H2 2025.

The full year results revealed CCEP’s performance to be especially strong in emerging markets, further broadening the company’s foundations. Moving forwards, CCEP will be turning its attention to activations such as the Paris Olympics and UEFA Euros. 

“We remain confident in the future, continuing to invest for the long-term,” said Gammell.

“A record dividend in FY23 and our recent inclusion into the Nasdaq 100, combined with our FY24 guidance, demonstrate the strength of our business and our ability to deliver continued shareholder value.

“We continue to actively manage our pricing and promotional spend to remain relevant to our consumers, balancing affordability and premiumisation. Along with our focus on productivity, this will all ultimately drive our free cash flow.”

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