CCEP recently announced its FY2024 full-year financial results, presenting two sets of metrics for its its revenue and profits: A reported value, and an adjusted comparable value, the latter of was affected by its purchase of Coca-Cola Philippines in 2024.
For the reported values, CCEP reported a 11.7% year-on-year growth in revenue to EUR20.4bn (US$22.1bn) and a -13.5% year-on-year decline in profit after taxes to EUR1.4bn (US$1.52bn); and for the adjusted comparable values revenue grew 3.5% to the same value but profits were instead positive with a 8.7% growth to EUR1.85bn (US$2bn) - reflecting the influence Coca-Cola Philippines had on the company’s financials in 2024.
“The Philippines had quite a year delivering double-digit volume growth, with strong underlying market demand that great execution helped drive value share gains to record highs including 75% of the local sparkling market and 50% of the Non-Alcoholic Ready-To-Drink (NARTD) market,” CCEP CEO Damian Gammell told the floor at the firm’s latest analyst meeting.
“We see lots of opportunities both long and short term which naturally will be led by Coke, but we also see opportunities in other areas such as low-and-no sugar, energy and Alcoholic RTD (ARTD).
“We will continue to invest in this exciting business to support the market’s long-term growth expectation, so given the positive outlook, we are accelerating some of our CAPEX plans here.”
The situation was however not quite so rosy in Indonesia where there has been a continued resistance against Western brands, especially any that are perceived to back Israel in the Palestinian conflict.
This has affected many brands such as McDonald’s and Starbucks, and Coca-Cola has also fallen victim to this perception – Revenue in this market dropped 12% to EUR403mn (US$436.3mn) last year, compared to positive revenues in all the rest of the firm’s APS (Australia, Pacific and South East Asia) zone.
“On Indonesia, whereas clearly the Philippines had a standout year, our Indonesian volumes, similar to many other Western brands, were significantly affected by geopolitical events,” he said.
“We did however see encouraging sparkling growth in less affected parts of the country, and the transformation of our route to market has progressed well to ensure Indonesia continues to be fit for the future.
“I want to reiterate that we continue to believe in the long-term opportunity in this market.”
Areas for further growth
Despite its European origins, CCEP still plans to increase its focus on the APS zone given the enormous market opportunities here, covering multiple product categories.
“Going forward, we ultimately recognise that volume and revenue growth in Europe is critical for CCEP across sparkling, energy and other NARTD [but] we are excited by the balance of exposures we now have to higher growth markets, where we continue to build out capabilities,” Gammell added.
“In my mind, these include not only the Philippines and Indonesia but also Papua New Guinea and the Pacific Islands. They represent half of our markets, which having grown revenue last year by around 10%, clearly demonstrate their power as an organic top line accelerator for CCEP.
“Indonesia is a big, big country [despite] some of those geopolitical challenges, which is one of the reasons we remain very excited about it for the long term; and I think the changes that we’ve been able to make in the last year will really pay off.
“We are looking at expanding Energy into newer markets here as well, so Indonesia, Philippines [and] this continues to be a very exciting innovative category for us in this region.”
