Coca-Cola Europacific Partners (CCEP) delivered solid first-half growth in Britain, with revenue rising 5.6 per cent as demand for Coca-Cola Zero Sugar, Monster Energy and Powerade helped offset continued pressure on household spending.
The bottling giant, which supplies Coca-Cola products across Britain, reported first-half revenue of €1.79 billion (£1.53bn) in the market, up 5.6 per cent year on year, or 8.7 per cent on a foreign exchange-neutral basis. Second-quarter revenue increased 3.4 per cent to €970 million.
CCEP said Britain recorded mid-single-digit volume growth during the first half, supported by FIFA World Cup activations and favourable weather in the second quarter.
Coca-Cola Zero Sugar posted strong volume growth following the launch of Cherry Float, while Diet Coke continued to gain momentum with its new Cherry variant and The Devil Wears Prada collaboration collaboration. Monster Energy also achieved double-digit growth, helped by innovations including Viking Berry and Ultra Vice Guava, while Smartwater benefited from new retail listings. Powerade volumes also rose strongly following new pack formats, flavour extensions and World Cup promotions.
Revenue per unit case increased on the back of headline price rises introduced in the second quarter and a favourable product mix, partially offset by water sales.
Across the group, first-half revenue increased 4.4 per cent to €10.72bn, while comparable operating profit rose 6.5 per cent to €1.48bn. On a foreign exchange-neutral basis, revenue grew 6.1 per cent and comparable operating profit increased 8.1 per cent.
Group volumes rose 5.6 per cent on a reported basis to 2.04 billion unit cases, although after adjusting for six additional trading days compared with last year, average daily sales increased 2.2 per cent. European volumes were up 1.6 per cent on a comparable basis.
Chief executive Damian Gammell said the company had delivered “a strong first half” through balanced revenue growth, market share gains and disciplined cost management.
“Our performance reflects the strength of our broad beverage portfolio, the consumer demand for value and the relevance of our innovation across faster-growing categories such as zero sugar, energy and hydration, supported by quality in-market execution and exciting activations including the FIFA World Cup,” he said.
Gammell acknowledged that consumer conditions remained challenging and that uncertainty over the situation in the Middle East continued, but said the first-half performance demonstrated the resilience of the business.
He added that CCEP remained focused on expanding cooler coverage, winning new customers and investing in artificial intelligence, technology and its supply chain to drive future growth.
The company reaffirmed its full-year guidance, continuing to expect comparable revenue growth of 3-4 per cent and operating profit growth of around 7 per cent, while maintaining its planned €1bn share buyback programme.