Coca-Cola Europacific Partners Q1 Performance Strong
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy CCEP?
Source: seekingalpha
- Revenue Growth: Coca-Cola Europacific Partners (CCEP) reported a 6.7% year-over-year revenue increase to €5.0 billion in Q1 2026, primarily driven by strong growth in Europe and continued momentum in zero-sugar and energy drink categories, demonstrating resilience in a low-growth environment.
- Volume Performance: While reported volume increased by 8.5%, the average daily sales volume rose only 1.6% after adjusting for six extra trading days, indicating challenges in maintaining volume growth, with revenue per unit case up 0.8% reflecting support from pricing and mix.
- Analyst Outlook: Jefferies analyst Edward Mundy reiterated a bullish stance on CCEP, describing it as the “real thing” in the consumer staples sector, with high barriers to entry and potential for visible double-digit returns, forecasting 4% sales growth and 7% EBIT growth in the medium term.
- Shareholder Return Plan: CCEP announced a €1 billion share buyback program and a robust outlook for FY26, further enhancing investor confidence in future cash returns, underscoring the company's commitment to shareholder value.
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Analyst Views on CCEP
Wall Street analysts forecast CCEP stock price to rise
8 Analyst Rating
6 Buy
1 Hold
1 Sell
Moderate Buy
Current: 94.570
Low
87.02
Averages
99.49
High
114.00
Current: 94.570
Low
87.02
Averages
99.49
High
114.00
About CCEP
Coca-Cola Europacific Partners plc is a United Kingdom-based consumer goods company. The Company is engaged in making, selling and distributing an extensive range of primarily non-alcoholic ready-to-drink (RTD) beverages. The Company's product categories include Coca-Cola trademark; flavors and mixers; waters, sports, RTD tea and coffee, and other including energy. Its brands include Coca-Cola Original Taste, Coca-Cola Zero Sugar, Diet Coke, Sprite, Fanta, Monster Energy, Costa Coffee and Fuze Tea. The Company's operations include Europe and Australia, Pacific and Southeast Asia (APS). Its Europe operations include FBN (France, Monaco, Belgium, Luxembourg, the Netherlands, Norway, Sweden and Iceland), Germany, Great Britain, and Iberia (Spain, Portugal and Andorra). The Company's APS operations include Australia/Pacific (Australia, New Zealand, the Pacific Islands and Papua New Guinea), and Southeast Asia (Indonesia and the Philippines). It operates in approximately 31 markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coca-Cola Europacific Partners Q1 Performance Strong
- Revenue Growth: Coca-Cola Europacific Partners (CCEP) reported a 6.7% year-over-year revenue increase to €5.0 billion in Q1 2026, primarily driven by strong growth in Europe and continued momentum in zero-sugar and energy drink categories, demonstrating resilience in a low-growth environment.
- Volume Performance: While reported volume increased by 8.5%, the average daily sales volume rose only 1.6% after adjusting for six extra trading days, indicating challenges in maintaining volume growth, with revenue per unit case up 0.8% reflecting support from pricing and mix.
- Analyst Outlook: Jefferies analyst Edward Mundy reiterated a bullish stance on CCEP, describing it as the “real thing” in the consumer staples sector, with high barriers to entry and potential for visible double-digit returns, forecasting 4% sales growth and 7% EBIT growth in the medium term.
- Shareholder Return Plan: CCEP announced a €1 billion share buyback program and a robust outlook for FY26, further enhancing investor confidence in future cash returns, underscoring the company's commitment to shareholder value.
See More
Coca-Cola Europacific Partners Reports Revenue Growth in Q1
- Significant Revenue Growth: Coca-Cola Europacific Partners reported total revenues of €5.001 billion in Q1, reflecting a 6.7% year-over-year increase, with growth across all regions except Southeast Asia, indicating strong performance in other markets.
- Volume Increase: The total volume reached 970 million units, marking an 8.5% year-over-year growth, while comparable growth was 1.6%, showcasing the company's successful market execution despite a challenging consumer environment.
- Dividend Declaration: The Board announced an interim dividend of €0.82 per share, payable on May 27 to shareholders of record on May 15, reinforcing the company's commitment to shareholder returns and boosting investor confidence.
- Optimistic Future Outlook: The company expects revenue growth of 3% to 4% for fiscal 2026, with operating profit projected to grow around 7%, alongside a planned €1 billion share buyback throughout the year, reflecting confidence in future growth.
See More
Three Top Dividend Stocks with Growth Potential for the Next Decade
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- Equinix's Growth Potential: Although Equinix (EQIX) has a current dividend yield of only 2%, its average annual dividend growth rate of 11% over the past decade indicates strong market demand and profitability in the cloud computing and data center sectors, with projected revenue growth of about 10% this year.
- Constellation Energy's Nuclear Advantage: Constellation Energy (CEG) generates over 80% of its power from 21 nuclear reactors, positioning it to meet the increasing electricity demand as global nuclear power generation is expected to grow by 50% by 2050, despite a low current yield of 0.58%.
- Investor Confidence and Market Opportunities: The unique strengths and growth potential of these three companies attract investor interest, particularly against the backdrop of surging demand for artificial intelligence data centers, which is expected to drive both stock prices and dividends higher.
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Investor Sentiment Weighed Down by U.S.-Iran Conflict
- Market Sentiment Decline: Investor sentiment was significantly dampened due to escalating tensions in the U.S.-Iran conflict, which drove crude oil prices sharply higher, leading to substantial selling pressure in consumer discretionary, financials, and industrials, reflecting concerns over slowing growth and tighter financial conditions.
- Energy Sector Outperformance: Amid broader market noise, the energy sector emerged as a relative outperformer due to the surge in oil prices, indicating a shift towards defensive positioning in healthcare and select industrial plays as investors seek stability in uncertain economic times.
- Relative Strength Index Insights: Among Nasdaq constituents, companies like Cintas (CTAS) and Coca-Cola Europacific Partners (CCEP) reported low Relative Strength Index (RSI) levels of 27, indicating oversold conditions that may present potential buying opportunities for investors looking for trend reversals.
- Investor Focus on Turnaround Stories: Despite facing challenges, Kraft Heinz (KHC) is viewed as a turnaround story with an expected ~14% free cash flow yield, drawing investor interest even as it grapples with structural decline risks.
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Analysis of Consumer Staples Stock Appeal
- Sector Positioning: Consumer staples stocks represent only 5.3% of the S&P 500, ranking as the seventh-largest sector weight, yet their everyday product familiarity fosters brand loyalty, making them a focal point for investors despite lacking the glamour of tech stocks.
- Coca-Cola Europacific Partners: This company serves over 600 million consumers across 31 markets, boasting a market cap of $45 billion and a dividend yield of 2.30%, indicating strong shareholder return potential and solid dividend growth prospects.
- Keurig Dr Pepper Acquisition: The company is nearing the completion of its $18 billion acquisition of JDE Peet's, with expectations to generate $4.2 billion in annual free cash flow from 2027 to 2030, supported by $1 billion in cash liquidity, despite an increase in debt ratio.
- Clorox's Recovery Potential: Although Clorox's stock has declined 37.6% over the past five years, it maintains a market cap of $13 billion and a dividend yield of 4.54%, with its innovative R&D efforts positioning it to rebound and attract income-focused investors.
See More
Investment Opportunities in Consumer Staples Sector
- Strong Sector Performance: The consumer staples sector has outperformed the broader market in 2023, capturing investor interest due to its stable dividend yields and lower volatility, despite only representing 5.3% of the S&P 500, highlighting its investment appeal.
- Coca-Cola Europacific Partners: This company serves over 600 million consumers across 31 markets, operating independently while Coca-Cola retains a 19% stake, and is expected to benefit from rising demand for Coca-Cola products, showcasing potential for reliable dividend growth.
- Keurig Dr Pepper Acquisition: Keurig Dr Pepper is nearing the completion of its $18 billion acquisition of JDE Peet's, with expectations of generating $4.2 billion in annual free cash flow from 2027 to 2030, although dividend growth may slow in the short term, the long-term outlook remains positive.
- Clorox's Recovery Potential: Despite a 37.6% decline in stock price over the past five years, Clorox's nearly fifty-year streak of dividend increases and ongoing R&D efforts may support a rebound, making it attractive for income-seeking investors.
See More
Coca-Cola Europacific Partners Q1 Performance Strong
- Revenue Growth: Coca-Cola Europacific Partners (CCEP) reported a 6.7% year-over-year revenue increase to €5.0 billion in Q1 2026, primarily driven by strong growth in Europe and continued momentum in zero-sugar and energy drink categories, demonstrating resilience in a low-growth environment.
- Volume Performance: While reported volume increased by 8.5%, the average daily sales volume rose only 1.6% after adjusting for six extra trading days, indicating challenges in maintaining volume growth, with revenue per unit case up 0.8% reflecting support from pricing and mix.
- Analyst Outlook: Jefferies analyst Edward Mundy reiterated a bullish stance on CCEP, describing it as the “real thing” in the consumer staples sector, with high barriers to entry and potential for visible double-digit returns, forecasting 4% sales growth and 7% EBIT growth in the medium term.
- Shareholder Return Plan: CCEP announced a €1 billion share buyback program and a robust outlook for FY26, further enhancing investor confidence in future cash returns, underscoring the company's commitment to shareholder value.
See More
Coca-Cola Europacific Partners Reports Revenue Growth in Q1
- Significant Revenue Growth: Coca-Cola Europacific Partners reported total revenues of €5.001 billion in Q1, reflecting a 6.7% year-over-year increase, with growth across all regions except Southeast Asia, indicating strong performance in other markets.
- Volume Increase: The total volume reached 970 million units, marking an 8.5% year-over-year growth, while comparable growth was 1.6%, showcasing the company's successful market execution despite a challenging consumer environment.
- Dividend Declaration: The Board announced an interim dividend of €0.82 per share, payable on May 27 to shareholders of record on May 15, reinforcing the company's commitment to shareholder returns and boosting investor confidence.
- Optimistic Future Outlook: The company expects revenue growth of 3% to 4% for fiscal 2026, with operating profit projected to grow around 7%, alongside a planned €1 billion share buyback throughout the year, reflecting confidence in future growth.
See More
Three Top Dividend Stocks with Growth Potential for the Next Decade
- Brookfield Asset Management: Brookfield Asset Management (BAM) focuses on high-demand sectors, targeting revenue growth of 15% to 20% over the next decade while committing 90% of earnings to dividends, with a current yield of 4.13%, showcasing strong cash flow and stable dividend capacity.
- Equinix's Growth Potential: Although Equinix (EQIX) has a current dividend yield of only 2%, its average annual dividend growth rate of 11% over the past decade indicates strong market demand and profitability in the cloud computing and data center sectors, with projected revenue growth of about 10% this year.
- Constellation Energy's Nuclear Advantage: Constellation Energy (CEG) generates over 80% of its power from 21 nuclear reactors, positioning it to meet the increasing electricity demand as global nuclear power generation is expected to grow by 50% by 2050, despite a low current yield of 0.58%.
- Investor Confidence and Market Opportunities: The unique strengths and growth potential of these three companies attract investor interest, particularly against the backdrop of surging demand for artificial intelligence data centers, which is expected to drive both stock prices and dividends higher.
See More
Investor Sentiment Weighed Down by U.S.-Iran Conflict
- Market Sentiment Decline: Investor sentiment was significantly dampened due to escalating tensions in the U.S.-Iran conflict, which drove crude oil prices sharply higher, leading to substantial selling pressure in consumer discretionary, financials, and industrials, reflecting concerns over slowing growth and tighter financial conditions.
- Energy Sector Outperformance: Amid broader market noise, the energy sector emerged as a relative outperformer due to the surge in oil prices, indicating a shift towards defensive positioning in healthcare and select industrial plays as investors seek stability in uncertain economic times.
- Relative Strength Index Insights: Among Nasdaq constituents, companies like Cintas (CTAS) and Coca-Cola Europacific Partners (CCEP) reported low Relative Strength Index (RSI) levels of 27, indicating oversold conditions that may present potential buying opportunities for investors looking for trend reversals.
- Investor Focus on Turnaround Stories: Despite facing challenges, Kraft Heinz (KHC) is viewed as a turnaround story with an expected ~14% free cash flow yield, drawing investor interest even as it grapples with structural decline risks.
See More
Analysis of Consumer Staples Stock Appeal
- Sector Positioning: Consumer staples stocks represent only 5.3% of the S&P 500, ranking as the seventh-largest sector weight, yet their everyday product familiarity fosters brand loyalty, making them a focal point for investors despite lacking the glamour of tech stocks.
- Coca-Cola Europacific Partners: This company serves over 600 million consumers across 31 markets, boasting a market cap of $45 billion and a dividend yield of 2.30%, indicating strong shareholder return potential and solid dividend growth prospects.
- Keurig Dr Pepper Acquisition: The company is nearing the completion of its $18 billion acquisition of JDE Peet's, with expectations to generate $4.2 billion in annual free cash flow from 2027 to 2030, supported by $1 billion in cash liquidity, despite an increase in debt ratio.
- Clorox's Recovery Potential: Although Clorox's stock has declined 37.6% over the past five years, it maintains a market cap of $13 billion and a dividend yield of 4.54%, with its innovative R&D efforts positioning it to rebound and attract income-focused investors.
See More
Investment Opportunities in Consumer Staples Sector
- Strong Sector Performance: The consumer staples sector has outperformed the broader market in 2023, capturing investor interest due to its stable dividend yields and lower volatility, despite only representing 5.3% of the S&P 500, highlighting its investment appeal.
- Coca-Cola Europacific Partners: This company serves over 600 million consumers across 31 markets, operating independently while Coca-Cola retains a 19% stake, and is expected to benefit from rising demand for Coca-Cola products, showcasing potential for reliable dividend growth.
- Keurig Dr Pepper Acquisition: Keurig Dr Pepper is nearing the completion of its $18 billion acquisition of JDE Peet's, with expectations of generating $4.2 billion in annual free cash flow from 2027 to 2030, although dividend growth may slow in the short term, the long-term outlook remains positive.
- Clorox's Recovery Potential: Despite a 37.6% decline in stock price over the past five years, Clorox's nearly fifty-year streak of dividend increases and ongoing R&D efforts may support a rebound, making it attractive for income-seeking investors.
See More
