Coca-Cola Europacific Partners
CCEP · NasdaqProfit jumped as last year's charges fell away
Operating profit rose 31.0% on revenue growth of 2.27%, mainly because administrative expenses fell 19.15% as restructuring eased and impairment charges did not recur.
FY2025, the fiscal year to Dec 31, 2025 · 20-F filed Mar 13, 2026
- Operating margin
- 13.4%
- Net income
- $2.0B
- Free cash flow
- $2.2B
Largest source of revenue: Europe, 73.7% of the total.
Where Coca-Cola Europacific Partners's money goes
- 01
Profit jumped as last year's charges fell away
Operating profit rose 31.0% on revenue growth of 2.27%, mainly because administrative expenses fell 19.15% as restructuring eased and impairment charges did not recur.
Why it matters
Administrative expenses fell from €1.73B to €1.4B, from 8.48% of revenue to 6.71%. The filing's cost note ties the fall to lower restructuring under the group's efficiency programme and to the absence of the prior year's impairment charges, which it says "mainly related to the Group's Indonesia CGU." Operating profit rose to €2.79B from €2.13B.1
Other income of €104M appeared, against nothing the year before. The filing attributes it to "gains on the sales of properties in Germany and Great Britain" and further consideration on an earlier German property sale. It equals 3.7% of operating profit, and it comes from selling property, not drinks.1
The core business improved, but by much less. Gross profit grew 3.18% as cost of sales rose 1.77%, lifting gross margin 0.31 points to 35.6%. Operating profit was 37.5% of gross profit, against 29.6% the year before.1
AnalysisAnalysis: most of the 31.0% rise comes from items that are not designed to recur: lower restructuring, no impairment and property gains. This is why the company also reports a comparable operating profit. The steadier measure of the year is the gap between gross profit growth of 3.18% and the growth of operating costs.
- 02
Distribution costs stayed flat while sales grew
Selling and distribution expenses rose 0.12% against revenue growth of 2.27%, so the route network carried more revenue for nearly the same cost.
Why it matters
Selling and distribution expenses were €3.35B in both years, and their share of revenue fell 0.34 points to 16.02%. They absorbed 45.0% of gross profit, against 46.4% the year before. After the product itself, getting drinks to shelves and coolers is the group's largest cost.1
Growth came where the group is largest. Europe grew 2.89% to €15.4B, while APS grew 0.55% to €5.5B. In Europe, the segment note shows revenue rising in Great Britain, France, the Netherlands and the Nordic markets.1
AnalysisAnalysis: once trucks, depots and sales reps cover a territory, extra sales along the same routes cost little to deliver, so distribution cost can fall as a share of revenue. One year of flat cost does not yet show a trend, and the filing figures here do not split the cost by segment.
- 03
Free cash flow exceeded net profit
Free cash flow of €2.2B was larger than profit after taxes of €1.98B, even after €750M of capital spending on plants and equipment.
Why it matters
Operating cash flow was €2.95B, 1.49 times profit after taxes of €1.98B. Capital spending of €750M was 3.59% of revenue and 25.4% of operating cash flow, leaving free cash flow of €2.2B, a margin of 10.54% on revenue of €20.9B.1
AnalysisAnalysis: a bottler owns plants, lines, trucks and coolers, and depreciation spreads their cost over years, reducing profit without using cash in the year. Non-cash charges such as impairments work the same way. That makes cash a steadier read of this business than the swing in reported operating profit.
AnalysisCaveat: the record holds cash flow for this year only, so whether free cash flow above profit is typical for the group cannot be judged from these figures.
- 04
Net profit outgrew operating profit on a lower tax rate
Profit after taxes rose 37.05% against 31.0% for operating profit, as taxes fell to 23.0% of pre-tax profit from 25.4%.
Why it matters
Taxes were €590M on profit before taxes of €2.57B, 23.0%, against 25.4% the year before. Net finance costs rose to €203M from €187M, but grew more slowly than operating profit, and were 7.27% of it this year. Profit after taxes reached €1.98B and basic earnings per share were €4.26, against €3.08.1
AnalysisCaveat: the filing text supplied for this record does not give the reason for the lower tax rate, so no cause is stated here. Part of the gain sits on the same one-off items that lifted operating profit.
Sources
- 1.Coca-Cola Europacific Partners 20-F for the period to 2025-12-31 (the filing), Mar 13, 2026, read Nov 2, 2026
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Growth, profit and margin
Revenue and operating income for the periods the company has filed.
- Revenue$20.9B
- Operating income$2.8B
- Operating margin13.4%
- Period
- FY2025
- Revenue
- $20.9B
- Operating income
- $2.8B
- Operating margin
- 13.4%
- Net income
- $2.0B
- Free cash flow
- $2.2B
Does the profit turn into cash?
FY2025: free cash flow of $2.2B against net income of $2.0B.
- Operating cash flow$3.0B
- Capital expenditure$750.0M
- Free cash flow$2.2B
- Net income$2.0B
Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.
Financial data and sources
How the revenue mix has shifted
Each breakdown the filing reports, as shares of revenue, for every period it restates.
Geographic markets
Segment information - Schedule of Operating Results per Geographic Segment (Details). The filing restates this breakdown for 1 period.
Click a member to isolate it across the years shown.
The figures
Margins, cash and growth for the period, each with what it was computed from.
Not reported, or not derivable
- revenue growth: no prior-year revenue in the history
Where revenue comes from
Every breakdown the filing reports for the period, with each item's share.
Geographic markets
| Europe | $15.4B | 73.7% |
| APS | $5.5B | 26.3% |
Source20-F, ifrs-full:Revenue, as reported in the 20-F filed 2026-03-13
What it costs
The cost lines beneath operating income, each as a share of revenue, then the operating result.
Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.
| Cost line | FY2025 | Of revenue | Source |
|---|---|---|---|
| Cost of sales | $13.5B | 64.4% | Source20-F, ifrs-full:CostOfSales, as reported in the 20-F filed 2026-03-13 |
| Operating profit | $2.8B | 13.4% | Source20-F, ifrs-full:ProfitLossFromOperatingActivities, as reported in the 20-F filed 2026-03-13 |
The statements, as filed
The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.
Income statement18 lines, as presented in the 20-F
Cash flow statement44 lines, as presented in the 20-F
Balance sheet45 lines, as presented in the 20-F
About this data
- Source
- Coca-Cola Europacific Partners 20-F, accession 0001650107-26-000029, filed Mar 13, 2026, read on Nov 2, 2026.
- History
- From the SEC's XBRL company facts, the value from the latest filing that stated each period.
- Reading
- Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
- Version
- methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
What holds Coca-Cola Europacific Partners's model up, and what could bend it
Competitive edge
Licensed to bottle TCCC brands across its territories
Bottling agreements let the group make, sell and distribute The Coca-Cola Company's drinks in its territories, with marketing funding from the brand owner.
The detail
The filing describes bottling agreements "to make, sell and distribute products of TCCC within the Group's territories." The group "purchases concentrate from TCCC and also receives marketing funding", under "an incidence based concentrate pricing model" across most territories.1
AnalysisAnalysis: the brand owner builds consumer demand, and the bottler earns on execution: plants, routes, coolers and retail relationships. With incidence pricing, both sides gain from a better price and mix, so their interests on price point the same way.
Europe is 73.7% of revenue and growing faster
Europe brought in €15.4B, 73.7% of revenue, and grew 2.89%, against 0.55% for APS, so growth came from the larger network.
The detail
Europe's revenue rose 2.89% to €15.4B and its share of group revenue rose 0.45 points to 73.7%. Great Britain, France, the Netherlands and the Nordic markets all grew. No single customer exceeded a tenth of revenue.1
AnalysisAnalysis: a large, established territory spreads the fixed cost of depots, trucks and sales teams over more revenue. That fits a year in which group distribution cost stayed flat while Europe led growth, though the figures do not show distribution cost by segment.
What to watch
The brand owner sets key terms and funding
The group depends on TCCC for concentrate and marketing funding, and the filing says TCCC need not continue past levels of funding.
The detail
The filing states that "TCCC is under no obligation to participate in the programmes or continue past levels of funding." Bottling agreements have an initial fixed term that "may be renewed for successive terms", so the right to sell the core brands rests on those agreements continuing.1
Cost of sales, which includes the concentrate bought from TCCC, was €13.46B, 64.4% of revenue. The brand owner sets the terms for a large part of that cost and for the support that offsets it.1
APS growth stalled as its markets diverged
APS grew 0.55% to €5.5B as gains in the Philippines and Papua New Guinea offset declines in Australia, New Zealand and Indonesia.
The detail
APS's share of revenue fell 0.45 points to 26.3%. The segment note shows revenue rising in the Philippines and Papua New Guinea and falling in Australia, New Zealand and the Pacific Islands, and Indonesia. The prior year's impairment charges "mainly related to the Group's Indonesia CGU", and the group still records deal and integration costs for the Philippine acquisition.1
AnalysisAnalysis: for the segment to add growth, gains in the Philippines would have to keep outweighing declines elsewhere, and the Philippine integration would have to stay on plan. The Indonesia impairment shows that earlier expectations for an acquired business were not met.
Reported profit still carries restructuring charges
The efficiency programme runs for several more years, and its severance costs mean reported operating profit can swing apart from the underlying business.
The detail
The filing ties this year's restructuring cost under its efficiency programme "primarily" to "expected severance payments", and the programme runs for several more years. The company reports a comparable operating profit that excludes such items.1
AnalysisAnalysis: the 19.15% fall in administrative expenses shows how much these charges can move the result. A year with heavier restructuring could reverse part of this year's gain in reported profit without any change in the bottling business itself.
Sources
- 1.Coca-Cola Europacific Partners 20-F for the period to 2025-12-31 (the filing), Mar 13, 2026, read Nov 2, 2026
Coca-Cola Europacific Partners, further in
Member research, then your own questions on ChatGPT.
What could change the outlook
What Coca-Cola Europacific Partners's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.
- What operating profit rests on without the one-off help
Set aside the charges that fell away and the property gains, and see which levers the bottler controls have to carry operating profit from here, and how far each can move.
- Can Asia-Pacific become a source of growth?
How the Philippine and Indonesian businesses shape the APS segment, and what would have to change for it to grow alongside Europe.
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Have a question about Coca-Cola Europacific Partners?
Explore its profit drivers, competitive edge, risks, or your own investment and business questions with CXProWealth on ChatGPT.
- How much of CCEP's 31.0% rise in operating profit came from lower restructuring and the end of impairment charges?
- Why could Coca-Cola Europacific Partners hold selling and distribution costs flat while revenue grew 2.27%?
- What would slower growth in the Philippines mean for CCEP's APS segment?
Business Lens describes Coca-Cola Europacific Partners from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.