Based on Coca-Cola’s 10-K filing in 2024, Coca-Cola owns shareholdings in multiple companies which operate as regional Coca-Cola bottlers. The companies are publicly listed and collectively, Coca-Cola’s shareholdings in them are worth US$ 28.7 billion on 31 December 2024.
Source: Coca-Cola’s 10-K Filings
From the list, I found Coca-Cola Europacific Partners plc (CCEP) to be the #2 largest Coca-Cola bottling company globally. As of 28 February 2025, CCEP is valued at US$ 39.7 billion in market capitalisation. Here, I’ll share 8 things that I learnt about CCEP from its annual reports. They are as follows:
1. Formation in Western Europe (2016)
On 28 May 2016, Coca-Cola European Partners plc was formed by merging three major bottlers operating in Western Europe namely, Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners (CCIP) and Coca-Cola Erfrischungsgetränke Gmbh (CCEG). Coca-Cola European Partners had subsequently acquired Vifilfell, a Coca-Cola bottling company in Iceland. Thus, by end-2016, the enlarged entity became the key Coca-Cola bottling company across Western Europe with plants and equipment across Andorra, Belgium, France, Germany, Iceland, Monaco, Spain, Britain, the Netherlands, Sweden, and Norway.
Since their formation, Coca-Cola European Partners had recorded 2.4-2.6 billion unit cases on a yearly basis in sales volume throughout Western Europe in 2016-2024. Revenues from Western Europe had increased from €9.1 billion in 2016 to €15.0 billion in 2024.
Source: CCEP
2. Acquisition of Coca-Cola Amatil (2021)
In 2020-2021, Coca-Cola European Partners plc acquired 100% interest in Coca-Cola Amatil for €5.95 billion. Coca-Cola Amatil operates as a bottler for Coca-Cola all over Australia, Indonesia, New Zealand and the Pacific Islands. Subsequently, the corporation changed the listing name to Coca-Cola Europacific Partners plc (CCEP). In 2022-2024, CCEP had recorded annual revenue of €3.7-3.8 billion from the Oceania and Indonesia markets (excluding the Philippines ((Note 3)).
3. Acquisition of Coca-Cola Beverages Philippines Inc (2024)
CCEP and Aboitiz Equity Ventures Inc formed CCEP Aboitiz Beverages Philippines (CABPI), an entity that is owned and funded 60% by CCEP and 40% by Aboitiz Equity Ventures.
On 23 February 2024, CABPI acquired Coca-Cola Beverages Philippines Inc (CCBPI) for a total of €1.54 billion. CCBPI is currently the authorised bottler and distributor of Coca-Cola beverages in the Philippines. As a result of the acquisition, CCBPI had contributed €1.65 billion in revenues to CCEP in 2024. This had lifted CCEP’s total revenues from the Asia-Pacific region up to €5.47 billion in 2024.
4. Revenue
Combined, CCEP grew its total revenues at a CAGR of 12.64%, up from €6.22 billion in 2014 to €20.44 billion in 2024. Its increase was attributable to its merging of top bottlers across Western Europe in 2016, the acquisition of Coca-Cola Amatil in 2021 and the acquisition of 60% interests in Coca-Cola Beverages Philippines Inc via CABPI in 2024.
Source: CCEP
5. Profitability
CCEP maintained a stable gross margin, operating margin and net margin of 37%, 11% and 7% in the last 10 years (2015-2024). With higher revenues, CCEP was able to increase its earnings, up from €484 million in 2014 to €1.42 billion in 2024. This works out to be a CAGR of 11.35%. In 2020, CCEP’s earnings were lower as it was impacted by COVID-19. As for 2024, despite better sales, CCEP recorded lower earnings as it incurred €247 million in restructuring expenses, €189 million in impairment loss from its operations in Indonesia and higher finance costs.
Source: CCEP
6. Capital Allocation
In 2015-2024, CCEP generated €19.9 billion in operating cash flows. It has accounted for 78.6% of CCEP’s total cash inflows in that ten-year period. The remaining 21.4% of its cash inflows has been raised via debt. From its total cash inflows, CCEP chose to allocate most of its capital onto acquisitions (26.9%), capital expenditures (21.6%), dividend payments (21.9%), share buybacks and capital returns (19.5%) in that period.
7. Efficiency Ratio
CCEP had reduced its debtor days from 73.5 days in 2014 to 50.8 days in 2023. In that period, I learnt that CCEP grew its inventory days from 34.2 days in 2014 to 42.7 days in 2023. In that 10 years, CCEP had raised its creditor days from 40.6 days in 2014 to 72.7 days in 2023. Hence, in that period, CCEP was able to reduce its cash conversion cycle from 67.1 days in 2014 to about 20.9 days in 2023. This means, it does not need to reserve as much working capital as before in funding its business operations.
Note: There is no figure on CCEP’s trade payables given for 2024.
8. Valuation
Excluding 2020, CCEP’s P/E Ratio averaged 20.24 in 2017-2024. Meanwhile, in that period, the company’s dividend yield average is 2.75% per year (excluding withholding tax of 30%, if we are investing from NASDAQ).
Conclusion:
Since 2016, CCEP had delivered rising revenues, profits, and dividends to its shareholders. The management had remained committed to expanding its market reach in Asia via the acquisitions made in Indonesia (2021) and the Philippines (2024). In brief, the question now lies with CCEP’s valuation and preference between its shares versus Coca-Cola or other listed bottlers globally.
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