Coca-Cola Europacific Partners: Strength in the Philippines Offsets Lackluster European Volumes

We maintain our USD 67/GBX 5,000 fair value estimates after narrow-moat Coca-Cola Europacific Partners reported its third-quarter trading update in line with our revenue expectations. Market conditions were mixed across regions, resulting in total organic volume growth remaining flat against the prior-year period. Still, we were pleased to see 2.5% growth in revenue per-unit case, reflecting strength in CCEP’s pricing strategy. Management adjusted its full-year 2024 outlook, which we view as appropriate given the current macro environment. Shares were down slightly after the update, but we continue to view the stock as overvalued.