Hot summer helps Q3 sales fizz at Coca-Cola Europacific

(Sharecast News) - Coca-Cola Europacific Partners reaffirmed full-year guidance on Tuesday, after third-quarter sales fizzed on the back of the hot summer weather and growing demand for zero sugar drinks. Updating on trading, the European soft drinks distributor - which bottles and sells Coca-Cola, Fanta, Sprite and Monster Energy, among others - saw revenues rise 6.5% to €5.7bn, while volumes rose by an above-forecast 3.6% to 1.05bn unit cases (UC). Revenue per UC rose 2.2% to €5.46.

The blue chip, which is also listed in Spain, the Netherlands and the US, saw growth across all regions, including a 5.7% jump in France, Belgium and Netherlands - its biggest market - to €1.5bn, and a 9.3% jump in Great Britain to £1bn.

Damian Gammell, chief executive, said: "Revenue growth was well balanced, with higher volumes and solid revenue per case across our markets in the home and away-from-home channels.

"Our performance reflects the strength of our broad beverage portfolio, driven by rising demand for zero sugar, energy and hydration, together with strong innovation, quality in-market execution and favourable weather in Europe."

Looking to the full year, Gammell acknowledged that the consumer environment was "challenging" and that geopolitical tensions had hit operating costs.

However, full-year guidance was left unchanged. CCEP is current forecasting revenue growth of between 3% and 4% for the current year, comparable growth in cost of sales per UC of around 1.5% and operating profit growth of around 7%.

As at 1230 GMT, the stock had dipped 1% in London to 8,460p, and was off 1% in pre-market trading on Wall Street. Jefferies, which has a 'buy' rating on the stock, said the shares were likely weaker "after [a] strong run and given the absence of an upgrade, which we would put partly down to an element of natural conservatism and higher costs".

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