Charlie Higgs's questions to COCA-COLA EUROPACIFIC PARTNERS (CCEP) leadership • H1 2025
Question
Asked for an update on the Australian margin turnaround story since the Amatil acquisition, questioning if margins could return to their previous high-teens/low-20s levels, considering operational improvements and the new Manila shared service center.
Answer
Management is very pleased with progress in Australia, stating the opportunity is 'far from over.' Revenue has grown at an 8% CAGR since 2021, with operating profit growing even faster, leading to margin accretion. This is driven by investments, RGM capabilities, portfolio alignment (like the Beam Suntory exit), and leveraging shared services. More progress is expected.