Matthew Ford

Matthew Ford asked about the expected quantum of growth for the energy category in 2026 and beyond, given the very strong 19% volume growth in 2025, and whether a similar level of growth or moderation is anticipated.

Answer

CEO Damian Gammell expressed confidence in the energy category maintaining mid-teen growth, citing continued investment in canning lines, Monster's robust innovation pipeline (visible through 2028), ongoing distribution opportunities (especially cooler placements), and CCEP's market leadership. CFO Ed Walker added that the growth is healthy, with approximately half from core products and half from innovation, indicating it's not a one-off. Damian also highlighted the increasing role and improved taste profile of zero-sugar energy products.

Matthew Ford asked about the sustainability of the strong 19% volume growth seen in the energy category in 2025, inquiring whether CCEP expects a similar level of growth in 2026 and beyond or if it anticipates moderation after a particularly strong year.

Answer

CEO Damian Gammell expressed confidence that the energy category would maintain its mid-teens growth cadence, citing ongoing distribution expansion, increased cooler placements, and strong innovation from Monster. CFO Ed Walker added that about half of the energy growth comes from the core portfolio and half from innovation, indicating a healthy and sustainable growth model. Gammell also highlighted the increasing role of zero-sugar energy products in expanding consumer appeal.

Matthew Ford inquired about the evolving consumer affordability trends in Europe, specifically how conditions developed in October, and the anticipated impact on CCEP's volume and price mix strategy and top-line growth outlook for Q4 and 2026.

Answer

CEO Damian Gammell noted consistent consumer response to value pricing, a return to growth in away-from-home, and an expectation for consumer sentiment to remain consistent into 2026. He affirmed a continued pricing strategy and a balanced growth outlook for Europe, emphasizing price, volume, and potentially more mix as away-from-home strengthens.

Matthew Ford asked about the impact of increasing consumer affordability pressures across Europe, how these trends developed in October, and the potential effects on CCEP's strategy for prioritizing volume versus price mix, particularly concerning the outlook for top-line growth in Europe into 2026.

Answer

CEO Damian Gammell explained that consumer response to value pricing has been consistent, with away-from-home returning to growth. He anticipates consumer sentiment to remain consistent, with no change to the pricing strategy, which will continue to include price increases. Gammell expects balanced growth for Europe in 2026, incorporating price, volume, and potentially more mix as away-from-home strengthens.

Matthew Ford of BNP Paribas requested an update on the cost of goods sold (COGS) for 2025 and an outlook for 2026, including current hedging levels.

Answer

CFO Ed Walker reported that the company is over 90% hedged for 2025 and approximately 60% hedged for 2026. He anticipates relatively flat commodity costs will continue into 2026, providing a favorable outlook for the P&L.

Matthew Ford of BNP Paribas asked for an update on the cost of goods sold (COGS) outlook, specifically regarding hedging levels for 2025 and any expected moving parts for 2026.

Answer

CFO Ed Walker reported a favorable cost environment, with flat commodity costs expected to continue from 2025 into 2026. He stated that the company is over 90% hedged for 2025 and approximately 60% hedged for 2026, which aligns with their strategy and provides a good outlook for cost stability.

Asked for an update on the COGS situation, specifically hedging levels for 2025 and any expected major moving parts and hedging levels for 2026.

Answer

Management is pleased with COGS, enjoying flat commodities in 2025 and expecting that to continue into 2026. For 2025, they are over 90% hedged. For 2026, they are around 60% hedged, which is the desired level for this time of year, leaving some room to capitalize on favorable market movements. The outlook for 2026 is good with relatively flat commodities expected.

Matthew Ford of BNP Paribas Exane inquired about performance in the Philippines, specifically the end-of-year and Q1 trends, and asked for an update on the boycotting situation in Indonesia.

Answer

CEO Damian Gammell stated the Indonesian business has stabilized, with brands showing high single-digit to mid-teens growth in less affected areas. For the Philippines, he confirmed a great finish to the year, with record volumes at Christmas continuing into 2025, aligning with high single-digit growth expectations and margin expansion.

Matthew Ford inquired about the performance of the Asia-Pacific (APS) segment, specifically asking about the year-end performance in the Philippines and for an update on the geopolitical boycotts affecting Indonesia.

Answer

CEO Damian Gammell stated that the business in Indonesia has stabilized, with brands showing high single-digit to mid-teen growth in less affected areas. For the Philippines, he described a 'great finish to the year' with record Christmas volumes continuing into 2025, and expects high single-digit growth in line with midterm guidance.

Inquired about the performance and outlook for the Philippines and Indonesia, specifically asking about the year-end trends in the Philippines and the status of the geopolitical boycotting situation in Indonesia.

Answer

The business in Indonesia has stabilized despite challenges, with strong growth in less affected areas. The Philippines had a great finish to the year, driven by a strong Christmas, and this positive momentum has continued into 2025 with expectations for high single-digit growth and margin expansion.

Inquired about the primary areas of focus and potential 'low-hanging fruit' for driving traction in the newly acquired Philippines business during the first year.

Answer

The focus will be on leveraging CCEP's expertise in key account management, pricing analytics, digital tools, and supply chain efficiency. CCEP will also increase capital investment. They also expect to learn from the Philippines team, particularly regarding affordability and refillables, to apply to their Indonesian operations.