Sanjeet Aujla

Sanjeet Aujla inquired about Europe's performance throughout Q4 2025, specifically focusing on exit rates in December and the challenges faced in Germany and France. He also asked about CCEP's commercial plans for 2026 to stabilize or grow these businesses and sought clarification on the free cash flow guidance of at least EUR 1.7 billion, given the expectation of 7% EBIT growth.

Answer

CEO Damian Gammell noted a strong exit to the quarter in Europe, with GB being a standout, while France and Germany were more challenged. He attributed France's situation to a sugar tax increase on Coke Classic and outlined plans for zero-sugar portfolio push and pack architecture adjustments. For Germany, he mentioned higher promotional prices in H1 2025 impacting volumes, with reinvestment in value helping in H2. CFO Ed Walker explained the free cash flow guidance reflects increased CapEx investment opportunities, aiming for at least EUR 1.7 billion without constraining growth investments.

Sanjeet Aujla asked about Europe's performance through the quarter, particularly exit rates in December, and commercial plans for 2026 to stabilize volumes in Germany and France. He also inquired about the free cash flow guidance of at least EUR 1.7 billion compared to the 7% EBIT growth target.

Answer

CEO Damian Gammell highlighted strong exit rates, successful Christmas and summer campaigns, and GB's standout performance. He addressed challenges in France due to sugar tax (with plans for zero portfolio push and pack architecture adjustments) and Germany (higher promo prices, reinvestment in value). CFO Ed Walker explained the free cash flow guidance, noting increased CapEx investment for strong business cases and the strategic decision not to constrain investment by setting a higher FCF target.

Sanjeet Aujla asked about the expected 2025 organic sales growth landing closer to 3% and whether technical headwinds, such as the Suntory exit, would make it difficult to achieve the 4% midterm guidance in 2026, also inquiring about the offsetting potential of the new Bacardi distribution.

Answer

CEO Damian Gammell stated that 2026 guidance would be provided at full-year results but reaffirmed confidence in the 4% midterm guidance, noting that excluding technical headwinds, CCEP is currently in line with that target. He clarified that the new Bacardi distribution would not immediately offset the lost Suntory revenue, as it's a new business building over time.

Sanjeet Aujla followed up on China, seeking an update on commercial execution, off-trade channel penetration and share gains, on-trade trends, and any easing of anti-extravagance measures. He also inquired about Brazil, specifically if the December return to growth continued into January, and details on competitive dynamics and Q4 share gains.

Answer

CEO Michel Doukeris explained that in China, the off-trade is rapidly evolving, with significant acceleration and share gains in the O2O channel, while the large off-premise is adjusting distribution and pricing. The on-trade has stabilized, though not improving, with the industry down about 1%. For Brazil, he noted three dynamics in 2025: consumer disposable income stress, abnormal weather, and relative price gaps. Improved weather and closing price gaps, combined with strong brand power and execution, led to good momentum in December and a positive start to January.