Coca-Cola Europacific Partners PLC (CCEP) Income Statement

The deceleration from double-digit growth in 2022 to mid-single digits in 2026 indicates that the post-acquisition boost has faded, and organic volume growth is likely modest. The 2026Q2 growth of 4.4% is an improvement over the 0.2% in 2025Q4, but this may be seasonal. Investors should monitor whether price/mix can sustain growth as volume remains challenged in developed markets.

The gross margin is structurally capped by the incidence pricing model with The Coca-Cola Company, which ties concentrate costs to retail prices. While CCEP has maintained margins through revenue growth management, the lack of expansion indicates limited pricing power beyond passing through costs. The 2023Q4 peak of 37.1% has not been revisited, suggesting potential pressure from packaging and commodity costs.

The operating margin recovery from 9.3% to 13.6% indicates that CCEP is leveraging its fixed cost base, particularly in distribution and administration. However, the SG&A line has been volatile, with 2025Q4 and 2024Q4 both at $2.3B, which may reflect one-time charges or investment. The 2026Q2 SG&A of $1.7B is notably lower, possibly due to timing, and investors should assess whether this is sustainable.

The cost structure is heavily weighted toward variable inputs, with COGS rising in tandem with revenue. SG&A has been relatively stable at around $2.2-2.3B in recent quarters, but the 2026Q2 drop to $1.7B is notable and may indicate cost discipline or timing. R&D is negligible, as expected for a bottler, so the focus is on managing COGS and SG&A efficiency.

The acquisition of Amatil in 2022 dramatically increased revenue and introduced emerging market exposure, particularly Indonesia. This inflection is evident in the revenue jump from $7.8B in 2021Q4 to $8.3B in 2022Q2, and the subsequent quarters show a new baseline. The lasting impact is a more diversified revenue stream, but also increased complexity and FX exposure, which may explain the recent growth deceleration.