Coca-Cola Europacific Partners plc

Thank you all for joining us on this lovely day today. I'm here with Damian Gamble, our CEO, and Ed Walker, our CFO. Before we begin with our opening remarks, a reminder of our cautionary statements. This call will contain forward-looking management comments and other statements reflecting our outlook. These comments should be considered in conjunction with the cautionary language contained in today's release, as well as the detailed cautionary statements found in reports filed with the UK, US, Dutch, and Spanish authorities. A copy of this information is available on our website, www.data.gov. coca-colaep.com. Total marks will be made by Damian and Ed, followed by Q&A, unless otherwise stated, metrics presented today will be on a comparable and FX neutral basis throughout. They will also be presented on an adjusted comparable basis, thus reflecting the results of CCP and our Australia Pacific and Southeast Asia business unit, APS, as if the Coca-Cola Philippines transaction had occurred at the beginning of last year rather than in February when the acquisition completed. Following the call, a full transcript will be made available as soon as possible on our website. I will now turn the call over to our CEO, Damian.

Thank you, Sarah, and many thanks to everyone for joining us today. I'd like to start off with a recap on our strategy, which continues to deliver. Our value creation is clear, with 2024 being another solid year for CCMP, and a year that saw us further diversify with the addition of our great market in the Philippines. I'd like to start today by thanking all of my colleagues at CCP for their ongoing energy, hard work, and continued commitment to our customer and to our business. As always, this is underpinned by our strong, aligned relationships with both the Coca-Cola Company and Monster and other brand partners. We will touch on many of these themes today, all of which contributing to our TSR of more than 160%. So just turning to our key messages, we enjoyed a great finish to a solid year with robust top and bottom line growth. We are more geographically diversified with the strong performance of our higher growth APS markets helping offset some softer volumes in Europe which reflected some strategic delistings, mixed summer weather, which we've touched on before, and softer demand in our away-from-home channel. I'm particularly happy to have grown share ahead of the market and led on value creation for our customers. Alongside ongoing productivity gains, we drove impressive comparable free cash flow of over $1.8 billion. Looking ahead, we have strong investment and commercial plans in place to drive growth both in Europe and APS in categories that continue to grow. We are therefore confident that we will deliver on our mid-term growth objectives. Our full year 25 guidance combined with the resumption of our sharebacks also announced today demonstrating our ability to deliver continued shareholder value. Now for some of the key performance highlights. We delivered a great top-line performance, reflecting underlying volume growth with transactions ahead of volume and solid gains in revenue per unit case. This was driven by revenue and margin growth management initiatives and our continued focus on our price and promotion strategies. The NA-RTD category grew in volume and value in both Europe and APS. We grew our value share by 40 basis points in the home channel, while also making gains in away from home and critically online. In the advantage survey, with our customers, CCEP was registered again as a top-tier supplier. Our strong top-line performance, together with the delivery of our efficiency programs, drove a solid operating profit growth of 8%, with operating margin expansion in both Europe and APS, and diluted earnings per share growth of 6.5% on a comparable and FX neutral basis. Again, we generated impressive comparable free cash flow of $1.8 billion after investing over $1 billion across our business in the areas of capacity, technology, and digital, and also supporting the early return to our target leverage range. We delivered healthy dividend growth and have today announced a new $1 billion share buyback program. As ever at CCEC, we remain focused on great people, great brands, great execution, all done sustainably. I'll now share a few brief highlights on these topics for last year. As ever, starting with our people, we continue to build the capabilities of our teams. And for example, our partnership with Columbus Business School has upskilled over 500 of our executive leaders. We continue to be recognized internally and externally. We saw record scores in our engagement survey, placing CCT amongst the best of its peers as a great place to work. And recently, the Top Employers Institute recognized CCEP as a top employer across many of our markets. And finally, committed to building an even more inclusive and diverse culture, we welcomed another 9,000 colleagues to CCEP with the seamless integration of the Philippines business. Our brands, we are extremely privileged to make, move, and sell products the world's most loved brands, in which we continue to invest to make them even better and to appeal to even more consumers. Category highlights are included in today's release. Overall, it's fantastic that in Europe, for example, Coca-Cola trademark remains the biggest FMC brand with Monster the third fastest growing. We delivered innovation across the board through packaging, flavor extensions, special collaborations, and a lot more. And a bit later, I will share with you some of the brand plans in place for 2025. As a bottler, great execution is always a key priority for us at CCEP. We continue to create leading value for our category, adding well over a billion euros of value to our retail customers. Activation both in-store and online is key. Last year, as you know, was a standout with the summer's iconic sporting events, namely the Olympic and Paralympic Games in Paris, the Euros in Germany, and the America's Cup in Barcelona, providing us with a powerful platform. We also increased our share of cold drink space with even more cooler placements, all helping our brands to reach more households and to improve our share across our categories. Our customers and consumers rightly expect our products to be made to the highest quality and safety standards. In that context, we recently had a small issue with some products manufactured in Belgium late last year. This was deeply unfortunate in nature, but we are pleased that this was quickly resolved and has naturally led to appropriate learnings being incorporated into our product safety and quality procedures with new protocols put in place. Now onto our sustainability highlights, for which we continue to be recognized externally, including retaining our inclusion on CDP's A list for climate, now for the ninth year, and maintaining our MSCI AAA ESG rating.

We're also recently included in Sustainalytics ESG-cooperated companies 2025, which rated CCP number one in the food and beverage category. And we continue to invest in sustainable sustainability-focused technology to our ventures arm across ingredients, manufacturing, and packaging to support our decarbonization journey.