Coca-Cola Europacific Partners Expands Share Buyback Programme by €300 Million
Coca-Cola Europacific Partners (CCEP) has announced an expansion of its ongoing share buyback programme, increasing the total from €1 billion to €1.3 billion for FY2024. The move underlines the company’s strong balance sheet and commitment to shareholder returns despite a competitive FMCG landscape marked by inflationary pressures and evolving consumer habits.
This extension includes an immediate additional tranche of €300 million, which will commence in early June and run through mid-August 2024. The initial €500 million tranche, launched in February, is already underway and set for completion in June.
CCEP’s capital allocation framework continues to prioritise disciplined investment in growth, maintaining a stable credit rating, and returning excess cash to shareholders. The firm has communicated a consistent approach toward shareholder remuneration through a mix of dividends and share repurchases. The buyback programme follows the return to the company’s targeted leverage ratio in FY2023 and complements the €5.1 billion acquisition of Coca-Cola Beverages Philippines—a strategic move to expand its footprint in Southeast Asia.
The share repurchase programme is expected to be accretive to earnings per share by reducing the number of outstanding shares, offering a boost to long-term investor value. The announced buybacks will be executed in compliance with regulatory requirements, including the safe harbour provisions under the UK and European Market Abuse Regulations.
From an FMCG perspective, CCEP’s latest move reflects broader industry themes: capital-rich multinationals leveraging strong cash flows to drive shareholder loyalty and optimise their capital structure. The beverage giant’s strategic financial management sends a signal of confidence amid channel fragmentation and shifting demand across take-home and on-the-go consumption occasions.
As pricing pressures persist and operational efficiencies remain front and centre for major FMCG players, CCEP’s increased buyback commitment may inspire similar financial manoeuvres across the non-alcoholic ready-to-drink category.