Coca-Cola Europacific Partners Plc – Risk Profile
- As per GlobalData's proprietary risk methodology, Coca-Cola Europacific Partners Plc's overall risk score is 3.26, signifying medium risk
- Country and operational risk pillars have boosted the overall risk profile of the company
- The company's large scale has helped the operational risk fare better than the industry average.
Coca-Cola Europacific Partners Plc (CCEP) has a solid risk profile and is one of the top ten companies based on our proprietary risk assessment of the non-alcoholic beverages sector in the consumer industry. Country, industry, and operational risk pillars strengthened the overall risk score of the company. A leading market position and extensive operational network are the company's strengths; however, financial performance remains a cause for concern.
About the Company
CCEP is an independent bottling company for Coca-Cola. It sources concentrates, beverage bases, and syrups from The Coca-Cola Company (TCCC) and produces and distributes packaged beverages to customers and vending partners, who sell these products to consumers. These products include non-alcoholic ready-to-drink (NARTD) beverages, bottled and canned soft drink juices, and isotonic and carbonated waters. CCEP markets these products under its own and licensed brands such as Glaceau, Fanta, Sprite, Powerade, Nestea, Coca-Cola, and Schweppes.
CCEP is one of the leaders in the non-alcoholic beverages industry, with reported revenue of $12.09 billion in the financial year 2021 (FY2021), which declined 10.12% over that in FY2020. The company's net income also decreased 53.44% in FY2021 compared to that in FY2020.
Risk Pillars
Our proprietary risk assessment uses a combination of four risk pillars – Country, Industry, Operational, and Financial. Scores are based on a scale of 1 to 5, 1 being the lowest risk and 5 being the highest.
CCEP's overall risk score is better than the sector's average. Companies like Monster Beverage Corp, National Beverage Corp, and Nongfu Spring Co Ltd are the leaders in the sector.
Country Risk:
CCEP has a presence in various countries, insulating it from the risk associated with economic and political factors of a specific region. The company has a country risk score of 4.25, with the majority of its revenue derived from Germany (21.40%), followed by Great Britain (20.77%), Iberia (20.49%), France (16.11%), Belgium (8.41%), the Netherlands (4.99%), Norway (3.99%), and Sweden (3.18%).
Industry Risk:
The company's primary exposure is to the non-alcoholic beverages sector. Moderate profit margins and weak growth projections compared to other sectors characterizes the non-alcoholic beverages sector, resulting in an industry risk score of 3.0.
Operational Risk:
CCEP has an operational risk score of 3.37, primarily driven by the scale and business positioning sub-pillars. The company has a robust operational network that expands customer reach and market presence. As one of the largest independent Coca-Cola bottlers worldwide by revenue, the company enjoys a strong market position that provides it with a competitive edge. CCEP produces, markets, and distributes ready-to-drink (RTD) beverages in various countries serving over 300 million consumers under 1300+ owned and licensed brands. However, low double-digit profit margins and return on equity weigh down the overall operational risk score.
Financial Risk:
The company has a financial risk score of 2.76, below the industry average. The company's overall financial performance was impacted by COVID-19, resulting in a decline in revenue and margins. However, a high proportion of debt on its balance sheet has affected the leverage and cash flow ratios. It also has a healthy liquidity position driven by good inventory management.
About our Methodology:
GlobalData risk scorecard for a sector provides the analysis of various risks a company is vulnerable to. Our risk framework comprises four pillars – country, industry, operational and financial. The country risk for an entity signifies the risk of operating in a particular country. GlobalData's proprietary country risk assessment framework is used to calculate the risk for individual countries. Industry risk is an integral part of risk analysis, and it implies the riskiness and stability of the industries in which a company operates. The operational and financial risk profile comprises a company's risk and return potential based on its key operational and financial metrics. Our scores are based on an average of the latest three fiscal year data.
Related Data & Insights
Related Companies
United States of America
Belgium
United States of America
Japan
Japan
United Kingdom
Brazil
Brazil
Mexico
Still looking?
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Explorer
Access more premium companies when you subscribe to Explorer