Coca-Cola Europacific Partners' (CCEP) sales are likely to shrink 0.9% in Q1, compared with consensus of flat sales, due to a host of factors, including exit from two brands, UBS said in a note emailed Monday.
The firm said it was forecasting lower sales due fewer selling days during the quarter, a delayed timing of Easter, and the exits from the Capri-Sun and Nestea Spain brands.
Despite the Q1 outlook, UBS expects the company's full-year 2025 organic earnings before interest and taxes to grow 7.1% for the year, ahead of the consensus of 6.8%.
"Moderating input cost inflation, and further cost efficiencies support another year of solid margin expansion, and could make the 7% organic EBIT growth guidance conservative if volumes bounce back," UBS said in the note.
UBS has a buy rating on the stock with a price target of $96.
Price: 87.20, Change: +0.90, Percent Change: +1.04
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