Coca-Cola Reports First Quarter 2025 Results
KO
Global Unit Case Volume Grew 2% Net Revenues Declined 2%; Organic Revenues (Non-GAAP) Grew 6% Operating Income Grew 71%; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 10% Operating Margin was 32.9% versus 18.9% in the Prior Year; Comparable Operating Margin (Non-GAAP) was 33.8% versus 32.4% in the Prior Year EPS Grew 5% to $0.77; Comparable EPS (Non-GAAP) Grew 1% to $0.73
The Coca-Cola Company today reported first quarter 2025 results. “Our performance this quarter once again demonstrates the effectiveness of our all-weather strategy,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “Despite some pressure in key developed markets, the power of our global footprint allowed us to successfully navigate a complex external environment. By remaining true to our purpose and staying close to the consumer, we are confident in our ability to create enduring long-term value.”
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Highlights
Quarterly Performance
Company Updates
Operating Review – Three Months Ended March 28, 2025
Revenues and Volume
Percent Change
Concentrate Sales1
Price/Mix
Currency Impact
Acquisitions, Divestitures and Structural Changes, Net
Reported Net Revenues
Organic Revenues2
Unit Case Volume3
Consolidated
1
5
(5)
(3)
(2)
6
2
Europe, Middle East & Africa
1
6
(6)
0
1
7
3
Latin America
(3)
16
(16)
0
(3)
13
0
North America
(4)
8
0
0
3
3
(3)
Asia Pacific
8
(1)
(6)
(5)
(4)
7
6
Bottling Investments
(1)
3
(3)
(18)
(20)
2
(17)
Operating Income and EPS
Percent Change
Reported Operating Income
Items Impacting Comparability
Currency Impact
Comparable Currency Neutral Operating Income2
Consolidated
71
67
(6)
10
Europe, Middle East & Africa
(1)
(4)
(6)
8
Latin America
(4)
(6)
(16)
18
North America
170
165
0
4
Asia Pacific
(5)
(8)
(4)
7
Bottling Investments
(24)
1
(5)
(21)
Percent Change
Reported EPS
Items Impacting Comparability
Currency Impact
Comparable Currency Neutral EPS2
Consolidated
5
4
(5)
6
Note: Certain rows may not add due to rounding.
1 For Bottling Investments, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume computed based on total sales (rather than average daily sales) in each of the corresponding periods after considering the impact of structural changes, if any.
2 Organic revenues, comparable currency neutral operating income and comparable currency neutral EPS are non-GAAP financial measures. Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures section.
3 Unit case volume is computed based on average daily sales.
In addition to the data in the preceding tables, operating results included the following:
Consolidated
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Bottling Investments
Outlook
The 2025 outlook information provided below includes forward-looking non-GAAP financial measures, which management uses in measuring performance. The company is not able to reconcile full year 2025 projected organic revenues (non-GAAP) to full year 2025 projected reported net revenues, full year 2025 projected comparable net revenues (non-GAAP) to full year 2025 projected reported net revenues, full year 2025 projected underlying effective tax rate (non-GAAP) to full year 2025 projected reported effective tax rate, full year 2025 projected comparable currency neutral EPS (non-GAAP) to full year 2025 projected reported EPS, or full year 2025 projected comparable EPS (non-GAAP) to full year 2025 projected reported EPS without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the exact timing and exact impact of acquisitions, divestitures and structural changes throughout 2025; the exact timing and exact amount of items impacting comparability throughout 2025; and the exact impact of fluctuations in foreign currency exchange rates throughout 2025. The unavailable information could have a significant impact on the company’s full year 2025 reported financial results.
Full Year 2025
Based on the current macroenvironment, the company is providing the following full year guidance.
The company expects to deliver organic revenue (non-GAAP) growth of 5% to 6%. — No Update
For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency headwind based on the current rates and including the impact of hedged positions, in addition to a slight headwind from acquisitions, divestitures and structural changes. — Updated
The company’s operations are primarily local, however, it is subject to global trade dynamics which may impact certain components of the company’s cost structure across its markets. At this time, the company expects the impact to be manageable. — New
The company’s underlying effective tax rate (non-GAAP) is estimated to be 20.8% versus 18.6% in 2024. This includes the impact of several countries enacting the global minimum tax regulations and does not include the impact of ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail. — No Update
The company expects to deliver comparable currency neutral EPS (non-GAAP) growth of 7% to 9%. — Updated
The company expects comparable EPS (non-GAAP) growth of 2% to 3%, versus $2.88 in 2024. — No Update
Comparable EPS (non-GAAP) percentage growth is expected to include a 5% to 6% currency headwind based on the current rates and including the impact of hedged positions, in addition to a slight headwind from acquisitions, divestitures and structural changes. — Updated
The company expects to generate free cash flow excluding the fairlife contingent consideration payment (non-GAAP) of approximately $9.5 billion. This consists of cash flow from operations excluding the fairlife contingent consideration payment (non-GAAP) of approximately $11.7 billion, less capital expenditures of approximately $2.2 billion. — No Update
Second Quarter 2025 Considerations — New
Comparable net revenues (non-GAAP) are expected to include an approximate 3% currency headwind based on the current rates and including the impact of hedged positions.
Comparable EPS (non-GAAP) percentage growth is expected to include a 5% to 6% currency headwind based on the current rates and including the impact of hedged positions.
Notes
Conference Call
The company is hosting a conference call with investors and analysts to discuss first quarter 2025 operating results today, April 29, 2025, at 8:30 a.m. ET. The company invites participants to listen to a live webcast of the conference call on the company’s website, http://www.coca-colacompany.com, in the “Investors” section. An audio replay in downloadable digital format and a transcript of the call will be available on the website within 24 hours following the call. Further, the “Investors” section of the website includes certain supplemental information and a reconciliation of non-GAAP financial measures to the company’s results as reported under GAAP, which may be used during the call when discussing financial results.
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