Coca-Cola Reports Third Quarter 2025 Results

Global Unit Case Volume Grew 1%

Net Revenues Grew 5%;

Organic Revenues (Non-GAAP) Grew 6%

Operating Income Grew 59%;

Comparable Currency Neutral Operating Income (Non-GAAP) Grew 15%

Operating Margin was 32.0% versus 21.2% in the Prior Year;

Comparable Operating Margin (Non-GAAP) was 31.9% versus 30.7% in the Prior Year

EPS Grew 30% to $0.86; Comparable EPS (Non-GAAP) Grew 6% to $0.82

ATLANTA--(BUSINESS WIRE)-- The Coca-Cola Company today reported third quarter 2025 results. “While the overall environment has continued to be challenging, we’ve stayed flexible — adapting plans where needed and investing for growth,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “By offering choice across our total beverage portfolio and leveraging our franchise model’s unique strengths, we’re gaining ground and strengthening our leadership position. We’re confident we can deliver on our 2025 guidance while also working to achieve our longer-term objectives.”

Highlights

Quarterly Performance

• Revenues: Net revenues grew 5% to $12.5 billion, and organic revenues (non-GAAP) grew 6%. Revenue performance included 6% growth in price/mix, while concentrate sales were even. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments.
• Operating margin: Operating margin was 32.0%, and comparable operating margin (non-GAAP) was 31.9%. Operating margin performance included items impacting comparability and currency headwinds. Comparable operating margin (non-GAAP) expansion was driven by organic revenue (non-GAAP) growth and effective cost management, partially offset by an increase in marketing investments and currency headwinds.
• Earnings per share: EPS grew 30% to $0.86 and included the impact of a 4-point currency headwind. Comparable EPS (non-GAAP) grew 6% to $0.82 and included the impact of a 6-point currency headwind.
• Market share: The company gained value share in total nonalcoholic ready-to-drink (“NARTD”) beverages.
• Cash flow: Year-to-date cash flow from operations and free cash flow (non-GAAP) were $3.7 billion and $2.4 billion, respectively, which reflects $6.1 billion of the contingent consideration payment made during the first quarter in conjunction with the acquisition of fairlife, LLC (“fairlife”) in 2020 (“fairlife contingent consideration payment”). Year-to-date free cash flow excluding the fairlife contingent consideration payment (non-GAAP) was $8.5 billion.

Company Updates

• Continuing to build the world’s strongest consumer franchise system: The company’s franchise business model has enabled it to develop a strong global footprint with strong local expertise in markets around the world. Today, Coca-Cola HBC AG (“CCHBC”) entered into a definitive agreement to acquire a controlling interest in Coca-Cola Beverages Africa Pty Ltd (“CCBA”) from the company and Gutsche Family Investments. CCHBC is a leading Coca-Cola bottler with a strong track record in Africa and the company is confident that this refranchising step will drive CCBA’s next chapter of growth. Additionally, in July, the company reached another milestone in the refranchising process in India with the sale of a 40% ownership stake in Hindustan Coca-Cola Holdings Pvt. Ltd. to Jubilant Bhartia Group. The company will continue to focus on building a portfolio of consumer-loved brands and pursue enduring long-term growth for the Coca-Cola system with trusted, capable and motivated bottling partners.
• Unlocking growth through a broad and consumer-centric beverage portfolio: Complementing its reinvigorated sparkling portfolio, the company is delivering consumer-centric solutions across key need states, including functionality, with its total beverage approach. The company’s ready-to-drink tea portfolio maintained its global leadership position in the category, with Fuze Tea growing retail value five times the industry average year-to-date. The company’s dual-brand sports strategy with Powerade and BODYARMOR is delivering positive results, as the company gained value share and grew volume during the quarter. In addition to the success of the fairlife portfolio in the United States, within the value-added dairy category in Mexico, Santa Clara became the value share leader and grew volume 13% during the quarter, supported by stepped-up communication on lactose-free and flavored milk and impactful in-store displays. Expanding on the success of Minute Maid Zero Sugar in North America, the company has taken the brand to certain markets in Asia Pacific that are seeing strong consumer interest and solid volume performance. This momentum underscores the company’s continued focus on meeting evolving consumer preferences and driving growth across its beverage portfolio.

Operating Review – Three Months Ended September 26, 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	0	6	0	0	5		6		1
Europe, Middle East & Africa	3	4	3	0	10		7		4
Latin America	(3)	7	(8)	0	(4)		4		0
North America	(2)	6	0	0	4		4		0
Asia Pacific	(1)	8	4	0	11		7		(1)
Bottling Investments	5	1	(2)	(2)	2		7		2

Operating Income and EPS

Percent Change	Reported Operating Income	Items Impacting Comparability	Currency Impact	Comparable Currency Neutral Operating Income2
Consolidated	59	51	(7)	15
Europe, Middle East & Africa	10	3	(4)	11
Latin America	(4)	11	(18)	3
North America	15	5	0	11
Asia Pacific	13	14	(3)	2
Bottling Investments	32	(10)	13	30
Percent Change	Reported EPS	Items Impacting Comparability	Currency Impact	Comparable Currency Neutral EPS2
Consolidated	30	24	(6)	12
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

• Unit case volume grew 1%, primarily driven by growth in Central Asia, North Africa, Brazil and the United Kingdom. Performance included the following:
  • Sparkling soft drinks were even. Trademark Coca-Cola grew 1%, driven by growth in Europe, Middle East and Africa as well as Asia Pacific. Coca-Cola Zero Sugar grew 14%, driven by growth across all geographic operating segments. Diet Coke/Coca-Cola Light grew 2%, primarily driven by growth in North America and Asia Pacific. Sparkling flavors declined 1%, as growth in Europe, Middle East and Africa was more than offset by a decline in Asia Pacific.
  • Juice, value-added dairy and plant-based beverages declined 3%, as growth in Latin America was more than offset by a decline in Asia Pacific.
  • Water, sports, coffee and tea grew 3%. Water grew 3%, driven by growth across all geographic operating segments. Sports drinks grew 3%, primarily driven by growth in North America. Coffee grew 2%, primarily driven by growth in Asia Pacific and Europe, Middle East and Africa. Tea grew 2%, driven by growth in Europe, Middle East and Africa as well as Latin America.
• Price/mix grew 6%, primarily driven by pricing actions in the marketplace and favorable mix. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments.
• Operating income grew 59%, which included items impacting comparability and a currency headwind. Comparable currency neutral operating income (non-GAAP) grew 15%, driven by organic revenue (non-GAAP) growth across all operating segments and effective cost management, partially offset by an increase in marketing investments.

Europe, Middle East & Africa

• Unit case volume grew 4%, primarily driven by growth in Trademark Coca-Cola, sparkling flavors, and water, sports, coffee and tea.
• Price/mix grew 4%, primarily driven by pricing actions in the marketplace, partially offset by unfavorable mix. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments.
• Operating income grew 10%, which included items impacting comparability and a currency headwind. Comparable currency neutral operating income (non-GAAP) grew 11%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs and an increase in marketing investments.
• Value share in total NARTD beverages for the company was even, as gains in Egypt and Kazakhstan were offset by declines in South Africa and Pakistan.

Latin America

• Unit case volume was even, as growth in water, sports, coffee and tea was offset by a decline in Trademark Coca-Cola.
• Price/mix grew 7%, driven by pricing actions in the marketplace and the timing of investments. Concentrate sales were 3 points behind unit case volume due to the timing of concentrate shipments.
• Operating income declined 4%, which included items impacting comparability and a currency headwind. Comparable currency neutral operating income (non-GAAP) grew 3%, driven primarily by organic revenue (non-GAAP) growth, partially offset by an increase in marketing investments.
• The company gained value share in total NARTD beverages, led by share gains in Brazil and Argentina.

North America

• Unit case volume was even, as growth in water, sports, coffee and tea was offset by declines in Trademark Coca-Cola and juice, value-added dairy and plant-based beverages.
• Price/mix grew 6%, driven by pricing actions in the marketplace and favorable mix. Concentrate sales were 2 points behind unit case volume due to the timing of concentrate shipments.
• Operating income grew 15%, which included items impacting comparability. Comparable currency neutral operating income (non-GAAP) grew 11%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs and an increase in marketing investments.
• The company gained value share in total NARTD beverages, led by share gains in juice, value-added dairy and plant-based beverages and water, sports, coffee and tea.

Asia Pacific

• Unit case volume declined 1%, as growth in Trademark Coca-Cola was more than offset by a decline in sparkling flavors.
• Price/mix grew 8%, driven by the timing of investments, pricing actions in the marketplace and favorable mix. Concentrate sales were in line with unit case volume.
• Operating income grew 13%, which included items impacting comparability and a currency tailwind. Comparable currency neutral operating income (non-GAAP) grew 2%, primarily driven by organic revenue (non-GAAP) growth, partially offset by an increase in marketing investments and higher input costs.
• The company gained value share in total NARTD beverages, led by share gains in the Philippines and Japan.

Bottling Investments

• Unit case volume grew 2%, largely due to growth in Africa and India, partially offset by the impact of refranchising bottling operations.
• Price/mix grew 1%, driven by pricing actions in the marketplace, partially offset by unfavorable mix.
• Operating income grew 32%, which included a currency tailwind and the impact of refranchising bottling operations. Comparable currency neutral operating income (non-GAAP) grew 30%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs.

Operating Review – Nine Months Ended September 26, 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	0	6	(3)	(1)	2		5		1
Europe, Middle East & Africa	2	4	(1)	0	5		6		3
Latin America	(2)	12	(14)	0	(4)		10		(1)
North America	(2)	6	0	0	4		4		(1)
Asia Pacific	0	6	(1)	(2)	3		6		0
Bottling Investments	0	2	(3)	(9)	(10)		2		(8)

Operating Income and EPS

Percent Change	Reported Operating Income	Items Impacting Comparability	Currency Impact	Comparable Currency Neutral Operating Income2
Consolidated	64	57	(6)	13
Europe, Middle East & Africa	4	(1)	(3)	9
Latin America	(2)	(1)	(19)	18
North America	39	31	0	9
Asia Pacific	2	0	(4)	6
Bottling Investments	(21)	0	(2)	(19)
Percent Change	Reported EPS	Items Impacting Comparability	Currency Impact	Comparable Currency Neutral EPS2
Consolidated	29	25	(5)	9
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.

Outlook

The 2025 and 2026 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, full year 2025 projected comparable EPS (non-GAAP) to full year 2025 projected reported EPS, full year 2026 projected comparable net revenues (non-GAAP) to full year 2026 projected reported net revenues, or full year 2026 projected comparable EPS (non-GAAP) to full year 2026 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 2026; and the exact impact of fluctuations in foreign currency exchange rates throughout 2025 and 2026. The unavailable information could have a significant impact on the company’s full year 2025 and full year 2026 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 1% to 2% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes. — No Update

The company’s operations are primarily local, however, they are subject to global trade dynamics that may impact certain components of the company’s cost structure across its markets. At this time, the company expects the impact to be manageable. — No Update

The company’s underlying effective tax rate (non-GAAP) is estimated to be 20.7% 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. — Updated from 20.8%

The company expects to deliver comparable currency neutral EPS (non-GAAP) growth of approximately 8%. — No Update

The company expects comparable EPS (non-GAAP) growth of approximately 3% versus $2.88 in 2024. — No Update

Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 5% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes. — No Update

The company expects to generate free cash flow excluding the fairlife contingent consideration payment (non-GAAP) of at least $9.8 billion. This consists of cash flow from operations excluding the fairlife contingent consideration payment (non-GAAP) of approximately $12.0 billion, less capital expenditures of approximately $2.2 billion. — Updated from $9.5 billion

Fourth Quarter 2025 Considerations — New

Comparable net revenues (non-GAAP) are expected to include a slight currency tailwind based on the current rates and including the impact of hedged positions.

Comparable EPS (non-GAAP) percentage growth is expected to include a 4% to 5% currency headwind based on the current rates and including the impact of hedged positions.

Full Year 2026 Considerations — New

Comparable net revenues (non-GAAP) are expected to include a slight currency tailwind based on the current rates and including the impact of hedged positions.

Comparable EPS (non-GAAP) percentage growth is expected to include a slight currency tailwind based on the current rates and including the impact of hedged positions.

The company will provide full year 2026 guidance when it reports fourth quarter earnings.

Notes

• All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period, unless otherwise noted.
• All references to volume and volume percentage changes indicate unit case volume, unless otherwise noted. All volume percentage changes are computed based on average daily sales unless otherwise noted. “Unit case” means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings), with the exception of unit case equivalents for Costa non-ready-to-drink beverage products, which are primarily measured in number of transactions. “Unit case volume” means the number of unit cases (or unit case equivalents) of company beverages directly or indirectly sold by the company and its bottling partners to customers or consumers.
• “Concentrate sales” represents the amount of concentrates, syrups, beverage bases, source waters and powders/minerals (in all instances expressed in unit case equivalents) sold by, or used in finished beverages sold by, the company to its bottling partners or other customers. For Costa non-ready-to-drink beverage products, “concentrate sales” represents the amount of beverages, primarily measured in number of transactions (in all instances expressed in unit case equivalents), sold by the company to customers or consumers. In the reconciliation of reported net revenues, “concentrate sales” represents the percent change in net revenues attributable to the increase (decrease) in concentrate sales volume for the geographic operating segments after considering the impact of structural changes, if any. For the Bottling Investments operating segment, 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. The Bottling Investments operating segment reflects unit case volume growth for consolidated bottlers only.
• “Price/mix” represents the change in net operating revenues caused by factors such as price changes, the mix of products and packages sold, and the mix of channels and geographic territories where the sales occurred.
• First quarter 2025 financial results were impacted by two fewer days as compared to first quarter 2024, and fourth quarter 2025 financial results will be impacted by one additional day as compared to fourth quarter 2024. Unit case volume results for the quarters are not impacted by the variances in days due to the average daily sales computation referenced above.

Conference Call

The company is hosting a conference call with investors and analysts to discuss third quarter 2025 operating results today, Oct. 21, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251021638158/en/

Investors and Analysts: Robin Halpern, koinvestorrelations@coca-cola.com

Media: Scott Leith, sleith@coca-cola.com

Source: The Coca-Cola Company