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

ATLANTA, April 29, 2025--(BUSINESS WIRE)--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."

• Revenues: Net revenues declined 2% to $11.1 billion, driven by currency headwinds and the impact of refranchising bottling operations. Organic revenues (non-GAAP) grew 6% and included 5% growth in price/mix and a 1% increase in concentrate sales. Concentrate sales were 1 point behind unit case volume, primarily due to two fewer days in the quarter, partially offset by the timing of concentrate shipments.
• Operating margin: Operating margin was 32.9%, and comparable operating margin (non-GAAP) was 33.8%. Operating margin performance included items impacting comparability as well as currency headwinds. Comparable operating margin (non-GAAP) expansion was driven by organic revenue (non-GAAP) growth, effective cost management, the timing of marketing investments and the impact of refranchising bottling operations, partially offset by currency headwinds.
• Earnings per share: EPS grew 5% to $0.77 and included the impact of a 9-point currency headwind. Comparable EPS (non-GAAP) grew 1% to $0.73 and included the impact of a 5-point currency headwind.
• Market share: The company gained value share in total nonalcoholic ready-to-drink ("NARTD") beverages.
• Cash flow: Cash flow used in operations was $5.2 billion. Free cash flow (non-GAAP) declined approximately $5.7 billion versus the prior year, resulting in negative free cash flow (non-GAAP) of approximately $5.5 billion. Both decreased versus the prior year due to $6.1 billion of the contingent consideration payment made during the quarter in conjunction with the acquisition of fairlife, LLC ("fairlife") in 2020 ("fairlife contingent consideration payment"). Free cash flow excluding the fairlife contingent consideration payment (non-GAAP) was $558 million.

• Capturing compelling geographic opportunities with a local approach: To capitalize on the vast opportunities in developing and emerging markets, where approximately 80% of the world’s population resides, the company is focusing on continuously improving its marketing, innovation, revenue growth management and integrated execution capabilities with system partners across local markets. The Maha Kumbh Mela festival in India occurs every 144 years and is considered the world’s largest in-person gathering with an estimated 660 million attendees in 2025. For the first time in the company’s history, the system intensified an integrated activation consisting of hundreds of refreshment zones, approximately 1,400 mobile stations and a world-record-long 100 cooler-door wall, leading to over 180 million servings consumed during the gathering. In China, during the Lunar New Year, activations featured Trademark Coca-Cola, Sprite and Minute Maid. The system launched occasion-based marketing campaigns, drove affordability and stepped-up execution in away-from-home channels, contributing to high single-digit volume growth in the quarter. In Türkiye, the company continued its "Made in, Made by" campaign to emphasize the local essence of the company’s products, including production and distribution by its system. By focusing on the local nature and economic impact of its business and community investment, the company built more trust with consumers, achieving double-digit volume growth and gaining value share in the market for the quarter.
• Innovating across a portfolio of local, regional and global brands: The company’s total beverage portfolio, which includes 30 billion-dollar brands, serves consumers across countries, categories and channels. By elevating its use of consumer insights, the company is better understanding and responding to consumer need states at the local level. For instance, consumers are increasingly seeking great-tasting beverages with added nutrition. The company’s fairlife trademark, which includes lactose-free ultra-filtered milk and high-protein Core Power and Nutrition Plan, continues to achieve strong volume growth. Leveraging the success of Simply, a premium juice brand, the company launched Simply Pop, its first prebiotic soda, in select regions and channels across the United States demonstrating its commitment to innovation in local markets. In India, Trademark Coca-Cola and Thums Up, a cherished regional brand, are fueling consumers and contributed to double-digit volume growth for the market in the first quarter. Globally, the company is addressing consumers’ need for refreshing moments with its ready-to-drink tea offerings. The tea portfolio includes brands such as Fuze Tea in over 80 markets, Gold Peak in North America and Ayataka in Japan. During the first quarter, the company extended its global leadership position in the ready-to-drink tea category, delivering share gains in both volume and value. This strategic execution across markets ensures the company is delivering what consumers are seeking, whether through global or local favorites.

Revenues and Volume

Operating Income and EPS

In addition to the data in the preceding tables, operating results included the following:

• Unit case volume grew 2%, led by India, China and Brazil. Performance included the following:
  • Sparkling soft drinks grew 2%. Trademark Coca-Cola grew 1%, primarily 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. Sparkling flavors grew 2%, primarily driven by growth in Asia Pacific.
  • Juice, value-added dairy and plant-based beverages grew 1%, primarily driven by growth in Asia Pacific.
  • Water, sports, coffee and tea grew 2%. Water grew 3%, driven by growth in Asia Pacific, Latin America and Europe, Middle East and Africa. Sports drinks declined 1%, primarily driven by declines in Latin America and Asia Pacific. Coffee declined 2%, primarily driven by declines in Asia Pacific and Europe, Middle East and Africa. Tea was even, as growth in Asia Pacific and Europe, Middle East and Africa was offset by declines in Latin America and North America.
• Price/mix grew 5%, primarily driven by pricing actions in the marketplace, partially offset by unfavorable mix. The impact from markets experiencing intense inflation contributed less in the first quarter of 2025 versus the prior year. Concentrate sales were 1 point behind unit case volume, primarily due to two fewer days in the quarter, partially offset by the timing of concentrate shipments.
• Operating income grew 71%, which included items impacting comparability and currency headwinds. Comparable currency neutral operating income (non-GAAP) grew 10%, driven by organic revenue (non-GAAP) growth across all operating segments, effective cost management and the timing of marketing investments.

• Unit case volume grew 3%, primarily driven by growth in Trademark Coca-Cola and sparkling flavors.
• Price/mix grew 6%, primarily driven by pricing actions in the marketplace. Concentrate sales were 2 points behind unit case volume, primarily due to two fewer days in the quarter, partially offset by the timing of concentrate shipments.
• Operating income declined 1%, which included items impacting comparability and a 9-point currency headwind. Comparable currency neutral operating income (non-GAAP) grew 8%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs and marketing investments.
• The company gained value share in total NARTD beverages, led by Romania, Egypt and Türkiye.

• Unit case volume was even, as growth in Trademark Coca-Cola and water, sports, coffee and tea was offset by a decline in sparkling flavors.
• Price/mix grew 16%, driven by pricing actions in the marketplace, timing of investments and favorable mix. Concentrate sales were 3 points behind unit case volume, primarily due to two fewer days in the quarter and the timing of concentrate shipments.
• Operating income declined 4%, which included items impacting comparability and a 22-point currency headwind. Comparable currency neutral operating income (non-GAAP) grew 18%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs.
• Value share in total NARTD beverages for the company was even as gains in Argentina and Brazil were offset by declines in Chile and Mexico.

• Unit case volume declined 3%, primarily driven by declines in Trademark Coca-Cola and water, sports, coffee and tea.
• Price/mix grew 8%, driven by pricing actions in the marketplace and favorable mix. Concentrate sales were 1 point behind unit case volume, primarily due to two fewer days in the quarter, partially offset by the timing of concentrate shipments.
• Operating income grew 170%, which included items impacting comparability and a 1-point currency headwind. Comparable currency neutral operating income (non-GAAP) grew 4%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs and marketing investments.
• The company gained value share in total NARTD beverages, led by juice, value-added dairy and plant-based beverages.

• Unit case volume grew 6%, driven by growth across all global beverage categories.
• Price/mix declined 1%, as pricing actions in the marketplace were more than offset by unfavorable mix. Concentrate sales were 2 points ahead of unit case volume, primarily due to the timing of concentrate shipments, partially offset by two fewer days in the quarter.
• Operating income declined 5%, which included items impacting comparability and an 11-point currency headwind. Comparable currency neutral operating income (non-GAAP) grew 7%, primarily driven by organic revenue (non-GAAP) growth and the timing of marketing investments.
• Value share in total NARTD beverages for the company was even as gains in the Philippines and Japan were offset by declines in Indonesia and India.

• Unit case volume declined 17%, largely due to the impact of refranchising bottling operations.
• Price/mix grew 3%, driven by pricing actions across markets.
• Operating income declined 24%, which included items impacting comparability, a 4-point currency headwind and the impact of refranchising bottling operations. Comparable currency neutral operating income (non-GAAP) declined 21%.

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.

• 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.

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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Contacts

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

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