Loading...
01/09 23:03
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reflects a mix of positive and negative elements. Positive factors include volume growth, marketing transformation, and strong performance in EMEA. However, challenges such as currency headwinds, weaker ASEAN markets, and unclear management responses regarding international expansion and productivity impacts temper the outlook. The Q&A section highlights ongoing efforts in marketing and innovation but also notes capacity constraints for fairlife and unmet expectations in the coffee category. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
Organic Revenue Growth 5% growth year-over-year, driven by pricing actions and favorable mix.
Volume Declined 1% year-over-year, attributed to adverse weather in key markets and consumer pressure.
Comparable Earnings Per Share (EPS) $0.87, a 4% increase year-over-year, despite 5% currency headwinds, elevated net interest expense, and a 2-point increase in the effective tax rate.
Free Cash Flow $3.9 billion, an increase of approximately $600 million year-over-year, driven by underlying business performance and lower tax payments.
Comparable Gross Margin Increased approximately 80 basis points year-over-year, driven by productivity initiatives and favorable cycling versus the prior year.
Comparable Operating Margin Increased approximately 190 basis points year-over-year, driven by productivity initiatives and timing of investments.
Net Debt Leverage 2x EBITDA, at the low end of the targeted range of 2 to 2.5x.
Sprite + Tea launch: Introduced in North America, blending Sprite with tea flavors, contributing to increased share of visible inventory.
Coca-Cola with U.S. cane sugar: Planned expansion in the U.S. to cater to consumer interest in differentiated experiences.
Value share gains: Achieved 17th consecutive quarter of value share gains globally.
Regional performance: Improved volume in U.S. and Europe; strong growth in Coca-Cola Zero Sugar in Brazil and Mexico; mixed performance in Asia Pacific.
AI-based optimization tool: Scaled to 8 markets, improving offerings and speed to market.
Refillables and premiumization: Leveraging refillables in Africa, Philippines, Thailand, and Eurasia; growing mini cans in Europe.
Marketing transformation: Enhanced ability to test, learn, and scale campaigns quickly, such as Share a Coke and Bring the Juice campaigns.
Revenue growth management: Integrated marketing expertise with segmentation to drive transaction growth.
Volume Decline: Volume declined 1% during the quarter due to adverse weather in key markets and pockets of consumer pressure. This was particularly evident in North America, Latin America, and parts of Asia Pacific.
Consumer Pressure: Continued socioeconomic uncertainty and pressure on certain consumer segments in North America and other regions impacted volume and revenue growth.
Adverse Weather: Uncharacteristically cold weather and a major hurricane in Mexico, as well as early monsoons in India, negatively impacted sales and volume trends.
Geopolitical Conflicts: Geopolitical tensions in regions like India and the Middle East created challenges for operations and consumer demand.
Macroeconomic Challenges: Worsening macroeconomic conditions in Africa and other regions, including inflationary pressures, impacted consumer purchasing power and operational costs.
Currency Headwinds: Currency fluctuations created a 5% headwind to earnings per share growth, impacting financial performance.
Tax Rate Increase: An approximate 2-point increase in the effective tax rate for 2025 added financial pressure.
Supply Chain and Trade Dynamics: Global trade dynamics and supply chain challenges remain a concern, though the company believes the impact on costs will be manageable.
Mixed Regional Performance: While some regions like EMEA showed growth, others like Asia Pacific experienced mixed performance, with declines in key markets such as Thailand, Indonesia, and Vietnam.
Premiumization Challenges: Growth in premium stills brands moderated in North America, impacting price/mix performance.
Revenue Growth: The company expects organic revenue growth of 5% to 6% for 2025, in line with its long-term growth algorithm.
Earnings Per Share (EPS) Growth: Comparable currency-neutral EPS growth is projected at approximately 8% for 2025. However, due to currency headwinds, the overall EPS growth is expected to be approximately 3% compared to $2.88 in 2024.
Currency Impact: The company anticipates a 1 to 2-point currency headwind to comparable net revenues and a 5-point currency headwind to comparable EPS for the full year 2025.
Tax Rate: The underlying effective tax rate for 2025 is expected to be 20.8%, representing a more than 2-point increase compared to the prior year.
Market Recovery: Recovery in some markets is expected to take time, with concentrate sales projected to run slightly behind unit cases in Q3 2025.
Capital Allocation: The company plans to continue investing in its business and returning capital to shareholders, supported by a strong balance sheet with net debt leverage at the low end of the targeted range of 2 to 2.5x EBITDA.
Strategic Initiatives: The company is leveraging its all-weather strategy to adapt to dynamic market conditions and is focusing on driving growth through marketing transformation, innovation, and digital investments.
Dividend Program: The company has a strong balance sheet with net debt leverage of 2x EBITDA, which is at the low end of their targeted range of 2 to 2.5x. They are confident in their long-term free cash flow generation and have ample balance sheet capacity to pursue their capital allocation agenda, which prioritizes continuing to invest in their business and returning capital to shareholders.
Share Buyback Program: No specific mention of a share buyback program was made during the call.
The earnings call highlights strong financial performance, strategic growth initiatives, and positive market strategies. The Q&A reveals positive sentiment towards Coca-Cola's adaptability and growth potential, despite some uncertainties. The overall sentiment is positive, with strategic initiatives and shareholder returns likely to boost stock prices.
The earnings call summary reflects a mix of positive and negative elements. Positive factors include volume growth, marketing transformation, and strong performance in EMEA. However, challenges such as currency headwinds, weaker ASEAN markets, and unclear management responses regarding international expansion and productivity impacts temper the outlook. The Q&A section highlights ongoing efforts in marketing and innovation but also notes capacity constraints for fairlife and unmet expectations in the coffee category. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
