Coca-Cola Reports Fourth Quarter and Full Year 2025 Results
The Coca-Cola Company today announced its financial results for the fourth quarter and full year 2025.
James Quincey, Chairman and CEO of The Coca-Cola Company, commented, “I’m encouraged by our performance in 2025, which demonstrated both the resilience and momentum that define our business. Looking ahead, we will focus on executing our strategy even more effectively and positioning our system for long-term success.”
Financial Highlights
Revenue Performance
Quarterly Revenue: Net revenues for the fourth quarter increased 2% to $11.8 billion, while organic revenues (non-GAAP) grew 5%. This growth was driven by a 4% increase in concentrate sales and a 1% gain in price/mix. Concentrate sales exceeded unit case volume by 3 points, influenced by shipment timing and one additional day in the quarter.
Full-Year Revenue: For 2025, net revenues rose 2% to $47.9 billion, and organic revenues (non-GAAP) grew 5%, supported by 4% growth in price/mix and a 1% increase in concentrate sales. Concentrate sales were 1 point ahead of unit case volume due to shipment timing.
Operating Margin
Quarterly Operating Margin: The operating margin for Q4 was 15.6%, compared to 23.5% in the prior year, while comparable operating margin (non-GAAP) expanded to 24.4% from 24.0%. Margin performance was impacted by a $960 million non-cash impairment charge related to the BODYARMOR trademark and currency headwinds.
Full-Year Operating Margin: For the full year, operating margin rose to 28.7% from 21.2%, with comparable operating margin (non-GAAP) improving to 31.2% from 30.0%. Margin expansion was driven by organic revenue growth and effective cost management, partially offset by currency challenges.
Earnings Per Share (EPS)
Quarterly EPS: EPS for the fourth quarter grew 4% to $0.53, while comparable EPS (non-GAAP) increased 6% to $0.58. Performance included a 9-point currency headwind, with comparable EPS impacted by a 5-point currency headwind.
Full-Year EPS: For 2025, EPS grew 23% to $3.04, while comparable EPS (non-GAAP) rose 4% to $3.00, reflecting an 8-point currency headwind, with comparable EPS impacted by a 5-point currency headwind.
Market Share and Cash Flow
The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages for both the quarter and full year.
Cash Flow: Operating cash flow for 2025 was $7.4 billion, with free cash flow (non-GAAP) of $5.3 billion. Excluding the $6.1 billion contingent consideration payment related to the 2020 fairlife acquisition, free cash flow would have been $11.4 billion.
Consumer Marketing and Brand Engagement
Coca-Cola focused on recruiting the next generation of consumers through local marketing platforms and experiential campaigns:
- Trademark Coca-Cola: The “Rings of Magic” initiative engaged students at roughly 1,500 universities across eight key markets, incorporating local activations like “Study Break” events.
- Fanta Halloween: Activated in 50 markets with “The Haunted Fanta Factory,” limited-edition packaging, and immersive experiences.
- Powerade: Local sporting event activations, including FIFA World Cup 2026 CONMEBOL Qualifiers and Major League Soccer playoffs, featured exclusive in-person and digital experiences. Innovations such as Powerade Power Water and Powerade Sours boosted shelf presence and global value share in sports drinks.
Strategic Initiatives
To drive long-term growth and market intimacy, Coca-Cola implemented several strategic initiatives:
- Digital Transformation: Creation of the Chief Digital Officer role to unify digital, data, and operational excellence, enhancing speed, effectiveness, and efficiency across the business.
- Leadership Expansion: Appointment of seasoned operators in key geographies to support growth and innovation.
- Innovation Hubs: Establishment of innovation hubs and commercial centers of excellence across all operating segments to enhance marketing, product innovation, and consumer engagement.
Unit Case Volume Performance
Quarterly Growth: Unit case volume rose 1%, led by Brazil, the U.S., and Japan.
Full-Year Performance: Unit case volume remained flat, as gains in Central Asia, North Africa, and Brazil offset declines in Mexico, the U.S., and Thailand.
Category Highlights:
- Sparkling Soft Drinks: Flat for both Q4 and full-year; Trademark Coca-Cola grew 1% for Q4 and remained even for the year. Coca-Cola Zero Sugar grew 13% for Q4 and 14% for 2025. Diet Coke/Coca-Cola Light increased 2% in Q4 and was even for the year. Sparkling flavors declined 1% across both periods.
- Juice, Dairy, and Plant-Based Beverages: Declined 3% for both periods due to regional declines offsetting local growth.
- Water, Sports, Coffee, and Tea: Grew 3% for Q4 and 2% for the year, led by water (4% Q4) and tea (5% Q4).
Price/Mix Performance: Price/mix increased 1% in Q4 and 4% for the year, driven by marketplace pricing actions. Concentrate sales exceeded unit case volume due to shipment timing and additional days.
Operating Income: Declined 32% in Q4 and rose 38% for the full year. Non-GAAP, currency-neutral operating income grew 13% for both Q4 and full-year, reflecting organic revenue growth and cost efficiency.
Regional Performance
Europe, Middle East & Africa (EMEA):
- Unit case volume up 2% in Q4; full-year growth led by Egypt and Nigeria.
- Price/mix declined 3% in Q4.
- Q4 operating income down 9%, with comparable non-GAAP down 2%.
Latin America:
- Unit case volume grew 2% in Q4 and full year, led by Argentina and Brazil.
- Price/mix rose 6% in Q4.
- Comparable non-GAAP operating income grew 13% in Q4.
North America:
- Unit case volume rose 1% in Q4; growth driven by water, sports, coffee, tea, and Trademark Coca-Cola.
- Operating income down 65% in Q4 due to BODYARMOR impairment; comparable non-GAAP operating income grew 15%.
Asia Pacific:
- Unit case volume flat in Q4.
- Operating income declined 36% in Q4; comparable non-GAAP down 3%.
SOURCE LINK : https://www.businesswire.com/
