The Coca-Cola Company Q1 2025 Earnings Summary

Revenue and Profitability
- Global unit case volume grew 2%.
- Net revenues declined 2% to $11.1 billion due to currency headwinds and bottler refranchising.
- Organic revenues (non-GAAP) grew 6%, driven by 5% price/mix growth and a 1% increase in concentrate sales.
- Operating income grew 71% year-over-year; comparable currency-neutral operating income (non-GAAP) rose 10%.
- Operating margin increased to 32.9% from 18.9%; comparable operating margin (non-GAAP) improved to 33.8% from 32.4%.
- Reported EPS rose 5% to $0.77; comparable EPS (non-GAAP) rose 1% to $0.73.

Segment Highlights
- Europe, Middle East & Africa: Volume +3%; comparable currency-neutral operating income +8%.
- Latin America: Volume flat; comparable currency-neutral operating income +18%.
- North America: Volume -3%; comparable currency-neutral operating income +4%.
- Asia Pacific: Volume +6%; comparable currency-neutral operating income +7%.
- Bottling Investments: Volume -17% due to refranchising; comparable currency-neutral operating income -21%.

Cash Flow
- Net cash used in operating activities: $(5.2) billion, mainly due to a $6.1 billion contingent payment for fairlife.
- Free cash flow excluding the fairlife payment (non-GAAP): $558 million.

Updated Full-Year 2025 Outlook
- Organic revenue growth (non-GAAP) expected to be 5%–6%.
- Comparable currency-neutral EPS (non-GAAP) growth forecasted at 7%–9%.
- Free cash flow excluding fairlife payment projected at approximately $9.5 billion.
- Currency expected to be a 5%–6% headwind to comparable EPS growth.

Key Management Comment
Chairman and CEO James Quincey emphasized Coca-Cola’s ability to navigate challenges through its global reach, strong local market execution, innovation across global and regional brands, and strategic marketing campaigns like the Maha Kumbh Mela activation in India.