KO Coca-Cola's Q1 revenue fell 2% year-over-year to $11.1 billion, matching expectations, as currency fluctuations and bottler refranchising weighed on results. However, organic revenue rose 6%, with a 2% increase in unit case volume. Adjusted EPS reached $0.73, beating forecasts by $0.01, supported by strong organic growth in Latin America, EMEA, and Asia Pacific. Coca-Cola Zero Sugar saw a notable 14% growth. Pricing was still positive at 5%, though the pace slowed compared to last year, and the company improved its operating margin thanks to cost management and the benefits of refranchising.
Management reaffirmed its 2025 outlook, expecting 5%-6% organic revenue growth and 2%-3% EPS growth, despite anticipating 2%-3% currency-related headwinds and minor structural impacts. While tariffs pose a potential risk, the company considers them manageable due to its primarily local manufacturing setup. Backed by global strength and a leading market position, Coca-Cola continues to outperform competitors like PepsiCo and Keurig Dr Pepper, even in the face of evolving consumer trends and broader economic challenges.
KO Coca-Cola's revenue increased by 6% to $11.5 billion, surpassing estimates by $0.9 billion, while earnings per share (EPS) reached $0.55, exceeding expectations by $0.03. Organic revenue, which excludes acquisitions, divestitures, and currency effects, grew 14%, with unit case volume rising 2%, recovering from the previous quarter’s decline. Higher prices continued to drive growth, with a 9% increase in price/mix, though this is expected to stabilize in 2025. Coca-Cola Zero and Fairlife milk stood out, demonstrating the company's success in diversifying beyond its core soda offerings.
Looking ahead, the company anticipates 5%-6% organic revenue growth and 2%-3% EPS growth in 2025, slightly below forecasts. Foreign exchange fluctuations (expected to reduce EPS by 6%-7%) and a slowdown in price-driven growth pose challenges. However, management remains optimistic about gaining market share through digital strategies, international expansion, and growth in value-added beverages like protein shakes and dairy products.
KO Coca-Cola's Q1 revenue fell 2% year-over-year to $11.1 billion, matching expectations, as currency fluctuations and bottler refranchising weighed on results. However, organic revenue rose 6%, with a 2% increase in unit case volume. Adjusted EPS reached $0.73, beating forecasts by $0.01, supported by strong organic growth in Latin America, EMEA, and Asia Pacific. Coca-Cola Zero Sugar saw a notable 14% growth. Pricing was still positive at 5%, though the pace slowed compared to last year, and the company improved its operating margin thanks to cost management and the benefits of refranchising.
