Coca-Cola Company (NYSE:KO) shares are trading higher on Tuesday after the soft drink company released first-quarter 2025 earnings.
According to the report:
- First-quarter sales declined 1.77% year-on-year to $11.1 billion, missing the analyst consensus estimate of $11.14 billion.
- Revenue performance included a 1% climb in concentrate sales and a 5% growth in price/mix. Unit case volume grew 2% in the quarter. Organic revenues increased 6%.
- Organic revenue in Europe, Middle East and Africa jumped 7% in the first quarter, while in North America, it increased 3%.
- Gross profit slipped 1% to $6.96 billion with a profit margin of 62.5%.
- Operating margins expanded 1400 basis points to 32.9%
- The comparable operating margin gained 140 basis points to 33.8%.
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Operating income for the quarter jumped 71% to $3.65 billion. Adjusted EPS of 73 cents beat the consensus estimate of 72 cents.
Operating cash flow used in the quarter was $5.2 billion. As of March 28, Coca-Cola held $8.4 billion in cash and equivalents.
"Despite some pressure in key developed markets, the power of our global footprint allowed us to successfully navigate a complex external environment," said CEO James Quincey.
Outlook: Coca-Cola expects 2025 organic revenue of 5% – 6%, and comparable currency neutral EPS growth of 7% – 9%. The company sees comparable EPS growth of 2% to 3% versus $2.88 in 2024.
The company anticipates adjusted EPS of $2.94 – $2.97 with an estimate of $2.96.
Coca-Cola sees free cash flow excluding the fairlife contingent consideration payment (non-GAAP) of approximately $9.5 billion.
For second-quarter, Comparable EPS (non-GAAP) percentage growth is expected to include a 5% to 6% currency headwind.
Price Action: Coca-Cola shares traded higher by 0.84% at $71.86 at last check Tuesday.
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