The Coca-Cola Company reported its first quarter 2025 results, noting a 2% growth in global unit case volume. However, net revenues declined by 2%, although organic revenues (non-GAAP) grew by 6%. Operating income saw a substantial increase of 71%, with a comparable currency neutral operating income (non-GAAP) growth of 10%. The operating margin was 32.9%, compared to 18.9% in the previous year, while comparable operating margin (non-GAAP) was 33.8% versus 32.4% in the prior year. Earnings per share (EPS) grew 5% to $0.77, and comparable EPS (non-GAAP) grew 1% to $0.73.

The company's performance was driven by its all-weather strategy, successfully navigating a complex external environment, as stated by Chairman and CEO James Quincey. Despite pressure in key developed markets, the company's global footprint allowed it to maintain growth. Net revenues declined to $11.1 billion, influenced by currency headwinds and the refranchising of bottling operations. Organic revenues grew 6%, comprising 5% growth in price/mix and a 1% increase in concentrate sales. Concentrate sales lagged unit case volume by 1 point, primarily due to two fewer days in the quarter, partially offset by the timing of concentrate shipments.

Operating margin reached 32.9%, and comparable operating margin (non-GAAP) was 33.8%. The expansion in comparable operating margin (non-GAAP) was attributed to organic revenue growth, effective cost management, the timing of marketing investments, and the impact of refranchising bottling operations, offset by currency headwinds. EPS grew 5% to $0.77, impacted by a 9-point currency headwind, while comparable EPS (non-GAAP) grew 1% to $0.73, influenced by a 5-point currency headwind.

The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages. Cash flow used in operations amounted to $5.2 billion, and free cash flow (non-GAAP) declined by approximately $5.7 billion versus the prior year, resulting in negative free cash flow (non-GAAP) of approximately $5.5 billion. This decrease was due to a $6.1 billion contingent consideration payment related to the acquisition of fairlife, LLC. Excluding this payment, free cash flow (non-GAAP) was $558 million.

Coca-Cola is focusing on capturing compelling geographic opportunities with a local approach, particularly in developing and emerging markets. A significant activation took place at the Maha Kumbh Mela festival in India, where an estimated 660 million attendees were present. The company intensified its integrated activation with hundreds of refreshment zones, approximately 1,400 mobile stations, and a world-record-long 100 cooler-door wall, resulting in over 180 million servings consumed. In China, activations featured Trademark Coca-Cola, Sprite, and Minute Maid during the Lunar New Year. In Türkiye, the company continued its “Made in, Made by” campaign, emphasizing the local essence of its products, leading to double-digit volume growth and value share gains.

Innovation across a portfolio of local, regional, and global brands is a key focus. The company's beverage portfolio includes 30 billion-dollar brands. The fairlife trademark, including lactose-free ultra-filtered milk and high-protein Core Power and Nutrition Plan, continues to achieve strong volume growth. The company launched Simply Pop, its first prebiotic soda, in select regions across the United States. In India, Trademark Coca-Cola and Thums Up are driving double-digit volume growth. The company is extending its global leadership in the ready-to-drink tea category with brands like Fuze Tea, Gold Peak, and Ayataka.

Operating results showed that unit case volume grew 2%, led by India, China, and Brazil. Sparkling soft drinks grew 2%, with Trademark Coca-Cola growing 1% and Coca-Cola Zero Sugar growing 14%. Sparkling flavors grew 2%, and juice, value-added dairy, and plant-based beverages grew 1%. Water, sports, coffee, and tea grew 2%. Price/mix grew 5%, driven by pricing actions in the marketplace. Operating income grew 71%, and comparable currency neutral operating income (non-GAAP) grew 10%.

In Europe, the Middle East & Africa, unit case volume grew 3%, and comparable currency neutral operating income (non-GAAP) grew 8%. The company gained value share in total NARTD beverages, led by Romania, Egypt, and Türkiye. In Latin America, unit case volume was even, and comparable currency neutral operating income (non-GAAP) grew 18%. In North America, unit case volume declined 3%, but comparable currency neutral operating income (non-GAAP) grew 4%. In Asia Pacific, unit case volume grew 6%, but operating income declined 5%. Bottling Investments saw a unit case volume decline of 17%, and comparable currency neutral operating income (non-GAAP) declined 21%.

The company provided its full year 2025 guidance, expecting organic revenue (non-GAAP) growth of 5% to 6% and comparable currency neutral EPS (non-GAAP) growth of 7% to 9%. It expects a 2% to 3% currency headwind for comparable net revenues (non-GAAP) and comparable EPS (non-GAAP). The company expects to generate free cash flow excluding the fairlife contingent consideration payment (non-GAAP) of approximately $9.5 billion.

Notably, Coca-Cola experienced double-digit volume growth in India during the March quarter, driven by strong performances from Thums Up and Coca-Cola. This growth, along with contributions from China and Brazil, helped the company achieve a 2% increase in global unit case volume. The company also highlighted its successful activation at the Mahakumbh Mela, which significantly boosted servings consumed. During the investors' call, James Quincey called out India as a market that has demonstrated strong volume growth of global and local brands. The Indian market had a decline in the NARTD beverages, where the value share was offset by declines in Indonesia and India. In the Asia Pacific market, unit case volume grew 6%, driven by growth across all global beverage categories. However, Coca-Cola's net operating revenue in the Asia Pacific zone was down 4.05 per cent to USD 1.42 billion for the quarter ended on March 28, 2025.