Coca Cola Q1 revenue slightly decreased by 2%, operating profit increased by 71%, strong sales of zero-sugar products | Financial Report Insights

Coca-Cola's total revenue in Q1 2025 slightly decreased by 2%, primarily due to external factors such as currency exchange rates and regional structural adjustments, but organic (non-GAAP) revenue grew by 6% against the trend, and operating profit increased by 71%. Coca-Cola's zero-sugar products performed exceptionally well, with sales increasing by 14% year-on-year.

The company expects organic revenue to grow by 5%-6% for the full year of 2025, with comparable earnings per share expected to increase by 2%-3%.

On the 29th, Coca-Cola announced its Q1 2025 financial report:

• Revenue: Net revenue decreased by 2% to $11.1 billion, impacted by unfavorable exchange rates and the restructuring of bottling operations; however, organic (non-GAAP) revenue grew by 6%.
• Profit: Operating profit increased by 71% to $3.659 billion; comparable operating profit, excluding the impact of exchange rates, grew by 10%.
• Profit Margin: Operating profit margin was 32.9%, with comparable operating profit margin (non-GAAP) at 33.8%, both showing year-on-year growth.
• Earnings per Share: Earnings per share increased by 5% to $0.77, with comparable earnings per share, excluding the impact of exchange rates, growing by 1% to $0.73.

Revenue Slightly Decreased by 2%, but Profit Margin Improved Significantly

Coca-Cola's net income for the quarter was $11.1 billion, a 2% decrease compared to the same period last year, primarily affected by negative currency fluctuations (5%) and the restructuring of bottling operations (3%). Excluding these factors, the company's organic revenue actually grew by 6%, with price/mix contributing 5% to the growth and concentrate sales increasing by 1%.

Meanwhile, the company's profit margin improved significantly, with operating profit increasing by 71% year-on-year, and the operating profit margin rising sharply from 18.9% in the same period last year to 32.9%. The comparable operating profit margin was 33.8%, an increase of 134 basis points from 32.4% in the same period last year. This growth was mainly attributed to the increase in organic revenue, effective cost management, and the timing of marketing investments.

Zero-Sugar Products Performed Exceptionally, Sales in the Asia-Pacific Region Shone Brightly

In terms of business changes, sales units (Unit Case) grew by 2% year-on-year, concentrated in India, China, and Brazil, reflecting ongoing expansion into emerging markets. By region:

• North America: The North American market faced challenges, with sales declining by 3%, but the growth in price/product mix offset some losses, and operating profit increased by 170%, likely related to cost control and the pacing of marketing investments.
• Asia-Pacific: The Asia-Pacific region performed brilliantly, with sales increasing by 6%. Notably, the markets in China and India stood out. In India, the company achieved record sales through the Maha Kumbh Mela festival; in China, marketing activities during the Lunar New Year drove high single-digit sales growth
• Other Regions: Sales in Europe, the Middle East, and Africa increased by 3%, while sales in Latin America remained flat.

The "Coca Cola Zero Sugar" in carbonated beverages saw an increase of 14%, demonstrating that low-sugar and new flavors cater to the trend of consumer health transformation.

In addition, the company is strengthening its layout in the fields of value-added dairy products, pre-ecological soda, and ready-to-drink tea. fairlife branded products (including lactose-free ultra-filtered milk and high-protein Core Power and Nutrition Plan) continue to show strong growth; the company launched its first pre-ecological soda, Simply Pop, in specific regions of the United States; and the global ready-to-drink tea product portfolio has also expanded its leadership position