KO 4Q25 First Take: Results were mixed, with revenue missing consensus. Profit fell sharply due to a $960 mn impairment on BODYARMOR, the premium sports drink acquired in 2021.

1) Organic growth rose 5% in Q4, with concentrate sales up 4% YoY and ahead of expectations. However, with unit case volume up only 1%, Dolphin Research believes this largely reflects bottlers pulling forward inventory.

Pricing increased just 1% YoY, below estimates and dragged by APAC and EMEA. With consumers more price sensitive, KO’s premiumization-led mix actions struggled to pass through price in Q4.

2) GPM: While key inputs and packaging (HFCS, PET) trended lower, a higher mix of lower-margin SKUs likely offset the commodity tailwind. As a result, GPM was essentially flat.

On opex, excluding the one-off BODYARMOR impairment, the opex ratio edged down. This suggests better operating and marketing efficiency, aided by AI.

For 2026, the company guided to 4%-5% growth, a touch below the 5% Street consensus, reflecting a cautious stance amid policy pressure and macro headwinds. For more detail, follow Dolphin Research's takeaways and the earnings call.$Coca Cola(KO.US)