Coca-Cola Q1 2025 Earnings: Organic Revenue Up 6%, Operating Margin Expands
Coca-Cola delivered a strong first quarter in 2025, demonstrating solid performance in its core business despite external headwinds like currency fluctuations. While reported revenue fell 2% to $11.1 billion, the company achieved
6% organic revenue growth, driven by
5% pricing and mix gains and
1% growth in concentrate volume.
Key Highlights:
- Earnings per share (EPS) increased by 5% to $0.77
- Operating income surged 71%, with operating margin expanding to 32.9% from 18.9% in Q1 2024
- Global unit case volume rose 2%
- Coca-Cola Zero Sugar posted 14% growth across all regions
- Free cash flow was negative $5.5 billion, primarily due to a one-time $6.1 billion payment for the fairlife acquisition
- Adjusted free cash flow excluding the payment stood at $558 million
Regional Insights:
Coca-Cola saw
strong growth in emerging markets, particularly
India, China, and Brazil. Notable successes included:
- Record-breaking campaign at India’s Maha Kumbh Mela festival
- Effective Lunar New Year marketing in China
Conversely,
North America volume declined by 3%, but the company’s
geographically diverse footprint helped offset regional weaknesses.
Outlook for 2025:
Coca-Cola
maintained its full-year guidance, projecting
organic revenue growth of 5–6%. However, the company now expects a
2–3% currency headwind on comparable net revenues. Despite this, management remains confident in the company’s growth trajectory, pointing to its strong brand, global reach, and resilient business model.
