Against the backdrop of slowing global carbonated beverage consumption and an uncertain economic outlook, Coca-Cola has delivered an &#34;uplifting report&#34; that exceeded market expectations: both revenue and profit surpassed Wall Street forecasts.
Coca-Cola Company announced its Q2 2025 financial report on Tuesday, with the following highlights:
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Net revenue (GAAP) increased by 1% year-on-year to $12.54 billion; adjusted revenue reached $12.62 billion, exceeding the market expectation of $12.54 billion, with a year-on-year growth of 2.5%;
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Adjusted earnings per share (EPS) were $0.87, surpassing the expected $0.83, with a year-on-year growth of 4%;
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Operating profit surged by 63%, and the operating profit margin jumped to 34.1%, a recent high;
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Sales of Coca-Cola Zero Sugar grew by 14%, continuing double-digit growth for the second consecutive quarter; Diet Coke achieved sales growth in North America for the fourth consecutive quarter; the protein shake brand performed strongly in the U.S., aligning with the trend of healthy beverage consumption.
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Maintained the full-year organic revenue growth guidance of 5%-6%.
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In pre-market trading, Coca-Cola's stock price initially rose by 1% before retreating to a decline, with a cumulative increase of 12.5% for the year.
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Coca-Cola Chairman and CEO James Quincey stated that against the backdrop of external environmental changes in Q2, the company's system maintained its focus and flexibility, allowing it to stay on the right course in the first half of the year. The company continues to clearly execute its priorities and is confident in achieving the updated 2025 guidance and long-term goals.
Despite facing the challenge of declining global per-case sales, Coca-Cola achieved a 6% growth through pricing/product mix strategies, primarily benefiting from market pricing measures and a favorable product mix.
<h2>Regional Performance Shows Significant Divergence, Steady Growth in Europe, Poor Performance in North America and Asia-Pacific</h2>
In Q2, Coca-Cola's major market performance showed a divergent trend, with steady growth in Europe, while North America, Asia-Pacific, and Latin America experienced varying degrees of decline:
In the Europe, Middle East, and Africa region, per-case sales grew by 3%, primarily driven by growth in sparkling flavored beverages, water, sports drinks, coffee, tea products, and Coca-Cola trademark products. The region's pricing/product mix grew by 3%, mainly due to market pricing measures, although unfavorable product mix factors partially offset this.
In the Latin America region, per-case sales declined by 2%, with growth in juice, value-added dairy products, and plant-based beverages offset by declines in water, sports drinks, coffee, tea products, and Coca-Cola trademark products. However, the region's pricing/product mix grew significantly by 15%, primarily driven by market pricing measures, investment timing, and a favorable product mix
Single box sales in North America decreased by 1%, with the growth of sparkling flavored beverages offset by the decline of Coca-Cola trademark products.
Single box sales in the Asia-Pacific region decreased by 3%, with the growth of water, sports drinks, and coffee and tea products offset by the decline of sparkling flavored beverages, juices, value-added dairy products, and plant-based beverages.
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<h2>Significant Improvement in Profitability Under Cost Reduction and Efficiency Enhancement Plan</h2>
Coca-Cola's operating profit margin in the second quarter performed impressively, reaching 34.1%, compared to 21.3% in the same period last year. The adjusted operating profit margin was 34.7%, an increase from 32.8% in the same period last year.
The company pointed out that the improvement in operating profit margin was mainly due to organic revenue growth, timely marketing investments, and effective cost management, partially offset by foreign exchange headwinds.
Earnings per share increased by 58% to $0.88, which includes an 11 percentage point impact from foreign exchange headwinds. Adjusted earnings per share grew by 4% to $0.87, including a 5 percentage point impact from foreign exchange headwinds.
Operating cash flow was negative $1.4 billion, primarily reflecting the $6.1 billion fairlife or contingent payment made in the first quarter. Free cash flow, excluding this item, was $3.9 billion.
<h2>Full-Year Guidance Remains Essentially Unchanged, Focus on Foreign Exchange Risks</h2>
Based on the current macro environment, Coca-Cola maintains its expectation of 5%-6% organic revenue growth for the full year. For adjusted net revenue, the company expects to face a 1%-2% foreign exchange headwind based on current exchange rates and hedging positions, along with approximately 1% negative impact from acquisitions, divestitures, and structural changes.
The company expects adjusted currency-neutral earnings per share to grow by about 8%, with adjusted earnings per share expected to increase by about 3% compared to $2.88 in 2024. The expected growth in adjusted earnings per share includes approximately 5% foreign exchange headwind based on current exchange rates and hedging positions, as well as about 1% headwind from acquisitions, divestitures, and structural changes.
The company expects free cash flow, excluding fairlife or contingent payments, to be approximately $9.5 billion, with operating cash flow around $11.7 billion, minus approximately $2.2 billion in capital expenditures

Coca Cola's adjusted revenue in the second quarter increased by 2.5% year-on-year to USD 12.62 billion, with adjusted earnings per share of USD 0.87, both exceeding expectations. With strong growth in its zero-sugar series and an effective pricing strategy in a high-inflation market, Coca Cola achieved a counter-cyclical growth situation of "declining sales but soaring profits."

- Coca-Cola reported Q2 2025 results, exceeding market expectations with net revenue of $12.54 billion, a 1% year-over-year increase.  
- The company maintained its full-year organic revenue growth guidance of 5%-6%, despite facing challenges in global sales volume.  
- Regional performance varied, with Europe showing growth while North America and Asia-Pacific experienced declines, influenced by pricing strategies and product mix.

The price increase strategy takes effect, Coca Cola's Q2 operating profit soars by 63%, revenue exceeds expectations | Financial Report Insights