# Coca-Cola (KO) Q2 2025 Financial Results Summary
The Coca-Cola Company released its financial results for the second quarter of 2025 on July 22, 2025. Below is a summary of key performance metrics and updates from the report.
## Highlights
### Quarterly Performance
– **Net Revenues**: Increased by **1%** to **$12.5 billion** from $12.36 billion a year ago.
– **Organic Revenues (Non-GAAP)**: Grew **5%**.
– Revenue growth included a **6%** increase in price/mix, despite a **1%** decline in concentrate sales.
– **Operating Income**: Grew significantly by **63%** to **$4.28 billion** from $2.63 billion in the prior year.
– **Comparable Currency Neutral Operating Income (Non-GAAP)**: Increased by **15%**.
– **Operating Margin**: Improved to **34.1%** from **21.3%** in the previous year.
– **Comparable Operating Margin (Non-GAAP)**: Rose to **34.7%** from **32.8%**.
– **Earnings per Share (EPS)**:
– Reported EPS increased by **58%** to **$0.88** from $0.56.
– **Comparable EPS (Non-GAAP)**: Grew **4%** to **$0.87**.
### Market Share and Cash Flow
– The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
– **Operating Cash Flow**: Reported as negative **$1.4 billion**, affected by a **$6.1 billion** fairlife contingent consideration payment made in the first quarter.
– **Free Cash Flow (Non-GAAP)**: Declined by **$5.5 billion**, resulting in negative free cash flow of **$2.1 billion**; when excluding the fairlife contingent consideration payment, it was **$3.9 billion**.
### Individual Segment Performance
– **Unit Case Volume**: Declined by **1%** overall, with various performances across regions:
– **Europe, Middle East & Africa**: +**3%**
– **Latin America**: -**2%**
– **North America**: -**1%**
– **Asia Pacific**: -**3%**
– **Bottling Investments**: -**5%**
– **Price/Mix Changes**:
– Price/mix grew by **6%** globally.
– **Concentrate Sales**: Aligned with unit case volume trends across most segments.
### Segment Specific Highlights
– **North America**: Operating income increased by **18%**;
– Comparable operating income (Non-GAAP) grew **10%**.
– **Latin America**: Operating income grew **4%**, with a **38%** increase in comparable currency neutral operating income (Non-GAAP).
– **Europe, Middle East & Africa**: Operating income grew by **3%**;
– Comparable currency neutral operating income (Non-GAAP) rose **7%**.
### Company Updates
– Launched new marketing campaigns to connect with consumers, including the global relaunch of “Share a Coke” campaign, which contributed to growth in single-serve transactions.
– Continued focus on revenue growth management to enhance consumer engagement and increase transactions.
– **Dividend Declaration**: During this quarter, Coca-Cola has declared a dividend of **$2.28 billion**, reflecting a **2%** increase from the same period last year.
### Outlook for 2025
– **Organic Revenue (Non-GAAP)** growth expected to be between **5% to 6%**.
– **Comparable EPS (Non-GAAP)** growth expected to be approximately **3%** versus **$2.88** in 2024.
– Anticipate free cash flow excluding the fairlife contingent consideration payment to be around **$9.5 billion** for 2025.
## Summary
The Coca-Cola Company reported a solid financial performance in Q2 2025 with substantial growth in operating income and EPS, despite a slight overall decline in unit case volume. The company continues to focus on consumer engagement through innovative marketing and strategic price management while preparing for the remainder of the year with optimistic revenue growth expectations.
| June 27, 2025 | June 28, 2024 | % Change | |
|---|---|---|---|
| Net Operating Revenues | $12,535 | $12,363 | 1 |
| Cost of goods sold | 4,714 | 4,812 | -2 |
| Gross Profit | 7,821 | 7,551 | 4 |
| Selling, general and administrative expenses | 3,470 | 3,549 | -2 |
| Other operating charges | 71 | 1,370 | -95 |
| Operating Income | 4,280 | 2,632 | 63 |
| Interest income | 188 | 275 | -32 |
| Interest expense | 445 | 418 | 6 |
| Equity income (loss) — net | 561 | 537 | 4 |
| Other income (loss) — net | 212 | 2 | 8,242 |
| Income Before Income Taxes | 4,796 | 3,028 | 58 |
| Income taxes | 993 | 627 | 58 |
| Consolidated Net Income | 3,803 | 2,401 | 58 |
| Less: Net income (loss) attributable to noncontrolling interests | -7 | -10 | 28 |
| Net Income Attributable to Shareowners of The Coca-Cola Company | $3,810 | $2,411 | 58 |
| Basic Net Income Per Share1 | $0.89 | $0.56 | 58 |
| Diluted Net Income Per Share1 | $0.88 | $0.56 | 58 |
| Average Shares Outstanding | 4,304 | 4,309 | 0 |
| Effect of dilutive securities | 11 | 10 | -1 |
| Average Shares Outstanding Assuming Dilution | 4,315 | 4,319 | 0 |
Note: Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
| June 27, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current Assets | ||
| Cash and cash equivalents | $9,590 | $10,828 |
| Short-term investments | 2,658 | 2,020 |
| Total Cash, Cash Equivalents and Short-Term Investments | 12,248 | 12,848 |
| Marketable securities | 2,049 | 1,723 |
| Trade accounts receivable, less allowances of $503 and $506, respectively | 4,168 | 3,569 |
| Inventories | 5,082 | 4,728 |
| Prepaid expenses and other current assets | 3,062 | 3,129 |
| Total Current Assets | 26,609 | 25,997 |
| Equity method investments | 19,379 | 18,087 |
| Deferred income tax assets | 1,325 | 1,319 |
| Property, plant and equipment — net | 10,784 | 10,303 |
| Trademarks with indefinite lives | 13,615 | 13,301 |
| Goodwill | 18,663 | 18,139 |
| Other noncurrent assets | 13,958 | 13,403 |
| Total Assets | $104,333 | $100,549 |
| LIABILITIES AND EQUITY | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $17,030 | $21,715 |
| Loans and notes payable | 4,379 | 1,499 |
| Current maturities of long-term debt | 91 | 648 |
| Accrued income taxes | 444 | 1,387 |
| Total Current Liabilities | 21,944 | 25,249 |
| Long-term debt | 44,976 | 42,375 |
| Other noncurrent liabilities | 4,856 | 4,084 |
| Deferred income tax liabilities | 2,375 | 2,469 |
| The Coca-Cola Company Shareowners’ Equity | ||
| Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares | 1,760 | 1,760 |
| Capital surplus | 19,970 | 19,801 |
| Reinvested earnings | 78,803 | 76,054 |
| Accumulated other comprehensive income (loss) | -15,758 | -16,843 |
| Treasury stock, at cost — 2,736 and 2,738 shares, respectively | -56,190 | -55,916 |
| Equity Attributable to Shareowners of The Coca-Cola Company | 28,585 | 24,856 |
| Equity attributable to noncontrolling interests | 1,597 | 1,516 |
| Total Equity | 30,182 | 26,372 |
| Total Liabilities and Equity | $104,333 | $100,549 |
