Coca-Cola(US:KO)2025-04-29 10:58Financial Performance - Net revenues declined 2% to $11.1 billion, while organic revenues (non-GAAP) grew 6%[4] - Operating income grew 71%, with comparable currency neutral operating income (non-GAAP) increasing by 10%[4] - EPS increased by 5% to $0.77, with comparable EPS (non-GAAP) growing 1% to $0.73[4] - Consolidated net income increased by 5% to $3,335 million in Q1 2025, up from $3,185 million in Q1 2024[32] - Operating income surged by 71% to $3,659 million in Q1 2025, compared to $2,141 million in Q1 2024[32] - Reported net operating revenues for the three months ended March 28, 2025, were $11,129 million, a decrease of 2% compared to the same period in 2024[63] - Comparable (Non-GAAP) net operating revenues for the same period were $11,216 million, reflecting a 0% change year-over-year[69] - Gross profit margin for the three months ended March 28, 2025, was 62.6%, slightly up from 62.5% in the previous year[63] - Operating income margin for the reported period was 32.9%, compared to 18.9% in the same quarter of the previous year[63] Revenue and Volume Growth - Unit case volume grew 2%, driven by strong performance in India, China, and Brazil[12] - The company reported a 3% increase in comparable (Non-GAAP) revenues when adjusted for currency effects, indicating stable performance in core operations[69] - North America reported net operating revenues of $4,361 million for the three months ended March 28, 2025, a 3% increase year-over-year[69] - The company gained value share in total nonalcoholic ready-to-drink beverages[4] - Organic revenues (Non-GAAP) increased by 6% for the three months ended March 28, 2025, driven by growth in various markets[69] Cash Flow and Financial Position - Free cash flow excluding the fairlife contingent consideration payment (non-GAAP) is expected to be approximately $9.5 billion[24] - Cash flow used in operations was $5.2 billion, with negative free cash flow (non-GAAP) of approximately $5.5 billion due to contingent consideration payments[5] - The company reported a cash and cash equivalents balance of $8,417 million at the end of Q1 2025, down from $10,828 million at the end of Q4 2024[35] - The company experienced a net cash outflow from operating activities of $5,202 million in Q1 2025, compared to a cash inflow of $528 million in Q1 2024[37] - Free cash flow (Non-GAAP) for the three months ended March 28, 2025, was $(5,511) million, a decrease of $5,669 million compared to $158 million in the same period of 2024[72] Debt and Equity - The company’s long-term debt increased to $43,530 million as of March 28, 2025, compared to $42,375 million at the end of 2024[35] - The company’s equity attributable to shareholders increased to $26,202 million in Q1 2025, up from $24,856 million at the end of 2024[35] Impairments and Gains - An impairment charge of $25 million was recorded in Latin America during the three months ended March 28, 2025, primarily due to restructuring a joint venture[48] - The company reported a net gain of $331 million related to the sale of a portion of its ownership interest in Coca-Cola Europacific Partners plc during the three months ended March 28, 2025[51] - The company recognized a net gain of $599 million related to the refranchising of bottling operations in the Philippines during the three months ended March 29, 2024[53] Tax and Charges - The company recorded a net income tax benefit of $138 million for changes to uncertain tax positions during the three months ended March 28, 2025[60] - Charges related to restructuring initiatives amounted to $11 million for the three months ended March 28, 2025, compared to $36 million in the same period of the previous year[54] - The company incurred $47 million in charges related to the remeasurement of contingent consideration liability in conjunction with the acquisition of fairlife during the three months ended March 28, 2025[52] Future Projections - The company expects organic revenue (non-GAAP) growth of 5% to 6% for the full year 2025[24] - Comparable currency neutral EPS (non-GAAP) growth is projected at 7% to 9%[24] - Projected free cash flow excluding the fairlife contingent consideration payment for 2025 is estimated at $9.5 billion[73] Strategic Focus - The company aims to positively impact communities and the planet through sustainable practices, including water replenishment and packaging recycling[75] - The company is focused on innovation and transforming its product portfolio to meet evolving consumer preferences[75]