Coca-Cola Consolidated(US:COKE) Globenewswire·2025-07-24 20:10Core Insights - Coca-Cola Consolidated, Inc. reported solid second quarter results with a focus on top-line growth and margin management, leading to steady profit growth and substantial cash flow [2][3] - The company experienced a volume decline of 0.8% in Q2 2025 and 3.5% in the first half of 2025, attributed to two fewer selling days compared to the previous year [3][4] - Net sales increased by 3.3% to $1.9 billion in Q2 2025 and by 1.4% to $3.4 billion in the first half of 2025, driven by growth in both Sparkling and Still beverage categories [4][5] Financial Performance - Gross profit for Q2 2025 was $742.5 million, a 3.6% increase from Q2 2024, with a gross margin of 40.0% [4][6] - Income from operations in Q2 2025 rose to $272.1 million, a 5.0% increase year-over-year, while the operating margin improved to 14.7% [8][9] - Net income for Q2 2025 was $187.4 million, an increase of 8.4% compared to the same quarter in 2024 [9] Beverage Sales Breakdown - Sparkling beverage sales in Q2 2025 reached $1.08 billion, up 3.0% from Q2 2024, while Still beverage sales increased by 4.8% to $626.1 million [4][5] - The decline in volume was noted in Coca-Cola Original taste, while zero-sugar and flavored offerings saw solid growth [3][5] Cost Management - Selling, delivery, and administrative (SD&A) expenses increased by 2.8% in Q2 2025, primarily due to higher labor costs, but as a percentage of net sales, they decreased to 25.4% [7][8] - The company has made ongoing investments in supply chain capabilities to respond to changing consumer preferences for value [7] Cash Flow and Investments - Cash flows from operations for the first half of 2025 were $406.2 million, down from $437.1 million in the same period of 2024 [11] - The company invested approximately $157 million in capital expenditures in the first half of 2025, with expectations of around $300 million for the fiscal year [11]