Coca-Cola Consolidated Reports Fourth Quarter and Fiscal Year 2025 Results

Core Insights - Coca-Cola Consolidated, Inc. reported record revenue, gross profit, and operating income for fiscal year 2025, highlighting strong performance and effective execution in the marketplace [4][3] - The company experienced a 4.6% increase in volume for the fourth quarter of 2025 and a 0.3% increase for the fiscal year, with the fourth quarter benefiting from an additional selling day [4][5] - Net sales rose by 9.0% to $1.9 billion in the fourth quarter and by 4.8% to $7.2 billion for the fiscal year, driven by pricing actions and strong volume performance [5][6] Financial Performance - Gross profit for the fourth quarter of 2025 was $754.2 million, an increase of 8.1% compared to the previous year, while gross margin decreased to 39.6% due to rising aluminum costs [8][6] - Income from operations for the fourth quarter was $242.1 million, up 10.7%, and for the fiscal year, it reached $950.7 million, a 3.3% increase [10][6] - Net income for the fourth quarter was $137.3 million, down 23.3% from the previous year, while adjusted net income increased slightly to $157.8 million [11][12] Beverage Sales - Sparkling beverage sales increased by 6.4% in the fourth quarter and 3.5% for the fiscal year, driven by multi-pack sales in large retail channels [7][5] - Still beverage sales saw a 10.0% increase in the fourth quarter and a 6.1% increase for the fiscal year, reflecting strong performance across various brands [5][7] Expenses and Investments - Selling, delivery, and administrative expenses rose by 6.9% in the fourth quarter, primarily due to labor costs and investments in front-line teammates [9][10] - The company invested approximately $312 million in capital expenditures for fiscal year 2025, with expectations of similar investments in fiscal year 2026 [13][12] Cash Flow and Shareholder Returns - Cash flows from operations for fiscal year 2025 were $931.9 million, an increase from $876.4 million in the previous year [13][12] - The company returned approximately $2.7 billion to shareholders through share repurchases and dividends during fiscal year 2025 [13][12]