Financial Data and Key Metrics Changes - The company achieved a comparable earnings per share (EPS) of $3 in 2025, up from approximately $2 in previous years, marking a significant inflection in earnings growth [8][11] - Free cash flow for 2025 was $11.4 billion, an increase of approximately $600 million compared to the previous year [21][22] - The company reported a 7% average organic revenue growth since 2017, exceeding its long-term growth algorithm [8][11] Business Line Data and Key Metrics Changes - North America delivered strong results with volume, revenue, and comparable operating income growth, despite macroeconomic pressures on lower-income consumers [12][56] - The trademark Coca-Cola brand saw retail sales growth of over $60 billion, reinforcing its position as the highest valued food and beverage brand globally [7] - In Latin America, the company leveraged its systems capabilities to navigate external challenges, achieving volume growth despite a complex environment [12][14] Market Data and Key Metrics Changes - In EMEA, the company gained value share and grew volume and revenue, although volume in Europe initially declined before recovering [14] - The Asia Pacific region experienced flat volume growth, with revenue and profit declines attributed to softer consumer spending and weaker industry performance [16] - The company reported volume growth in both operating units in Asia and the Middle East, driven by local consumer insights and impactful marketing campaigns [15][16] Company Strategy and Development Direction - The company aims to increase its number of billion-dollar brands and transform existing brands into multi-billion-dollar brands [17] - Future strategies will focus on better integrating marketing campaigns with commercial execution, improving speed to market, and placing digital at the core of consumer connections [18] - The company is committed to navigating local market dynamics while delivering on global objectives, with a focus on balanced top-line growth and volume as a priority [22][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a complex external environment in 2025 but emphasized the company's ability to deliver on guidance and gain value share for 19 consecutive quarters [10][11] - The company expects organic revenue growth of 4%-5% for 2026, with a balanced mix of price and volume anticipated as inflation moderates [22][34] - Management expressed confidence in capturing growth opportunities under new leadership, highlighting the importance of continuous improvement and adaptation [18][27] Other Important Information - The company plans to generate approximately $12.2 billion of free cash flow in 2026, with a commitment to reinvest in the business and grow dividends [24][25] - The anticipated impact of currency fluctuations includes a 1-point tailwind to comparable net revenues and a 3-point tailwind to comparable earnings per share for 2026 [24][61] Q&A Session Summary Question: Insights on 2026 organic sales growth outlook - The company expects a balanced mix of price and volume, with underlying pricing at 4% and volume at 1% for Q4, indicating a strong revenue growth quarter [31][34] Question: General operating conditions and market contributions - Management noted that volume growth is expected to improve in key markets like India and China, while the Mexican tax headwind may impact early 2026 [38][39] Question: North America operating margin sustainability - The North America operating margin has shown structural improvement, with expectations for continued growth driven by effective supply chain management and marketing investments [41][43] Question: Challenges in volatile markets - Management highlighted ongoing strategies to navigate challenges in markets like China and India, emphasizing long-term growth potential despite short-term volatility [50][51] Question: Impact of SNAP changes and Mexican tax - Management views the impact of SNAP changes as manageable and is implementing strategies to mitigate the effects of the Mexican tax while leveraging upcoming events like the World Cup for consumer engagement [66][69]