Financial Data and Key Metrics Changes - In Q3 2025, volumes increased by 0.4% and revenue grew by 3.2%, outperforming the first half of the year [11] - The company reaffirmed its full-year guidance, indicating strong business resilience [6][19] - The NARTD category grew by approximately 6% in value and volume, highlighting the company's competitive position [7] Business Line Data and Key Metrics Changes - Coke Zero saw a volume growth of 6.3%, driven by promotional activities and partnerships [11] - Energy drinks, particularly Monster, experienced a significant volume growth of 24% in Q3 and 18% year-to-date [12] - Fanta and Sprite also performed well, with Fanta benefiting from a Halloween campaign and Sprite growing by 4.2% [12] Market Data and Key Metrics Changes - The company reported a 0.9% volume growth in Europe, supported by strong performance in the Away From Home segment [14] - The Philippines faced challenges due to flooding, impacting Q3 volumes, but recovery signs were noted in September [17] - Australia Pacific's volumes were down 0.6%, but revenue remained broadly flat excluding one-off impacts [16] Company Strategy and Development Direction - The company focuses on balancing premiumization with affordability, aiming for profitable growth while enhancing consumer value [8] - Investments in technology and infrastructure, including a new canning line and a new plant in the Philippines, are set to support long-term growth [18] - The company is committed to maintaining a balanced growth strategy, emphasizing revenue and margin management [20] Management's Comments on Operating Environment and Future Outlook - Management noted that while consumer sentiment remains challenging, they expect to see volume growth in 2026, supported by effective pricing strategies [24][25] - The company is optimistic about its ability to navigate a potentially softer environment due to its investments in digital tools and revenue management capabilities [29] - The fundamentals of the business are strong, with confidence in achieving mid-term growth objectives despite macroeconomic volatility [20][21] Other Important Information - The company declared a second-half dividend of EUR 1.25 per share, maintaining an annualized payout ratio of approximately 50% [19] - A EUR 1 billion share buyback program is set to conclude in December [19] Q&A Session Summary Question: Consumer affordability and its impact on strategy - Management indicated that consumer sentiment has been consistent, with a focus on value pricing and continued volume growth expected in 2026 [24] Question: Navigating a softer environment - Management expressed confidence in their capabilities to grow volume and revenue, citing investments in revenue and margin growth management as key factors [29] Question: Improvement in Indonesia's performance - Management acknowledged challenges in Indonesia but noted improvements in the sparkling portfolio and ongoing efforts to enhance the tea segment [40] Question: Trends in the Away From Home segment - Management highlighted strong growth in the Away From Home channel, driven by favorable weather and effective customer strategies [48] Question: Energy drinks growth and innovation - Management confirmed that both innovation and core products contributed to the 24% volume growth in energy drinks, with a strong pipeline for future innovations [66] Question: Top line growth outlook for next year - Management refrained from providing specific guidance for 2026 but expressed confidence in achieving mid-term growth objectives despite technical headwinds [72] Question: Key initiatives for 2026 - Management discussed plans for the World Cup activation, continued innovation in energy drinks, and a focus on flavor innovation for key brands [80]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a volume growth of 0.4% and revenue growth of 3.2%, indicating solid performance compared to the first half of the year [11][14] - The NARTD category grew by approximately 6% in value and also saw volume growth, which is a positive trend not observed in other FMCG categories [7][8] - The company reaffirmed its full-year guidance, reflecting confidence in its business resilience and performance [6][19] Business Line Data and Key Metrics Changes - Coke Zero experienced a volume growth of 6.3% during the quarter, driven by successful marketing campaigns [11] - Energy drinks, particularly Monster, saw a remarkable volume growth of 24% in Q3 and 18% year-to-date, supported by new product launches and distribution strategies [12][66] - The performance of the sparkling beverage segment was mixed, with Coke trademark volumes being flat due to various market challenges, including flooding in the Philippines and increased sugar taxes in France [11][57] Market Data and Key Metrics Changes - In Europe, volume growth was reported at 0.9%, with strong performance in the away-from-home segment contributing positively [14][48] - The Philippines faced challenges due to flooding, impacting distribution and sales, but there are signs of recovery as the market stabilizes [17][40] - The Australian market showed mid to high single-digit growth, supported by strong performance in Papua New Guinea [16] Company Strategy and Development Direction - The company is focused on driving profitable growth while balancing premiumization with affordability for consumers [8][15] - Investments in technology and infrastructure are ongoing, including the opening of a new canning line and the introduction of smart coolers [18][84] - The company aims to enhance its product portfolio, particularly in the energy and ARTD categories, to capture more market share [32][80] Management's Comments on Operating Environment and Future Outlook - Management noted that while consumer sentiment remains challenging, there are positive signs in the away-from-home segment and a return to growth in certain markets [20][46] - The company is confident in its ability to navigate the current environment, emphasizing the importance of value pricing and effective execution [29][30] - Future growth is expected to be supported by ongoing investments and a strong pipeline of innovations [33][66] Other Important Information - The company declared a second-half dividend of EUR 1.25 per share, maintaining an annualized payout ratio of approximately 50% [19] - A share buyback program of EUR 1 billion is set to conclude in December [19] Q&A Session Summary Question: Consumer affordability and its impact on strategy - Management indicated that consumer sentiment has been consistent, with a focus on value pricing and continued volume growth expected in 2026 [23][24] Question: Navigating a potentially softer environment - Management expressed confidence in their capabilities to manage pricing and maintain growth despite market challenges [28][29] Question: Improvement in Indonesia's performance - Management highlighted progress in the sparkling segment while acknowledging challenges in the tea portfolio, with expectations for better performance in 2026 [38][40] Question: Trends in the away-from-home segment in Europe - Management noted strong growth in the away-from-home category, driven by effective customer strategies and favorable weather conditions [45][48] Question: Growth of energy drinks - Management confirmed that both innovation and core products contributed to the strong growth in the energy drinks segment, with a positive outlook for future performance [66][67] Question: Top-line growth expectations for next year - Management refrained from providing specific guidance but expressed confidence in achieving mid-term growth objectives despite technical headwinds [70][72] Question: Focus areas for 2026 - Management discussed plans for continued innovation, particularly in the energy category, and emphasized the importance of the upcoming World Cup for brand activation [80][81]

Financial Data and Key Metrics Changes - In Q3 2025, volumes increased by 0.4% and revenue grew by 3.2%, outperforming the first half of the year [9][12] - The company reaffirmed its full-year guidance, indicating strong business resilience [4][19] - The NARTD category grew by approximately 6% in value and volume, highlighting the company's competitive position [5][19] Business Line Data and Key Metrics Changes - Coke Zero saw a volume growth of 6.3%, driven by promotional collaborations [9] - Energy drinks, particularly Monster, experienced a significant volume growth of 24% in Q3 and 18% year-to-date [10] - Fanta and Sprite also performed well, with Fanta benefiting from a Halloween campaign and Sprite growing by 4.2% [10][11] Market Data and Key Metrics Changes - The company reported a mixed consumer environment across different markets, with growth in the Philippines and GB, but challenges in Germany and Indonesia [12][19] - Away from Home channels showed strong growth, particularly in GB, contributing to overall volume increases [7][12] - The Philippines faced disruptions due to flooding, impacting Q3 volumes, but recovery was noted in September [15][19] Company Strategy and Development Direction - The company is focused on driving profitable growth while balancing premiumization and affordability [5][19] - Investments in technology and infrastructure are ongoing, including a new canning line in Queensland and a new plant in the Philippines [16][17] - The company aims to enhance its market presence through improved distribution and innovative product offerings [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing consumer affordability challenges but expressed confidence in maintaining pricing strategies and volume growth [22][24] - The company anticipates a return to growth in Indonesia, supported by a new marketing campaign and improved distribution [34][35] - Despite macroeconomic volatility, the company remains optimistic about its mid-term growth objectives, expecting to cycle out of current headwinds [19][60] Other Important Information - A second-half dividend of EUR 1.25 per share was declared, maintaining a payout ratio of approximately 50% [18] - The company is concluding a EUR 1 billion share buyback program in December [18] Q&A Session Summary Question: Consumer affordability and its impact on strategy - Management noted that consumer sentiment has remained consistent, with a focus on value pricing and continued volume growth expected into 2026 [22][24] Question: Navigating a softer environment - The company highlighted its investments in revenue and margin growth management as key to navigating challenges, with confidence in maintaining volume and revenue growth [27][29] Question: Performance in Indonesia - Management discussed improvements in the sparkling portfolio and ongoing challenges in the tea segment, with expectations for better performance in 2026 [34][35] Question: Trends in the away-from-home market - The company attributed growth in the away-from-home segment to favorable weather, effective customer strategies, and increased cooler placements [39][40] Question: Growth of energy drinks - Energy drinks, particularly Monster, showed strong growth driven by innovation and core products, with expectations for continued expansion [54][56] Question: Guidance for 2026 - While specific guidance for 2026 was not provided, management expressed confidence in achieving mid-term growth objectives despite technical headwinds [59][60]

Core Insights - Coca-Cola reported a strong third-quarter performance with adjusted earnings rising 30% year over year to $0.82 per share and revenue increasing 5% to $12.5 billion, surpassing analyst expectations [1][2] Group 1: Financial Performance - Adjusted earnings rose 30% year over year to $0.82 per share, while revenue increased 5% to $12.5 billion, exceeding Wall Street's expectations of $0.78 per share and $12.4 billion in revenue [1] - Operating margins improved to 31.9%, up from 30.7% in the same period last year, reaching multi-year highs not seen since before the COVID-19 pandemic [3][4] Group 2: Market Performance - North American revenue grew 4% year over year, outperforming PepsiCo's 2% growth in the same market, indicating resilience in the face of economic concerns [5][6] - Coca-Cola maintained strong operating margins despite increased marketing expenses, demonstrating effective cost control and solid consumer demand [4][6] Group 3: Product Trends - Contrary to expectations, Diet Coke is experiencing a reversal in its decline, as it regains shelf space from Coke Zero, which was anticipated to take over its market position [9][10]

Core Viewpoint - Coca-Cola HBC's share price declined by 4% following the announcement of a significant acquisition in Africa and the release of third-quarter trading results [2][3]. Acquisition Details - Coca-Cola HBC has agreed to acquire a 75% stake in Coca-Cola Beverages Africa for $2.6 billion, with an option to purchase the remaining 25% later [3]. - The acquisition will create the second largest Coca-Cola bottling partner globally by volume, enhancing market positions in Africa and Europe [3][4]. - Funding for the deal will come from a €2.5 billion bridge financing facility and the issuance of shares to the Gutsche Family Investment Company, representing 5.47% of the enlarged entity [3]. Market Impact - Coca-Cola Beverages Africa operates in 14 African markets, accounting for approximately 40% of Coca-Cola's products sold on the continent by volume [4]. - The enlarged group is expected to represent two-thirds of Africa's total Coca-Cola system volume and cover over 50% of the continent's population [4]. Financial Performance - Coca-Cola HBC reported organic revenue growth of 5% in Q3, leading to a year-to-date growth of 8.1% [5]. - Organic volume growth was recorded at 1.1%, driven by the Sparkling and Energy portfolio, with organic revenue per case increasing by 3.8% year-on-year [5][6]. - Organic revenues rose across various territories, with established markets increasing by 1.2% and developing markets by 4.8% [7]. Product Performance - Sparkling volumes increased by 0.7%, while energy volumes surged by 34.3% due to new product launches [8]. - However, coffee volumes decreased by 34% as the company reduced its lower-margin retail channel [8]. Future Outlook - The acquisition is expected to close by the end of 2026 and is projected to boost earnings per share by low-single-digit percentages in the first full year post-completion [5]. - The company maintained its full-year guidance, anticipating organic revenue growth at the top end of a 6% to 8% range and organic EBIT growth at the upper end of a 7% to 11% band [9].

Core Insights - The Coca-Cola Company (NYSE:KO) is recognized as one of the 12 Best Dividend Aristocrat Stocks to invest in currently [1] - The company has a strong focus on its flagship products, Coke and Coke Zero, catering to consumers seeking lower-sugar options [2] - Coca-Cola's business model is characterized by its affordability and widespread popularity, contributing to its long-term stability [3] Financial Performance - Coca-Cola has consistently returned value to shareholders through dividends, having raised its dividends for 63 consecutive years [4] - The company currently pays a quarterly dividend of $0.51 per share, resulting in a dividend yield of 3.11% as of September 26 [4]

Core Viewpoint - Dividend stocks are attractive long-term investments due to their ability to generate recurring cash flow and the importance of dividend growth to combat inflation [1][2]. Group 1: Dividend Growth Importance - Consistent dividend growth is crucial as inflation can significantly erode the value of dividend income over time, with a $1,000 annual dividend potentially worth only $744 in 10 years and $554 in 20 years at a 3% inflation rate [2]. - Focusing on dividend growth stocks is essential for generating reliable recurring income [2]. Group 2: Coca-Cola - Coca-Cola has a diverse portfolio of brands and products, with its flagship brand remaining a key revenue driver [5]. - The company has demonstrated strong pricing power, allowing it to raise prices in line with inflation without negatively impacting sales, which reached over $47 billion with a 3% year-over-year growth [7]. - Coca-Cola has a solid dividend yield of 3.1% and has increased its dividend for 63 consecutive years, making it a stable investment option [8]. Group 3: Procter & Gamble - Procter & Gamble offers a wide range of essential consumer products, including well-known brands like Pampers and Gillette [9]. - The company has maintained stable sales between $80 billion and $84 billion over the past four years, indicating low volatility [10]. - Procter & Gamble has raised its dividend for 69 consecutive years, with a current yield of 2.7%, significantly higher than the S&P 500 average [11]. Group 4: Johnson & Johnson - Johnson & Johnson has streamlined its operations by focusing on pharmaceuticals and medical devices after spinning off its consumer healthcare division [12]. - The company remains committed to dividend growth, recently increasing its dividend by approximately 5%, extending its streak to 63 years [13]. - Johnson & Johnson anticipates continued growth in the single digits, with a long-term goal of 5% to 7% annual growth, supporting future dividend increases [14].

Financial Data and Key Metrics Changes - Consolidated volume declined 5.5% to 1,035,000 unit cases, driven by declines in Mexico, Brazil, Colombia, and Panama, partially offset by growth in Argentina, Uruguay, Guatemala, and other Central American territories [6] - Total revenues grew 5% to COP72.9 billion, with a 2.4% increase on a neutral currency basis [7] - Gross profit increased 3.4% to MXN33 billion, with a margin contraction of 70 basis points to 45.3% [7] - Operating income remained flat at COP9.7 billion, with an operating income margin contracting 60 basis points to 13.4% [8] - Adjusted EBITDA decreased 3.8% to MXN13.4 billion, with an EBITDA margin contraction of 160 basis points to 18.4% [9] - Majority net income decreased 5.3% to MXN5.3 billion, primarily due to increased comprehensive financial results from higher interest expenses and a lower foreign exchange gain [10] Business Line Data and Key Metrics Changes - In Mexico, volume declined 10%, cycling a historic second quarter from the previous year, which grew 7.9% [10] - In Guatemala, volumes increased 1.6% to 51.3 million unit cases, with a 10,000 new customer increase [15] - In Brazil, volumes declined 1.5% year on year, cycling strong 12.1% growth from the previous year [17] - In Colombia, volumes declined 2.8% year on year, while in Argentina, volumes increased 11.9% [20][21] Market Data and Key Metrics Changes - Mexico faced a softer macroeconomic backdrop and adverse weather, impacting consumer behavior [5] - Brazil's volume performance was affected by colder temperatures, particularly in June [17] - In Argentina, macro indicators improved, with monthly inflation below 2% [21] Company Strategy and Development Direction - The company remains focused on long-term sustainable growth, with investments in capacity expansions [5] - Key initiatives include improving customer service metrics and enhancing productivity [13][14] - The company is leveraging affordability initiatives to address consumer sentiment in Mexico [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first half of the year but remains optimistic about long-term perspectives [5] - The outlook for the second half of the year is cautious, considering declining personal consumption expenditures and remittances [39] - Management is focused on maintaining market share and addressing pricing gaps in the traditional channel [40] Other Important Information - The company completed key projects and began additional capacity initiatives during the first half of the year [14] - The Porto Alegre plant in Brazil is back to 100% capacity, with a full portfolio of SKUs restored [63][66] Q&A Session Summary Question: Expectations for the second half of the year and market share in Mexico - Management discussed a cautious outlook for the second half, planning for a more complex scenario due to economic impacts and weather [39][41] Question: Performance in Brazil and channel specifics - Management indicated that weather was a key driver of performance in Brazil, with expectations for recovery as conditions improve [42] Question: Pricing mix in Mexico and Brazil - Management noted that pricing strategies in Mexico are cautious, while Brazil's pricing reflects a mix effect rather than inflation-driven increases [51][52] Question: CapEx investments and updates on the Porto Alegre plant - Management confirmed commitment to structural capacity investments while adjusting volume-linked CapEx based on market conditions [60][63] Question: Interest expense and leverage position - Management acknowledged higher interest expenses due to increased rates in Brazil but indicated a stable raw material environment overall [84][90]

Core Insights - The Coca-Cola Company reports a clear divergence in performance between developed and emerging markets, with emerging markets showing robust growth while developed markets face challenges [2][9]. Emerging Markets Performance - Coca-Cola experienced strong volume growth in emerging markets, particularly in India, where there was expanded outlet reach and increased digital penetration [3]. - China returned to growth due to effective portfolio realignments and successful Lunar New Year campaigns [3]. - Africa demonstrated resilience with volume growth despite inflation, aided by affordable packaging and local marketing campaigns [3]. - In Latin America, Brazil and Argentina offset weaker results in Mexico, where affordability strategies have been implemented [3]. Developed Markets Challenges - North America saw revenue and profit growth, but flat volumes indicated soft consumer sentiment, particularly among Hispanic consumers [4]. - External factors such as severe weather and misinformation campaigns negatively impacted Trademark Coke in the southern United States, despite some resilience from brands like fairlife and Coke Zero [4]. - The company acknowledges the need for improved execution and agility to reignite volume growth domestically [4]. Competitive Landscape - PepsiCo and Keurig Dr Pepper are key competitors for Coca-Cola, with PepsiCo outperforming in emerging markets due to strong demand and localized strategies [6][7]. - PepsiCo's dual-category model and focus on affordability and local flavors position it well for growth in emerging regions [7]. - Keurig Dr Pepper is primarily focused on the U.S. market with limited exposure to emerging markets, but is gradually expanding through targeted partnerships and selective brand rollouts [8]. Financial Performance and Outlook - Coca-Cola shares have increased by 11.8% year to date, outperforming the industry growth of 7.2% [10]. - The company trades at a forward price-to-earnings ratio of 22.62X, higher than the industry's 18.59X [12]. - The Zacks Consensus Estimate indicates year-over-year earnings growth of 3.1% for 2025 and 8.2% for 2026, with recent upward revisions for 2025 earnings estimates [14]. - Coca-Cola currently holds a Zacks Rank 2 (Buy) [16].

Industry Overview - The beverage industry is considered to have favorable long-term growth prospects, driven by population growth and increased consumer spending [3] - Urbanization is a significant trend that is expected to continue influencing the industry positively [3] Company Positioning - The Coca-Cola Company operates in a competitive environment but has unique advantages that allow it to thrive despite challenges [2] - The company benefits from its ability to access a growing consumer base, which is expected to expand over time [3]