Coca-Cola(KO) - 2025 Q2 - Earnings Call Presentation

Q2 2025 Consolidated Gross Margin Analysis - The company's Q2 2025 reported gross margin (GAAP) was 62.4% compared to 61.07% in Q2 2024, representing an increase of 133 basis points[16] - The underlying gross margin expanded by approximately 160 basis points, driven by organic revenue growth, partially offset by higher commodity costs[5, 16] - Items impacting comparability primarily relate to economic hedging activities[5] - A structural tailwind of approximately 40 basis points was due to the impact from refranchising bottling operations in certain territories in India[4, 5] YTD 2025 Consolidated Gross Margin Analysis - The company's YTD 2025 reported gross margin (GAAP) was 62.49% compared to 61.77% in YTD 2024, representing an increase of 72 basis points[17] - The underlying gross margin expanded by approximately 120 basis points, driven by organic revenue growth, partially offset by higher commodity costs[7, 8] - The structural tailwind was due to the impact from refranchising bottling operations mainly in the Philippines and certain territories in India[8] Q2 2025 Consolidated Operating Margin Analysis - The company's Q2 2025 reported operating margin (GAAP) was 34.15% compared to 21.29% in Q2 2024, representing an increase of 1286 basis points[18] - The underlying operating margin expanded by approximately 320 basis points, primarily driven by organic revenue growth, the timing of marketing investments, and effective cost management[10, 11] - Items impacting comparability primarily relate to the remeasurement of the fairlife contingent consideration liability in the prior year, asset impairments, restructuring initiatives, and economic hedging activities[11] YTD 2025 Consolidated Operating Margin Analysis - The company's YTD 2025 reported operating margin (GAAP) was 33.55% compared to 20.17% in YTD 2024, representing an increase of 1338 basis points[19] - The underlying operating margin expanded by approximately 270 basis points, primarily driven by organic revenue growth, effective cost management, and the timing of marketing investments[13, 14] - The structural tailwind was due to the impact from refranchising bottling operations mainly in the Philippines and certain territories in India[14]