Coca-Cola’s first quarter results for 2025 reflected steady execution despite a changing consumer landscape and regional variability. Management highlighted that volume growth was driven by strength in Asia-Pacific and resilient performance in Latin America, while North America faced headwinds including softer consumer sentiment and temporary disruptions linked to misinformation about core products. CEO James Quincey emphasized, “Our system has quickly pivoted to prioritize the most impactful investment opportunities and is emphasizing faster decision making and greater agility to accelerate volume growth.”
Is now the time to buy KO? Find out in our full research report (it’s free).
Coca-Cola (KO) Q1 CY2025 Highlights:
- Revenue: $11.22 billion vs analyst estimates of $11.15 billion (flat year on year, 0.6% beat)
- Adjusted EPS: $0.73 vs analyst estimates of $0.72 (1.9% beat)
- Operating Margin: 32.6%, up from 18.9% in the same quarter last year
- Organic Revenue rose 6% year on year (11% in the same quarter last year)
- Sales Volumes rose 2% year on year (1% in the same quarter last year)
- Market Capitalization: $296.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Coca-Cola’s Q1 Earnings Call
- Dara Mohsenian (Morgan Stanley) asked about maintaining earnings guidance amid strong Q1 and currency shifts; CFO John Murphy emphasized prudence due to early-year volatility and confidence in full-year strategy.
- Bryan Spillane (Bank of America) inquired about softness in Mexico; CEO James Quincey attributed it to a tough comparison, holiday timing, and macro uncertainties, pointing to renewed focus on affordability and local marketing.
- Lauren Lieberman (Barclays) questioned U.S. brand challenges from misinformation; Quincey explained actions to restore consumer confidence through local campaigns and engagement, especially with Hispanic consumers.
- Chris Carey (Wells Fargo) asked about sustainability of high margins; Murphy noted some timing benefits but expressed confidence in long-term margin expansion through balanced investment and productivity.
- Nik Modi (RBC Capital Markets) queried innovation in wellness beverages; Quincey described a consumer-led approach, noting taste remains a priority while selectively introducing functional ingredients.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the pace of volume recovery in North America and Mexico following targeted marketing and affordability campaigns, (2) progress in expanding Fairlife production capacity and its impact on U.S. retail performance, and (3) the effectiveness of new product launches and digital marketing initiatives, especially in Asia-Pacific and Europe. Execution against these milestones will be critical for validating management’s strategy in a dynamic environment.
Coca-Cola currently trades at $68.94, down from $71.74 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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