The Coca-Cola Company posted a sharp rise in third-quarter profit, proving resilient against currency headwinds and uneven demand as strong pricing and tight cost management drove earnings higher. Operating income soared 59% to $3.98 billion, while net revenues climbed 5% to $12.5 billion, the Atlanta-based beverage giant said in a statement Tuesday.
The company’s organic revenue, which strips out currency fluctuations and structural changes, rose 6%, powered by a 6% increase in price/mix. Although concentrate sales were flat and trailed unit case volume by one point, steady global demand for its sparkling and functional beverages helped offset regional softness. The results mark Coca-Cola’s strongest quarterly margin expansion in more than a year, with its operating margin widening to 32% from 21.2% a year earlier.
Earnings per share jumped 30% to $0.86, while comparable earnings grew 6% to $0.82, reflecting a 6-point currency headwind. The company credited effective cost management and selective price increases across markets for sustaining profitability despite higher marketing investments and foreign exchange pressures.
“While the overall environment has continued to be challenging, we’ve stayed flexible, adapting plans where needed and investing for growth,” Chairman and CEO James Quincey said, reaffirming confidence in meeting the company’s 2025 guidance.
In a major strategic move, Coca-Cola announced that its bottling partner Coca-Cola Hellenic Bottling Company (CCHBC) has agreed to acquire a controlling interest in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company and Gutsche Family Investments. The transaction marks the latest step in Coca-Cola’s long-term refranchising strategy, designed to sharpen focus on brand ownership while empowering regional bottlers to drive local growth.
Coca-Cola described the deal as pivotal for CCBA’s next phase, citing CCHBC’s “strong track record in Africa” and operational strength across emerging markets. The move follows a similar refranchising milestone in India, where Coca-Cola sold a 40% stake in Hindustan Coca-Cola Holdings to the Jubilant Bhartia Group, reinforcing its intent to build a more agile global franchise system.
Regional performance showed mixed trends. In Europe, the Middle East and Africa, unit case volume grew 4%, supported by demand for Trademark Coca-Cola, sparkling flavors, and tea. North America posted a 15% increase in operating income despite flat volumes, as pricing actions and premium product mix boosted revenue. Latin America remained stable in volume but saw earnings decline 4% due to currency weakness, while Asia Pacific slipped 1% in volume but delivered an 8% rise in price/mix, aided by growth in Japan and the Philippines.
Coca-Cola gained value share in the global nonalcoholic ready-to-drink market, led by continued momentum in Coca-Cola Zero Sugar, which expanded 14% across all regions. The company also cited strong performance from fairlife dairy, Fuze Tea, and BODYARMOR, underscoring its push beyond traditional soft drinks.
Year-to-date, Coca-Cola generated $3.7 billion in operating cash flow and $2.4 billion in free cash flow, reflecting the earlier $6.1 billion payment linked to its 2020 fairlife acquisition. Excluding that one-time impact, free cash flow totaled $8.5 billion.
Looking ahead, the company maintained its forecast for 5–6% organic revenue growth and 3% comparable EPS growth for 2025, with a free cash flow target of at least $9.8 billion. While currency effects are expected to weigh on earnings by about 5%, management projected continued margin resilience into 2026, signaling confidence in its pricing power and global brand portfolio.
Coca-Cola shares have risen this year as investors bet on the company’s ability to navigate inflation and geopolitical volatility with disciplined execution and an expanding lineup of consumer-focused beverages.
