- Coca-Cola exceeds market expectations
- Coca-Cola expands its operating margin thanks to price rising and operational efficiency
- Coca-Cola exceeds market expectations
- Coca-Cola expands its operating margin thanks to price rising and operational efficiency
Coca-Cola surprises the market with better-than-analyst-expected results, including an increase in operating margin. This is causing Coca-Cola shares to rise more than 3% at the start of the American session.
Key figures from Coca-Cola's 3Q2025 results
- Revenue: $12.455 billion, up 5.1% vs. 3Q2024 and +0.4% vs. analyst consensus
- EBIT: $3.982 billion, up 8.5% vs. 3Q2024 and +2.9% vs. analyst consensus
- Net profit: $3.696 billion, up 30.3% vs. 3Q2024 and +10.3% vs. analyst consensus
Coca-Cola expands its margins
Coca-Cola's results have been solid, with Fuze Tea improving and brands such as Powerade and BODYARMOR (the other sports-oriented beverage) increasing their market share and growing in volume. Furthermore, Coca-Cola managed to increase unit sales by 1% globally, with a 4% increase in EMEA. This, combined with a 6% global price increase, allowed it to achieve positive performance in the quarter and increase its EBIT margin from 30.7% comparable in the third quarter of 2024 to 32%, despite increased advertising spending, offset by efficiency gains in other areas of the company. Its gross margin also expanded from 61.6% comparable to 61.5%, despite an increase in raw material prices.
What is striking about Coca-Cola's results is that the largest price increase comes from Asia Pacific, which was 8%, making it the region with the highest revenue growth, with 11% year-over-year growth. We believe this region has significant potential and, as it accounts for a larger share of Coca-Cola's total revenue (currently representing 12.5% of total revenue), will increase the company's overall growth.
Furthermore, operating cash flow has increased by 28% in the first nine months of the year, and capex investments have remained stable.
In short, Coca-Cola's results demonstrate business resilience and a strong ability to raise prices despite stable demand, thanks to a well-diversified product portfolio and its brand image.
Coca-Cola shares have opened with a significant bullish surge.
Source: xStation5
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