- Coca-Cola could continue to experience a drop in volumes
- Pricing power in developed markets and volumes in developing makets are key for Coca-Cola
- Coca-Cola could continue to experience a drop in volumes
- Pricing power in developed markets and volumes in developing makets are key for Coca-Cola
Coca-Cola will present its third-quarter financial results before the American market opens today. The company reported a slight decline in unit sales in the second quarter of the year, which it offset due to price increases. However, investors will focus on this aspect in today's results.
What does the market expect from Coca-Cola 3Q2025 results?
- Revenue: $12.4 billion, up 4.2% year-over-year
- EBIT: $3.87 billion, up 5.4% year-over-year
- Earnings per share: 0.78%, up 1.3% year-over-year
The market expects revenue of around $12.4 billion, representing year-over-year growth of 4.2%. However, volume pressure is still expected to remain, particularly in the APAC region, which saw a 5% volume decline in the second quarter and where management has already warned that this trend appears likely to persist for some time.
On the other hand, we expect the company to confirm its full-year growth guidance, which is for organic growth of between 5% and 6% year-over-year and lower net sales growth due to the negative impact of currency fluctuations. In fact, this is expected to impact third-quarter earnings, with earnings per share growth expected to be just 1.3% due to the impact of currency hedging.
In this context, Coca-Cola continues to advance coordination between the parent company and bottlers to ensure they work as a united team, thereby increasing efficiency and economies of scale. This will be more clearly reflected when the company manages to increase the volume of units sold. Furthermore, the focus remains on expanding in developing countries, given that the vast majority of the population lives in these areas. In mature countries, growth will be difficult to achieve through volume due to the large market share it already holds in these countries, so growth will come from price increases. Therefore, it is key for Coca-Cola to combine moderate price increases in mature countries with increased volumes in developing countries.
Coca-Cola shares are up 10% in 2025.
Source: xStation5
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