Coca Cola — Financial Results
Revenue Grew Modestly, Driven Almost Entirely by Pricing Power
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Operating Revenues | $47,941M | $47,061M | +2% |
| Price/Mix Contribution | +4% | — | — |
| Volume Contribution | +1% | — | — |
| Foreign Currency Impact | -2% | — | — |
Coca-Cola grew revenues by $880 million, but the story underneath matters: virtually all of that growth came from raising prices, not selling more drinks. Worldwide unit case volume (the actual number of beverages sold) was flat versus 2024. Currency headwinds from a stronger U.S. dollar, particularly against the Mexican peso and Turkish lira, eroded 2% of revenue.
Operating Profit Jumped 38%, but Most of That Is a One-Time Comparison Effect
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Operating Income | $13,762M | $9,992M | +38% |
| Operating Margin | 28.7% | 21.2% | +7.5 pp |
| Other Operating Charges | $1,261M | $4,163M | -70% |
The dramatic improvement in operating income is largely explained by a $3,109 million charge Coca-Cola took in 2024 to revalue its payment obligation for the fairlife acquisition — that one-time cost inflated 2024's charges and depressed last year's profit. Strip that away and the underlying improvement is real but more modest, supported by pricing gains and a 0.5 percentage point rise in gross profit margin (revenue minus production costs, as a share of revenue) to 61.6%.
BodyArmor Is Proving to Be a Costly Bet
| Event | Charge |
|---|---|
| BodyArmor trademark impairment, Q4 2025 | $960M |
| BodyArmor trademark impairment, Q1 2024 | $760M |
| Remaining trademark carrying value | $2,440M |
Coca-Cola paid a large sum to acquire BodyArmor in 2021, and the brand continues to underperform expectations. The company has now written down the brand's value by $960 million in 2025 alone, citing a slowing sports drink market, tougher competition, and scaled-back growth plans. With $2.44 billion of value still on the books, further write-downs remain a real possibility if results don't improve.
North America Is Softening While EMEA Leads Global Growth
North America, which generates 41% of total revenue, saw unit case volume fall 1% and concentrate sales volume also drop 1%. Meanwhile, EMEA (Europe, Middle East and Africa) was the standout, growing concentrate sales volume 4% with strong pricing — its revenue contribution rose from 21.8% to 22.6% of the total. Latin America was dragged down by a 21% unfavorable currency impact, with Mexico declining 4% in volume.
The $6 Billion IRS Tax Dispute Remains Unresolved — and the Stakes Are High
Coca-Cola is appealing a Tax Court ruling that sided with the IRS over how profits from its Brazilian operations should be taxed for 2007–2009. The company paid a $6 billion deposit in 2024 to stop interest accruing while it appeals. Critically, if it loses on appeal, it estimates an additional $14 billion in potential tax and interest exposure for the years 2010–2025. A recent appeals court ruling in a related case (3M) went in Coca-Cola's favor, which the company says supports its position.
Dividends Raised for the 64th Consecutive Year
Coca-Cola increased its quarterly dividend to $0.53 per share for 2026 (full-year: $2.12), up from $2.04 in 2025. This marks 64 straight years of dividend increases. The company paid out $8.8 billion in dividends in 2025 and generated $7.4 billion in operating cash flow — meaning dividends currently exceed cash from operations, with the gap covered by asset sales and debt.