Coca-Cola has on Tuesday reported a mixed bag of first-quarter results for 2025, amidst global trade tensions and weakening consumer demand in developed markets, particularly North America.
The Atlanta-based soft drinks giant saw its global unit case volume grow by a modest 2 per cent, while net revenues declined by 2 per cent to $11.1 billion (£8.29bn), primarily due to currency headwinds and the impact of refranchising bottling operations.
Organic revenue, which excludes currency fluctuations and structural changes, increased by 6 per cent.
“Our performance this quarter once again demonstrates the effectiveness of our all-weather strategy,” said James Quincey, chairman and chief executive of The Coca‑Cola Company. “Despite some pressure in key developed markets, the power of our global footprint allowed us to successfully navigate a complex external environment.”
The company noted that its operations, while primarily local, remain “subject to global trade dynamics which may impact certain components of the company's cost structure across its markets,” though it currently expects this impact to be “manageable.”
In North America, Coca-Cola's most profitable market, volume declined by 3 per cent, driven by falls in its flagship Coca-Cola and water, sports, coffee and tea categories.
This comes after Hispanic consumers in the US and Mexico boycotting the company's legacy brands after a viral video of Coca-Cola laying off Latino staff and reporting them to the US Immigration and Customs Enforcement.
Reuters in February found no public evidence that the company had reported its migrant employees to ICE.
Coca-Cola executives said on Tuesday the videos circulating were “completely false” but had impacted its business.
The company's results underscore the growing importance of developing and emerging markets, where Coca-Cola is intensifying its focus. Unit case volume in Asia Pacific grew by 6 per cent, while Europe, Middle East and Africa saw a 3 per cent increase.
India and China were particular bright spots, with both markets contributing significantly to the overall volume growth. In India, where the company executed a massive activation at the Maha Kumbh Mela festival, described as the world's largest in-person gathering with an estimated 660 million attendees, Coca-Cola achieved double-digit volume growth. China similarly delivered high single-digit volume growth during the Lunar New Year period.
The beverage giant continues to face significant currency headwinds, with comparable earnings per share (EPS) growing just 1 per cent to $0.73, including a 5-point currency headwind. The company's updated guidance for 2025 now forecasts a 5 per cent to 6 per cent currency headwind for the full year, an increase from previous projections.
In its outlook, Coca-Cola maintained its organic revenue growth forecast of 5 per cent to 6 per cent for the full year but updated its currency impact projections. The company now expects a 2 per cent to 3 per cent currency headwind on comparable net revenues based on current rates.
Notably, the company has revised its comparable currency neutral EPS growth guidance to 7 per cent to 9 per cent, reflecting ongoing cost management efforts amid global trade uncertainties.
“By remaining true to our purpose and staying close to the consumer, we are confident in our ability to create enduring long-term value,” Quincey said.
