Coca-Cola Co

Strong Q1 Performance: The Coca-Cola Company reported 2% volume growth and organic revenue growth at the high end of their long-term growth algorithm, with comparable gross margin up 30 basis points and operating margin up 130 basis points. This resulted in comparable EPS of $0.73, a 1% increase year-over-year, despite 5% adverse currency headwinds and other challenges.

Constrained Growth Expectations: While the company expects organic revenue growth of 5% to 6% and currency-neutral EPS growth of 7% to 9% for 2025, the overall earnings guidance was maintained, reflecting a more cautious outlook amidst challenging market dynamics. A 2-point to 3-point headwind from currency fluctuations and an increase in effective tax rate to 20.8% were highlighted as potential pressures.

Regional Challenges and Opportunities: In North America, revenue and profit grew, but volume performance was unsatisfactory, impacted by severe weather and weakening consumer sentiment, particularly among Hispanic consumers. Mexico saw flat volume growth due to strong prior performance and local geopolitical tensions. However, Coca-Cola continues to innovate and adjust strategies, emphasizing affordability and local marketing campaigns to drive recovery.