Coca-Cola Içecek Anonim Sirketi (CCOLA) Q1 2025 earnings summary

Executive summary

• Achieved 13.4% year-on-year consolidated sales volume growth in Q1 2025, reaching 387 million unit cases, with all major markets contributing positively, led by Türkiye (+8.4%), Pakistan (+17.2%), and Kazakhstan (+11.7%).

• Sparkling beverages grew 16.9% year-on-year, with stills up 8.7%; affordability, trade promotions, and consumer activations drove performance.

• Strategic focus on affordability, trade promotions, and portfolio quality supported strong volume rebound despite macroeconomic and regional challenges.

• Ramadan's timing shifted consumption patterns, increasing future consumption packs and reducing immediate consumption mix.

• Continued emphasis on low/no sugar portfolio, with its share in total sparkling sales up 171 bps y/y to 15.5%.

Financial highlights

• Consolidated net sales revenue was TL 36.2 billion, down 3.8% year-on-year due to inflation accounting (TAS 29); excluding inflation adjustment, revenue rose 33.2%.

• Net income was TL 1.3 billion, a 66% year-on-year decrease, mainly due to higher interest expenses and lower monetary gain.

• Gross profit margin declined by 282 bps to 30.4%; EBITDA margin fell by 346 bps to 12.9%.

• EBIT dropped 35.2% to TL 2.873 billion; EBIT margin at 7.9% (down 385 bps); without inflation accounting, EBIT margin at 10.6% (down 552 bps).

• Net sales revenue per unit case dropped 15.2% year-on-year; without inflation accounting, it increased 17.4%.

Outlook and guidance

• Management remains confident in full-year 2025 guidance, expecting margin and revenue normalization as the year progresses.

• Reiterates mid-single-digit consolidated volume growth, low to mid-single-digit growth in Türkiye, and mid to high-single-digit growth in international operations.

• Expects mid-single-digit NSR/uc growth with flat EBIT margin under inflation accounting; without inflation adjustment, FX-neutral NSR/uc to grow by low twenties with slight EBIT margin pressure.

• Price increases were implemented in Türkiye in April and selectively in other markets; further improvements in net sales revenue per unit case and margins are anticipated.

• Cost base is largely hedged or contracted, providing visibility and stability for the remainder of 2025.