Coca-Cola Içecek Anonim Sirketi (CCOLA) Q4 2025 earnings summary

Executive summary

• 2025 saw strong volume growth and robust free cash flow despite geopolitical and macroeconomic challenges, with a deliberate balance between volume and value creation across the year.

• Achieved broad-based growth across international operations, especially in Central Asia and Iraq, with consolidated volume up 8.0% year-over-year and strong performance in both sparkling (+9.2% y/y) and stills (+19.2% y/y) categories.

• Net income was TL 14.1 billion, down 27.4% year-on-year, mainly due to inflation accounting reversal, lower monetary gains, and a one-off tax accrual in Uzbekistan.

• Consolidated financial statements for the year ended December 31, 2025, were audited and present fairly in accordance with TFRS.

• The group operates in Turkey, Pakistan, Bangladesh, Central Asia, and the Middle East, with exclusive bottling and distribution rights for major beverage brands.

Financial highlights

• Consolidated sales volume rose 8% year-on-year to 1.6 billion unit cases; net sales revenue increased 3.9% to TL 187.2 billion.

• Net income dropped 27.4% year-over-year to TL 14.1 billion, impacted by lower monetary gains and a one-off tax accrual in Uzbekistan (~TL 1 billion).

• Free cash flow reached TL 2.8 billion (TL 7.1 billion pre-inflation accounting), a significant turnaround from negative cash flow in prior years.

• Adjusted EBITDA was TL 33.2 billion, nearly flat year-over-year.

• Gross margin expanded by 27 bps to 35.6%; EBIT margin was 13.4%, down 28 bps, but would have been 13.6% excluding a TL 211 million competition board fine.

Outlook and guidance

• 2026 is expected to remain volatile; focus will be on disciplined execution, right pricing, and quality mix management.

• Volume guidance: low to mid-single digit growth in Türkiye, high single digit in international, mid-single digit consolidated.

• FX-neutral net sales revenue per unit case projected to grow in the low-to-mid-teens, balancing cost inflation and price affordability.

• EBIT margin expected to remain flat; capex/sales ratio anticipated in the high-single digits.

• No adverse effects are expected from regulatory changes or legal disputes.