Coca-Cola Consolidated (COKE) Q1 2025 earnings summary

Executive summary

• Net sales decreased 0.7% to $1.58 billion in Q1 2025, impacted by two fewer selling days and timing of the Easter holiday; volume declined 6.6% year-over-year, with Sparkling and Still categories down 3.0% and 9.0% respectively after adjusting for calendar effects.

• Gross profit fell 2.1% to $627.1 million, with gross margin down 50 basis points to 39.7% due to product mix shift and timing of price increases.

• Income from operations declined 11.9% to $189.8 million, and net income dropped 37.5% to $103.6 million, with adjusted net income at $136.3 million (down from $162.5 million year-over-year).

• Cash flows from operations increased to $198.2 million, and capital expenditures were $98 million in Q1 2025.

• Management expects results to improve over the remainder of 2025, citing optimism for summer sales and ongoing commercial execution.

Financial highlights

• Net sales: $1,579.98 million (down from $1,591.63 million in Q1 2024).

• Gross profit: $627.1 million (down from $640.6 million); gross margin 39.7%.

• Operating income: $189.8 million (down from $215.4 million).

• Net income: $103.6 million (down from $165.7 million); adjusted net income: $136.3 million (down from $162.5 million).

• Basic EPS: $11.88 (down from $17.68); pro forma post-split EPS: $1.19.

Outlook and guidance

• Capital expenditures for 2025 expected to be approximately $300 million, focused on supply chain optimization and growth investments.

• Management believes sufficient capital is available to fund operations and capital needs for at least the next 12 months.

• Management expects improved results for the rest of 2025, driven by summer sales and commercial execution.