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, led by Türkiye (+8.4%), Pakistan (+17.2%), and Kazakhstan (+11.7%), with all markets contributing positively.

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

• Net sales revenue was TL 36.2 billion, down 3.8% year-on-year; net profit was TL 1.3 billion, a 66% 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%.

• Adjusted EBITDA for Q1 2025 was TL 4.68 billion, down from TL 6.16 billion in Q1 2024.

Financial highlights

• Consolidated revenue was TL 36.2 billion, down 3.8% year-on-year; excluding inflation accounting, revenue rose 33.2%.

• Net profit was TL 1.3 billion, a 66% year-on-year decrease.

• EBIT was TL 2.9 billion, down 35.2% year-on-year; EBIT margin at 3.5%, down 645 bps.

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

• Gross profit margin declined to 30.4% from 33.2% year-over-year.

Outlook and guidance

• Management expects margin and revenue normalization as the year progresses, with seasonality and price increases supporting stronger results in later quarters.

• 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.

• No significant regulatory changes or legal disputes expected to adversely affect business.