Coca-Cola Içecek Anonim Sirketi (CCOLA) Q1 2026 earnings summary

Executive summary

• Achieved consolidated Q1 2026 sales volume growth of 6.9% year-over-year to 414 million unit cases, with strong performance across Türkiye and international markets, especially Central Asia.

• Net sales revenue rose 10.7% year-over-year to TL 52.4 billion under inflation accounting (TAS 29), with EBIT up 84.3% and net income up 213.8% to TL 5.2 billion.

• Stills category outperformed with 30.3% growth, while sparkling grew 4.5% year-over-year.

• CEO transition announced, with COO to succeed at end of Q2 2026.

• Marked the 20th anniversary of the IPO, with long-term CAGR of 7% in volume, 7% in NSR, and 8% in EBITDA (USD terms).

Financial highlights

• Gross profit margin expanded by 592 bps to 36.3% (TAS 29), with Türkiye operations reaching 40.5%.

• EBIT margin increased by 529 bps to 13.2% (TAS 29), and EBITDA margin rose by 491 bps to 17.8%.

• Free cash flow improved to TL 462 million from TL (10.5) billion in Q1 2025.

• Net debt to EBITDA improved to 0.66x as of March 31, 2026.

• Capex was TL 2.5 billion, with 44% allocated to Türkiye and 56% to international operations.

Outlook and guidance

• Targeting mid-single-digit volume growth and flat EBIT margin (~16%) for full year 2026.

• CapEx expected to remain in high single-digit percentage of net sales; free cash flow to stay strong but may moderate due to higher CapEx and inventory needs.

• Inflation accounting (TAS 29) applied due to high inflation in Türkiye, with comparative figures restated for purchasing power.

• Focus remains on sustainable quality growth, margin management, and long-term value creation.

• Management notes seasonality in beverage demand, with higher sales expected in summer months.