Coca-Cola Içecek Anonim Sirketi (CCOLA) Q2 2025 earnings summary

Executive summary

• Achieved 4.7% year-on-year consolidated sales volume growth in Q2 2025, led by strong international performance, especially in Central Asia and Iraq, despite declines in Türkiye and Pakistan.

• Stills category led growth with a 20.6% increase, while sparkling beverages rose 4.9%.

• Net sales revenue declined by 2.6% year-on-year to TL 48.1 billion in Q2 2025, mainly due to inflation accounting and currency effects.

• Net profit was TL 5.1 billion, down 30.8% year-on-year, primarily due to lower monetary gains from reduced inflation.

• New production lines became operational in Azerbaijan and Iraq, supporting future growth.

Financial highlights

• Gross profit margin declined to 35.4% in Q2 2025.

• EBITDA margin fell to 19% (19.8% excluding TAS29); EBIT margin was 15.1% (16.9% excluding TAS29), with a 378 basis point contraction.

• Excluding inflation accounting, net sales revenue grew by 30.8% year-on-year in Q2 2025.

• Net debt/EBITDA stood at 1.36x as of June 30, 2025; consolidated net debt TL 35.2bn.

• Capex reached TL 6.8bn YTD, with Capex/Sales at 7.8% for the quarter.

Outlook and guidance

• Management remains confident in achieving full-year guidance, supported by cost visibility, hedging, and a diversified country portfolio.

• Margin recovery expected to accelerate in the second half, especially in Q4, as base effects normalize and value-focused strategies take hold.

• 2025 guidance: mid-single-digit consolidated volume growth; low to mid-single-digit in Türkiye, mid to high-single-digit in international operations.

• With inflation accounting, expect mid-single-digit NSR/uc growth and flat EBIT margin; excluding inflation, FX-neutral NSR/uc to grow by low twenties, with slight EBIT margin pressure.

• Management remains cautious due to inflation, currency volatility, and geopolitical risks.