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

Executive summary

• Consolidated sales volume grew 4.7% year-over-year in Q2 2025, reaching 473 million unit cases, with strong growth in Uzbekistan (+44.8%), Kazakhstan (+16.7%), and Iraq (+10.6%) offsetting declines in Türkiye (-5.0%) and Pakistan (-1.5%).

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

• Net sales revenue declined by 2.6% year-over-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-over-year, primarily due to lower monetary gains from reduced inflation.

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

Financial highlights

• Gross profit margin declined by 274 basis points to 35.4% in Q2 2025; EBITDA margin fell by 375 basis points to 19.0%.

• EBIT margin was 15.1% (16.9% excluding TAS29), with a 378 basis point contraction; EBIT fell 22.2% year-over-year to TL 7.2 billion.

• Excluding inflation accounting, net sales revenue grew by 30.8% year-over-year.

• Net debt stood at $885 million (TL 35.2 billion), with a net debt/EBITDA ratio of 1.36x as of June 30, 2025.

• Free cash flow was negative TL 5.6 billion in H1 2025, impacted by ongoing investments.

Outlook and guidance

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

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

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

• No change to full-year guidance; risks mainly relate to potential demand softness impacting net sales revenue per unit case.