Coca-Cola Içecek Anonim Sirketi (CCOLA) Q3 2025 earnings summary

Executive summary

• Achieved 8.9% year-on-year consolidated sales volume growth in Q3 2025, reaching 477 million unit cases, with strong international contributions, especially from Central Asia, Uzbekistan, and Kazakhstan, while Türkiye saw a 1.7% decline.

• Still category grew 26% and sparkling category 8.9%, with Fuze Tea and energy segments up 47.9% and 42.6% respectively.

• Net income reached TL 7.2 billion, up 4.2% year-on-year, supported by improved operating profit and tight financial expense management.

• Gross profit margin expanded by 166 bps and EBIT margin by 125 bps year-on-year, driven by both Türkiye and international operations.

• S&P affirmed long-term issuer credit rating at BB+ and upgraded outlook to 'Stable'; Fitch affirmed BBB rating with stable outlook, reflecting strong operating profitability and capital structure.

Financial highlights

• Consolidated revenue rose 6.7% year-on-year to TL 52.2 billion in Q3 2025; EBIT was TL 9.8 billion, up 14.3% year-on-year.

• Free cash flow for 9M25 was TL 4.8 billion, a significant improvement from negative in 9M24; net debt-to-EBITDA improved to 0.8x.

• Gross profit margin in Q3 2025 expanded to 38.1% (+166 bps); EBIT margin reached 18.8% (+125 bps); EBITDA margin at 22.3% (+96 bps).

• Net sales revenue per unit case declined 2.1% year-on-year, mainly due to international markets and currency translation effects.

• Without inflation accounting, 3Q25 net income rose 55.7% year-on-year to TL 6.9 billion.

Outlook and guidance

• Confident in delivering full-year EBIT guidance, expecting only slight EBIT margin contraction versus prior year; volume delivery ahead of plan.

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

• NSR per unit case may be slightly below initial expectations, but volume performance is ahead of plan.

• Committed to maintaining net debt-to-EBITDA below 2x, with positive free cash flow targeted for the full year.