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 contributions from international markets, especially Central Asia, Uzbekistan, and Kazakhstan, despite macroeconomic and geopolitical challenges.

• 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 in Q3 2025, up 4.2% year-on-year, supported by improved operating profit and disciplined 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 Global Ratings affirmed a BB+ credit rating and upgraded the outlook to 'Stable', reflecting strong balance sheet discipline.

Financial highlights

• Consolidated revenue for Q3 2025 rose 6.7% year-on-year to TL 52.2 billion (TAS 29), with EBIT up 14.3% and net income margin at 13.8%.

• Free cash flow for nine months reached TL 4.8 billion (TAS 29), with net debt-to-EBITDA at 0.8x as of September 30, 2025.

• Gross profit margin improved to 38.1% (+166 bps y/y, TAS 29); EBIT margin reached 18.8% (+125 bps y/y, TAS 29), or 20.4% (+91 bps y/y, excluding TAS 29).

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

• Net debt at $580 million, with consolidated debt TL 56.3 billion, cash TL 32.2 billion, and net debt TL 24.2 billion.

Outlook and guidance

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

• NSR per unit case may be slightly below initial expectations, but volume growth is strong.

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

• Management notes beverage consumption is seasonal, with higher demand in summer, and nine-month results are not indicative of full-year performance.