Coca-Cola Içecek Anonim Sirketi (CCOLA) Q4 2025 earnings summary

Executive summary

• Achieved 8% year-over-year consolidated sales volume growth to 1.6 billion unit cases, led by international expansion, especially in Central Asia and Iraq, with strong performance in sparkling (+9.2%) and stills (+19.2%) categories.

• Net sales revenue rose 3.9% year-over-year to TL 187.2 billion, while EBIT margin reached 13.4% (TAS 29); net income declined 27.4% to TL 14.1 billion due to inflation accounting reversal, lower monetary gains, and one-off tax accruals.

• Free cash flow improved to TL 2.8 billion (TL 7.1 billion pre-inflation accounting), supported by net working capital efficiency and disciplined capex.

• Strategic focus on pricing, discount management, and mix optimization supported margin protection and profitability.

• CEO transition: Ahmet Kürşad Ertin to become CEO as of July 1, 2026.

Financial highlights

• Consolidated sales volume rose 8% year-over-year to 1.6 billion unit cases; net sales revenue increased 3.9% to TL 187.2 billion.

• EBIT increased 1.8% to TL 25.2 billion (TAS 29); EBIT margin was 13.4%, down 28 bps year-over-year, impacted by a TL 211 million competition board fine.

• Net income was TL 14.1 billion, down 27.4% year-over-year, mainly due to inflation accounting reversal, lower monetary gains, and a one-off tax accrual in Uzbekistan (~TL 1 billion).

• Free cash flow reached TL 2.8 billion (TL 7.1 billion pre-inflation accounting), a significant turnaround from negative cash flow in prior years.

• Gross margin expanded by 27 bps to 35.6%; EBITDA margin declined by 67 bps to 17.7%.

Outlook and guidance

• 2026 is expected to remain volatile; focus will be on disciplined execution, right pricing, and quality mix management.

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

• Net sales revenue per unit case expected to be flat to mid-single-digit growth under inflation accounting; low to mid-teens FX-neutral growth excluding inflation accounting.

• EBIT margin planned to remain flat in 2026; CapEx over sales ratio to stay at high single-digit levels.