Coca-Cola Q2 2025: Profits soar 63% globally even as Asia volumes shrink 3%

The Coca-Cola Company posted its second-quarter results for 2025 on July 22, highlighting a mixed bag of global performance marked by modest top-line growth, robust margin expansion, and evolving consumption patterns across markets. Despite a 1% decline in global unit case volume, the company managed to grow net revenues by 1% to $12.5 billion and organic revenues (excluding currency and structural changes) rose by 5%.

CEO James Quincey stated the company remained "focused and flexible" amid external challenges and reiterated confidence in meeting its updated full-year guidance.

Volume Declines Offset by Price Mix Gains
The most notable headline: global unit case volume fell 1%. This was largely attributed to weakness in key markets like India, Thailand, and Mexico. However, this decline was balanced by a 6% increase in price/mix, driven by pricing actions and favorable product and channel mix.

Sparkling soft drinks declined 1%, with Coca-Cola Zero Sugar standing out with a 14% volume increase globally continuing its four-quarter streak of double-digit growth. On the other hand, sparkling flavors and juice-based beverages underperformed in Asia Pacific, dragging the region’s overall numbers down.

Asia Pacific: Soft Volumes, Stronger Margins
In Asia Pacific, unit case volume declined 3%, with growth in water, sports drinks, coffee, and tea offset by declines in sparkling flavors and juice-based products. Despite the volume dip, price/mix rose by 10%, reflecting a more premium strategy and favorable portfolio mix. Concentrate sales were 2 points behind unit case volume due to shipment timing.

While operating income remained flat on a reported basis, comparable currency-neutral operating income rose 8%, supported by pricing, revenue management, and cost control. Importantly, Coca-Cola gained value share in the nonalcoholic ready-to-drink (NARTD) category across key Asian markets, notably South Korea and the Philippines.

However, India was a drag across segments — a point compounded by a 5% decline in volume from Bottling Investments, largely due to refranchising and a consumption slowdown in the region.

Regional Breakdown: Winners and Laggards

Europe, Middle East & Africa (EMEA)
Unit case volume up 3%, led by growth in sparkling flavors, water, and Coca-Cola Trademark.

Price/mix up 3%, but impacted by unfavorable mix.

Operating income up 3%, with stronger gains when adjusted for currency.

Markets like Türkiye, Nigeria, and Egypt contributed to value share gains.

Latin America
Unit case volume down 2%, dragged by declines in Mexico and Chile.

However, price/mix grew 15%, the strongest across all regions.

Currency-neutral operating income surged 38%, driven by revenue management and lower input costs.

North America
Unit case volume dipped 1%, with declines in Trademark Coca-Cola.

Price/mix rose 3%, with concentrate sales slightly ahead of volume.

Operating income up 18%, supported by disciplined cost control.

Diet Coke continued its comeback with a fourth consecutive quarter of volume growth, aided by the "This is My Taste" campaign.

Marketing Pushes & Innovation
Coca-Cola leaned into emotional and culturally resonant marketing in Q2. The “Share a Coke” relaunch, rolled out in over 120 countries, was activated via 10 billion personalized packs. In North America, the Diet Coke campaign targeting Gen Z consumers also showed traction.

Coca-Cola Zero Sugar remained a strong performer globally, reinforcing the company’s commitment to its zero-calorie strategy. Additionally, the company plans to launch a U.S. cane sugar-based variant to diversify its Trademark Coca-Cola offerings.

Financial Highlights & Guidance
Operating income rose a massive 63%, aided by the absence of large one-time charges seen last year and improved operational efficiencies.

EPS grew 58% to $0.88; on a comparable basis, EPS rose 4% to $0.87.

Free cash flow, excluding a $6.1 billion payment related to the fairlife acquisition, stood at $3.9 billion.

Full-Year Outlook (Updated)
Organic revenue growth expected at 5–6% (unchanged).

Comparable EPS growth pegged at ~3%, with an expected 5% currency headwind.

Free cash flow (excluding fairlife) is projected at $9.5 billion.

Key Takeaways for Asia & India
The Asia Pacific region is facing a volume slowdown, especially in India, a notable reversal from past quarters when India consistently outperformed.

However, the revenue mix strategy selling smaller SKUs, focusing on premium lines is helping offset volume softness.

Coca-Cola continues to gain share in strategic markets like the Philippines and South Korea, signalling pockets of resilience despite broader headwinds.