COCA COLA CO
For the period ended Sep 26, 2025. Filed Oct 23, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 26, 2025 · Filed Oct 23, 2025
KO$95.67-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-27; filed 2025-07-24.
0000021344-25-000061
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-26; filed 2025-10-23.
0001628280-25-046054
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 170 previous paragraphs and 179 current paragraphs.
89 unchanged; 71 reworded; 16 added; 8 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Unit case volume in Latin America was even, which included 3% growth in water, sports, coffee and tea, 2% growth in juice, value-added dairy and plant-based beverages and growth in energy drinks, offset by a 1% decline in both Trademark Coca-Cola and sparkling flavors. The operating segment’s volume performance included 3% growth in Brazil, offset by a decline of 3% in Mexico.
Current report
Unit case volume for Bottling Investments increased 2%, driven by growth in unit case volume in Africa and India, partially offset by the impact of refranchising our bottling operations in certain territories in India.
Current report
During the three months ended September 26, 2025, net operating revenues were $12,455 million, compared to $11,854 million during the three months ended September 27, 2024, an increase of $601 million, or 5%.
Current report
During the nine months ended September 26, 2025, net operating revenues were $36,119 million, compared to $35,517 million during the nine months ended September 27, 2024, an increase of $602 million, or 2%.
Current report
During the three months ended September 26, 2025, selling, general and administrative expenses were $3,618 million, compared to $3,636 million during the three months ended September 27, 2024, a decrease of $18 million. This decrease was primarily due to lower annual incentive expense, partially offset by increased advertising expense. During the nine months ended September 26, 2025, selling, general and administrative expenses were $10,322 million, compared to $10,536 million during the nine months ended September 27, 2024, a decrease of $214 million, or 2%. The decrease was primarily due to the refranchising of certain of our bottling operations and lower annual incentive expense.
Current report
Latin America reported operating income of $897 million and $937 million for the three months ended September 26, 2025 and September 27, 2024, respectively. The decrease in operating income was primarily driven by a decrease in concentrate sales volume of 3%, higher commodity costs, increased marketing spending due to timing, and an unfavorable foreign currency exchange rate impact of 16%, partially offset by favorable pricing initiatives and lower other operating charges.
Current report
Bottling Investments’ operating income for the three months ended September 26, 2025 and September 27, 2024 was $57 million and $43 million, respectively. The increase in operating income was primarily driven by an increase in unit case volume of 5%, favorable pricing initiatives and a favorable foreign currency exchange rate impact of 12%, partially offset by the impact of refranchising our bottling operations in certain territories in India and higher commodity costs.
Current report
During the three months ended September 26, 2025, equity income was $644 million, compared to equity income of $541 million during the three months ended September 27, 2024, an increase of $103 million, or 19%. This increase reflects, among other items, the impact of more favorable operating results reported by certain of our equity method investees in the current year, a favorable foreign currency exchange rate impact and a $3 million increase in net gains resulting from the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. These favorable impacts were partially offset by the impact of the sale of our ownership interests in certain of our equity method investees.
Current report
During the nine months ended September 26, 2025, equity income was $1,556 million, compared to equity income of $1,432 million during the nine months ended September 27, 2024, an increase of $124 million, or 9%. This increase reflects, among other items, the impact of more favorable operating results reported by certain of our equity method investees in the current year and a $24 million decrease in net charges resulting from the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. These favorable impacts were partially offset by the impact of the sale of our ownership interests in certain of our equity method investees and an unfavorable foreign currency exchange rate impact.
Current report
During the three months ended September 26, 2025, other income (loss) — net was a loss of $237 million. The Company recorded a charge of $393 million related to certain operations held for sale in Nigeria, $13 million of costs related to our trade accounts receivable factoring program, net foreign currency exchange losses of $11 million and a charge of $8 million related to the refranchising of certain bottling operations in Ghana. Additionally, the Company recognized a net gain of $151 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities, and dividend income of $36 million. Other income (loss) — net also included income of $4 million related to the non-service cost components of net periodic benefit cost.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the United States. The Company continues to evaluate the future impact of these tax law changes on its financial statements. The OBBBA is not currently expected to materially impact the Company’s effective tax rate for 2025.
Current report
Additionally, the activity in 2025 included $6.1 billion of the $6.2 billion final milestone payment for fairlife that was made during the nine months ended September 26, 2025. The activity in 2024 included the $6.0 billion IRS Tax Litigation Deposit. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax payment to the IRS. Refer to Note 12 of Notes to Consolidated Financial Statements for additional information on our milestone payment for fairlife.
Current report
Acquisitions of Businesses, Equity Method Investments and Nonmarketable Securities
Current report
During the nine months ended September 26, 2025 and September 27, 2024, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $356 million and $153 million, respectively. The activity during the nine months ended September 26, 2025 included an additional investment of $54 million in an equity method investee in Japan. The activity during the nine months ended September 26, 2025 and September 27, 2024 included $271 million and $114 million, respectively, of investments in alternative energy limited partnerships. Refer to Note 15 of Notes to Consolidated Financial Statements for additional information on these investments.
Current report
Proceeds from Sale of a Noncontrolling Interest
Current report
During the nine months ended September 26, 2025, the Company received proceeds of $1,277 million from the sale of a noncontrolling interest. Refer to Note 11 of Notes to Consolidated Financial Statements for additional information.
Removed paragraphs (8)
Previous report
Unit case volume in Latin America decreased 2%, which included a 4% decline in water, sports, coffee and tea, a 1% decline in Trademark Coca-Cola and a 3% decline in sparkling flavors, partially offset by 1% growth in juice, value-added dairy and plant-based beverages and growth in energy drinks. The operating segment’s volume performance included a decline of 6% in Mexico, partially offset by 14% growth in Argentina.
Previous report
Unit case volume for Bottling Investments decreased 5%, driven by the impact of refranchising our bottling operations in certain territories in India and declines across most markets.
Previous report
During the three months ended June 27, 2025, net operating revenues were $12,535 million, compared to $12,363 million during the three months ended June 28, 2024, an increase of $172 million, or 1%.
Previous report
During the six months ended June 27, 2025, net operating revenues were $23,664 million, compared to $23,663 million during the six months ended June 28, 2024, an increase of $1 million.
Previous report
Latin America reported operating income of $957 million and $921 million for the three months ended June 27, 2025 and June 28, 2024, respectively. The increase in operating income was primarily driven by favorable pricing initiatives, lower commodity costs and decreased marketing spending due to timing, partially offset by a decrease in concentrate sales volume of 1%, higher operating expenses, higher other operating charges and an unfavorable foreign currency exchange rate impact of 29%.
Previous report
Bottling Investments’ operating income for the three months ended June 27, 2025 and June 28, 2024 was $59 million and $98 million, respectively. The decrease in operating income was primarily driven by the impact of refranchising our bottling operations in certain territories in India, a decrease in unit case volume of 2%, higher commodity costs and an unfavorable foreign currency exchange rate impact of 4%.
Previous report
During the three months ended June 27, 2025, equity income was $561 million, compared to equity income of $537 million during the three months ended June 28, 2024, an increase of $24 million, or 4%. During the six months ended June 27, 2025, equity income was $912 million, compared to equity income of $891 million during the six months ended June 28, 2024, an increase of $21 million, or 2%.
Previous report
During the three months ended June 27, 2025, other income (loss) — net was income of $212 million. The Company recognized a net gain of $163 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities, a net gain of $102 million related to the refranchising of our bottling operations in certain territories in India and dividend income of $36 million. Additionally, the Company recorded an other-than-temporary impairment charge of $40 million related to an equity method investee in Latin America, a charge of $28 million related to assets held for sale, $12 million of costs related to our trade accounts receivable factoring program and net foreign currency exchange losses of $4 million. Other income (loss) — net also included income of $3 million related to the non-service cost components of net periodic benefit cost.
Reworded paragraphs (71)
Previous wording
In January, February and December 2024 as well as May 2025, the Company refranchised our bottling operations in certain territories in India, and in February 2024, the Company refranchised our bottling operations in Bangladesh and the Philippines. The impact of each of these refranchisings has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for the Bottling Investments and Asia Pacific operating segments for the three and six months ended June 27, 2025, as applicable.
Current wording
In January, February and December 2024 as well as May 2025, the Company refranchised our bottling operations in certain territories in India, and in February 2024, the Company refranchised our bottling operations in Bangladesh and the Philippines. The impact of each of these refranchisings has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for the Bottling Investments and Asia Pacific operating segments for the three and nine months ended September 26, 2025, as applicable.
Previous wording
5 After considering the impact of structural changes, unit case volume for Bottling Investments for the three and six months ended June 27, 2025 decreased 2% and 1%, respectively.
Current wording
5 After considering the impact of structural changes, unit case volume for Bottling Investments for the three and nine months ended September 26, 2025 increased 5% and 1%, respectively.
Previous wording
6 After considering the impact of structural changes, concentrate sales volume for Asia Pacific for the six months ended June 27, 2025 grew 1%.
Current wording
6 After considering the impact of structural changes, concentrate sales volume for Asia Pacific for the nine months ended September 26, 2025 was even.
Previous wording
Unit case volume in Europe, Middle East and Africa increased 3%, which included 5% growth in sparkling flavors, 4% growth in water, sports, coffee and tea, and 1% growth in Trademark Coca-Cola, as well as growth in energy drinks, partially offset by a 3% decline in juice, value-added dairy and plant-based beverages. The operating segment’s volume performance included an increase in unit case volume of 5% in the Eurasia and Middle East operating unit, 2% in the Africa operating unit and 1% in the Europe operating unit, as well as growth in energy drinks.
Current wording
Unit case volume in Europe, Middle East and Africa increased 4%, which included 3% growth in Trademark Coca-Cola, 5% growth in sparkling flavors, 4% growth in water, sports, coffee and tea, as well as growth in energy drinks, partially offset by a 1% decline in juice, value-added dairy and plant-based beverages. The operating segment’s volume performance included an increase in unit case volume of 8% in the Eurasia and Middle East operating unit, 7% in the Africa operating unit and growth in energy drinks, partially offset by a decline of 1% in the Europe operating unit.
Previous wording
Unit case volume in North America decreased 1%, which included a 1% decline in Trademark Coca-Cola, a 3% decline in juice, value-added dairy and plant-based beverages and a 1% decline in water, sports, coffee and tea, partially offset by 1% growth in sparkling flavors and growth in energy drinks.
Current wording
Unit case volume in North America was even, which included 2% growth in water, sports, coffee and tea, as well as growth in energy drinks, offset by a 1% decline in Trademark Coca-Cola and a 2% decline in juice, value-added dairy and plant-based beverages. Unit case volume in sparkling flavors was even.
Previous wording
Unit case volume in Asia Pacific decreased 3%, which included a 7% decline in sparkling flavors, a 10% decline in juice, value-added dairy and plant-based beverages and a 2% decline in Trademark Coca-Cola, partially offset by 2% growth in water, sports, coffee and tea, as well as growth in energy drinks. The operating segment’s volume performance included a decline of 6% in both the India and Southwest Asia and the ASEAN and South Pacific operating units, as well as a decline of 2% in the Japan and South Korea operating unit, partially offset by 1% growth in the Greater China and Mongolia operating unit and growth in energy drinks.
Current wording
Unit case volume in Asia Pacific decreased 1%, which included a 6% decline in sparkling flavors and a 9% decline in juice, value-added dairy and plant-based beverages, partially offset by 2% growth in Trademark Coca-Cola, 1% growth in water, sports, coffee and tea, as well as growth in energy drinks. The operating segment’s volume performance included a decline of 4% in the India and Southwest Asia operating unit as well as a decline of 1% in the Greater China and Mongolia, ASEAN and South Pacific, and Japan and South Korea operating units. These declines were partially offset by growth in energy drinks.
Previous wording
Unit case volume in Europe, Middle East and Africa increased 3%, which included 2% growth in Trademark Coca-Cola, 4% growth in sparkling flavors and 3% growth in water, sports, coffee and tea, as well as growth in energy drinks, partially offset by a 4% decline in juice, value-added dairy and plant-based beverages. The operating segment’s volume performance included an increase in unit case volume of 8% in the Eurasia and Middle East operating unit, 2% in the Africa operating unit and growth in energy drinks. Unit case volume in the Europe operating unit was even.
Current wording
Unit case volume in Europe, Middle East and Africa increased 3%, which included 2% growth in Trademark Coca-Cola, 4% growth in sparkling flavors, 3% growth in water, sports, coffee and tea, as well as growth in energy drinks, partially offset by a 3% decline in juice, value-added dairy and plant-based beverages. The operating segment’s volume performance included an increase in unit case volume of 8% in the Eurasia and Middle East operating unit, 4% in the Africa operating unit and growth in energy drinks. Unit case volume in the Europe operating unit was even.
Previous wording
Unit case volume in Latin America decreased 1%, which included a 4% decline in sparkling flavors and a 2% decline in water, sports, coffee and tea, partially offset by 1% growth in juice, value-added dairy and plant-based beverages as well as growth in energy drinks. Unit case volume in Trademark Coca-Cola was even. The operating segment’s volume performance included a decline of 5% in Mexico, partially offset by 15% growth in Argentina and 2% growth in Brazil.
Current wording
Unit case volume in Latin America decreased 1%, which included a 3% decline in sparkling flavors and a 1% decline in Trademark Coca-Cola, partially offset by 1% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. Unit case volume in water, sports, coffee and tea was even. The operating segment’s volume performance included a decline of 4% in Mexico, partially offset by 2% growth in Brazil and 9% growth in Argentina.
Previous wording
Unit case volume in North America decreased 2%, which included a 2% decline in Trademark Coca-Cola, a 3% decline in water, sports, coffee and tea, and a decline of 1% in juice, value-added dairy and plant-based beverages, partially offset by growth in energy drinks. Unit case volume in sparkling flavors was even.
Current wording
Unit case volume in North America decreased 1%, which included a 2% decline in Trademark Coca-Cola and a 1% decline in both water, sports, coffee and tea and juice, value-added dairy and plant-based beverages, partially offset by growth in energy drinks. Unit case volume in sparkling flavors was even.
Previous wording
Unit case volume in Asia Pacific increased 1%, which included 4% growth in water, sports, coffee and tea and 1% growth in Trademark Coca-Cola, as well as growth in energy drinks, partially offset by a decline of 3% in juice, value-added dairy and plant-based beverages and a decline of 1% in sparkling flavors. The operating segment’s volume performance included 3% growth in both the Greater China and Mongolia and the India and Southwest Asia operating units and growth in energy drinks, partially offset by a decline of 4% in the ASEAN and South Pacific operating unit and a decline of 1% in the Japan and South Korea operating unit.
Current wording
Unit case volume in Asia Pacific was even, which included 3% growth in water, sports, coffee and tea, 1% growth in Trademark Coca-Cola, as well as growth in energy drinks, offset by a decline of 2% in sparkling flavors and a decline of 5% in juice, value-added dairy and plant-based beverages. The operating segment’s volume performance included 2% growth in the Greater China and Mongolia operating unit, 1% growth in the India and Southwest Asia operating unit, and growth in energy drinks, offset by a decline of 3% in the ASEAN and South Pacific operating unit and a decline of 1% in the Japan and South Korea operating unit.
Previous wording
Unit case volume for Bottling Investments decreased 12%, primarily driven by the impact of refranchising our bottling operations in the Philippines, Bangladesh and certain territories in India.
Current wording
Unit case volume for Bottling Investments decreased 8%, primarily driven by the impact of refranchising our bottling operations in the Philippines, Bangladesh and certain territories in India.
Previous wording
During the three months ended June 27, 2025, both worldwide concentrate sales volume and unit case volume decreased 1% compared to the three months ended June 28, 2024. During the six months ended June 27, 2025, worldwide concentrate sales volume was even and unit case volume increased 1% compared to the six months ended June 28, 2024. Concentrate sales volume growth is calculated based on the amount sold during the reporting periods, which is impacted by the number of days. Conversely, unit case volume growth is calculated based on average daily sales, which is not impacted by the number of days in the reporting periods. The first quarter of 2025 had two fewer days when compared to the first quarter of 2024, which contributed to the differences between concentrate sales volume and unit case volume growth rates on a consolidated basis and for the individual operating segments during the six months ended June 27, 2025. Additionally, the differences between concentrate sales volume and unit case volume growth rates for the operating segments were impacted by the timing of concentrate shipments. We expect the differences between concentrate sales volume and unit case volume growth rates to be minimal on a full year basis.
Current wording
During both the three and nine months ended September 26, 2025, worldwide concentrate sales volume was even and unit case volume increased 1% compared to the three and nine months ended September 27, 2024. Concentrate sales volume growth is calculated based on the amount sold during the reporting periods, which is impacted by the number of days. Conversely, unit case volume growth is calculated based on average daily sales, which is not impacted by the number of days in the reporting periods. The first quarter of 2025 had two fewer days when compared to the first quarter of 2024, which contributed to the differences between concentrate sales volume and unit case volume growth rates on a consolidated basis and for the individual operating segments during the nine months ended September 26, 2025. Additionally, the differences between concentrate sales volume and unit case volume growth rates for the operating segments were impacted by the timing of concentrate shipments. We expect the differences between concentrate sales volume and unit case volume growth rates to be minimal on a full year basis.
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted our consolidated net operating revenues by 3%. This unfavorable impact was primarily due to a stronger U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, Argentine peso, Ethiopian birr and Turkish lira, which had an unfavorable impact on our Latin America; Europe, Middle East and Africa; and Bottling Investments operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the euro, British pound and Japanese yen, which had a favorable impact on our Europe, Middle East and Africa and Asia Pacific operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
The impact of foreign currency exchange rate fluctuations on our consolidated net operating revenues, including the effects of our hedging activities, was even. Net operating revenues were favorably impacted by a weaker U.S. dollar compared to certain other foreign currencies, including the euro, British pound and Japanese yen, which had a favorable impact on our Europe, Middle East and Africa and Asia Pacific operating segments. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Ethiopian birr, Turkish lira, and Argentine peso, which had an unfavorable impact on our Europe, Middle East and Africa, Latin America and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
Price, product and geographic mix had a 5% favorable impact on our consolidated net operating revenues. Price, product and geographic mix was impacted by a variety of factors and events including, but not limited to, the following:
Current wording
Price, product and geographic mix had a 6% favorable impact on our consolidated net operating revenues. Price, product and geographic mix was impacted by a variety of factors and events including, but not limited to, the following:
Previous wording
•North America — favorable pricing initiatives, partially offset by unfavorable mix;
Current wording
•North America — favorable pricing initiatives and favorable mix;
Previous wording
•Bottling Investments — favorable pricing initiatives, offset by unfavorable mix.
Current wording
•Bottling Investments — favorable pricing initiatives, partially offset by unfavorable mix.
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted our consolidated net operating revenues by 4%. This unfavorable impact was primarily due to a stronger U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, Argentine peso, Ethiopian birr, and Turkish lira, which had an unfavorable impact on our Latin America; Europe, Middle East and Africa; and Bottling Investments operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the British pound, South African rand, Kenyan shilling and Japanese yen, which had a favorable impact on our Europe, Middle East and Africa; Asia Pacific; and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted our consolidated net operating revenues by 3%. This unfavorable impact was primarily due to a stronger U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, Argentine peso, Ethiopian birr and Turkish lira, which had an unfavorable impact on our Latin America; Europe, Middle East and Africa; and Bottling Investments operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the British pound, euro, South African rand and Japanese yen, which had a favorable impact on our Europe, Middle East and Africa; Asia Pacific; and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
Our gross profit margin increased to 62.4% for the three months ended June 27, 2025, compared to 61.1% for the three months ended June 28, 2024. Our gross profit margin increased to 62.5% for the six months ended June 27, 2025, compared to 61.8% for the six months ended June 28, 2024. The increases were primarily due to the impact of favorable pricing initiatives and the refranchising of certain of our bottling operations, partially offset by the unfavorable impact of foreign currency exchange rate fluctuations and higher commodity costs.
Current wording
Our gross profit margin increased to 61.5% for the three months ended September 26, 2025, compared to 60.7% for the three months ended September 27, 2024. Our gross profit margin increased to 62.1% for the nine months ended September 26, 2025, compared to 61.4% for the nine months ended September 27, 2024. The increases were primarily due to the impact of favorable pricing initiatives and the refranchising of certain of our bottling operations, partially offset by the unfavorable impact of foreign currency exchange rate fluctuations and higher commodity costs.
Previous wording
During the three months ended June 27, 2025, selling, general and administrative expenses were $3,470 million, compared to $3,549 million during the three months ended June 28, 2024, a decrease of $79 million, or 2%. During the six months ended June 27, 2025, selling, general and administrative expenses were $6,704 million, compared to $6,900 million during the six months ended June 28, 2024, a decrease of $196 million, or 3%. These decreases were primarily due to the refranchising of certain of our bottling operations as well as the timing of our marketing expenses. During the six months ended June 27, 2025, foreign currency exchange rate fluctuations decreased selling, general and administrative expenses by 1%. Advertising expenses for the three months ended June 27, 2025 and June 28, 2024 were $1,328 million and $1,400 million, respectively. Advertising expenses for the six months ended June 27, 2025 and June 28, 2024 were $2,417 million and $2,561 million, respectively.
Current wording
During the three months ended September 26, 2025, foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 1%, and during the nine months ended September 26, 2025, foreign currency exchange rate fluctuations decreased selling, general and administrative expenses by 1%. Advertising expenses for the three months ended September 26, 2025 and September 27, 2024 were $1,523 million and $1,376 million, respectively. Advertising expenses for the nine months ended September 26, 2025 and September 27, 2024 were $3,940 million and $3,937 million, respectively.
Previous wording
As of June 27, 2025, we had $334 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under our plans, which we expect to recognize over a weighted-average period of 1.8 years as stock-based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards.
Current wording
As of September 26, 2025, we had $296 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under our plans, which we expect to recognize over a weighted-average period of 1.7 years as stock-based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards.
Previous wording
During the three months ended June 27, 2025, the Company recorded other operating charges of $71 million. These charges primarily included $31 million related to the impairment of a trademark in Latin America, $28 million related to the Company’s productivity and reinvestment program, $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India, $4 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $2 million related to tax litigation expense.
Current wording
During the three months ended September 26, 2025, the Company recorded other operating charges of $58 million. These charges included $27 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $24 million related to the Company’s productivity and reinvestment program, $4 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $3 million related to tax litigation expense.
Previous wording
During the six months ended June 27, 2025, the Company recorded other operating charges of $144 million. These charges consisted of $47 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife in 2020, which brought the total liability to $6,173 million and was paid in March 2025. Additionally, other operating charges included $39 million related to the Company’s productivity and reinvestment program, $31 million related to the impairment of a trademark in Latin America, $8 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $7 million for the amortization of noncompete agreements related to the BodyArmor acquisition, $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India and $5 million related to tax litigation expense.
Current wording
During the nine months ended September 26, 2025, the Company recorded other operating charges of $202 million. These charges consisted of $47 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife in 2020, which brought the total liability to $6,173 million and was paid in March 2025. Additionally, other operating charges included $63 million related to the Company’s productivity and reinvestment program, $35 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $31 million related to the impairment of a trademark in Latin America, $11 million for the amortization of noncompete agreements related to the BodyArmor acquisition, $8 million related to tax litigation expense and $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India.
Previous wording
During the six months ended June 28, 2024, the Company recorded other operating charges of $2,943 million. These charges consisted of $2,102 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, $760 million related to the impairment of our BodyArmor trademark and $68 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India and $7 million for the amortization of noncompete agreements related to the BodyArmor acquisition. These charges were partially offset by a net benefit of $1 million related to a revision of management’s estimates for tax litigation expense.
Current wording
During the three months ended September 27, 2024, the Company recorded other operating charges of $1,044 million. These charges consisted of $919 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, $87 million related to the impairment of a trademark in Latin America and $34 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included $4 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $2 million of transaction costs related to the sale of a portion of our interest in Coke Consolidated. These charges were partially offset by a net benefit of $2 million related to a revision of management’s estimates for tax litigation expense.
Previous wording
During the three months ended June 28, 2024, the Company recorded other operating charges of $1,370 million. These charges consisted of $1,337 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, $32 million related to the Company’s productivity and reinvestment program and $3 million for the amortization of noncompete agreements related to the BodyArmor acquisition. These charges were partially offset by a net benefit of $2 million related to a revision of management’s estimates for tax litigation expense.
Current wording
During the nine months ended September 27, 2024, the Company recorded other operating charges of $3,987 million. These charges consisted of $3,021 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, $760 million related to the impairment of our BodyArmor trademark, $102 million related to the Company’s productivity and reinvestment program and $87 million related to the impairment of a trademark in Latin America. In addition, other operating charges included $11 million for the amortization of noncompete agreements related to the BodyArmor acquisition, $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India and $2 million of transaction costs related to the sale of a portion of our interest in Coke Consolidated. These charges were partially offset by a net benefit of $3 million related to a revision of management’s estimates for tax litigation expense.
Previous wording
Refer to Note 2 of Notes to Consolidated Financial Statements for additional information on the refranchising of our bottling operations in certain territories in India. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation. Refer to Note 13 of Notes to Consolidated Financial Statements for additional information on the Company’s restructuring initiatives. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the fairlife acquisition and the impairments. Refer to Note 17 of Notes to Consolidated Financial Statements for the impact certain of these charges had on our operating segments and Corporate.
Current wording
Refer to Note 2 of Notes to Consolidated Financial Statements for additional information on our divestiture activities. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation. Refer to Note 12 of Notes to Consolidated Financial Statements for the impact these charges had on our operating segments and Corporate. Refer to Note 13 of Notes to Consolidated Financial Statements for additional information on the Company’s restructuring initiatives. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the fairlife acquisition and the impairments.
Previous wording
During the six months ended June 27, 2025, operating income was $7,939 million, compared to $4,773 million during the six months ended June 28, 2024, an increase of $3,166 million, or 66%. The increase was driven by lower other operating charges and favorable pricing initiatives, partially offset by higher commodity costs and an unfavorable foreign currency exchange rate impact of 16%.
Current wording
During the three months ended September 26, 2025, operating income was $3,982 million, compared to $2,510 million during the three months ended September 27, 2024, an increase of $1,472 million, or 59%. The increase was driven by lower other operating charges and favorable pricing initiatives, partially offset by higher commodity costs and an unfavorable foreign currency exchange rate impact of 4%.
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted consolidated operating income by 14% due to a stronger U.S. dollar compared to certain foreign currencies, including the Mexican peso and Brazilian real, which had an unfavorable impact on our Latin America operating segment. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the euro and Japanese yen, which had a favorable impact on our Europe, Middle East and Africa and Asia Pacific operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted consolidated operating income by 4% due to a stronger U.S. dollar compared to certain foreign currencies, including the Argentine peso and Turkish lira, which had an unfavorable impact on our Latin America and Europe, Middle East and Africa operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the euro, which had a favorable impact on our Europe, Middle East and Africa operating segment. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
The Europe, Middle East and Africa operating segment reported operating income of $1,325 million and $1,282 million for the three months ended June 27, 2025 and June 28, 2024, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 2%, favorable pricing initiatives and lower operating expenses due to timing, partially offset by higher commodity costs, increased marketing spending and an unfavorable foreign currency exchange rate impact of 4%.
Current wording
The Europe, Middle East and Africa operating segment reported operating income of $1,097 million and $998 million for the three months ended September 26, 2025 and September 27, 2024, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 3% and favorable pricing initiatives, partially offset by increased marketing spending due to timing and an unfavorable foreign currency exchange rate impact of 2%.
Previous wording
Operating income for North America for the three months ended June 27, 2025 and June 28, 2024 was $1,621 million and $1,376 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives and lower operating expenses, partially offset by increased marketing spending and an unfavorable foreign currency exchange rate impact of 1%.
Current wording
Operating income for North America for the three months ended September 26, 2025 and September 27, 2024 was $1,681 million and $1,456 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives, partially offset by a decrease in concentrate sales volume of 2% and higher commodity costs.
Previous wording
Asia Pacific’s operating income for the three months ended June 27, 2025 and June 28, 2024 was $647 million and $646 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives, partially offset by a decrease in concentrate sales volume of 5%, higher commodity costs and an unfavorable foreign currency exchange rate impact of 8%.
Current wording
Asia Pacific’s operating income for the three months ended September 26, 2025 and September 27, 2024 was $521 million and $462 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives and mix as well as a favorable foreign currency exchange rate impact of 11%, partially offset by a decrease in concentrate sales volume of 1%, higher commodity costs and increased marketing spending due to timing.
Previous wording
Corporate’s operating loss for the six months ended June 27, 2025 and June 28, 2024 was $723 million and $2,885 million, respectively. Operating loss in 2025 decreased primarily as a result of lower other operating charges, primarily due to the prior year remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition as well as lower marketing spending due to timing. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the fairlife acquisition.
Current wording
Corporate’s operating loss for the three months ended September 26, 2025 and September 27, 2024 was $271 million and $1,386 million, respectively. Operating loss in 2025 decreased primarily as a result of lower other operating charges, primarily due to the prior year remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, as well as marketing efficiencies and lower operating expenses. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the fairlife acquisition.
Previous wording
During the three months ended June 27, 2025, operating income was $4,280 million, compared to $2,632 million during the three months ended June 28, 2024, an increase of $1,648 million, or 63%. The increase was driven by lower other operating charges, favorable pricing initiatives and lower selling, general and administrative expenses, partially offset by a decrease in concentrate sales volume of 1%, higher commodity costs and an unfavorable foreign currency exchange rate impact of 14%.
Current wording
During the nine months ended September 26, 2025, operating income was $11,921 million, compared to $7,283 million during the nine months ended September 27, 2024, an increase of $4,638 million, or 64%. The increase was driven by lower other operating charges and favorable pricing initiatives, partially offset by higher commodity costs and an unfavorable foreign currency exchange rate impact of 12%.
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted consolidated operating income by 16% due to a stronger U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, Argentine peso, Zimbabwe gold, Ethiopian birr, and Turkish lira, which had an unfavorable impact on our Latin America; Europe, Middle East and Africa; and Bottling Investments operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the Japanese yen, British pound, and South African rand, which had a favorable impact on our Asia Pacific; Europe, Middle East and Africa; and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, unfavorably impacted consolidated operating income by 12% due to a stronger U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, Argentine peso, Zimbabwe gold and Turkish lira, which had an unfavorable impact on our Latin America and Europe, Middle East and Africa operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the euro, British pound and Japanese yen, which had a favorable impact on our Europe, Middle East and Africa and Asia Pacific operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
The Europe, Middle East and Africa operating segment reported operating income of $2,390 million and $2,362 million for the six months ended June 27, 2025 and June 28, 2024, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 2% and favorable pricing initiatives, partially offset by higher commodity costs, increased marketing spending and an unfavorable foreign currency exchange rate impact of 6%.
Current wording
The Europe, Middle East and Africa operating segment reported operating income of $3,487 million and $3,360 million for the nine months ended September 26, 2025 and September 27, 2024, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 2% and favorable pricing initiatives, partially offset by higher commodity costs, increased marketing spending and an unfavorable foreign currency exchange rate impact of 5%.
Previous wording
Latin America reported operating income of $1,861 million and $1,866 million for the six months ended June 27, 2025 and June 28, 2024, respectively. The decrease in operating income was primarily driven by a decrease in concentrate sales volume of 2%, higher other operating charges and an unfavorable foreign currency exchange rate impact of 26%, partially offset by favorable pricing initiatives, lower commodity costs and lower marketing spending due to timing.
Current wording
Latin America reported operating income of $2,758 million and $2,803 million for the nine months ended September 26, 2025 and September 27, 2024, respectively. The decrease in operating income was primarily driven by a decrease in concentrate sales volume of 2% and an unfavorable foreign currency exchange rate impact of 23%, partially offset by favorable pricing initiatives, lower commodity costs, lower marketing spending due to timing and lower other operating charges.
Previous wording
Operating income for North America for the six months ended June 27, 2025 and June 28, 2024 was $2,962 million and $1,873 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives and lower other operating charges due to the impairment of our BodyArmor trademark in the prior year, partially offset by a decrease in concentrate sales volume of 2%, higher commodity costs, increased marketing spending and an unfavorable foreign currency exchange rate impact of 1%. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the impairment of our BodyArmor trademark.
Current wording
Operating income for North America for the nine months ended September 26, 2025 and September 27, 2024 was $4,643 million and $3,329 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives and lower other operating charges due to the impairment of our BodyArmor trademark in the prior year, partially offset by a decrease in concentrate sales volume of 2%, higher commodity costs and increased marketing spending. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the impairment of our BodyArmor trademark.
Previous wording
Asia Pacific’s operating income for the six months ended June 27, 2025 and June 28, 2024 was $1,271 million and $1,303 million, respectively. The decrease in operating income was primarily driven by the impact of structural changes, higher commodity costs, higher operating expenses and an unfavorable foreign currency exchange rate impact of 10%, partially offset by concentrate sales volume growth of 1%, favorable pricing initiatives and lower marketing spending due to timing.
Current wording
Asia Pacific’s operating income for the nine months ended September 26, 2025 and September 27, 2024 was $1,792 million and $1,765 million, respectively. The increase in operating income was primarily driven by favorable pricing initiatives, partially offset by the impact of structural changes, higher commodity costs, increased marketing spending and an unfavorable foreign currency exchange rate impact of 4%.
Previous wording
Bottling Investments’ operating income for the six months ended June 27, 2025 and June 28, 2024 was $178 million and $254 million, respectively. The decrease in operating income was primarily driven by the impact of refranchising our bottling operations in the Philippines, Bangladesh and certain territories in India, a decrease in unit case volume of 2%, higher commodity costs, higher operating expenses and an unfavorable foreign currency exchange rate impact of 4%, partially offset by favorable pricing initiatives.
Current wording
Bottling Investments’ operating income for the nine months ended September 26, 2025 and September 27, 2024 was $235 million and $297 million, respectively. The decrease in operating income was primarily driven by the impact of refranchising our bottling operations in the Philippines, Bangladesh and certain territories in India, higher commodity costs, higher operating expenses and an unfavorable foreign currency exchange rate impact of 2%, partially offset by favorable pricing initiatives.
Previous wording
Corporate’s operating loss for the three months ended June 27, 2025 and June 28, 2024 was $329 million and $1,691 million, respectively. Operating loss in 2025 decreased primarily as a result of lower other operating charges, primarily due to the prior year remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the fairlife acquisition.
Current wording
Corporate’s operating loss for the nine months ended September 26, 2025 and September 27, 2024 was $994 million and $4,271 million, respectively. Operating loss in 2025 decreased primarily as a result of lower other operating charges, primarily due to the prior year remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition as well as marketing efficiencies. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the fairlife acquisition.
Previous wording
During the three months ended June 27, 2025, interest income was $188 million, compared to $275 million during the three months ended June 28, 2024, a decrease of $87 million, or 32%. During the six months ended June 27, 2025, interest income was $368 million, compared to $521 million during the six months ended June 28, 2024, a decrease of $153 million, or 29%. The decreases were primarily driven by lower average investment balances on our Corporate and certain international investments.
Current wording
During the three months ended September 26, 2025, interest income was $185 million, compared to $263 million during the three months ended September 27, 2024, a decrease of $78 million, or 30%. During the nine months ended September 26, 2025, interest income was $553 million, compared to $784 million during the nine months ended September 27, 2024, a decrease of $231 million, or 30%. The decreases were primarily driven by lower average investment balances on our Corporate and certain international investments.
Showing the first 40 of 71 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•Latin America — favorable pricing initiatives and favorable mix;
Current report — wording carried from elsewhere
We are currently in litigation with the IRS for tax years 2007 through 2009. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation.
Current report — wording carried from elsewhere
During the nine months ended September 26, 2025, purchases of investments were $3,292 million and proceeds from disposals of investments were $4,300 million, resulting in a net cash inflow of $1,008 million. During the nine months ended September 27, 2024, purchases of investments were $4,398 million and proceeds from disposals of investments were
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•Latin America — favorable pricing initiatives, including inflationary pricing in Argentina, and favorable mix;
Previous report — wording carried elsewhere
On November 18, 2020, the Tax Court issued the Opinion regarding the Company’s 2015 litigation with the IRS involving transfer pricing tax adjustments in which it predominantly sided with the IRS. On November 8, 2023, the Tax Court issued a supplemental opinion, siding with the IRS in concluding both that the blocked-income regulations apply to the Company’s operations and that the Tax Court opinion in 3M Co. & Subs. v. Commissioner (February 9, 2023) controlled as to the validity of those regulations. The Company strongly disagrees with the Opinions and intends to vigorously defend its positions. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation.