Coca-Cola beat Wall Street expectations on Tuesday but the results revealed a familiar story of soft demand – particularly in America and Asia – underscoring ongoing pressures facing global consumers.
The world’s biggest soft drink maker said revenue rose 5% to $12.5 billion in the third quarter, helped by higher prices and strong sales of Coca-Cola Zero Sugar, which grew 14%. Net income was $3.7 billion, up sharply from a year ago. Adjusted earnings per share came in at 82 cents, topping analyst forecasts.
But signs of consumer strain persist. Unit case volume, a closely watched gauge of underlying demand, rose just 1% year-on-year, with flat volumes in North and Latin America and a decline in Asia Pacific. Juices and flavored sodas fell while as sparkling water, coffee, and sports drinks provided some cushion.
“While the overall environment has continued to be challenging, we’ve stayed flexible – adapting plans where needed and investing for growth,” said chairman James Quincey. “By offering choice across our total beverage portfolio and leveraging our franchise model’s unique strengths, we’re gaining ground and strengthening our leadership position.”
Despite the tepid demand, revenue increased 5% to $12.5 billion, topping analyst forecasts. Organic revenue, which strips out currency moves and portfolio changes, rose 6%, fueled largely by higher pricing and product mix.
Executives have previously said Coke is selling fewer drinks to lower-income consumers in the U.S., but that it is trying to target them with more affordable products.
At the same time, higher-priced lines Fairlife dairy and Topo Chico sparkling water added to revenue growth, underscoring the split between budget-conscious shoppers and those still trading up to premium options.
Over the summer, Coca-Cola said it would expand its U.S. lineup with a cane-sugar version of its flagship soda, following speculation stirred by comments from former president Donald Trump on social media.
The company has called the new drink a way to “expand its Trademark Coca-Cola product range” and give consumers more choice.
Coca-Cola reaffirmed its 2025 forecast, projecting 5%-6% organic revenue growth. Shares rose about 3% in pre-market trading Tuesday.
