Coca-Cola Reports Second Quarter 2026 Results and Raises Full Year Guidance

Transcript

1. #1prepared remarks

   EX-99.1 2 a2026q2earningsreleaseex-9.htm EX-99.1

2. #2prepared remarks

   Coca-Cola Reports Second Quarter 2026 Results and Raises Full Year Guidance

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   Net Revenues Grew 7%; Organic Revenues (Non-GAAP) Grew 6%

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   Operating Income Grew 9%; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 6%

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   Operating Margin was 34.9% versus 34.1% in the Prior Year; Comparable Operating Margin (Non-GAAP) was 35.6% versus 34.7% in the Prior Year

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   EPS Grew 16% to $1.03; Comparable EPS (Non-GAAP) Grew 11% to $0.97

7. #7Henrique Braun · CEO of The Coca-Cola Company

   We delivered another strong quarter by staying close to the changing needs of our consumers and customers,

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   • Revenues: Net revenues grew 7% to $13.4 billion, and organic revenues (non-GAAP) grew 6%, driven by a 4% increase in concentrate sales and 2% growth in price/mix. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments. • Operating margin: Operating margin was 34.9% versus 34.1% in the prior year, and comparable operating margin (non-GAAP) was 35.6% versus 34.7% in the prior year. Operating margin performance included items impacting comparability, as well as currency tailwinds. Comparable operating margin (non-GAAP) expansion was driven by organic revenue (non-GAAP) growth, lower operating expenses and currency tailwinds, partially offset by higher input costs and an increase in marketing investments which was partially due to timing. • Earnings per share: EPS grew 16% to $1.03, and comparable EPS (non-GAAP) grew 11% to $0.97. EPS performance included the impact of a 4-point currency tailwind, while comparable EPS (non-GAAP) performance included the impact of a 2-point currency tailwind. • Market share: The company gained value share in total nonalcoholic ready-to-drink (“NARTD”) beverages. 1

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   • Cash flow: Year-to-date cash flow from operations and free cash flow (non-GAAP) were $7.5 billion and $6.9 billion, respectively. | | | | Company Updates |

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    • Activating the FIFA World Cup™ behind a single, globally connected campaign: The FIFA World Cup™ provided a unique opportunity for the company to activate a campaign at unprecedented scale across more than 180 markets. Before the start of the tournament, the company’s FIFA World Cup™ Trophy Tour made more than 70 stops across approximately 30 markets and reached approximately 700,000 fans. Experiential activations, customer partnerships and retail programs spanning more than 20 million retail outlets also built consumer connections. Digital and social activations generated more than 60 billion impressions and over 9 billion views, supported by more than 2,500 content creators, helping Trademark Coca‑Cola become the #1 brand by share of voice during the tournament and leading to record-setting engagement with Powerade. The company also leveraged connected packaging to engage more than 80 million consumers and collect more than 25 million first-party data records, which can be used to tailor future marketing campaigns. By combining global scale with local execution, the company’s FIFA World Cup 2026™ campaign contributed to a portion of both 5% volume growth for Trademark Coca‑Col…

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    | | | | Operating Review – Three Months Ended July 3, 2026 |

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    Revenues and Volume | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Percent Change | Concentrate Sales 1 | Price/Mix | Currency Impact | Acquisitions and Divestitures | | Reported Net Revenues | | Organic Revenues 2 | | Unit Case Volume 3 | Consolidated | 4 | 2 | 2 | (1) | | 7 | | 6 | | 5 | Europe, Middle East & Africa | 1 | 1 | 2 | (3) | | 2 | | 3 | | 4 | Latin America | 1 | 3 | 11 | 0 | | 16 | | 5 | | 3 | North America | 3 | 4 | 0 | 0 | | 7 | | 7 | | 3 | Asia Pacific | 11 | (9) | (1) | 0 | | 1 | | 2 | | 8 | Bottling Investments | 8 | 2 | 0 | (2) | | 8 | | 10 | | 5 |

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    Operating Income and EPS | | | | | | | | | | | | | | | Percent Change | Reported Operating Income | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral Operating Income 2 | Consolidated | 9 | 1 | 2 | 6 | Europe, Middle East & Africa | (1) | 2 | 2 | (5) | Latin America | 23 | 8 | 11 | 4 | North America | 4 | (8) | 0 | 12 | Asia Pacific | 1 | 2 | (1) | 0 | Bottling Investments | 55 | 4 | (24) | 75 | | | | | | Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral EPS 2 | Consolidated | 16 | 5 | 2 | 9 |

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    Note: Certain rows may not add due to rounding. 1 For Bottling Investments, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume computed based on total sales (rather than average daily sales) in each of the corresponding periods after considering the impact of structural changes, if any. 2 Organic revenues, comparable currency neutral operating income and comparable currency neutral EPS are non-GAAP financial measures. Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures section. 3 Unit case volume is computed based on average daily sales. In addition to the data in the preceding tables, operating results included the following: | | | | Consolidated |

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    • Unit case volume grew 5%, led by India, China, the United States and Brazil. Performance included the following: ◦ Sparkling soft drinks grew 4%. Trademark Coca-Cola grew 5%, driven by growth across all geographic operating segments. Coca-Cola Zero Sugar grew 16%, driven by growth across all geographic operating segments. Diet Coke/Coca-Cola Light grew 7%, driven by growth in North America and Asia Pacific. Sparkling flavors grew 4%, primarily driven by growth in Asia Pacific. ◦ Juice, value-added dairy and plant-based beverages grew 2%, driven by growth in Asia Pacific and North America. ◦ Water, sports, coffee and tea grew 6%. Water grew 6%, driven by growth in Asia Pacific, Europe, Middle East & Africa (“EMEA”) and Latin America. Sports drinks grew 5%, driven by growth in North America, EMEA and 3

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    Asia Pacific. Coffee declined 2%, primarily driven by a decline in Asia Pacific. Tea grew 6%, driven by growth in EMEA, Latin America and Asia Pacific. • Price/mix grew 2%, primarily driven by pricing actions in the marketplace, partially offset by unfavorable mix. Concentrate sales were 1 point behind unit case volume due to the timing of concentrate shipments. • Operating income grew 9%, which included items impacting comparability and currency tailwinds. Comparable currency neutral operating income (non-GAAP) grew 6%, primarily driven by organic revenue (non-GAAP) growth and lower operating expenses, partially offset by higher input costs and an increase in marketing investments which was partially due to timing. | | | | Europe, Middle East & Africa |

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    • Unit case volume grew 4%, primarily driven by growth in Trademark Coca-Cola and water, sports, coffee and tea. • Price/mix grew 1%, primarily driven by pricing actions in the marketplace, partially offset by unfavorable mix. Concentrate sales were 3 points behind unit case volume due to the timing of concentrate shipments. • Operating income declined 1%, which included items impacting comparability and a currency tailwind. Comparable currency neutral operating income (non-GAAP) declined 5%, primarily driven by an increase in marketing investments and higher operating expenses. • The company gained value share in total NARTD beverages, led by share gains in Germany and Morocco. | | | | Latin America |

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    • Un it case volume grew 3%, primarily driven by growth in Trademark Coca-Cola and water, sports, coffee and tea. • Price/mix grew 3%, primarily driven by pricing actions in the marketplace, partially offset by unfavorable mix. Concentrate sales were 2 points behind unit case volume due to the timing of concentrate shipments. • Operating income grew 23%, which included items impacting comparability and a currency tailwind. Comparable currency neutral operating income (non-GAAP) grew 4%, primarily driven by organic revenue (non-GAAP) growth and lower operating expenses, partially offset by an increase in marketing investments. • The company gained value share in total NARTD beverages, led by share gains in Brazil and Mexico. | | | | North America |

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    • Unit case volume grew 3%, primarily driven by growth in Trademark Coca-Cola and juice, value-added dairy and plant-based beverages. • Price/mix grew 4%, primarily driven by pricing actions in the marketplace. Concentrate sales were in-line with unit case volume. • Operating income grew 4%, which included items impacting comparability. Comparable currency neutral operating income (non-GAAP) grew 12%, primarily driven by organic revenue (non-GAAP) growth and lower operating expenses, partially offset by higher input costs and an increase in marketing investments. • The company gained value share in total NARTD beverages, led by share gains in Trademark Coca-Cola and juice, value-added dairy and plant-based beverages. 4

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    • Unit case volume grew 8%, primarily driven by growth in sparkling flavors and Trademark Coca-Cola. • Price/mix declined 9%, primarily driven by unfavorable mix and affordability initiatives. Concentrate sales were 3 points ahead of unit case volume due to the timing of concentrate shipments. • Operating income grew 1%, which included items impacting comparability and a currency headwind. Comparable currency neutral operating income (non-GAAP) was even, as organic revenue (non-GAAP) growth and lower operating expenses were offset by higher input costs and an increase in marketing investments. • The company lost value share in total NARTD beverages, as gains in Japan and China were more than offset by a loss in India. | | | | Bottling Investments |

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    • Unit case volume grew 5%, largely due to growth in India. • Price/mix grew 2%, primarily driven by pricing actions in the marketplace and favorable mix. • Operating income grew 55%, which included items impacting comparability, a currency headwind and the impact of refranchising bottling operations. Comparable currency neutral operating income (non-GAAP) grew 75%, primarily driven by organic revenue (non-GAAP) growth, partially offset by higher input costs.

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    | | | | Operating Review – Six Months Ended July 3, 2026 |

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    Revenues and Volume | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Percent Change | Concentrate Sales 1 | Price/Mix | Currency Impact | Acquisitions and Divestitures | | Reported Net Revenues | | Organic Revenues 2 | | Unit Case Volume 3 | Consolidated | 6 | 2 | 2 | (1) | | 9 | | 8 | | 4 | Europe, Middle East & Africa | 3 | 3 | 4 | (3) | | 7 | | 6 | | 3 | Latin America | 4 | 2 | 8 | 0 | | 15 | | 7 | | 2 | North America | 7 | 3 | 0 | 0 | | 10 | | 9 | | 3 | Asia Pacific | 11 | (8) | 0 | 0 | | 3 | | 3 | | 7 | Bottling Investments | 10 | 0 | 2 | (2) | | 10 | | 10 | | 3 |

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    Operating Income and EPS | | | | | | | | | | | | | | | Percent Change | Reported Operating Income | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral Operating Income 2 | Consolidated | 14 | 3 | 2 | 9 | Europe, Middle East & Africa | 7 | 3 | 2 | 2 | Latin America | 19 | 6 | 6 | 7 | North America | 11 | (3) | 0 | 14 | Asia Pacific | (6) | 3 | (1) | (8) | Bottling Investments | 60 | 0 | 0 | 60 | | | | | | Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral EPS 2 | Consolidated | 17 | 3 | 3 | 12 |

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    Note: Certain rows may not add due to rounding. 1 For Bottling Investments, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume computed based on total sales (rather than average daily sales) in each of the corresponding periods after considering the impact of structural changes, if any. 2 Organic revenues, comparable currency neutral operating income and comparable currency neutral EPS are non-GAAP financial measures. Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures section. 3 Unit case volume is computed based on average daily sales.

26. #26prepared remarks

    The 2026 outlook information provided below includes forward-looking non-GAAP financial measures, which management uses in measuring performance. The company is not able to reconcile full year 2026 projected organic revenues (non-GAAP) to full year 2026 projected reported net revenues, full year 2026 projected comparable net revenues (non-GAAP) to full year 2026 projected reported net revenues, full year 2026 projected underlying effective tax rate (non-GAAP) to full year 2026 projected reported effective tax rate, full year 2026 projected comparable currency neutral EPS excluding acquisitions and divestitures (non-GAAP) to full year 2026 projected reported EPS, or full year 2026 projected comparable EPS (non-GAAP) to full year 2026 projected reported EPS without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the exact timing and exact impact of acquisitions and divestitures throughout 2026; the exact timing and exact amount of items impacting comparability throughout 2026; and the exact impact of fluctuations in foreign currency exchange rates throughout 2026. The unavailable information could have a significant impact on the comp…

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    Third Quarter 2026 Considerations | | | | | | Comparable net revenues (non-GAAP) | • Approx. 1% currency tailwind 1 • Approx. 1% headwind from acquisitions and divestitures 2 | Comparable EPS (non-GAAP) | • Approx. 3% currency tailwind 1 • Minimal headwind from acquisitions and divestitures 2 |

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    1 Current column based on current rates and including the impact of hedged positions. Prior column based on prior rates and including the impact of hedge positions. 2 Current column assumes the pending sale of our bottling operations in Africa closes towards the end of the third quarter or during the fourth quarter of 2026 and prior column assumes the pending sale of our bottling operations in Africa closes during the second half of 2026. Closing is subject to regulatory approvals. 3 This does not include the impact of ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.

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    • All references to growth rate perc entages and share compare the results of the period to those of the prior year comparable period, unless otherwise noted. • All references to volume and volume percentage changes indicate unit case volume, unless otherwise noted. All volume percentage changes are computed based on average daily sales, unless otherwise noted. “Unit case” means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings), with the exception of unit case equivalents for Costa non-ready-to-drink beverage products, which are primarily measured in number of transactions. “Unit case volume” means the number of unit cases (or unit case equivalents) of company beverages directly or indirectly sold by the company and its bottling partners to customers or consumers. • “Concentrate sales” represents the amount of concentrates, syrups, beverage bases, source waters and powders/minerals (in all instances expressed in unit case equivalents) sold by, or used in finished beverages sold by, the company to its bottling partners or other customers. For Costa non-ready-to-drink beverage products, “concentrate sales” represents the amount of …

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    The company is hosting a conference call with investors and analysts to discuss second quarter 2026 operating results today, July 28, 2026, at 8:30 a.m. ET. The company invites participants to listen to a live webcast of the conference call on the company’s website, http://www.coca-colacompany.com, in the “Investors” section. An audio replay in downloadable digital format and a transcript of the call will be available on the website within 24 hours following the call. Further, the “Investors” section of the website includes certain supplemental information and a reconciliation of non-GAAP financial measures to the company’s results as reported under GAAP, which may be used during the call when discussing financial results.