Coca-Cola (NYSE: $KO) is a multinational beverage corporation that manufactures, markets, and sells a wide variety of non-alcoholic beverages, including Coca-Cola. Its products are available in over 200 countries worldwide. On Tuesday, April 29, 2025, Coca-Cola released its first quarter fiscal 2025 results. Here is a breakdown of those results.
Coca-Cola Q1 Results
For the first quarter of fiscal 2025, Coca-Cola reported revenue of $11.1 billion, a 2% YoY decline, and slightly below the analysts’ forecast of $11.2 billion. Adjusted EPS came in at $0.73, beating estimates of $0.72.
Other Q1 Highlights
The company reported organic revenue growth of 6% YoY, driven by a 5% growth in the price/mix, and a 1% rise in concentrate sales. Meanwhile, global unit case volume rose 2% YoY.
Coca-Cola reported a 33.8% non-GAAP operating margin, compared to 32.4% the previous year, driven by organic non-GAAP revenue growth, effective cost management, and timing of marketing investments. It reported that in Q1, it gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
Coca-Cola ended the quarter with $5.2 billion in cash flow from operations and non-GAAP free cash flow of negative $5.5 billion, driven by a $6.1 billion contingent consideration payment in conjunction with the purchase of fairlife, LLC in 2020. Free cash flow, excluding the fairlife contingent consideration payment, was $558 million.
Full-Year And Second Quarter Forecasts
For the full year, the company expects organic non-GAAP revenue growth of 5% to 6%. It expects a 2% to 3% currency headwind for comparable non-GAAP net revenues, based on current rates. In relation to any macroeconomic headwinds, it expects the impact to be manageable.
It expects comparable currency-neutral non-GAAP EPS growth of 7% to 9%, and comparable non-GAAP EPS growth of 2% to 3% based on the $2.88 EPS for full-year 2024. The comparable non-GAAP EPS percentage growth is expected to include a 5% to 6% currency headwind.
For the full year, it expects non-GAAP free cash flow of around $9.5 billion, excluding the fairlife contingent consideration. That includes non-GAAP cash flow from operations of around $11.7 billion, excluding the fairlife contingent consideration, and less capital expenditures of around $2.2 billion.
For the second quarter, Coca-Cola expects non-GAAP comparable net revenues to include around a 3% currency headwind. It expects non-GAAP comparable EPS growth to include a 5% to 6% currency headwind in Q2.
Coca-Cola (KO) Market Performance
Following the mixed Q1 results, KO stock rose 0.47% in the early morning trading session to $72.13 as of 10:12 AM EDT. Year-to-date, KO is up 15.02%, while over the past six months, it has gained 9.23%. KO stock has gained 15.43% in the past 12 months.
It has outperformed the S&P 500, which is down 5.96% year-to-date and 5.18% over the past six months. In the past 12 months, the S&P 500 is up 8.11%.
Analysts give KO stock a strong buy rating. They forecast an average price of $77.07, which is a 7.35% upside based on the most recent price. The analysts give a wide range of price forecasts, with a high of $85 and a low of $65.
Is Now The Time To Add KO To Your Portfolio?
In its Q1 report, Coca-Cola’s management said that it expects any macroeconomic headwinds to be manageable due to its unique business structure. Another factor that could work in favor of the stock is the rise in popularity of dividend stocks. Amidst macroeconomic uncertainty, dividend stocks have been gaining popularity. Coupled with its strong EPS performance, adding KO to your portfolio could potentially have a positive impact on your portfolio in the long term.
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