The Coca-Cola Company reported a steady third quarter, with global sales rising 5% to $12.5 billion, driven by strategic pricing and growth in key markets, including India. The company's results, announced Tuesday, highlighted the continued importance of its refranchising strategy and portfolio diversification in navigating a challenging global environment.
While the earnings release does not break out specific revenue figures for India, the country played a notable role in the company's overall performance. The Bottling Investments operating segment, which includes key markets like India, reported a 2% growth in unit case volume for the quarter. The company specifically cited growth in Africa and India as primary drivers, partially offset by the impact of refranchising activities.
This growth aligns with a significant corporate update for the Indian market. The company confirmed it reached a milestone in its long-standing refranchising process in India during July, with the sale of a 40% ownership stake in Hindustan Coca-Cola Holdings Pvt. Ltd. to the Jubilant Bhartia Group.
"This refranchising step is a key part of building the world's strongest consumer franchise system," the company stated in its release, emphasizing its focus on "trusted, capable and motivated bottling partners" to drive long-term growth.
Global and regional performance
Globally, Coca-Cola's organic revenue, a non-GAAP metric that strips out the impact of acquisitions and currency, grew a stronger 6%. The Asia Pacific region, which includes major markets like Japan and the Philippines, saw reported net revenues jump 11%, though unit case volume dipped 1%.
Chairman and CEO James Quincey acknowledged the "challenging" overall environment but pointed to the company's flexibility and its "total beverage portfolio" as reasons for its resilience. "We're gaining ground and strengthening our leadership position," Quincey said.
Globally, Unit case volume grew 1%, led by sparkling soft drinks and the water, sports, coffee, and tea category. Operating income surged 59% to $3.98 billion, though this included significant one-time items. The comparable operating margin, a more normalized measure, was a healthy 31.9%.
Earnings per share (EPS) grew 30% to $0.86. Comparable EPS, which excludes one-time items, grew 6% to $0.82.
The company reaffirmed its full-year 2025 guidance, expecting organic revenue growth of 5% to 6%. It also raised its projection for free cash flow, excluding a major one-time payment, to at least $9.8 billion.
The positive results and strategic moves in markets like India underscore Coca-Cola's ongoing efforts to localize operations and leverage its diverse brand portfolio—from trademark Coca-Cola, which saw 1% global growth, to power players like fairlife and Costa Coffee—to meet evolving consumer preferences worldwide.
