Coca-Cola Consolidated, Inc. reported its financial results for the second quarter and first half of 2025, revealing a net sales increase of 3.3% to $1.86 billion for the second quarter, compared to $1.80 billion in the same period last year. For the first half of 2025, net sales rose 1.4% to $3.44 billion, up from $3.39 billion in the first half of 2024. The company attributed this growth primarily to higher average bottle/can sales prices, which contributed approximately $50 million to the second quarter's sales increase. However, the overall volume of sales declined slightly, with a 0.8% decrease in the second quarter and a 3.5% decrease in the first half, impacted by two fewer selling days compared to the previous year.
Gross profit for the second quarter increased by 3.6% to $742.5 million, while gross margin improved to 40.0%. The first half of 2025 saw gross profit rise to $1.37 billion, a 0.9% increase from the prior year. Selling, delivery, and administrative (SD&A) expenses also rose, increasing by 2.8% to $470.4 million in the second quarter and by 2.8% to $907.7 million in the first half. The increase in SD&A expenses was primarily driven by higher labor costs due to annual wage adjustments. Despite these rising costs, income from operations for the second quarter was $272.1 million, a 5.0% increase from the previous year, while it decreased by 2.7% to $461.9 million for the first half.
Net income for the second quarter was reported at $187.4 million, an 8.4% increase from $172.8 million in the same quarter of 2024. However, net income for the first half fell to $291.0 million, down 14.0% from $338.6 million in the first half of 2024. This decline was attributed to non-cash fair value adjustments related to acquisition contingent consideration, which increased significantly due to changes in discount rates and future cash flow projections. The effective income tax rate for the second quarter was approximately 26%, consistent with the previous year.
Operationally, Coca-Cola Consolidated continues to focus on optimizing its supply chain and enhancing its product offerings. The company has seen strong sales in its higher-priced brands, including energy and enhanced water products, while traditional sparkling beverages like Coca-Cola Original have faced declining demand. The company is also investing in technology to improve customer service and operational efficiency, with a focus on maintaining a digitally enabled selling platform.
Looking ahead, Coca-Cola Consolidated anticipates continued challenges in the market, including inflationary pressures and shifts in consumer preferences. The company plans to invest approximately $300 million in capital expenditures for 2025 to support growth and optimize operations. The management remains committed to executing its commercial strategy and enhancing cash flow generation while navigating the competitive landscape of the nonalcoholic beverage industry.
About Coca-Cola Consolidated, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.