Coca-Cola expects to manage tariff impacts as profit grows
2025-04-29 11:57
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(Alliance News) - Coca-Cola Co on Tuesday said it expects the impact of tariffs to be "manageable" as it reported higher profit despite lower revenue in the first quarter of 2025.
Shares in Coca-Cola were up 1.3% to USD72.70 in pre-market trading on Tuesday morning in New York. They had closed down 0.2% at USD71.79 on Monday.
"Our performance this quarter once again demonstrates the effectiveness of our all-weather strategy," said Chief Executive Officer James Quincey.
Net operating revenue fell 1.5% to USD11.13 billion in the three months to the end of March from USD11.30 billion a year ago.
Pretax income increased 4.8% to USD4.06 billion from USD3.87 billion while basic net income per share was up 4.1% to 77 US cents from 74 cents.
Coca-Cola said the revenue decline was driven by currency headwinds and the impact of refranchising bottling operations.
Organic revenue grew 6% including 5% growth in price/mix and a 1% increase in concentrate sales.
"Despite some pressure in key developed markets, the power of our global footprint allowed us to successfully navigate a complex external environment. By remaining true to our purpose and staying close to the consumer, we are confident in our ability to create enduring long-term value," said CEO Quincey.
Looking ahead, Coca-Cola said "global trade dynamics" may impact components of its cost structure across markets.
"At this time, the company expects the impact to be manageable," Coca-Cola said.
For comparable net revenue, it expects a 2% to 3% currency headwind, down from previous guidance of between 3% and 4%.
Coca-Cola cut its comparable currency neutral earnings per share forecast to between 7% and 9% from between 8% and 10%.
It said comparable EPS percentage growth is expected to include a 5% to 6% currency headwind, down from between 6% and 7% in earlier guidance.
The remaining guidance for 2025 was left unchanged.
By Michael Hennessey, Alliance News reporter
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