India sees 5% volume drop as Coca-Cola posts 63% global profit in Q2
The Coca-Cola Company reported a 63% year-on-year rise in operating income for the second quarter of 2025, despite a 1% decline in global unit case volume. The gains were primarily driven by a 6% increase in price/mix and sustained cost control measures.
Net revenue rose 1% to $12.5 billion for the quarter ended June 2025, while organic revenue, which excludes currency and structural changes, grew 5%. The company also reported a 58% rise in earnings per share (EPS) to $0.88, with comparable EPS up 4%.
Global volume softness was led by key markets such as India, Thailand, and Mexico. In Asia Pacific, unit case volume declined 3%, with growth in water, sports drinks, coffee, and tea offset by declines in sparkling flavours and juice-based beverages. The region’s concentrate sales lagged behind unit volume by two percentage points, partly due to shipment timing.
In India, a 5% volume drop was reported under Bottling Investments, attributed to refranchising efforts and a broader consumption slowdown. South Korea and the Philippines, however, registered growth and value share gains in the non-alcoholic ready-to-drink (NARTD) category.
The company’s Coca-Cola Zero Sugar line continued to post strong performance, with global volume up 14%, its fourth consecutive quarter of double-digit growth. Sparkling soft drinks overall declined 1%.
Operating income in Asia Pacific remained flat on a reported basis but rose 8% on a currency-neutral basis, supported by premiumisation strategies and revenue management.
Other regions
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Europe, Middle East & Africa (EMEA): Unit case volume rose 3%, led by sparkling flavours and water. Operating income rose 3%.
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Latin America: Volume fell 2%, driven by declines in Mexico and Chile, though price/mix rose 15%, the strongest across regions.
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North America: Volume dipped 1%, but Diet Coke registered growth. Operating income rose 18%.
Coca-Cola also reported stronger marketing activity in Q2, including the relaunch of the “Share a Coke” campaign in over 120 countries and targeted efforts like the Gen Z-focused Diet Coke campaign in North America.
Looking ahead, the company maintained its guidance of 5–6% organic revenue growth for the year. Comparable EPS growth is expected at approximately 3%, with a projected 5% headwind from currency fluctuations. Free cash flow (excluding a one-time $6.1 billion payment for the fairlife acquisition) is expected to reach $9.5 billion.
The results indicate continued global profitability despite uneven demand, with India and other Asian markets underperforming on volume but partially compensated through a shift toward premium product mixes and pricing strategies.
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