Coca-Cola Consolidated Q3 sales rise 5% on annual pricing actions

Coca-Cola Consolidated (COKE) said on Nov. 4 that third-quarter net sales rose 5.4% to $1.99 billion, as annual pricing actions lifted revenue and volume grew.

The company is the largest Coca-Cola bottler in the United States, making and distributing beverages of The Coca-Cola Company and other partner companies in more than 300 brands and flavors across 14 states and the District of Columbia.

Here's how the company did:

• Net sales: $1.99 billion vs. $1.89 billion a year earlier
• Gross margin: 38.8% vs. 39.6% a year earlier
• Income from operations: $271.6 million vs. $246.6 million a year earlier
• Net income: $175.9 million vs. $142.3 million a year earlier
• Basic EPS: $2.64 vs. $1.64 a year earlier
• Adjusted basic EPS: $2.63 vs. $2.06 a year earlier

Pricing and volume

Volume rose 1.4% in the quarter and 7.1% in the first nine months. Adjusted for extra days, nine-month volume rose 5.1%, the company said.

The company said the shift in timing of the Fourth of July holiday reduced total volume by about 1.0% in the quarter.

Sparkling volume rose 1.5%, led by zero-sugar and flavor offerings. Still volume rose 1.2%, driven by Energy and Protein products.

Net sales growth came mainly from annual pricing actions, with additional contribution from higher volume. Sparkling net sales rose 4.4% and Still net sales rose 6.8% from a year earlier.

Gross margin and costs

Gross profit rose 3.1% to $771.6 million. Gross margin fell 80 basis points to 38.8% as commodity and supply chain costs outpaced price increases.

Dave Katz, President and Chief Operating Officer, said, “Higher aluminum costs, a challenging transportation market and increased fuel costs continued to pressure our gross margin. However, disciplined expense management, along with cycling our prior-year investment in our teammates, allowed us to leverage our operating expenses and expand our operating margin.”

Selling, delivery and administrative expenses fell $1.9 million, or 0.4%. The company said a favorable, non-cash fair value adjustment to its fuel hedging positions of about $6 million helped offset higher labor costs.

Income from operations rose 10.1% to $271.6 million, and operating margin rose 60 basis points to 13.7%. On an adjusted basis, operating income rose 6.7% to $262.9 million.

Net income rose 23.6% to $175.9 million. Adjusted net income fell 2.2% to $175.3 million from $179.2 million. Net income in the third quarter of 2025 was hit by non-cash fair value adjustments to acquisition-related contingent consideration.

Nine months and cash

For the first nine months, net sales rose 10.6% to $5.89 billion, and income from operations rose 10.1% to $780.5 million. Adjusted income from operations rose 5%. The company said six additional selling days accounted for about $30.0 million of the operating income increase.

Cash from operations was $664.8 million for the first nine months, compared with $722.9 million a year earlier. The company invested about $219 million in capital expenditures over the period.

J. Frank Harrison, III, Chairman and Chief Executive Officer, said, “We remain committed to investing for the long term, including the addition of our new glass bottle production line in Indianapolis, while continuing to strengthen our balance sheet. This year, through October, we have reduced our debt by $450 million.”

Outlook and calendar

The company expects capital expenditures of about $300 million in fiscal 2026. The fourth quarter will include six fewer days than the fourth quarter of 2025, the company said.