The Coca-Cola Company announced plans for a new product made from United States sugar as it posted a 58% increase in profit for the second quarter (Q2) of the 2025 financial year (FY25).
The global beverages company said it planned to expand its Coca-Cola product range by launching an offering made with U.S. cane sugar during the northern hemisphere Spring (Fall) as part of its ongoing innovation agenda in the U.S.
This is seen as a response to Health Secretary Robert F. Kennedy Jr.'s Make America Healthy Again campaign with Coca-Cola also noting President Donald Trump's “enthusiasm for our Coca-Cola brand”.
“This edition is designed to complement our strong core portfolio and offer more choice across occasions and preferences,” the company said in a press release.
Net income was US$3.81 billion (A$5.1 billion) in the three months ended 27 June 2025, compared with $2.411 billion in the previous corresponding period.
Diluted earnings per share (EPS) surged 58% to 88 cents but on a ‘comparable’ basis EPS grew 4% to 87 cents.
Net revenues edged up 1% to $12.5 billion and ‘organic’ revenues grew 5%, which included 6% growth in price/mix and a 1% decline in concentrate sales, which were in in line with unit case volume.
Over the six months to 27 June, net income jumped 28% to $7.14 billion and diluted EPS rose 28% to $1.65 per share on net revenue which was flat at $23.664 billion.
Operating cash flow was -$1.4 billion in the half year, compared with $4.1 billion in the pcp, because of a $6.1 billion payment related to the 2020 acquisition of milk brand Fairlife.
Chairman and CEO James Quincey said amid a shifting external landscape in the second quarter, the ability of the company’s system to stay focused and flexible enabled it to stay on course in the first half of the year.
“We continue to execute with a clear intent on our priorities and are confident in our trajectory to deliver on our updated 2025 guidance and longer-term objectives,” Quincey said in the release.
Coca-Cola has updated its FY25 guidance on comparable currency neutral EPS growth to 8% and comparable EPS growth to about 3%.
The results were better than expected but Coca-Cola (NYSE: KO) shares closed 48 cents (0.68%) lower at $69.66 on Tuesday (Wednesday AEST), implying a market value of $299.84 billion, before easing another two cents in after-hours trading.
