Coke's Income Statement

It's so refreshing to see a straightforward income statement, which I'd expect from a company that Buffett has made his 'core four' holdings.

For full year 2025, reported net revenues grew just 2% to $47.9 billion, but organic revenues (non-GAAP) grew 5%, driven by 4% price/mix and 1% concentrate sales.

Unit case volume was essentially flat for the year. The gap between reported and organic is the story of the year: 8-point reported EPS headwind from currency, 5 points on a comparable basis.

Some interesting things to note:

Equity income from bottlers and Monster Energy: $1.8B+ annually and growing.

Coke owns 19% of Monster Energy, and has made investments in most of their bottlers, which is where they are generating almost $2B a year! Great business model.

In Q1 2026 alone, equity income was $384M versus $351M prior year. As KO refranchises bottling operations to partners like CCEP, Coke Consolidated, CCHBC, and the bottlers grow, this line grows with them. The pending sale of Coca-Cola Beverages Africa to CCHBC (expected H2 2026) will mechanically lift consolidated margins because a lower-margin bottling operation comes off the P&L, but it'll also shift some earnings into equity income.

Sentiment: Neutral