Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite‑sized pieces.
In this edition of Markets in Focus, we sip on some insights into Coca‑Cola, a globally beloved beverage company.
Curious what’s behind this iconic brand?
Take a look below or watch a short video: https://youtube.com/shorts/cJGywu3tqc0
What Is Coca‑Cola
Coca‑Cola is a titan of the non-alcoholic beverage world, with a portfolio of some of the most recognizable drink brands globally.
A Brief History of Coca‑Cola
- The Coca‑Cola story began in 1886 when John Pemberton created the original formula.
- In 1919, a group led by Ernest Woodruff acquired the company for $25 million, and Coca‑Cola was listed on the New York Stock Exchange at $40 per share that year.
- Over time, Coca‑Cola expanded beyond soda, acquiring brands such as Minute Maid (1960), Glaceau VitaminWater (2007), Innocent Drinks (90% stake, 2013), Monster Beverages (2015), and Costa Coffee (2018), diversifying its business significantly.
Coca‑Cola’s Business Model
Coca‑Cola’s model centers on the production and sale of syrup concentrates, which are sold to bottling partners. These partners then blend the concentrates with carbonated water (or other bases) and distribute the finished beverages.
Revenue is generated from a combination of concentrate operations and the finished-product segment, involving both franchise bottlers and direct-sales channels.
Coca‑Cola’s Latest Performance (Q3 2025)
- In Q3 2025, net revenues increased by 5% to $12.5 billion, while organic revenues (non‑GAAP) grew 6%.
- Operating income surged significantly; operating margin reached 32.0%, compared to 21.2% in the prior year.
- Earnings per share (EPS) grew 30% to $0.86, and comparable non‑GAAP EPS rose to $0.82.
- On a volume basis, global unit case volume grew by 1%.
- Coca‑Cola gained value share in its non-alcoholic ready‑to‑drink categories.
- The company expects organic revenue growth in the full year 2025 of between 5% and 6%, according to its guidance.
What Drives Coca‑Cola’s Share Price
Several key factors can impact Coca‑Cola’s stock:
- Pricing Power & Mix: The company has good ability to raise prices and manage its product mix to defend margins.
- Volume Growth: Even a modest increase in unit case volume globally can have a large impact, because of its scale.
- Cost Management: Efficiency in production, concentrate operations, and franchise bottling helps maintain profitability.
- Brand Strength & Portfolio: Coca‑Cola’s wide range of brands—sparkling, water, coffee, energy—provides diversification and resilience.
- Global Economic Trends: Currency fluctuations and input costs (e.g., commodities) can affect profitability.
- Regulation & Health Trends: As a beverage leader, Coca‑Cola is exposed to regulatory risks around sugar, labeling, and sustainability.
Trade Coca‑Cola on Change
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Trading hours: Monday to Friday, 13:30–20:00 (GMT).
Here’s to your prosperity - cheers!
