Coca-Cola Consolidated, Inc. SEC 10-Q Report

Coca-Cola Consolidated, Inc., the largest independent Coca-Cola bottler in the United States, has released its Form 10-Q report for the first quarter of 2025. The report provides a detailed overview of the company's financial performance and operational activities during the period, highlighting key metrics and strategic initiatives.

Financial Highlights

• Net Sales: $1,579.977 million, a decrease of 0.7% compared to the first quarter of 2024, primarily due to two fewer selling days and lower case sales volume.
• Gross Profit: $627.104 million, a decrease of 2.1% from the first quarter of 2024, with a gross margin decrease of 50 basis points to 39.7%, influenced by a shift towards lower-margin Still beverages.
• Income from Operations: $189.820 million, a decrease of 11.9% from the first quarter of 2024, with operating margin decreasing by 150 basis points to 12.0%, impacted by fewer selling days and the timing of the Easter holiday.
• Net Income: $103.611 million, a decrease of $62.130 million compared to the first quarter of 2024, affected by non-cash fair value adjustments to acquisition-related contingent consideration.
• Basic Net Income Per Share: $11.88, reflecting a decrease in net income compared to the first quarter of 2024.
• Diluted Net Income Per Share: $11.87, showing a decline in earnings per share due to lower net income.

Business Highlights

• Revenue Segments: The company's net sales are divided into two main categories: bottle/can sales and other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans, while other sales include sales to other Coca-Cola bottlers, post-mix sales, transportation revenue, and equipment maintenance revenue.
• Sales Units: Volume was down 6.6% in the first quarter of 2025, with Sparkling and Still category volumes declining by 3.0% and 9.0%, respectively, after adjusting for two fewer selling days. The shift in distribution of Dasani water to a non-direct store delivery method also impacted reported case sales volume by 1.3%.
• New Production Launches: During the first quarter of 2025, the company began operations in a new 430,000-square foot automated distribution center in Columbus, Ohio, as part of its ongoing efforts to optimize the supply chain and invest for future growth.
• Future Outlook: The company expects capital expenditures to be approximately $300 million in 2025, focusing on optimizing the supply chain and investing for future growth. The company is also focused on executing its commercial strategy, optimizing cash flow, and implementing optimal methods of distribution within its territory.

SEC Filing: Coca-Cola Consolidated, Inc. [ COKE ] - 10-Q - Apr. 30, 2025