Coca-Cola Holds Steady in Trade War Crossfire

Coca-Cola Holds Steady in Trade War Crossfire

Coca-Cola posted better-than-expected first-quarter results and kept its full-year forecast intact, even as global trade tensions continued to rattle markets. 

The drinks giant reported adjusted earnings per share of 73 cents, just about beating analyst expectations of 71 cents. Revenue came in at $11.22 billion, edging past the forecasted $11.14 billion. Net income rose to $3.33 billion, or 77 cents per share, up from $3.18 billion and 74 cents per share a year ago.

Organic revenue, which scrubs out the effects of acquisitions, divestitures and currency fluctuations, climbed 6% during the quarter. Meanwhile, unit case volume grew by 2%, powered by strong demand in India, China and Brazil, suggesting that consumer appetite for Coke’s products remains as strong as ever despite broader economic uncertainty.

Unlike rival PepsiCo, which recently reduced its full-year earnings outlook citing new tariffs and a more cautious consumer base, Coca-Cola expects tariff disruptions to stay manageable. 

The company agreed that there may be cost pressures to deal with, particularly in aluminum, but highlighted that its operations are largely localized, offering a buffer against sharp external shocks.

What Does This Mean for Me?

For 2025, Coke still expects organic revenue growth between 5% and 6% and similar earnings per share gains of 2% to 3%, showing confidence in its pricing strategies and emerging market momentum. While net sales dipped 2% to $11.13 billion, Coke’s focus on stripping out one-off items kept its adjusted results firmly on track.

As trade disputes continue to reshape supply chains and economic forecasts, Coca-Cola’s steady hand, market diversity, and strong consumer base are positioning it well to weather the storm, at least for now.

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