Coca-Cola Consolidated Q1 Net Sales Jump 16.9% to $1.85B; Volumes Up 13.4%
COKE•Coca-Cola Consolidated’s first-quarter net sales rose 16.9% to $1.847 billion with volumes up 13.4% to 87 million cases, driving operating income up 25.1% to $237.5 million. Gross margin narrowed 30 basis points to 39.4% as $35 million of higher aluminum costs weighed on profitability.
1. First Quarter Financial Results
Coca-Cola Consolidated reported first-quarter net sales of $1,846.7 million, up 16.9% year-over-year, gross profit of $727.1 million, up 15.9%, and operating income of $237.5 million, a 25.1% increase compared to the prior-year period.
2. Volume and Category Growth
Total case volume increased 13.4% to 87.0 million units, driven by 16.7% sparkling net sales growth led by zero-sugar offerings and 18.9% still net sales growth fueled by Dasani water, Monster, Powerade, BODYARMOR and smartwater.
3. Margin Pressure from Input Costs
Gross margin declined 30 basis points to 39.4% as approximately $35 million of additional aluminum costs from supply constraints, tariffs and geopolitical factors outpaced pricing actions, reducing adjusted gross margin by 70 basis points to 39.1%.
4. Operating Expenses and Adjusted Results
SD&A expenses rose 12.0% with a $25 million impact from six extra days and a $10 million fuel hedge gain, lowering SD&A ratio to 26.5% of net sales while adjusted expenses increased 8.6%, keeping the adjusted ratio stable at 27.7%.
