Coca-Cola reported better-than-expected earnings in the first quarter and said the impact of tariffs on its business are likely to be “manageable.”
Coke and other beverage makers are facing a 25% tariff on the aluminum they use for cans, among other items. Last week, rival PepsiCo lowered its full-year earnings expectations due to the impact of tariffs.
“Based on what we know today, the dynamic tariff landscape could impact pockets of our system’s cost structure, as well as consumer sentiment in our markets,” Coke Chief Financial Officer John Murphy said Tuesday in a conference call with investors.
But Murphy said Coke has “numerous levers to help manage the impact.” The company has said previously that it may shift aluminum suppliers or rely more heavily on plastic or glass bottles.
Coke's unit case volumes grew 2% in the first quarter, led by higher demand in China, India and Brazil. Coca-Cola Zero Sugar was a standout, with case volumes up 14%. Demand for sports drinks and coffee fell.
In North America, case volumes fell 3%. Prices rose 8%, partly because Coke sold a higher mix of premium beverages like Topo Chico sparkling water and Fairlife milk.
Coke Chairman and CEO James Quincey said a video that was circulating on social media in February hurt U.S. sales, particularly among Hispanic consumers in the South. The video claimed that Coke was reporting its own workers to U.S. Immigration and Customs Enforcement officers and called for a boycott of the company.
Quincey said the claims in the video were false and the controversy has largely abated. Coke is trying to win back Hispanic sales by promoting the company’s local economic impact and offering targeted deals, he added.
The video aside, Quincey said there was a pullback in purchasing on both sides of the U.S.-Mexico border due to consumer uncertainty.
“I think some of the geopolitical tension was just causing people to be a little more cautious with their spend,” he said “A little less going out, a little more keeping the money in the pocket.”
Revenue fell 2% to $11.1 billion in the January-March period, the company said Tuesday. Adjusted for one-time items, including currency fluctuations, Coke reported revenue of $11.2 billion. That beat Wall Street’s expectation of $11.15 billion, according to analysts polled by FactSet.
Net income rose 5% to $3.3 billion for the quarter. Adjusted for one-time items, the Atlanta company earned 73 cents per share. That beat expectations of 72 cents.
Coke moderated expectations for its full-year profit Tuesday. The company said it now expects full-year adjusted earnings to grow 7% to 9%, down from 8% to 10% previously. Coke earned $2.88 per share in 2024.
Shares of Coca-Cola rose less than 1% in Tuesday morning trading.
FILE -This is a shelf of Coca Cola 2 liter bottles at a market in Homestead, Pa., on Monday, Feb. 24, 2025. (AP Photo/Gene J. Puskar, File)
NEW YORK (AP) — Pete Alonso hit a game-winning sacrifice fly in the ninth inning and the New York Mets took advantage of a costly error by shortstop Isiah Kiner-Falefa to beat the Pittsburgh Pirates 4-3 on Monday night.
Pirates ace Paul Skenes pitched out of trouble all night and exited after six innings with a chance to win. But the Mets scratched across two runs against Pittsburgh's bullpen in the seventh to take a 3-2 lead.
Juan Soto tied it with an RBI groundout, and speedy rookie Luisangel Acuña raced home from second when Alonso's groundball single trickled into shallow left field after glancing off the mitt of Gold Glove third baseman Ke'Bryan Hayes.
Mets left fielder Brandon Nimmo robbed Joey Bart of a leadoff homer in the eighth, but Pittsburgh evened it 3-all in the ninth after an error by star shortstop Francisco Lindor.
With the infield playing in, Hayes drove in the tying run when Acuña couldn't handle a grounder to third that was scored an infield single.
With one out in the bottom half, Kiner-Falefa let Lindor's grounder scoot under his glove just behind second base. Lindor dashed to third on Soto's single to right-center off David Bednar (0-4), then scored easily on Alonso's long flyout to right field.
Huascar Brazobán (2-0) allowed just an unearned run in the ninth.
Kiner-Falefa homered off Mets starter David Peterson in his first plate appearance since coming off the injured list.
New York tied it at 1 when Nimmo and Jeff McNeil doubled off Skenes in the fourth. Bryan Reynolds gave Pittsburgh a 2-1 lead with an RBI groundout in the seventh.
Skenes yielded one run and six hits in six innings, with six strikeouts and three walks.
After the Pirates tied it, Brazobán got Reynolds to ground into an inning-ending double play with runners at the corners in the ninth.
Pittsburgh failed to score more than four runs for the 18th straight game, setting a franchise record since at least 1901. ... Skenes hasn't permitted more than six hits in any of his 32 major league starts. That's the longest such streak to begin a career (excluding openers), according to OptaStats. Shohei Ohtani went 31 starts from 2018-21.
Pirates RHP Mitch Keller (1-4, 4.40 ERA) faces RHP Kodai Senga (4-2, 1.16) in the middle game of the series Tuesday night.
AP MLB: https://apnews.com/hub/mlb
New York Mets' Luisangel Acuña, left, slides past Pittsburgh Pirates catcher Henry Davis, right, to score on a single by Pete Alonso during the seventh inning of a baseball game Monday, May 12, 2025, in New York. (AP Photo/Pamela Smith)
Pittsburgh Pirates pitcher Paul Skenes throws during the second inning of a baseball game against the New York Mets, Monday, May 12, 2025, in New York. (AP Photo/Pamela Smith)
New York Mets outfielder Brandon Nimmo (9) catches a ball hit by Pittsburgh Pirates' Joey Bart during the eighth inning of a baseball game Monday, May 12, 2025, in New York. (AP Photo/Pamela Smith)
New York Mets players celebrate after defeating the Pittsburgh Pirates in a baseball game Monday, May 12, 2025, in New York. (AP Photo/Pamela Smith)
