Coca-Cola Consolidated Q3 Net Income Jumps 23% Amid Sales Growth

TL;DR

**COKE's Q3 profit surge is sweet, but watch that nine-month income dip – it's a mixed bag for long-term bulls.**

AI Summary

Coca-Cola Consolidated, Inc. (COKE) reported a robust third quarter in 2025, with net sales increasing by 6.9% to $1,888,317 thousand from $1,765,652 thousand in Q3 2024. Net income for the third quarter surged by 23.1% to $142,334 thousand, up from $115,624 thousand in the prior year. For the first nine months of 2025, net sales grew to $5,323,813 thousand from $5,153,221 thousand in 2024, a 3.3% increase. However, net income for the first nine months decreased by 4.6% to $433,332 thousand from $454,177 thousand in 2024, primarily due to a significant increase in mark-to-market on acquisition related contingent consideration, which rose to $104,468 thousand from $90,877 thousand. The company also executed a 10-for-1 forward stock split on May 27, 2025, and retired 31,488,535 shares of Common Stock and 6,281,140 shares of Class B Common Stock, with a carrying value of approximately $162.6 million, impacting equity and share counts. Cash and cash equivalents increased by $396,649 thousand to $1,532,473 thousand as of September 26, 2025, from $1,135,824 thousand at December 31, 2024.

Why It Matters

This filing reveals COKE's strong operational performance in Q3 2025, with significant net income growth, which is a positive signal for investors. The 10-for-1 stock split and treasury stock retirement demonstrate management's efforts to enhance shareholder value and improve stock liquidity, potentially attracting a broader investor base. However, the nine-month net income decline, despite sales growth, highlights the impact of non-operating expenses like contingent consideration adjustments, which investors should monitor. In a competitive beverage market, COKE's ability to grow sales and improve quarterly profitability underscores its market position and operational efficiency, impacting its employees through stable employment and customers through continued product availability.

Risk Assessment

Risk Level: medium — While Q3 net income increased by 23.1%, the first nine months of 2025 saw a 4.6% decrease in net income to $433,332 thousand, primarily driven by a $13,591 thousand increase in mark-to-market on acquisition related contingent consideration. This volatility in non-operating expenses, coupled with the company's significant reliance on The Coca-Cola Company for formulas and brand, presents a medium risk profile.

Analyst Insight

Investors should consider COKE's strong Q3 performance as a positive indicator of operational health, but remain cautious about the year-to-date net income decline. Monitor future filings for trends in acquisition-related contingent consideration and overall profitability to assess if the Q3 strength is sustainable or an anomaly.

Financial Highlights

revenue

$5,323,813

operating Margin

13.3%

net Income

$433,332

eps

$4.98

gross Margin

39.8%

cash Position

$1,532,473

revenue Growth

+3.3%

Revenue Breakdown

Key Numbers

• $1,888,317 — Net Sales (Q3 2025) (Increased by 6.9% from Q3 2024)
• $142,334 — Net Income (Q3 2025) (Increased by 23.1% from Q3 2024)
• $5,323,813 — Net Sales (First Nine Months 2025) (Increased by 3.3% from first nine months 2024)
• $433,332 — Net Income (First Nine Months 2025) (Decreased by 4.6% from first nine months 2024)
• $104,468 — Mark-to-market on acquisition related contingent consideration (First Nine Months 2025) (Increased from $90,877 thousand in 2024, impacting net income)
• 10-for-1 — Stock Split (Forward stock split approved on March 4, 2025, effective May 27, 2025)
• 31,488,535 — Common Stock Shares Retired (Retired in Q3 2025, part of treasury stock retirement)
• $1,532,473 — Cash and Cash Equivalents (September 26, 2025) (Increased by $396,649 thousand from December 31, 2024)
• $0.25 — Cash Dividends per Common Stock Share (Q3 2025) (Increased from $0.05 in Q3 2024)
• 73% — Voting Power Controlled by J. Frank Harrison, III (As of September 26, 2025, through Class B Common Stock)

Key Players & Entities

• Coca-Cola Consolidated, Inc. (company) — registrant
• The Coca-Cola Company (company) — sole owner of formulas and significant shareholder
• J. Frank Harrison, III (person) — Chairman of the Board and CEO, controlling 73% of voting power
• $1,888,317 thousand (dollar_amount) — net sales for Q3 2025
• $142,334 thousand (dollar_amount) — net income for Q3 2025
• $5,323,813 thousand (dollar_amount) — net sales for first nine months of 2025
• $433,332 thousand (dollar_amount) — net income for first nine months of 2025
• $104,468 thousand (dollar_amount) — mark-to-market on acquisition related contingent consideration for first nine months of 2025
• $162.6 million (dollar_amount) — carrying value of retired treasury stock
• $1,532,473 thousand (dollar_amount) — cash and cash equivalents as of September 26, 2025

FAQ

Risk Factors

• Mark-to-Market on Contingent Consideration [medium — financial]: The company experienced a significant increase in mark-to-market adjustments on acquisition-related contingent consideration, rising to $104,468 thousand in the first nine months of 2025 from $90,877 thousand in the prior year. This volatility directly impacted net income, contributing to a year-over-year decrease.
• Supply Chain and Distribution [medium — operational]: As a bottler and distributor of Coca-Cola products, COKE is subject to operational risks related to its extensive distribution network. Disruptions in the supply chain, transportation, or labor availability could impact sales and profitability.
• Competition and Consumer Preferences [medium — market]: The beverage industry is highly competitive, with evolving consumer preferences for healthier options and alternative beverages. COKE must continually adapt its product offerings and marketing strategies to maintain market share.
• Alcoholic Beverage Regulations [low — regulatory]: While primarily distributing non-alcoholic beverages, COKE's operations may involve compliance with various state and local regulations, including those related to alcoholic beverage distribution if applicable to certain markets or product lines.
• Interest Rate Fluctuations [low — financial]: The company's net interest expense increased to $17,509 thousand in the first nine months of 2025 from a net income of ($2,149) thousand in the same period of 2024. Fluctuations in interest rates can impact borrowing costs and overall profitability.

Industry Context

Coca-Cola Consolidated operates within the highly competitive non-alcoholic beverage industry, dominated by major players like The Coca-Cola Company and PepsiCo. The industry is characterized by extensive distribution networks, significant marketing expenditures, and evolving consumer preferences towards healthier options and sustainable packaging. Bottlers like COKE play a crucial role in local market execution, sales, and distribution.

Regulatory Implications

As a large beverage distributor, COKE is subject to various federal, state, and local regulations concerning food safety, labeling, environmental impact, and labor practices. Compliance with these regulations is essential to avoid penalties and maintain operational continuity. Changes in regulations, such as those related to sugar content or plastic usage, could necessitate operational adjustments.

What Investors Should Do

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Key Dates

• 2025-05-27: Effective Date of 10-for-1 Forward Stock Split — This action increases the number of outstanding shares, potentially making the stock more accessible to a wider range of investors and impacting per-share metrics.
• 2025-09-26: End of Third Quarter — Reporting period for the latest financial results, showing strong Q3 performance but a year-to-date net income decline.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison of cash and cash equivalents, which saw a significant increase by Q3 2025.

Glossary

Mark-to-market on acquisition related contingent consideration

This refers to the accounting adjustment made to reflect the current market value of future payments that are contingent upon certain performance targets related to past acquisitions. Changes in estimates of these future payments can lead to gains or losses. (A significant factor impacting COKE's net income, causing a decrease in the first nine months of 2025 due to increased adjustments.)

Forward Stock Split

A corporate action where a company increases the number of its outstanding shares by a specified ratio (e.g., 10-for-1). This reduces the price per share but does not change the total market capitalization. (COKE executed a 10-for-1 forward stock split, affecting share counts and per-share earnings calculations.)

Weighted average number of Common Stock shares outstanding

The average number of common shares outstanding during a reporting period, adjusted for the timing of share issuances or repurchases. It's used in calculating earnings per share. (This metric decreased in the first nine months of 2025 compared to 2024, influenced by share retirements and the stock split.)

Treasury Stock

Shares of a company's own stock that have been repurchased by the company. These shares can be held for future use or retired. (COKE retired a substantial number of shares, impacting its equity and share count.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Coca-Cola Consolidated's net sales saw a modest increase of 3.3% to $5,323,813 thousand. However, net income declined by 4.6% to $433,332 thousand, primarily due to a $13,591 thousand increase in mark-to-market adjustments on acquisition-related contingent consideration. While Q3 2025 demonstrated strong performance with a 23.1% surge in net income, the year-to-date trend highlights the impact of these specific accounting adjustments on overall profitability. Cash and cash equivalents have significantly strengthened, increasing by $396,649 thousand to $1,532,473 thousand.

Key Financial Figures

• $1.00 — of each class Common Stock, par value $1.00 per share Trading Symbol(s) COKE Nam

Filing Documents

• coke-20250926.htm (10-Q) — 2189KB
• coke-2025q3x10qxexx10.htm (EX-10) — 21KB
• coke-2025q3x10qxexx311.htm (EX-31.1) — 10KB
• coke-2025q3x10qxexx312.htm (EX-31.2) — 10KB
• coke-2025q3x10qxexx32.htm (EX-32) — 6KB
• 0001628280-25-047124.txt ( ) — 11725KB
• coke-20250926.xsd (EX-101.SCH) — 69KB
• coke-20250926_cal.xml (EX-101.CAL) — 114KB
• coke-20250926_def.xml (EX-101.DEF) — 347KB
• coke-20250926_lab.xml (EX-101.LAB) — 749KB
• coke-20250926_pre.xml (EX-101.PRE) — 587KB
• coke-20250926_htm.xml (XML) — 2325KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Statements of Operations 1 Condensed Consolidated Statements of Comprehensive Income 2 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Cash Flows 4 Condensed Consolidated Statements of Changes in Stockholders' Equity 5 Notes to Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 44

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 45 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 5. Other Information 45 Item 6. Exhibits 46 Signature 47 i

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. COCA COLA CONSOLIDATED, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Third Quarter First Nine Months (in thousands, except per share data) 2025 2024 2025 2024 Net sales $ 1,888,317 $ 1,765,652 $ 5,323,813 $ 5,153,221 Cost of sales 1,139,801 1,067,616 3,205,697 3,097,916 Gross profit 748,516 698,036 2,118,116 2,055,305 Selling, delivery and administrative expenses 501,882 470,981 1,409,578 1,353,704 Income from operations 246,634 227,055 708,538 701,601 Interest expense (income), net 4,687 2,187 17,509 ( 2,149 ) Mark-to-market on acquisition related contingent consideration 49,350 68,592 104,468 90,877 Other expense, net 367 713 1,866 2,250 Income before taxes 192,230 155,563 584,695 610,623 Income tax expense 49,896 39,939 151,363 156,446 Net income $ 142,334 $ 115,624 $ 433,332 $ 454,177 Basic net income per share: Common Stock $ 1.64 $ 1.32 $ 4.99 $ 4.97 Weighted average number of Common Stock shares outstanding 76,554 77,560 76,881 81,405 Class B Common Stock $ 1.64 $ 1.32 $ 4.98 $ 4.93 Weighted average number of Class B Common Stock shares outstanding 10,047 10,047 10,047 10,047 Diluted net income per share: Common Stock $ 1.64 $ 1.32 $ 4.98 $ 4.96 Weighted average number of Common Stock shares outstanding – assuming dilution 86,728 87,719 87,070 91,578 Class B Common Stock $ 1.64 $ 1.32 $ 4.97 $ 4.90 Weighted average number of Class B Common Stock shares outstanding – assuming dilution 10,174 10,159 10,189 10,173 Cash dividends per share: Common Stock $ 0.25 $ 0.05 $ 0.75 $ 1.75 Class B Common Stock $ 0.25 $ 0.05 $ 0.75 $ 1.75 See accompanying notes to condensed consolidated financial statements. 1 COCA COLA CONSOLIDATED, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Third Quarter First Nine Months (in thousands) 2025 2024 2025 2024 Net income $ 142,334 $ 115,624 $ 433,332 $ 454,177 Other comprehensive income, net of tax: Defined bene