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Coca-Cola (KO) is bubbling higher today after reporting its Q3 results this morning. The beverage giant beat EPS expectations, with revenue coming in-line, increasing 5.4% yr/yr to $12.5 bln. Encouragingly, total volume increased +1% (-1% in Q2) and reaffirmed its FY25 guidance of organic revenue growth of 5-6% and comparable EPS growth of about 3%.

• Management described the backdrop as "complex," with resilient higher-income consumers offset by pressure among value-conscious groups, weather disruptions, and lingering inflation.
• North America volume was flat but improved sequentially for the second straight quarter, as Coca-Cola Zero Sugar and Diet Coke gained traction through new campaigns and product extensions.
• EMEA stayed a bright spot with +4% volume, while Latin America (flat) and Asia Pacific (-2%) were softer amid weaker spending and macro headwinds in Mexico, India, and the Philippines.
• Together, price/mix grew 6% (4% price, 2% mix), helping raise comparable operating margin 120 bps to 31.9%.
• Coca-Cola advanced its refranchising plan, selling a 40% stake in its Indian bottler to Jubilant Bhartia Group in July and supporting Coca-Cola HBC's move to acquire Coca-Cola Beverages Africa, both expected to unlock growth in key markets.
• Management flagged tougher comps in Q4 and a calendar shift in FY26 but expects normalized pricing trends as inflation cools, with a balanced focus on affordability and premiumization.

Briefing.com Analyst Insight

This was a strong Q3 for Coca-Cola, with volume growth standing out as the clear highlight amid a mixed operating backdrop. Total volumes returned to growth, with continued improvement in North America and solid gains in EMEA helping offset softness in Latin America and Asia Pacific. Management also noted momentum exiting September, suggesting a more constructive demand tone heading into year-end. While some key markets remain under pressure, particularly Mexico and parts of Asia, the overall picture is encouraging. Volumes were the clear standout this quarter, and investors appear to be buying into that renewed momentum.