.jpg)
Coca-Cola has reported a steady top-line performance globally for the second quarter of calendar year 2025, but acknowledged a dip in volumes in India, one of its key emerging markets. The decline was attributed to the dual impact of early monsoons and geopolitical tensions during the peak summer season.
James Quincey, Chairman and CEO of The Coca-Cola Company, said in the earnings call that while the business in India started the year on a strong note, volume traction slowed in Q2 due to external disruptions. “Volume declined as our business was impacted by early monsoons and geopolitical conflict early in the important summer season,” he noted, referring to the India Pakistan border tensions that affected operations and consumer demand.
Despite the temporary softness, Quincey reiterated the company’s confidence in the Indian market. “India is never going to be a straight line. And indeed, Q2 was not. But we’re very bullish on India overall,” he said, adding that Coca-Cola remains committed to driving long-term growth through localised marketing, innovation, and refranchising efforts.
Globally, Coca-Cola’s net operating revenue for Q2 stood at USD 23,664 million, unchanged from the USD 23,663 million reported in the year-ago quarter. Net income rose 28% year-on-year to USD 7,138 million, supported by improved cost discipline.
The company reported a 2% decline in cost of goods sold, which came in at USD 8,877 million, while selling, general and administrative (SG&A) expenses dropped 3% YoY to USD 6,704 million, helping bolster operating margins.
The Asia Pacific region, which includes India, delivered a 3% growth in revenue, reaching USD 1,572 million, while operating income held flat at USD 647 million.
To revive demand and build consumer engagement, Coca-Cola has activated a series of integrated marketing campaigns tailored to regional preferences. These include Thumbs Up with Biryani, Sprite with Meals, and Mazaa with Festivals.
“We’re engaging consumers with integrated marketing campaigns like Coca-Cola and Meals, supported by execution in the QSR channel,” Quincey said, adding that the brand is customising activations to suit local consumption occasions.
The company is also ramping up its digital and distribution footprint in India. According to Quincey, the Coca-Cola system recently surpassed one million customers on its digital ordering platforms. “Our system is adding customer outlets and driving execution through technology,” he said.
Coca-Cola also completed the first phase of its refranchising strategy in India, transitioning its company-owned bottling operations in the southern half of the country to the Jubilant Group. “That’s up and running with a new CEO. We think that will bring new energy, dynamism and proactivity to execution in the marketplace,” Quincey said.
He added that while local franchise bottlers had outperformed the company-owned bottler in the first half of the year, the transition is expected to re-energise operations in the region.
Despite near-term disruptions, Coca-Cola’s leadership remains optimistic about the Indian market’s trajectory. “We’ve got a strong plan from a marketing and innovation point of view. We’re confident on where we’ll go in India,” Quincey concluded.
.jpg)
.jpg)
.jpg)
