Coca-Cola Içecek Anonim Sirketi (CCOLA) Q2 2026 earnings summary

Executive summary

• Consolidated sales volume grew 9.8% year-over-year in Q2 2026, driven by strong international performance, especially in Pakistan and Central Asia, offsetting subdued trends in Türkiye.

• Achieved robust margin expansion and cash generation, supported by disciplined revenue growth management, portfolio mix improvement, and cost control.

• Net income reached TL 8.3 billion in Q2, up 24.2% year-over-year, driven by operating profitability and lower net financial expenses.

• Free cash flow for H1 2026 was TL 2.3 billion, a significant improvement from the prior year, supported by improved profitability and disciplined capex.

• FIFA World Cup™ activations enhanced consumer engagement and brand strength.

Financial highlights

• Net sales revenue rose 5.7% year-over-year to TL 67.2 billion in Q2; H1 revenue up 7.9% to TL 123.3 billion.

• EBIT grew 25.8% to TL 12.1 billion in Q2; EBIT margin expanded by 287 bps to 17.9%.

• Gross profit margin expanded by 284 bps to 38.2%, supported by favorable input costs and disciplined cost management.

• Free cash flow reached TL 2.3 billion in H1, a significant improvement from negative TL 4.4 billion last year.

• Net income for H1 2026 was TL 13.9 billion, up 64.3% year-over-year.

Outlook and guidance

• Full-year guidance maintained despite strong H1 performance, reflecting caution due to expected higher raw material, energy, and distribution costs in H2.

• Management remains committed to balancing affordability, sustainable volume growth, profitability, and cash generation.

• CapEx guidance for high single digits over sales remains, with higher spending expected in H2 due to project phasing.

• Net debt to EBITDA ratio expected to remain below 1x for the year.

• Seasonality impacts are expected, with higher demand in summer months.