Coca-Cola Forecasts Slower Organic Revenue Growth in 2025

The Coca-Cola Company (KO) recently shared its outlook for 2025, forecasting a slower pace of organic revenue growth compared to previous years. The beverage giant expects organic revenue growth of 5% to 6% in 2025, down from the 12% rise reported in 2024. This slower growth is primarily attributed to currency headwinds and the impact of acquisitions, divestitures, and structural changes.

Currency headwinds are expected to create a 3% to 4% drag on organic revenue growth in 2025, as the strong US dollar makes Coca-Cola's products more expensive abroad and reduces the value of foreign earnings when converted back into dollars. Additionally, acquisitions, divestitures, and structural changes are anticipated to create a slight headwind, further impacting organic revenue growth.

Despite these challenges, Coca-Cola remains confident in its ability to navigate the dynamic business environment and deliver long-term growth. The company's diversified product portfolio, including brands like Fairlife, smartwater, and Powerade, as well as its strong global distribution network, should help it maintain its market leadership in the non-alcoholic beverage industry.



Coca-Cola's forecasted earnings per share (EPS) for 2025 is expected to be in the range of $2.94 to $2.97, which is slightly below the analysts' consensus estimate of $2.95. The primary factors influencing EPS growth for Coca-Cola in 2025 are organic revenue growth, currency headwinds, acquisitions, divestitures, and structural changes, as well as inflation and cost pressures.

While Coca-Cola's EPS growth is expected to be positive in 2025, it may not meet analysts' expectations due to slower revenue growth, currency headwinds, and other cost pressures. However, the company's strong brand portfolio, global distribution network, and diversified product offerings should help it weather these challenges and continue to deliver value to shareholders.

In conclusion, Coca-Cola's forecasted organic revenue growth for 2025 reflects the challenges posed by currency headwinds and acquisitions, divestitures, and structural changes. Despite these headwinds, the company remains confident in its ability to deliver long-term growth and maintain its market leadership in the non-alcoholic beverage industry. Investors should closely monitor Coca-Cola's progress in navigating these challenges and capitalizing on its strengths to drive shareholder value.