Coca-Cola Consolidated Reports Higher Revenue but Lower Net Income on a Year-Over-Year Basis

Bottom line

Coca‑Cola Consolidated, Inc. filed a quarterly report on 10-Q for period-ended-2026-07-03, identified under accession 0001628280-26-053370, in which revenue moved higher on a year‑over‑year basis in both the three‑month reporting period and the six‑month year‑to‑date window, while net income attributable to parent slipped in both windows and operating income was higher for the year‑to‑date but lower for the quarter. For the three‑month reporting period, Revenue from Contract with Customer, Excluding Assessed Tax was $2,052,420,000 USD, compared with $1,855,519,000 USD in the prior‑year quarter — an authorized year‑over‑year increase in revenue, with no cause authorized. Operating Income (Loss) was $271,339,000 USD versus $272,084,000 USD, an authorized year‑over‑year decrease, and Net Income (Loss) Attributable to Parent was $158,821,000 USD versus $187,387,000 USD, also an authorized year‑over‑year decrease; both lines transitioned from a profit to a profit across the two periods. The filing evidence does not attribute this change to any single cause..

For the six‑month year‑to‑date period, Revenue from Contract with Customer, Excluding Assessed Tax was $3,899,088,000 USD, compared with $3,435,496,000 USD — an authorized year‑over‑year increase with no cause authorized. Operating Income (Loss) was $508,863,000 USD versus $461,904,000 USD, an authorized year‑over‑year increase, and Net Income (Loss) Attributable to Parent was $270,377,000 USD versus $290,998,000 USD, an authorized year‑over‑year decrease; both lines again transitioned from a profit to a profit across the two periods. The filing evidence does not attribute this change to any single cause.. The filing evidence contains no peer or industry comparison. applies throughout.

The reporting scope used here is the condensed consolidated financial statements and Management’s Discussion and Analysis section of the filing, presented under U.S. GAAP for interim financial reporting as described in Note 1, with income‑tax disclosure cross‑referenced to Note 16 and the recently completed Repurchase from an indirect wholly owned subsidiary of The Coca‑Cola Company cross‑referenced to Note 19.

Financial performance

Reported results in this interim filing compare two windows: the three-month reporting period and the six-month year-to-date period, each set against its prior-year comparative. The reporting identity and the four headline financial values — revenue, operating income, and net income attributable to parent, for both the current and prior periods — are machine-owned lines inserted after this draft; the prose here sets the context, the period framing, and the qualitative direction of change.

Revenue from Contract with Customer, Excluding Assessed Tax was $2,052,420,000 USD for the three months ended July 3, 2026 and $3,899,088,000 USD for the six months ended July 3, 2026, each compared with $1,855,519,000 USD and $3,435,496,000 USD for the corresponding prior windows. The authorized year-over-year direction is an increase in revenue in both the quarter and the half-year frames; both periods remain profitable on the top line, with no change in sign.

Operating Income (Loss) was $271,339,000 USD for the three months ended July 3, 2026 versus $272,084,000 USD for the three months ended June 27, 2025, and $508,863,000 USD for the six months ended July 3, 2026 versus $461,904,000 USD for the six months ended June 27, 2025. The authorized year-over-year direction is a decrease on the quarter and an increase on the half-year; in both windows the line remains a profit, so the transition is profit to profit in each case. The filing evidence does not attribute this change to any single cause.

Net Income (Loss) Attributable to Parent was $158,821,000 USD for the three months ended July 3, 2026 and $270,377,000 USD for the six months ended July 3, 2026, against $187,387,000 USD and $290,998,000 USD for the prior-year comparatives. The authorized year-over-year direction is a decrease on net income in both the quarter and the six-month window, with profit preserved on both sides of the comparison; the transition is profit to profit in each case. The filing evidence does not attribute this change to any single cause.

On the accounting context side, the filing's narrative flags two recently adopted or pending FASB pronouncements discussed in Note 16. The first, an income-tax disclosures improvement standard, was adopted in the fourth quarter of the referenced year with no material impact on the consolidated financial statements. The second, an expense disaggregation standard, is still being evaluated. Neither is tied here to a specific movement in revenue, operating income, or net income. The narrative also describes the share repurchase from Carolina Coca-Cola Bottling Investments, an indirect wholly owned subsidiary of The Coca‑Cola Company, further detailed in Note 19, which restructured the Company's ownership but is not linked in this section to any specific line-item driver.

Comparison baselines outside this filing are not part of the filing evidence, so no peer or industry benchmark is offered here; for that dimension, The filing evidence contains no peer or industry comparison.. Guidance and expectations for upcoming periods are likewise not stated in the quoted material, so forward-looking framing is limited to the directional changes authorized above.

Operating drivers and segments

- Revenue from Contract with Customer, Excluding Assessed Tax was $3,899,088,000 for the six months ended July 3, 2026 against $3,435,496,000 for the six months ended June 27, 2025; the reported direction on the half-year comparison is higher than the prior period. - Revenue from Contract with Customer, Excluding Assessed Tax was $2,052,420,000 for the three months ended July 3, 2026 against $1,855,519,000 for the three months ended June 27, 2025; the reported direction on the quarter comparison is higher than the prior period. - Operating Income (Loss) was $508,863,000 for the six months ended July 3, 2026 against $461,904,000 for the six months ended June 27, 2025; the reported direction on the half-year comparison is higher than the prior period, with profit in both windows. - Operating Income (Loss) was $271,339,000 for the three months ended July 3, 2026 against $272,084,000 for the three months ended June 27, 2025; the reported direction on the quarter comparison is lower than the prior period, with profit in both windows. - The Company evaluates segment reporting each period under the FASB Accounting Standards Codification Topic on Segment Reporting, with the Chief Operating Decision Maker reviewing the reporting package; figures have been retroactively adjusted for the dissolution of the Data Ventures, Inc. operating segment within the All Other — over time category and its merger into the remaining reporting structure, as discussed in Note 4. - Counter-evidence: the text in scope supplies only consolidated revenue and operating-line figures; no segment-level revenue or operating income split is evidenced, so a segment-by-segment margin walk is unsupported here. - Unknown: the expense mix below the operating line is not stated in the evidence available to this section, so gross or SG&A margin movement cannot be inferred.

- Management frames results around continued focus on the production, distribution and marketing of nonalcoholic beverages under the long-standing bottling relationship with The Coca‑Cola Company, which owns the formulas for the primary components of the Company's soft drink products, as described in Note 1 and surrounding narrative. - Management highlights a structural event of the period — a corporate transaction with The Coca‑Cola Company's affiliate — covered in Note 19, which indicates that, as a result of the Repurchase, The Coca‑Cola Company does not own any shares of the Company; the related management fee arrangement is discussed in Note 20. - Management also flags an accounting-policy backdrop, noting the adoption of a recent FASB Income Taxes update with no material impact and the ongoing evaluation of a recent Expense Disaggregation Disclosures update, as discussed in Note 16; critical accounting estimates are presented in Item 7. - Independent analysis versus management claims: revenue is authorized higher than the prior period in both windows, so a continuation narrative around bottling momentum is directionally consistent with the authorized revenue direction. The quarter-over-quarter operating-line authorized direction is lower than the prior period, so any management tone of operating leverage or margin expansion at the quarter is not supported by the authorized direction in this section. The filing evidence does not attribute this change to any single cause. - Unknown: the filing does not attribute the quarter-over-quarter change in Operating Income (Loss) to any single cause within the evidence available here; Item 7 is the relevant MD&A reference, but no driver narrative was provided in the text for this section to evaluate. The filing evidence does not attribute this change to any single cause.

The filing evidence contains no peer or industry comparison. The filing evidence contains no peer or industry comparison.

Cash flow and capital

Operating cash generation strengthened on a year-over-year basis, with the six-month year-to-date period producing a larger positive inflow than the prior-year comparative. Investing activity remained a net use of cash for both windows, and that outflow narrowed compared with the prior year. Financing activity stayed in negative territory in both years and was a larger use of cash than the prior year, consistent with ongoing shareholder returns and debt-related movements.

Free cash flow, taken as the operating inflow less payments to acquire property, plant and equipment, is therefore shaped by two opposing movements: a higher operating inflow paired with a lower capital spending figure than the prior-year comparative. The spending decrease signals a more measured investment tempo for property, plant and equipment across the half-year window, while the stronger operating result cushions the cash available for distributions and balance sheet activity. The filing evidence does not attribute this change to any single cause.

Capital return to shareholders continued at scale through two complementary programs. Cash dividends paid during the six-month year-to-date period were lower than the prior-year comparative, while payments for the repurchase of common stock were also lower than the prior year. Both lines remain material uses of cash, and their simultaneous reduction points to a somewhat lighter total capital-return footprint in the period, though both still represent significant returns relative to operating cash generation. The combined outflow for dividends plus buybacks remained a primary driver of the financing-line cash use. The filing evidence does not attribute this change to any single cause.

On the balance sheet, cash and cash equivalents stood at the period-end date at a level reported on the face of the statement, while long-term debt excluding current maturities was also reported at the same balance-sheet date. Accounts and other receivables, net, were likewise stated at the period-end date. The relationship between period-end cash and long-term obligations frames the company's standing liquidity, while the receivables balance reflects the working-capital base supporting day-to-day bottling operations. Without direct period-over-period balance sheet comparison values for cash, debt and receivables in the supplied catalog, directional change on those three balance-sheet lines cannot be asserted from this filing alone. The filing evidence does not attribute this change to any single cause.

The continuing quarterly acquisition-related sub-bottling payments to CCR under the comprehensive beverage agreements described in the related-party discussion tie a portion of financing activity to gross profit derived from the acquired distribution territories. Those payments are part of the broader financing-line outflow alongside dividends and buybacks. Within operating cash flow, the change in rebates receivable from CCBSS — tied to raw-material price volatility and the timing of cash receipts — is one component embedded in working-capital movement, though the net operating-line direction is set by the consolidated total. The filing evidence does not attribute this change to any single cause.

No peer or industry comparison is provided in this filing for capital structure or capital-return intensity. For reader-facing tools that explore return-on-invested-capital or payout-ratio framing, see the ROI Calculator and the broader Finance Calculators tools set. Related earnings commentary on bottler- and distribution-sector peers can be reviewed within Finance Calculators Insights.

Peer and historical context

- Across the six-month year-to-date window covered by 10-Q for Coca-Cola Consolidated, Inc. (COKE), top-line performance improved year over year while profitability softened, a pattern visible in the same set of authorized half-year movements reported under Item 7. - Revenue $3,899,088,000 ran higher than the prior year’s $3,435,496,000, paired with a quarter-over-quarter lift from $1,855,519,000 to $2,052,420,000, so the demand backdrop appears to have stayed constructive through the latest reporting period. - Operating Income, however, moved in the opposite direction: $508,863,000 registered higher than $461,904,000 on the half-year view, yet $271,339,000 landed below $272,084,000 on the three-month view, suggesting that incremental margin pressure showed up more clearly in the most recent quarter than in the cumulative comparison. - Bottom-line results confirm the same shape: Net Income Attributable to Parent printed lower in both $270,377,000 vs. $290,998,000 and $158,821,000 vs. $187,387,000, each remaining in profit-to-profit territory without any swing to a loss. - Operating cash conversion strengthened in the cumulative window, with $420,647,000 exceeding $406,221,000, indicating that working-capital and earnings-quality signals did not deteriorate alongside the bottom-line softness. - The revenue-versus-income divergence is the defining feature of this half-year profile, but no single driver is identified in the filing.

- A reader scanning only the three-month series could reasonably conclude that the entire business is contracting, because operating income and net income both step down versus the prior-year quarter; the cumulative half-year data, by contrast, shows higher revenue and higher operating income than a year ago, framing the quarter as a softer interim print rather than a full reversal. - The cash-flow statement offsets the income weakness on a year-to-date basis: stronger operating cash flow compared with the prior year limits any narrative that the lower profit figures reflect deteriorating underlying earnings quality. - The filing evidence contains no peer or industry comparison. - The filing evidence does not attribute this change to any single cause.

Scenario analysis

- Revenue from Contract with Customer, Excluding Assessed Tax of $3,899,088,000 USD for the six months ended July 3, 2026 and $2,052,420,000 USD for the three months ended July 3, 2026 hold broadly at the disclosed year-to-date and quarterly levels. - Net Income (Loss) Attributable to Parent of $270,377,000 USD for the six months ended July 3, 2026 and $158,821,000 USD for the three months ended July 3, 2026 continue at the reported magnitudes, consistent with the authorized profit-to-profit transitions for both windows. - The base case assumes neither the half-year revenue gain nor the half-year and quarterly net-income declines reverse materially versus the prior-period levels of $3,435,496,000 and $290,998,000 USD and $187,387,000 USD for the three months ended June 27, 2025.

- Bottle/can net pricing, post-mix sales, sales to other Coca‑Cola bottlers, and over-time service revenue, as described in the cited revenue recognition policy, combine to push quarterly net sales above $2,052,420,000 USD while sustaining the year-to-date revenue direction. - Operating discipline supports profit-to-profit retention while the year-to-date and quarterly net-income gaps versus $290,998,000 USD and $187,387,000 USD narrow. - Capital allocation flexibility is preserved for property, plant, and equipment spending, dividend distributions, and share repurchases within the disclosed cash-flow profile, without implying any specific outcome.

- Cost-of-goods inflation, softer bottle/can net pricing realization, or weaker sales volume in the channels described in the cited revenue policy compress margins, extending the authorized half-year and quarterly net-income decreases versus $290,998,000 USD and $187,387,000 USD. - Higher capital intensity from property, plant, and equipment outlays, alongside continued dividend distributions and share repurchase activity, narrows financing and investing flexibility without altering the disclosed cash-flow direction. - A customer-credit deterioration, beyond the less-than-stated-percent return estimate referenced in the cited policy, raises the allowance for credit losses and receivable write-offs, pressuring operating results in the Nonalcoholic Beverages segment.

Risks and what to watch

- Whether the half-year and quarterly gap between revenue direction and net income direction narrows or widens in the next interim filing under 10-Q period-ended-2026-07-03, filed under accession 0001628280-26-053370. - The trajectory of segment-level net sales and income from operations inside Nonalcoholic Beverages relative to the consolidated lines. - Any further commentary in Item 7 reconciling cash flow trends with the profit trends, alongside any update in Item 1A risk factors. - The ongoing disclosure treatment for Data Ventures, Inc. referenced in Note 4 and the related-party arrangement described in Note 20, plus any update on the Repurchase and share-ownership status referenced in Note 19.

Reported facts - Net Income Attributable to Parent was $290,998,000 USD for the six months ended June 27, 2025 and is $270,377,000 USD for the six months ended July 3, 2026, representing a decrease that still left the company in profit. - Net Income Attributable to Parent was $187,387,000 USD for the three months ended June 27, 2025 and is $158,821,000 USD for the three months ended July 3, 2026, representing a decrease that also remained in profit. - Revenue from Contract with Customer, Excluding Assessed Tax was $3,435,496,000 USD for the six months ended June 27, 2025 and is $3,899,088,000 USD for the six months ended July 3, 2026, an increase at the half-year line. - Revenue was $1,855,519,000 USD for the three months ended June 27, 2025 and is $2,052,420,000 USD for the three months ended July 3, 2026, an increase at the quarterly line.

Management explanations - Management stated that delivery and freight recognition occur in the same day and that over-time sales orders open at period-end are not material to the condensed consolidated statements. - Management noted that prior periods were retroactively adjusted for the dissolution of the Data Ventures, Inc. operating segment and its merger into another reporting bucket, as discussed in Note 4. - Management disclosed a reserve for customer returns and an allowance for credit losses, and noted that it estimates less than a small fraction of bottle/can and post-mix sales are at risk for return at any given time, with the precise scope described in the cited note. - The Company confirmed it has two operating segments and that Nonalcoholic Beverages represents the vast majority of consolidated net sales and income from operations, with segment reporting evaluated each period under the cited standard.

Analyst inference - The combination of higher revenue and lower net income in both windows raises the qualitative question of margin trajectory, even though the authorization here permits only direction and transition statements, not cause. - The segment commentary implies that any divergence between the top-line and bottom-line outcomes is most likely concentrated inside the dominant Nonalcoholic Beverages segment rather than in the smaller residual category.

Counter-evidence - The authorized comparisons for Operating Income in the six months ended July 3, 2026 moved in the opposite direction from net income, while Operating Income in the three months ended July 3, 2026 moved in the same direction as net income, so the two lines do not tell a single coherent story at this level of detail.

Unknowns - The filing does not separate out a discrete driver behind the gap between revenue growth and net income decline, and The filing evidence does not attribute this change to any single cause.. - The filing evidence contains no peer or industry comparison..