Gross profit increased 15.9 per cent to $727.1 million, although gross margin declined 30 basis points to 39.4 per cent as higher aluminium costs weighed on profitability Coca‑Cola Consolidated reported…

Gross profit increased 15.9 per cent to $727.1 million, although gross margin declined 30 basis points to 39.4 per cent as higher aluminium costs weighed on profitability

Coca‑Cola Consolidated reported net sales of $1.8 billion for the quarter ended April 3, 2026, up 16.9 per cent year-over-year. On an adjusted basis, excluding the impact of six additional operating days in the quarter, net sales rose 8.5 per cent.

“We entered 2026 with strong momentum, positioning ourselves for another year of profitable growth,” said J. Frank Harrison III as Coca‑Cola Consolidated reported first-quarter 2026 results marked by strong sales and volume growth despite continued pressure from rising input costs and global supply challenges.

Volume increased 13.4 per cent during the quarter, or 6.4 per cent on an adjusted basis, driven by strong demand across both Sparkling and Still beverage categories. Sparkling category volume rose 12.2 per cent, supported by growth in zero-sugar offerings and continued gains in Coca-Cola Original Taste products. Still beverage volume climbed 17.5 per cent, led by strong performance from Dasani, Monster, Powerade, BODYARMOR and smartwater brands.

The company noted that the timing of the Easter holiday also contributed modestly to volume growth during the quarter.

Gross profit increased 15.9 per cent to $727.1 million, although gross margin declined 30 basis points to 39.4 per cent as higher aluminium costs weighed on profitability. Adjusted gross margin declined 70 basis points to 39.1 per cent.

According to the company, geopolitical conflicts, supply constraints and elevated import tariffs contributed to approximately $35 million in additional input costs during the quarter, outpacing pricing actions implemented earlier in the year.

“In the first quarter of 2026, we successfully navigated a period of increasing input costs that placed significant pressure on our gross margins,” said Dave Katz, President and Chief Operating Officer. “Despite these cost pressures, I am encouraged by the continued strong commercial performance across our entire portfolio.”

Selling, delivery and administrative expenses increased 12 per cent to reflect additional operating days, higher labour costs and continued investment in employee wages and benefits. The company said investments in frontline teammate compensation, implemented in 2025, continued to support operational performance and workforce engagement.

Income from operations rose 25.1 per cent to $237.5 million, while operating margin improved to 12.9 per cent from 12.0 per cent a year earlier. Adjusted operating income increased modestly to $194.6 million.

Net income for the quarter increased 7.7 per cent to $111.6 million, compared to $103.6 million in the first quarter of 2025. On an adjusted basis, however, net income declined 12.3 per cent to $119.5 million, reflecting ongoing cost pressures and operational investments.

The company estimated that the six additional operating days in the quarter contributed approximately $23 million to net income.

Coca-Cola Consolidated said it remains focused on navigating a volatile macroeconomic environment while continuing to invest in growth, operational agility and workforce development.