Coca-Cola profits hammered by $1bn Bodyarmor impairment
By Benjamin Chiou
Date: Tuesday 10 Feb 2026
(Sharecast News) - Profits at Coca-Cola dropped sharply in the fourth quarter, the American beverages giant announced on Tuesday, as margins were hammered by a near-$1bn write-off related to its Bodyarmor brand.
Operating income totalled $1.84bn over the three months to 31 December, down 32% from the year before, as the operating margin sank to 15.6% from 23.5%.
Fourth-quarter results were affected by currency movements and a non-cash impairment charge of $960m for sports drink brand Bodyarmor, which is currently undergoing a turnaround plan following another hefty write-off at the start of 2024.
Sales projections for Bodyarmor, which was acquired by Coca-Cola for $5.6bn in 2021, have been downwardly revised over recent years due to heightened competition in the sports performance market.
Nevertheless, Coca-Cola said group comparable earnings per share improved by 6% year-on-year to 58 cents for the fourth quarter, beating the market forecast of 56 cents.
However, net revenues grew 2% to $11.8bn, coming in well short of the $12.05bn expected by the analysts.
For 2025 as a whole, net revenues were also up 2% at $47.9bn, while operating income jumped 38% to $13.7bn.
"I'm encouraged by our performance in 2025 which showed both the resilience and momentum that define our business," said chair and chief executive James Quincey. "Looking ahead, we will focus on executing our strategy even better and positioning our system for long-term success."
For 2026, Coca-Cola is guiding to organic revenue growth of 4-5% and comparable profit growth of 7-8%.
The stock, which has already jumped 11.5% so far this year, hitting a new record high close of $79.03 last week, was trading 3.9% lower at $74.95 in pre-market trade on Tuesday.
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