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CLAIM #35792 · The Coca-Cola Company (KO) · 2026Q1 earnings call · Apr 28, 2026 · due Dec 31, 2026

So for the full -- I don't see it as being an area that's going backwards, the gross margin trends when I take out that inventory issue I mentioned we've got a lot of levers to work through and both as a company and as we alluded to earlier as a system.

John Murphy · CFO

PENDING
graded after results covering Dec 31, 2026 are reported

How to check this claim

Look at: Full-year gross margin (company-reported, adjusted/comparable basis), excluding the noted APAC juice inventory phasing one-off

It came true if: Full-year adjusted gross margin >= prior full-year adjusted gross margin (i.e., not down year-over-year)

Where: Company income statement and management commentary on gross margin in 10-K/Q4 earnings release and call

In context

at anomalous given one particular item in APAC, the phasing of juice inventory costs, particularly in China. And that's really as a one-off in the quarter. We have had commodity pressures in the tea and coffee space, and that's going to continue somewhat through the year. But at the overall level, if I take a step back and look at the underlying drivers of gross margin for the full year, we don't see a big deviation from the playbook that we've had. We'll -- we see the revenue growth management architecture work as a very solid foundation to sustaining margins. We continue to drive a lot of efficiency throughout the P&L. But on the cost front, we'll be taking a number of measures to somewhat mitigate against some of the commodity pieces I talked about earlier, which I said are manageable. So for the full -- I don't see it as being an area that's going backwards, the gross margin trends when I take out that inventory issue I mentioned we've got a lot of levers to work through and both as a company and as we alluded to earlier as a system. With regard to the CCBA piece, just it's a mechanical topic in terms of the impact it will have to the margin profile of the company. If we take CCBA's numbers out, lower-margin bottling business will automatically result in the overall company margin profile improving. And we've highlighted that to be a second half of the year topic. For '26, too, we can say for -- which is anomalous relative to other years FX will be a slight tailwind on the margin front, too. Thanks. Operator: Our next question comes from Robert Ottenstein from Evercore. Robert Ottenstein: Great. Congratulations on a great start to the year and your tenure. I was wondering if you could go into a little bit more detail on the underlying drivers of your performance in APAC, particularly China and India, 2 years in a row

Verify independently

SEC filings for KO · Claim quote is verbatim from the 2026Q1 earnings call.