The Coca-Cola Company has recorded close to a $1bn impairment on its Bodyarmor sports drink brand, a charge that hit profits in the fourth quarter of last year.
Announcing its financial results today (10 February), the Fanta maker said operating income slid 32% in the period, attributed in part to a $960m charge related to an impairment on the Bodyarmor trademark and “currency headwinds”.
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Coca-Cola’s operating margin was also dragged down by the charge in the three months ended 31 December, dropping in the quarter to 15.6% from 23.5% the previous year.
The Minute Maid producer still saw its annual operating income grow 38% in 2025. Its operating margin was up at 28.7% compared to 21.2% in 2024.
Its business in North America, the core market for Bodyarmor, saw its operating income slump 65% in the fourth quarter, partly due to the impairment charge.
Two years ago, Coca-Cola booked a $760m impairment related to the Bodyarmor trademark.
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By GlobalDataAt the time, it said the impairment was “primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date”.
Coca-Cola acquired a 15% stake in Bodyarmor 2018 and snapped up the remaining shares in the business for $5.6bn nearly five years ago.
Last year, Coca-Cola saw group net revenue grow 2% on a reported basis and by 5% organically to $47.9bn. Total unit case volumes were flat in the period.
In the fourth quarter of 2025, reported revenue was up 2%, while organic revenue grew 4% to $11.8bn, attributed to 4% growth in concentrate sales and a 1% rise in price/mix. Unit case volumes increased 2%.
“I’m encouraged by our performance in 2025 which showed both the resilience and momentum that define our business,” James Quincey, the chairman and outgoing CEO of Coca-Cola, said. “Looking ahead, we will focus on executing our strategy even better and positioning our system for long-term success.”
Alongside its full-year results, the Appletiser maker also gave its outlook for 2026.
This year, the group anticipates achieving between 4-5% organic revenue growth. It also expects comparable profit growth of 7-8%. According to Barclays, the consensus forecast among Wall Street analysis is for Coca-Cola’s organic sales growth to be 5% next year.
In its first quarter of 2026, the business said it expects comparable net revenues to include a 2% “tailwind” from currency, as well as “a 1% headwind from acquisitions and divestitures”.
Shares in the Fuze tea producer were down 2.37% at 16:50 GMT.
