KO · 10-Q · 2026Q3 · Full report

FX / Currency Impact

COCA COLA CO · 2026-07-29 · Importance 26 · Surprise 24

Foreign currency fluctuations, including hedging effects, increased consolidated net operating revenues by 2% for both the three and six months ended July 3, 2026. A weaker U.S. dollar versus the Mexican peso, Brazilian real, euro and South African rand benefited Latin America, EMEA and Bottling Investments, while a stronger dollar versus the Indian rupee, Japanese yen, Turkish lira and Argentine peso was unfavorable in portions of Asia Pacific, EMEA, Latin America and Bottling Investments. Foreign exchange also favorably affected consolidated operating income by 5% in the second quarter and 4% year to date. Based on spot rates and hedging coverage, management expects currency movements to benefit full-year 2026 net operating revenues and operating income.

Key facts

• The Company expects foreign currency exchange rate fluctuations will have a favorable impact on full year 2026 net operating revenues based on current spot rates and hedging coverage.
• For the six months ended July 3, 2026 the Company recognized net foreign currency exchange losses of $7 million.
• Fluctuations in foreign currency exchange rates favorably impacted consolidated net operating revenues by 2%.
• Foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 1% for the three months and 2% for the six months ended July 3, 2026.
• Fluctuations in foreign currency exchange rates favorably impacted consolidated operating income by 5% for the three months ended July 3, 2026 and by 4% for the six months ended July 3, 2026.
• Based on current spot rates and hedging coverage in place, the Company expects foreign currency exchange rate fluctuations will have a favorable impact on operating income and cash flows from operating activities through the end of the year.
• Taking into account the effects of hedging activities, fluctuations in foreign currency exchange rates increased the Company’s operating income for the three and six months ended July 3, 2026 by 5% and 4%, respectively.
• Other income (loss) — net for the six months ended June 27, 2025 included net foreign currency exchange losses of $20 million.