Coca-Cola Consolidated, Inc. (COKE) SEC Filings & Earnings Calls

Aluminum cost inflation from tariffs and geopolitical conflicts pressuring gross margins

“Elevated aluminum costs resulted in approximately $45 million in additional input costs compared to Q2 2025”

Macroeconomic uncertainty and higher input costs continue to pressure margins

“continued macroeconomic uncertainty and higher input costs that continued to pressure gross margins” · word for word

Aluminum cost inflation from tariffs

“These elevated aluminum costs resulted in approximately $45 million in additional input costs compared to the second quarter of 2025, which outpaced our annual pricing actions.” · word for word

Interest expense increase from higher debt

“Interest expense, net increased $24.5 million to $30.5 million in the second quarter of 2026, as compared to $5.9 million in the second quarter of 2025.” · word for word

Aluminum cost inflation from tariffs and supply constraints pressuring gross margin.

“$35M additional input costs; gross margin down 30bps.”

Geopolitical conflicts and import tariffs creating input cost volatility.

“CEO cites 'uncertain and volatile macroeconomic environment'.”

Concentrated voting control

“J. Frank Harrison, III, Chairman of the Board of Directors and Chief Executive Officer of the Company, controlled 10,043,940 shares of Class B Common Stock, which represented approximately 78 % of the total voting power” · word for word

High leverage from share repurchase

“Total debt $2,637,148 thousand as of April 3, 2026, increased significantly due to $2.40 billion share repurchase funded by debt.”

Aluminum cost inflation from tariffs pressuring gross margin

“increase in aluminum costs, which included the impact of elevated import tariffs” · word for word

Aluminum tariff cost pressure

“Aluminum costs, including the impact of elevated import tariffs, adversely affected our gross margin in 2025, particularly in the back half of the year.” · word for word

Customer concentration

“The Company's largest customers, Walmart Inc. and The Kroger Co., accounted for approximately 36% of the Company's 2025 total bottle/can sales volume to retail customers and approximately 29% of the Company's 2025 total net sales.” · word for word

Elevated debt and negative S&P outlook

“Total debt $2,786,009. In November 2025, Standard & Poor's affirmed the Company's credit rating of 'BBB+' but revised the Company's rating outlook to negative from stable.”

Labor cost inflation

“The increase in SD&A expenses was primarily driven by an increase in labor and benefits costs related to annual wage adjustments, medical benefit trends and an additional investment in the base wages of our front-line teammates.” · word for word

Covenant risk: consolidated funded indebtedness/cash flow ratio must be 6.0x or lower.

“Consolidated funded indebtedness/cash flow ratio requires maintaining 6.0 to 1.0 or lower.” · word for word

Interest rate exposure: floating rate based on SOFR plus spread.

“Borrowings bear interest at Term SOFR plus applicable rate (0.750%-1.500% depending on facility and rating).”

High leverage from $1.2B bridge loan with financial covenants.

“consolidated funded indebtedness/cash flow ratio of 6.0 to 1.0 or lower”

Change in control provisions triggered in existing credit agreements.

“Amendments to credit agreements to prevent default due to change in control”

Commodity cost inflation and tariff volatility on aluminum could pressure margins if pricing power wanes.

“annual price increases... effective in offsetting the net impact of increased commodity costs, including the continued volatility of import tariffs on aluminum”

Labor cost pressure from wage adjustments and front-line investments may increase SD&A expenses.

“SD&A expenses... increased $30.9 million, or 6.6%... driven by the cost of labor, which includes annual wage adjustments... and an additional investment in the base wages of our front-line teammates”

Tariff input cost pressure

“The annual price increases we executed earlier this year across our portfolio have been effective in offsetting the net impact of increased commodity costs, including the continued volatility of import tariffs on aluminum” · word for word

Customer concentration

“Walmart and Kroger together represent 36% of bottle/can volume and 29% of net sales”

Acquisition related contingent consideration volatility

“Mark-to-market on acquisition related contingent consideration was an increase of $49.4 million in Q3 2025 and $104.5 million YTD” · word for word