The global energy drink category remains healthy with accelerating growth across regions, driven by product functionality, lifestyle positioning, and diverse offerings.
In the U.S., Nielsen reports a 13.2% increase in energy drink sales for the 30-week period ending July 26, 2025, with Monster's Ultra family contributing significantly.
In EMEA, the category grew approximately 15.4% FX neutral, with Monster outperforming many markets and becoming the seventh largest FMCG brand in Western Europe.
Asia Pacific saw a 20.9% growth FX neutral, with notable increases in South Korea (+28.9%) and China (+20.2%).
Latin America grew 13.9% FX neutral, with specific growth in Brazil (+10.4%) and Chile (+4.2%), despite challenges in Argentina.
Management emphasizes innovation and household penetration as key drivers for sustained growth.
Free cash flow was $325 million in Q2, strengthening sequentially, with expectations for acceleration in the second half and healthy full-year cash generation.
Gross margin contracted 110 basis points due to inflationary pressures but was offset by strong SG&A leverage and disciplined expense management, resulting in steady operating margins and double-digit EPS growth.
International segment net sales increased 6%, driven by pricing and volume mix, with operating income growth of 2.6% despite a challenging macro environment.
Keurig Dr Pepper delivered strong second quarter results with net sales increasing 7%, driven by price and volume mix across U.S. refreshment beverages, International, and sequential progress in coffee.
Leverage remains comfortable at 3.3x with a long-term goal of 2.5x or lower.
U.S. coffee net sales declined modestly by 0.2% but showed sequential improvement with net price realization strengthening to 3.6%, despite volume mix decline of 3.8%.
U.S. refreshment beverages net sales grew almost 11%, led by core strength and rapid expansion in white spaces like energy and sports hydration.
Away-from-home channels grew high single digits and contributed margin-accretive growth for both beverages and foods.
North America faced volume challenges but showed signs of stabilization and improvement in key subsegments like extruded snacks and no-sugar colas.
PepsiCo reported solid Q2 2025 results with strong performance in International markets and sequential improvement in North America.
Productivity initiatives are expected to accelerate in the second half of the year, with a focus on cost reduction and efficiency improvements across the enterprise.
The International business delivered mid-single-digit growth and became accretive to PepsiCo's overall profitability.
Adjusted earnings per share were $3.19, up about 5% versus the prior year quarter in constant currencies.
Adjusted operating margin was nearly 47% for the first half of the year, with restaurant margin increasing about 5% in constant currency.
Full year adjusted operating margin target remains mid- to high 40% range, with company-operated restaurant margin target adjusted to around 14.8%.
International Developmental Licensed (IDL) Markets delivered comp sales growth of more than 5.5%, led by Japan and positive comps across all geographies.
McDonald's reported global system-wide sales growth of over 6% in constant currency and global comparable sales growth of nearly 4% in Q2 2025.
The Internationally Operated Market (IOM) segment saw comp sales increase by 4%, with all markets driving positive comp sales growth.
U.S. comparable sales were up 2.5% in the quarter, outperforming near competitors despite challenging QSR traffic trends.
Africa grew volume despite worsening macroeconomic conditions, driven by refined pricing and marketing strategies.
Asia Pacific volume declined but revenue and operating income grew; China volume grew despite cautious consumers.
Comparable gross margin increased ~80 basis points; operating margin increased ~190 basis points driven by productivity and timing of investments.
EMEA grew volume, revenue, and profit across all units, with successful marketing campaigns like Share a Coke.
Free cash flow was $3.9 billion, up $600 million year-over-year excluding a contingent payment.
Latin America volume declined but organic revenue and profit grew, with strong Coca-Cola Zero Sugar volume in Brazil and Mexico.
Net debt leverage was 2x EBITDA, at the low end of target range.
North America saw sequential volume improvement but overall decline due to socioeconomic pressures; premium stills brands growth moderated.
Organic revenue grew 5% with robust margin expansion, leading to 4% comparable EPS growth despite currency headwinds and a higher effective tax rate.
Volume declined 1% in Q2 2025 due to difficult prior year comparisons and adverse weather, but two-year volume trends were stable in April and May before decelerating in June.
Dafinchi
