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Coca-Cola Consolidated (COKE) Q2-25 10-Q highlights

• Net sales rose 3.3% YoY to $1.86 bn; first-half sales up 1.4% to $3.44 bn.
• Gross profit +3.6% to $742 m; gross margin steady at 40.0%.
• Operating income +5.0% to $272 m; operating margin 14.7% (+30 bp).
• Net income increased 8.5% to $187 m; diluted EPS $2.15 (+16%). First-half EPS $3.34 (-8%).
• Interest expense swung to a $6 m cost from a $2 m benefit YoY, reflecting higher average debt after 2024 bond issuance.
• Mark-to-market expense on acquisition-related contingent consideration fell to $12 m vs $28 m, easing below-the-line pressure.
• 1H-25 operating cash flow slipped 7% to $406 m; capex $157 m kept free cash flow modest.
• Cash & equivalents climbed to $1.22 bn; total debt unchanged at $1.79 bn, leaving net debt of $0.57 bn.
• Equity strengthened to $1.63 bn as retained earnings rose and buybacks ($35 m) reduced share count under the $1 bn program.
• Dividend lifted to $0.25 per share post 10-for-1 split effective 27-May-25.

Takeaway: Stable volume-driven revenue growth and cost discipline are expanding margins, but higher financing costs and softer first-half earnings temper the story. Robust liquidity and active capital returns support shareholder value.

Morgan Stanley Finance LLC is offering Market Linked Securities that are auto-callable, unsecured and principal-at-risk, linked to the iShares MSCI EAFE ETF (EFA). Key economic terms are as follows:

• Face amount: $1,000 per security; minimum investment one security.
• Tenor: Up to 3 years, maturing 6 Jul 2028, but may be automatically called after approximately one year (6 Jul 2026).
• Automatic call: Triggered if EFA’s closing price on the call date â‰� the $89.39 starting price; investors then receive a call payment of $1,096 (9.60% return) and no further upside.
• Maturity payment (if not called):
  � Upside: 125% participation in any positive fund return.
  � Protection: full principal repayment if the ending price is � 75% of the starting price (threshold $67.0425).
  � Downside: 1-for-1 loss below the threshold; investors can lose >25% and up to 100% of principal.
• Estimated value: $947.70 (4.8% below face) reflecting issuance costs and internal funding rate; secondary market bids likely lower.
• Fees: Price to public $1,000; selling commission up to $25.75 (2.575%); net proceeds $974.25.
• Credit risk: Unsecured obligations of MSFL, fully guaranteed by Morgan Stanley; subject to issuer and guarantor credit.
• Liquidity: Not exchange-listed; MS & Co. and WFS may make a market but are not obliged to do so.

The note targets investors who expect moderate appreciation or stability in developed-market equities, are willing to forgo dividends and interest, and can tolerate full downside exposure in exchange for leveraged upside and a one-time 9.6% call premium.