Coca-Cola has said it will take an impairment charge of about $1 billion in the fourth quarter of 2025 following the sale of part of its ownership in African bottling operations. The company made the announcement in a regulatory filing on Thursday.
Following the news, Coca-Cola’s shares fell about 1% during late-afternoon trading.
Earlier this week, Switzerland-based Coca-Cola HBC agreed to purchase a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion. The deal includes Coca-Cola’s nearly 42% stake and the entire stake owned by Gutsche Family Investments, valuing CCBA at around $3.4 billion.
The transaction is expected to be completed by the end of 2026. Once finalized, Coca-Cola HBC will become the world’s second-largest Coca-Cola bottler by volume, after Coca-Cola FEMSA. The deal will also expand its operations across 14 African markets.
Coca-Cola HBC said the acquisition will help it tap into the continent’s growing beverage demand, driven largely by younger consumers. The move is also expected to help the company manage rising costs and trade challenges, including potential U.S. tariffs.
As part of the agreement, Coca-Cola HBC plans to seek a secondary listing on the Johannesburg Stock Exchange. The company will also hold an option to buy Coca-Cola’s remaining 25% stake in CCBA within six years after the deal closes.
Meanwhile, Coca-Cola reported strong third-quarter earnings earlier this week, supported by higher demand for its zero-sugar drinks and Fairlife brand in the United States, as well as increased soda sales in international markets.
