Coca-Cola Icecek's net income dropped 31% in the second quarter.
Coca-Cola's regional unit has lost market share in Turkey and Pakistan following boycotts over the company's perceived links to Israel, which is fighting a years-long war in Gaza.
Coca-Cola Icecek AS stated that its share of the Turkish market fell by five percentage points to 54%, and its share of the Pakistani sparkling beverage market dropped by four percentage points.
The data was part of the Istanbul-based company's quarterly report last month and was reported by Bloomberg on Monday.
On Stocktwits, the retail sentiment for Coca-Cola's U.S.-listed stock was 'bullish' as of early Monday. KO shares are up 9.2% year-to-date.
The development is the latest indication of how the Israel-Gaza military conflict, which has been ongoing for nearly two years and has led to a near-complete destruction of the Gaza Strip, is changing consumer perception for American brands.
Chains such as Starbucks, Pizza Hut, and KFC have been facing similar boycotts in Muslim-majority Indonesia and Malaysia, and their local operators have reported a hit to their businesses.
Coca-Cola Icecek CEO acknowledged the impact in an analyst call last month; in the second quarter, the company's net income dropped 31% to about 5.1 billion liras ($124 million).
The company bottles and distributes beverages in regions including Kazakhstan and Azerbaijan, Kyrgyzstan, and Iraq.
Despite the declining share, Coca-Cola still dominates markets across Central Asia and its neighbors, and overall volumes are growing, according to the Bloomberg report.
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