Coca-Cola Q4 2024 net revenues increased 6% to $11.5 billion

The Coca-Cola Company in its Fourth Quarter and Full Year 2024 Results highlighted continued momentum in an industry full of growth opportunities. For the fourth quarter ended December 31, 2024, net revenues increased 6% to $11.5 billion, and organic revenues (non-GAAP) grew 14%, driven by 9% growth in price/mix and a 5% increase in concentrate sales. Concentrate sales were 3 points ahead of unit case volume, primarily driven by two additional days and the timing of concentrate shipments. For the full year, net revenues grew 3% to $47.1 billion, and organic revenues (non-GAAP) grew 12%, driven by 11% growth in price/mix and 2% growth in concentrate sales. Concentrate sales were 1 point ahead of unit case volume, primarily due to the timing of concentrate shipments.

For the quarter, operating margin was 23.5% versus 21.0% in the prior year, while comparable operating margin (non-GAAP) was 24.0% versus 23.1% in the prior year. For the full year, operating margin was 21.2% versus 24.7% in the prior year, while comparable operating margin (non-GAAP) was 30.0% versus 29.1% in the prior year. For both the quarter and the full year, operating margin performance included items impacting comparability, as well as currency headwinds. Full year operating margin included a charge of $3.1 billion related to the re-measurement of the contingent consideration liability to fair value in conjunction with the acquisition of fairlife, LLC (“fairlife”) in 2020. For both the quarter and the full year, comparable operating margin (non-GAAP) expansion was primarily driven by strong organic revenue (non-GAAP) growth and the impact of refranchising bottling operations, partially offset by higher input costs, higher operating expenses and currency headwinds.

India highlights:

In January, February and December 2024, the company refranchised its bottling operations in certain territories in India.
During the three months and year ended December 31, 2024, the company recorded net gains of $13 million and $303 million, respectively, related to the refranchising of its bottling operations in certain territories in India.
During the year ended December 31, 2024, the company incurred $7 million of transaction costs related to the refranchising of its bottling operations in certain territories in India.
For the full year, unit case volume grew 1%, led by Brazil, India and Mexico.

Global highlights:

Global Unit Case Volume Grew 2% for the Quarter and 1% for the Full Year
Net Revenues Grew 6% for the Quarter and 3% for the Full Year; Organic Revenues (Non-GAAP) Grew 14% for the Quarter and 12% for the Full Year
Operating Income Grew 19% for the Quarter and Declined 12% for the Full Year; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 22% for the Quarter and 16% for the Full Year
Fourth Quarter EPS Grew 12% to $0.51; Comparable EPS (Non-GAAP) Grew 12% to $0.55; Full Year EPS Declined Slightly to $2.46; Comparable EPS (Non-GAAP) Grew 7% to $2.88
Cash Flow from Operations was $6.8 Billion for the Full Year, Down 41%; Free Cash Flow (Non-GAAP) was $4.7 Billion for the Full Year, Down 51%; Free Cash Flow Excluding the IRS Tax Litigation Deposit (Non-GAAP) was $10.8 Billion for the Full Year, Up 11%

Unit case volume grew 2% for the quarter, led by China, Brazil and the United States. For the full year, unit case volume grew 1%, led by Brazil, India and Mexico.

However, juice, value-added dairy and plant-based beverages declined 1% for the quarter and were even for the full year, as growth in North America was offset by declines in Europe, Middle East and Africa.

Water, sports, coffee and tea grew 2% for the quarter and declined 1% for the full year. Water grew 2% for the quarter and declined 2% for the full year. For the quarter, water performance was primarily driven by growth in Europe, Middle East and Africa, Latin America and Asia Pacific and, for the full year, growth in Latin America and Europe, Middle East and Africa was more than offset by a decline in Asia Pacific. Sports drinks declined 2% for the quarter and 1% for the full year as growth in Europe, Middle East and Africa was more than offset by declines in North America and Asia Pacific.

Commenting on the company’s performance, James Quincey, Chairman and CEO of The Coca-Cola Company, said, “Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments.” He further added, “Our global scale, coupled with local-market expertise and the unwavering dedication of our people and our system, uniquely position us to capture the vast opportunities ahead.”