India helps Coca-Cola Company achieve 2% volume growth in Q2

The Coca-Cola Company has reported its second quarter 2024 results, which demonstrate continued momentum in an industry with many growth opportunities. “We are encouraged with our second quarter results, which delivered solid topline and operating income growth in an ever-changing landscape,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “Together with our bottling partners, we continue to execute our highly effective all-weather strategy, and we are confident in our ability to deliver on our raised 2024 guidance and longer-term objectives.”

Quarterly Performance

Revenues: Net revenues grew 3% to $12.4 billion, and organic revenues (non-GAAP) grew 15%. Revenue performance included 9% growth in price/mix and 6% growth in concentrate sales. Concentrate sales were 4 points ahead of unit case volume, primarily due to the timing of concentrate shipments.

Operating margin: Operating margin, which includes items impacting comparability, was 21.3% versus 20.1% in the prior year, while comparable operating margin (non-GAAP) was 32.8% versus 31.6% in the prior year. Operating margin expansion was primarily driven by strong business performance and the impact of refranchising bottling operations, partially offset by currency headwinds and an increase in marketing investments.

Cash flow: Cash flow from operations was $4.1 billion, a decrease of $516 million versus the prior year, largely due to higher tax payments and cycling working capital benefits from the prior year. Free cash flow (non-GAAP) was $3.3 billion, a decrease of $693 million versus the prior year.

Unit case volume grew 2%, driven by growth in India, Brazil and the Philippines.

Q2 Highlights:

• Global Unit Case Volume Grew 2%
• Net Revenues Grew 3%; Organic Revenues (Non-GAAP) Grew 15%
• Operating Income Grew 10%; Comparable Currency Neutral Operating Income (Non-GAAP) Grew 18%
• Operating Margin Was 21.3% Versus 20.1% in the Prior Year; Comparable Operating Margin (Non-GAAP) Was 32.8% Versus 31.6% in the Prior Year
• EPS Declined 5% to $0.56; Comparable EPS (Non-GAAP) Grew 7% to $0.84