Coca-Cola has wrapped up 2024 on a high note, delivering a solid fourth-quarter performance that exceeded market expectations. The beverage giant reported a 6% increase in net revenues for Q4, reaching $11.5 billion, surpassing Wall Street’s forecast of $10.68 billion. This growth was primarily driven by a 2% increase in global unit case volume, a 9% rise in price/mix, and a 5% boost in concentrate sales.
Impressive Revenue Growth and Strong Market Position
Coca-Cola’s full-year net revenues also saw a 3% increase, reaching $47.1 billion. The company’s organic revenues (non-GAAP) rose by 14% for the quarter and 12% for the year, demonstrating strong underlying business momentum. Despite economic challenges, Coca-Cola managed to expand its value share in the non-alcoholic ready-to-drink (NARTD) beverage segment throughout 2024.
Earnings Performance and Market Response
Earnings per share (EPS) for Q4 grew by 12% to $0.51, while full-year EPS slightly declined to $2.46. Adjusted for one-time items, the company reported an EPS of $0.55, surpassing analysts’ estimates of $0.52. Coca-Cola’s net income saw an 11% rise, reaching $2.2 billion for the October-December period. Following the earnings release, Coca-Cola’s shares surged by over 3%, reflecting investor confidence in the company’s performance and future outlook.
Regional Performance Highlights
The company experienced growth across all major regions, with notable gains in Asia Pacific, Latin America, and North America:
- Asia Pacific: Unit case volume grew by 6%, reflecting strong demand across key markets.
- Latin America: Unit case volume increased by 2%, largely driven by the strength of the Coca-Cola trademark. The region also experienced a 23% rise in price/mix, driven by inflationary pressures in Argentina.
- North America: The region saw a 1% increase in unit case volume, supported by the popularity of sparkling flavors and juice. Price/mix rose by 12%, contributing to overall revenue growth.
Product Performance: Coca-Cola Zero Sugar Continues to Shine
Coca-Cola Zero Sugar remained a standout performer, reporting a 13% increase in sales during Q4 and a 9% rise for the full year. The brand’s growing consumer base and strategic marketing initiatives have played a significant role in its success, reinforcing Coca-Cola’s ability to innovate and meet evolving consumer preferences.
Outlook for 2025: Growth Amid Challenges
Looking ahead, Coca-Cola expects organic revenue (non-GAAP) growth of 5% to 6% in 2025. However, the company anticipates a currency headwind of 3% to 4% on comparable net revenues (non-GAAP) due to foreign exchange fluctuations. Additionally, slight headwinds from acquisitions and structural changes may impact overall growth.
Despite these challenges, Coca-Cola remains optimistic about its long-term strategy. CEO James Quincey credited the company’s “all-weather strategy” for its resilience and ability to navigate external pressures. He emphasized Coca-Cola’s global scale and local-market expertise as key factors positioning the company for future success.
Competitive Landscape: Outperforming PepsiCo
Coca-Cola’s strong results contrast with rival PepsiCo, which recently reported sales that fell short of estimates for a third consecutive quarter. While both companies face similar market dynamics, Coca-Cola’s ability to drive unit case volume growth and maintain pricing power has set it apart in the industry.
Final Thoughts
Coca-Cola’s Q4 2024 performance highlights its ability to adapt to changing market conditions while continuing to drive revenue and earnings growth. With strong product performance, strategic pricing, and a resilient business model, the company is well-positioned to capitalize on future opportunities in 2025 and beyond. As Coca-Cola continues to invest in innovation and market expansion, investors and consumers alike can expect sustained momentum from the beverage leader.
