Quarterly Financial Insights
Coca-Cola recently disclosed its quarterly earnings, surpassing market analysts’ expectations, reflecting robust global demand for its products.
As a result, the company’s shares saw an uptick of over 3% in pre-market trading.
For the quarter ending December 31, Coca-Cola’s performance compared favorably against Wall Street’s forecasts, based on a survey conducted by LSEG:
- Adjusted Earnings Per Share (EPS): $0.55, compared to the anticipated $0.52.
- Revenue: $11.54 billion against the expected $10.68 billion.
Coca-Cola registered a net income attributable to shareholders of $2.20 billion, equating to $0.51 per share, an increase from the previous year’s $1.97 billion or $0.46 per share during the same quarter.
When excluding restructuring costs and other adjustments, the adjusted earnings remain at $0.55. The net sales showed a 6% rise, reaching $11.54 billion.
Focusing on organic revenue—exclusive of acquisitions, liquidations, and currency impacts—the company experienced a 14% increase in the last quarter, primarily driven by heightened pricing strategies. Coca-Cola raised product prices by 9% during this period, with 4% attributed to markets facing significant inflation while the balance stemmed from price hikes and an improved sales mix, indicating a shift towards higher-cost products.
In contrast to other consumer goods companies that rely on price increases to offset declining demand, Coca-Cola reported growth in its sales volume. The total sales volume rose by 2%, effectively reversing a dip observed in the prior quarter.
This growth can be credited to heightened demand in key markets such as China, Brazil, and the United States.
Segments including water, coffee, and tea exhibited a 2% increase. Even though both the water category, featuring SmartWater, and tea saw increased demand, the volume of sports drinks and coffee dipped during the quarter.
The juices, dairy products with added value, and plant-based beverages segments also reported a 1% volume growth. The company noted that declines in Europe, the Middle East, and Africa were counterbalanced by growth in North America.
Looking ahead to 2025, Coca-Cola anticipates organic revenue growth of 5% to 6%. The company projects that comparative earnings per share will rise by 2% to 3%, factoring in headwinds from foreign exchange rates and minor impacts from acquisitions, liquidations, and structural changes.
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