Coca-Cola Pops In Q4—Revenue Soars 6%, CEO Hails 'All-Weather Strategy'

Coca-Cola Company KO shares are trading higher following better-than-expected fourth-quarter earnings results.

The company reported fourth-quarter sales growth of 6% year-on-year to $11.5 billion, beating the analyst consensus estimate of $10.677 billion.

Revenue performance included a 5% climb in concentrate sales and a 9% growth in price/mix. Unit case volume grew 2% in the quarter. Organic revenues increased 14%.

Coca-Cola’s organic revenue in Europe, Middle East and Africa jumped 17% in the fourth quarter, while in North America, it increased 15%.

Gross profit rose 12% to $6.93 billion with a profit margin of 60%. The operating margin expanded 250 basis points to 23.5%, while the comparable operating margin gained 90 basis points to 24%.

Operating income for the quarter increased 19.2% to $2.7 billion. Adjusted EPS of $0.55 beat the consensus estimate of $0.52.

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Operating cash flow generated for twelve months was $6.8 billion, a 41% decrease from the prior year. Free cash flow totaled $4.7 billion. KO held $14.5 billion in cash and equivalents as of December end.

In 2024, the company issued $0.7 billion of shares in connection with the exercise of stock options by employees and purchased $1.8 billion of shares.

“Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments,” said Chairman and CEO James Quincey.

Outlook: Coca-Cola expects FY25 organic revenue of 5% – 6%. KO sees comparable currency neutral EPS growth of 8% – 10%. The company anticipates comparable EPS growth of 2% – 3%.

Coca-Cola sees free cash flow excluding the fairlife contingent consideration payment (non-GAAP) of approximately $9.5 billion.

For first-quarter, comparable net revenues are expected to include a 3% to 4% currency headwind.

Price Action: KO shares are trading higher by 4.71% at $67.52 in premarket at the last check Tuesday.

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