Coca-Cola Q3 Earnings: EPS Beat, Pricing Growth Offset By Volume Decline, Sees 10% Q4 Organic Revenue Growth

On Wednesday, Coca-Cola Company KO reported a third-quarter 2024 sales decline of 1% year-on-year to $11.9 billion, beating the analyst consensus estimate of $11.59 billion.

Revenue performance included a 10% growth in price/mix and a 2% decline in concentrate sales. Concentrate sales were 1 point behind unit case volume, primarily due to the timing of concentrate shipments.

Adjusted operating margin was 30.7% versus 29.7% in the prior year, driven by a charge of $919 million related to the remeasurement of the contingent consideration liability to fair value related to the acquisition of Fairlife in 2020 and currency headwind.

Also Read: Coca Cola’s Efforts To Entice Gen Z Fall Flat: Spiced Discontinued After Just 6 Months.

Adjusted EPS reached $0.77, beating the consensus estimate of $0.74, up 5% year-over-year. Reported EPS declined 7% to $0.66.

Unit case volume declined by 1%. Growth led by Brazil, the Philippines, and Japan was more than offset by declines in China, Mexico, and Türkiye.

Outlook: Coca-Cola forecasts 2024 organic revenue growth of approximately 10%, compared to prior guidance of 9%—10%.

The global beverage company expects to deliver adjusted EPS growth of 14% to 15% compared to prior expectations of 13% – 15%.

For the fourth quarter, Coca-Cola says adjusted net revenues are expected to include an approximate 4% currency headwind and a 4% to 5% headwind from acquisitions, divestitures, and structural changes.

Adjusted EPS growth is expected to include an approximate 10% and 3% to 4% headwind from acquisitions, divestitures, and structural changes.

For fiscal 2025, Coca-Cola adjusted net revenues and EPS percentage growth are expected to include a low single-digit and mid-single-digit currency headwind, respectively.

Price Action: KO stock is down 1.28% at $68.58 during the premarket session at last check Wednesday.

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