Prime Highlights:
The company saw a 6% increase in net sales, driven by rising global demand, particularly in markets like China, Brazil, and the U.S.
Organic revenue rose 14%, primarily fueled by a 9% increase in pricing, including 4% from hyperinflation-affected markets.
Key Background:
Coca-Cola reported fourth-quarter earnings and revenue that exceeded Wall Street’s expectations, driven by rising global demand for its beverages. For the quarter ended December 31, the beverage giant posted a 6% growth in net sales, reaching $11.54 billion, well above the $10.68 billion analysts had anticipated. Earnings per share (EPS) came in at 55 cents, adjusted for special items, surpassing the expected 52 cents.
The company’s net income attributable to shareholders rose to $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, in the same quarter last year. Coca-Cola’s organic revenue, excluding acquisitions, divestitures, and foreign currency fluctuations, saw a 14% increase, driven primarily by price hikes. Pricing surged 9% during the quarter, with 4% attributed to regions experiencing hyperinflation, while the rest resulted from strategic price increases and a favorable product mix.
In terms of volume, Coca-Cola saw a 2% rise in unit case volume, reversing the decline observed in the previous quarter. The growth in volume was attributed to strong demand in markets such as China, Brazil, and the U.S. Notably, the company’s sparkling soft drinks segment, which includes Coca-Cola soda, experienced a 2% increase in volume, with Coke Zero Sugar showing a 13% surge.
Looking ahead to 2025, Coca-Cola anticipates organic revenue growth of 5% to 6%, with comparable earnings per share expected to rise by 2% to 3%. The company, however, faces challenges in the form of rising costs, particularly from a tariff increase on aluminum imports. Despite these headwinds, CEO James Quincey emphasized the company’s focus on maintaining affordability through diverse packaging options, such as emphasizing plastic bottles if aluminum costs rise. Overall, Coca-Cola’s strong performance reflects its successful pricing strategies and growing global demand, positioning it for continued growth in the upcoming year.
