The Coca-Cola Company has reported a 6% increase in net revenues for the fourth quarter of 2024, reaching $11.5 billion, driven by higher prices and increased concentrate sales. Organic revenues (non-GAAP) surged by 14%, with a 9% rise in price/mix and a 5% growth in concentrate sales.
For the full year, the beverage giant recorded a 3% increase in net revenues to $47.1 billion, while organic revenues grew by 12%. This growth was primarily attributed to an 11% rise in price/mix and a 2% increase in concentrate sales.
Coca-Cola’s operating margin for the quarter improved to 23.5% from 21.0% in the previous year, with the comparable operating margin (non-GAAP) rising to 24.0% from 23.1%. However, for the full year, the operating margin declined to 21.2% from 24.7%, despite an increase in the comparable operating margin (non-GAAP) to 30.0% from 29.1%. The company cited strong organic revenue growth and refranchising bottling operations as positive contributors, while higher input costs, operating expenses, and currency fluctuations pressured margins.
Earnings per share (EPS) for the quarter climbed 12% to $0.51, with comparable EPS (non-GAAP) also up 12% to $0.55. However, full-year EPS declined slightly to $2.46, while comparable EPS (non-GAAP) rose by 7% to $2.88, reflecting the impact of currency fluctuations.
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Coca-Cola Chairman and CEO James Quincey expressed confidence in the company’s performance, stating, “Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments. Our global scale, coupled with local-market expertise and the unwavering dedication of our people and our system, uniquely position us to capture the vast opportunities ahead.”
The company also reported gains in value share within the nonalcoholic ready-to-drink (NARTD) beverage category for both the quarter and the full year. However, cash flow from operations and free cash flow (non-GAAP) declined to $6.8 billion and $4.7 billion, respectively, primarily due to a $6.0 billion deposit to the U.S. Internal Revenue Service (IRS) related to ongoing tax litigation.
Excluding this deposit, free cash flow (non-GAAP) reached $10.8 billion, reflecting a $1.0 billion increase from the prior year, supported by strong business performance and working capital efficiencies.
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