ATLANTA — Coca-Cola Co. proudly announced a successful fiscal year that concluded on December 31, 2024, showcasing significant increases in both revenue and sales volume.
This positive performance was welcomed by executives and shareholders.
Financial Overview
While the company’s net income saw a slight dip of 1% to $10.63 billion, translating to $2.47 per share, it still eclipsed last year’s figures of $10.71 billion, or $2.48 per share.
However, the growth in net operating revenues was substantial, climbing by 3% to $47.06 billion, up from $45.75 billion.
The company also reported a modest 1% increase in unit case volume, largely fueled by strong sales performance in Brazil, India, and Mexico.
Additionally, a remarkable 11% rise in price/mix further underscored the company’s successful year.
James Quincey, the company’s CEO, expressed his satisfaction during an earnings call on February 11, highlighting the impressive volume growth, organic revenue hikes, and improved comparable gross and operating margins.
This collective success led to a remarkable 7% jump in comparable earnings per share, despite facing currency challenges that approached double digits and the complexities of bottler refranchising.
Market Performance
On the same day, Coca-Cola’s stock closed at $67.60 per share, marking a 4.7% rise from the previous day’s closing value of $64.55.
Within the sparkling soft drink segment, Coca-Cola recorded a 2% rise in volume, with its flagship brand also experiencing a 2% increase.
Coca-Cola Zero Sugar stood out with an impressive 9% volume growth, while sparkling flavors grew by 1%.
Meanwhile, the juice, dairy, and plant-based beverage categories held steady, although the combined segment of water, sports drinks, coffee, and tea experienced a slight decline of 1%.
Specifically, water sales dipped by 2%, sports drinks by 1%, and coffee by 3%, whereas tea saw a 4% increase.
The North American market particularly shone, with net operating revenues soaring by 11% to $18.65 billion, up from $16.77 billion.
Quincey noted that the fairlife brand within the dairy sector is poised to continue its rapid growth into 2025.
He announced plans for a new production facility in Webster, NY, set to begin operations in the fourth quarter of the current fiscal year, underscoring the soaring demand for fairlife products and the need for timely expansion.
Future Outlook
In the EMEA (Europe, the Middle East, and Africa) region, net operating revenues grew by 1%, reaching $8.12 billion, up from $8.01 billion.
Latin America also performed well, posting an 11% increase to $6.46 billion, while the Asia Pacific region saw a modest 2% rise, climbing from $5.46 billion to $5.55 billion.
Quincey acknowledged the economic challenges impacting lower-income groups in developed markets like the U.S. and Europe.
However, he emphasized that many consumers are benefiting from higher disposable incomes and continued spending.
Signs of recovery were particularly evident in emerging markets, with India showing promise, China improving slightly, and the Middle East performing strongly.
Latin America remained robust, though Africa presented a more varied situation.
In the fourth quarter, Coca-Cola reported a net income of $2.20 billion, or 51¢ per share, an impressive 11% increase from last year’s $1.97 billion, or 46¢ per share.
Additionally, net operating revenues rose by 6% to $11.54 billion, up from $10.85 billion.
Looking forward, Coca-Cola anticipates organic revenue growth between 5% and 6% for the 2025 fiscal year.
However, the company does expect to face currency headwinds of around 3% to 4%.
To navigate this landscape, Coca-Cola plans to balance its focus between volume and pricing strategies, optimistic that inflationary pressures will ease throughout the year, creating a more favorable environment for business.
Source: Foodbusinessnews