Volume and price both rise! Coca Cola's Q4 net revenue increased by 6% year-on-year, and comparable earnings per share increased by 12%, both exceeding expectations | Financial Report Insights
Net revenue for the fourth quarter was $11.5 billion, exceeding the expected $10.8 billion; comparable earnings per share were $0.55, higher than the estimated $0.52. Coca Cola expects comparable earnings per share to grow by 2% to 3% in 2025
Thanks to rising prices and strong market demand for soda and juice, Coca Cola's fourth-quarter performance exceeded expectations.
On Tuesday, February 11th, before the U.S. stock market opened, Coca Cola announced its fourth-quarter financial report, which showed:
1) Key Financial Data:
Fourth-quarter net revenue increased by 6% year-on-year to $11.5 billion, higher than the expected $10.8 billion; full-year net income grew by 3% to $47.1 billion.
Fourth-quarter organic revenue (excluding acquisitions, asset divestitures, and currency effects) increased by 14%; full-year organic revenue grew by 12%.
Fourth-quarter comparable earnings per share were $0.55, a year-on-year increase of 12%, exceeding the estimate of $0.52. Full-year comparable earnings per share increased by 7% to $2.88.
Fourth-quarter operating profit margin was 23.5%, compared to 21.0% in the same period last year; full-year operating profit margin was 21.2%, down from 24.7% the previous year.
2) Performance Guidance:
Coca Cola expects comparable earnings per share to grow by 2% to 3% in 2025.
In terms of sales, global unit case volume grew by 2% in the fourth quarter, mainly driven by China, Brazil, and the United States. The Asia-Pacific region grew by 6%, while North America grew by 1%.
By segment, fourth-quarter carbonated soft drinks grew by 2%; juice, dairy, and plant-based beverages declined by 1%; water, sports drinks, coffee, and tea segments saw a 2% increase in sales.
Over the past year, Coca Cola's U.S. stock has risen by about 8%, and after the earnings report was released today, Coca Cola's U.S. stock rose by more than 3% in pre-market trading.
Coca Cola's Chairman and CEO James Quincey stated:
“Our all-weather strategy is working, and we continue to demonstrate our ability to lead in a dynamic external environment, leveraging our global scale, combined with local market expertise and the unwavering dedication of our employees and system, which uniquely positions us to seize the vast opportunities ahead.”