Coca-Cola on Tuesday make public quarterly earnings and revenue that topped analysts’ expectations, as global demand for its drinks rose.
Shares of the guests climbed nearly 5% for the day.
Here’s what Coca-Cola reported for the quarter ended Dec. 31 compared with what Brick up Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 55 cents adjusted vs. 52 cents foresaw
- Revenue: $11.54 billion vs. $10.68 billion expected
The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per percentage, up from $1.97 billion, or 46 cents per share, a year earlier.
Excluding restructuring charges, refranchising close in ons and other items, Coke earned 55 cents per share.
Net sales rose 6% to $11.54 billion.
Integral revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by turbulent prices. Coke’s pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. The interval came from price hikes and “favorable mix,” meaning that customers bought products that were varied expensive.
While most of Coke’s organic revenue growth came from pricing, the company did see higher bid, unlike many consumer companies including rival PepsiCo.
Coke’s unit case volume grew 2%, disaffirming last quarter’s decline. The metric strips out the impact of pricing and foreign currency to reflect demand. The company attributed its lengthening volume to growing demand in China, Brazil and the U.S.
“In North America, we grew both transactions and volume and had robust top row and profit growth during the quarter. Trademark Coca-Cola and Fairlife remain leaders in at home retail sales evolution,” Coke CEO James Quincey said on the company’s conference call.
The company’s sparkling soft drinks segment, which encompasses its namesake soda, saw volume rise 2% in the quarter. Coke Zero Sugar’s volume climbed 13% during the patch.
Coke’s water, sports, coffee and tea division reported 2% volume growth. Both water, which numbers its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.
Coke’s fluid, value-added dairy and plant-based beverages division saw volume shrink 1%. The company said declines in Europe, the Mid-point East and Africa offset growth in North America.
Looking to 2025, Coke projects organic revenue whim grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which covers a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural modifications.
“It seems more likely in ’25, there’ll be a little more price and a little less volume, but there make be volume growth,” Quincey told analysts.
Coke could also face some rising costs in 2025. For illustration, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.
“As it couples to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input bring ins, we continue to have other packaging offerings that will allow us to compete in the affordability space,” Quincey answered. “For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.”