TLDR:
- Coca-Cola reported Q4 revenue of $11.54 billion, beating estimates of $10.77 billion, with adjusted EPS of $0.55 versus expected $0.52
- Global unit case volumes grew 2% in Q4, with Asia Pacific leading at 6% growth
- The company’s stock rose over 3% following the earnings report, outperforming rival PepsiCo which missed sales estimates
- Price/mix growth was strong at 9%, well above expectations of 6.71%
- For 2025, Coca-Cola projects organic revenue growth of 5-6% and adjusted earnings growth of 2-3%
Coca-Cola (KO) reported fourth-quarter results that surpassed market expectations on Tuesday, with revenue reaching $11.54 billion, compared to analyst estimates of $10.77 billion. The beverage giant’s shares rose more than 3% in premarket trading following the announcement.
The company’s adjusted earnings per share came in at $0.55, beating both the expected $0.52 and last year’s $0.49. This performance marks a clear contrast with rival PepsiCo (PEP), which recently reported its third consecutive quarter of missing sales estimates.
Global unit case volumes showed positive momentum, growing 2% during the quarter. The Asia Pacific region led this growth with a 6% increase, demonstrating strong consumer demand in key markets.
Price/mix growth reached 9%, substantially exceeding market expectations of 6.71%. This growth reflects successful pricing strategies and favorable product mix across markets, particularly in North America where price/mix grew by 12%.
In the North American market, unit case volume increased by 1%, driven by growth in several categories including sparkling flavors, juice, value-added dairy, and plant-based beverages. The company’s flagship Trademark Coca-Cola products also showed strong performance in the region.
Latin America delivered solid results with net revenue growing 3%. The region saw a notably strong price/mix increase of 23%, while unit case volume grew 2%. The growth was primarily led by increased consumption of Coca-Cola branded drinks.
The company’s full-year organic revenue grew 12%, surpassing its own target of 10%. This growth came despite challenges including cautious consumer spending, less favorable commodity costs, and challenging trends in international markets.
In the retail channel, Coca-Cola gained market share in non-alcoholic ready-to-drink beverages, with particular strength in Coca-Cola branded products, juice, value-added dairy, and plant-based beverages.
Looking ahead to 2025, Coca-Cola has provided guidance for organic revenue growth of 5% to 6%, along with adjusted earnings growth of 2% to 3%. CFO John Murphy indicated that 2025 is expected to bring “a more normalized pricing environment.”
The company’s performance in the foodservice sector shows promising developments. Notably, Costco will be converting its food court fountain business back to Coca-Cola from PepsiCo, representing a key win in the competitive beverage space.
CEO James Quincey emphasized the company’s ability to navigate complex market conditions, citing Coca-Cola’s global scale and local market expertise as key advantages in capturing market opportunities.
The company’s stock performance has remained resilient, showing a 7% increase over the past year. This stands in contrast to PepsiCo’s 16% decline during the same period, although both have lagged behind the S&P 500’s 20% gain.
Bank of America analyst Bryan Spillane noted that Coca-Cola stands out among consumer staple companies for delivering growth in line with targets, maintaining “a decent balance between volume growth and price.”
UBS analyst Peter Grom highlighted Coca-Cola’s ability to deliver strong mid-single digit organic revenue growth in an environment where many global staples peers struggle to achieve their targets.
The company continues to adapt to changing market conditions, including potential challenges from tariffs and inflation in agricultural commodities, particularly affecting orange juice prices. These factors will require ongoing management attention as the company moves through 2025.
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