Global Unit Case Volume Grew 1%
Net Revenues Grew 3%; Organic Revenues
(Non-GAAP) Grew 11%
Operating Income Declined 36%; Comparable
Currency Neutral Operating Income (Non-GAAP) Grew 13%
Operating Margin Was 18.9% Versus 30.7% in the
Prior Year; Comparable Operating Margin (Non-GAAP) Was 32.4% Versus
31.8% in the Prior Year
EPS Grew 3% to $0.74; Comparable EPS (Non-GAAP)
Grew 7% to $0.72
The Coca-Cola Company today reported first quarter 2024 results.
“We’re encouraged by our start to 2024, delivering another quarter
of volume, topline and earnings growth amidst a dynamic backdrop,”
said James Quincey, Chairman and CEO of The Coca-Cola Company. “We
believe our global system is primed for sustained success, thanks
to the right strategies, clear alignment, a powerful portfolio and
strong execution.”
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240430596387/en/
Highlights
Quarterly Performance
- Revenues: Net revenues grew 3% to $11.3 billion, and
organic revenues (non-GAAP) grew 11%. Revenue performance included
13% growth in price/mix and a 2% decline in concentrate sales.
Concentrate sales were 3 points behind unit case volume, largely
due to the timing of concentrate shipments and the impact of one
less day in the quarter.
- Operating margin: Operating margin was 18.9% versus
30.7% in the prior year, while comparable operating margin
(non-GAAP) was 32.4% versus 31.8% in the prior year. The operating
margin decline was driven by items impacting comparability,
including a charge of $765 million related to the remeasurement of
our contingent consideration liability to fair value in conjunction
with our acquisition of fairlife, LLC (“fairlife”) in 2020 and a
non-cash impairment charge of $760 million related to the BODYARMOR
trademark, as well as currency headwinds. Comparable operating
margin (non-GAAP) expansion was primarily driven by the impact of
refranchising bottling operations and strong topline growth,
partially offset by currency headwinds and an increase in marketing
investments.
- Earnings per share: EPS grew 3% to $0.74, while
comparable EPS (non-GAAP) grew 7% to $0.72. EPS performance
included the impact of a 7-point currency headwind, while
comparable EPS (non-GAAP) performance included the impact of a
9-point currency headwind.
- Market share: The company gained value share in total
nonalcoholic ready-to-drink (NARTD) beverages.
- Cash flow: Cash flow from operations was $528 million,
an increase of $368 million versus the prior year, driven by strong
business performance and working capital initiatives, partially
offset by currency headwinds. Free cash flow (non-GAAP) was $158
million, an increase of $274 million versus the prior year.
Company Updates
- Trademark Coca-Cola led growth supported by broad
innovation: With consumers increasing their engagement across
various social media platforms, the company launched Coca-Cola
Happy Tears Zero Sugar, its first product sold exclusively on
social media in the United States and Great Britain. Building on
the Coke Creations platform, Happy Tears reached consumers with a
limited-edition beverage inspired by tears of joy from small acts
of kindness. “Hype kits” containing Coca-Cola Happy Tears Zero
Sugar and kindness-themed accessories sold out in less than 24
hours and garnered more than 2 billion impressions. In the quarter,
the company also introduced Foodmarks by Coca-Cola — as part of the
“Recipe for Magic” platform — in over 4,000 locations worldwide. To
drive excitement, unique dining experiences were created that pair
Coke with meals and local culture. In Thailand, legendary
restaurants were transformed into Foodmarks, celebrating street
food, music and Coca-Cola. This kind of marketing, which connects
consumption occasions with live experiences and consumer passion
points, contributed to Trademark Coca-Cola value share gains and
volume growth ahead of total company growth. The company also
continued to meet consumers’ evolving needs by extending offerings
and distribution with affordable and premium packages. In Africa,
packages at affordable price points, such as returnable glass and
plastic, grew volume double digits for the second consecutive
quarter. In the United States, the company continued to expand
mini-can availability through mini-can variety packs in the club
channel.
- Continuing to drive digital capabilities: The company
continued to leverage digital tools to deepen end-to-end
relationships with consumers and customers. For example, the
company used scannable codes on its packaging to engage consumers,
collect first-party data and drive transactions. In the first
quarter, there were over 200 active connected packs in more than 40
global markets offering exclusive personalized experiences to
consumers. Additionally, the company and its bottling partners
continue to invest in digitizing their customer base by integrating
fragmented trade customers into B2B platforms. In the first
quarter, there was an 8% increase of connected customers compared
to the prior year, reaching nearly 8 million customers on B2B
platforms. The company continues to utilize the power of AI, as
AI-enabled suggested orders are fueling growth. In Latin America,
suggested order capabilities have benefited over 3 million outlets,
while in India, retailers are leveraging AI-powered suggested order
recommendations on Coke Buddy, a customer engagement platform, to
place bulk orders via the app. At the shopper level, digital
capabilities enabled bottling partners to personalize point-of-sale
messaging and drive basket incidence more effectively and
efficiently. In Japan’s vending channel, the Coke On app has
reached over 50 million downloads and accounts for more than 1
million transactions per day.
Operating Review – Three
Months Ended March 29, 2024
Revenues
and Volume
Percent Change
Concentrate Sales1
Price/Mix
Currency Impact
Acquisitions, Divestitures and
Structural Changes, Net
Reported Net Revenues
Organic Revenues2
Unit Case Volume3
Consolidated
(2)
13
(6)
(2)
3
11
1
Europe, Middle East & Africa
(6)
22
(18)
0
(3)
15
2
Latin America
(1)
22
(11)
0
10
22
4
North America
0
7
0
0
7
7
0
Asia Pacific
(1)
8
(3)
3
7
7
(2)
Global Ventures4
2
(1)
3
0
3
1
1
Bottling Investments
6
6
(5)
(15)
(7)
13
(7)
Operating Income and EPS
Percent Change
Reported Operating Income
Items Impacting Comparability
Currency Impact
Comparable Currency Neutral
Operating Income2
Consolidated
(36)
(41)
(8)
13
Europe, Middle East & Africa
(5)
1
(16)
10
Latin America
10
1
(8)
17
North America
(57)
(68)
0
11
Asia Pacific
16
4
(5)
17
Global Ventures
7
8
3
(4)
Bottling Investments
13
(3)
(3)
19
Percent Change
Reported EPS
Items Impacting Comparability
Currency Impact
Comparable Currency Neutral
EPS2
Consolidated
3
(4)
(9)
15
Note: Certain rows may not add due to rounding. 1
For Bottling Investments, this represents
the percent change in net revenues attributable to the increase
(decrease) in unit case volume computed based on total sales
(rather than average daily sales) in each of the corresponding
periods after considering the impact of structural changes, if
any.
2
Organic revenues, comparable currency
neutral operating income and comparable currency neutral EPS are
non-GAAP financial measures. Refer to the Reconciliation of GAAP
and Non-GAAP Financial Measures section.
3
Unit case volume is computed based on
average daily sales.
4
Due to the combination of multiple
business models in the Global Ventures operating segment, the
composition of concentrate sales and price/mix may fluctuate
materially from period to period. Therefore, the company places
greater focus on revenue growth as the best indicator of underlying
performance of the Global Ventures operating segment.
In addition to the data in the preceding tables, operating
results included the following:
Consolidated
- Unit case volume grew 1%. Developed markets were even, while
developing and emerging markets grew low single digits, driven by
growth in Brazil, the Philippines and Nigeria.
Unit case volume performance included the following:
- Sparkling soft drinks grew 2%, led by strong performance in
Latin America. Trademark Coca-Cola grew 2%, driven by growth in
Latin America, Asia Pacific and North America. Coca-Cola Zero Sugar
grew 6%, driven by growth in Latin America, Europe, Middle East and
Africa, and North America. Sparkling flavors were even, as growth
in Europe, Middle East and Africa and Latin America was offset by a
decline in Asia Pacific.
- Juice, value-added dairy and plant-based beverages grew 2%, led
by North America.
- Water, sports, coffee and tea declined 2%. Water declined 2%,
driven by Asia Pacific and North America. Sports drinks declined
3%, as growth in Latin America and Europe, Middle East and Africa
was more than offset by a decline in North America. Coffee declined
3%, primarily due to the performance of Costa coffee in the United
Kingdom. Tea grew 2%, driven by growth in Europe, Middle East and
Africa and Latin America.
- Price/mix grew 13%. Approximately 6 points were driven by
pricing from markets experiencing intense inflation, with the
remainder driven by pricing actions in the marketplace and
favorable mix. Concentrate sales were 3 points behind unit case
volume, primarily due to the timing of concentrate shipments as
well as the impact of one less day in the quarter.
- Operating income declined 36%, driven by items impacting
comparability, including a charge of $765 million related to the
remeasurement of our contingent consideration liability to fair
value in conjunction with our acquisition of fairlife and a
non-cash impairment charge of $760 million related to the BODYARMOR
trademark, as well as currency headwinds. Comparable currency
neutral operating income (non-GAAP) grew 13%. Performance was
driven by organic revenue (non-GAAP) growth across all operating
segments, partially offset by an increase in marketing
investments.
Europe, Middle East &
Africa
- Unit case volume grew 2%, driven by growth in water, sports,
coffee and tea as well as sparkling flavors. Growth was led by
Nigeria, Germany and South Africa.
- Price/mix grew 22%. Approximately two-thirds was driven by
pricing from markets experiencing intense inflation, with the
remainder driven primarily by pricing actions across operating
units. Concentrate sales were 8 points behind unit case volume,
primarily due to the timing of concentrate shipments as well as the
impact of one less day in the quarter.
- Operating income declined 5%, which included a 15-point
currency headwind and items impacting comparability. Comparable
currency neutral operating income (non-GAAP) grew 10%, primarily
driven by strong organic revenue (non-GAAP) growth, partially
offset by higher operating expenses and an increase in marketing
investments.
- The company gained value share in total NARTD beverages, led by
share gains in Nigeria, South Africa and France.
Latin America
- Unit case volume grew 4%, driven by growth in Trademark
Coca-Cola and water, sports, coffee and tea. Growth was led by
Brazil and Mexico.
- Price/mix grew 22%. Approximately three-fourths was driven by
the impact of inflationary pricing in Argentina, with the remainder
driven by pricing actions in the marketplace, partially offset by
category mix. Concentrate sales were 5 points behind unit case
volume, primarily due to the timing of concentrate shipments and
one less day in the quarter.
- Operating income grew 10%, which included a 7-point currency
headwind and items impacting comparability. Comparable currency
neutral operating income (non-GAAP) grew 17%, primarily driven by
strong organic revenue (non-GAAP) growth, partially offset by an
increase in marketing investments.
- The company lost value share in total NARTD beverages, as share
gains in Mexico, Colombia and Ecuador were more than offset by
losses in Argentina, Chile and Brazil.
North America
- Unit case volume was even as growth in juice, value-added dairy
and plant-based beverages and Trademark Coca-Cola was offset by a
decline in water, sports, coffee and tea.
- Price/mix grew 7%, driven by pricing actions in the marketplace
and favorable category mix. Concentrate sales were in line with
unit case volume.
- Operating income declined 57% for the quarter, driven by items
impacting comparability, including a non-cash impairment charge of
$760 million related to the BODYARMOR trademark. Comparable
currency neutral operating income (non-GAAP) grew 11%, primarily
driven by organic revenue (non-GAAP) growth.
- The company gained value share in total NARTD beverages, driven
by sparkling soft drinks, value-added dairy, juice and water.
Asia Pacific
- Unit case volume declined 2%, as growth in Trademark Coca-Cola
and juice, value-added dairy and plant-based beverages was more
than offset by a decline in water, sports, coffee and tea. Growth
in the Philippines, India, Vietnam and Indonesia was more than
offset by a decline in China.
- Price/mix grew 8%, primarily driven by favorable category mix
and pricing actions in the marketplace. Concentrate sales were 1
point ahead of unit case volume, primarily due to the timing of
concentrate shipments.
- Operating income grew 16%, which included items impacting
comparability. Comparable currency neutral operating income
(non-GAAP) grew 17%, driven by organic revenue (non-GAAP) growth,
partially offset by an increase in marketing investments.
- The company gained value share in total NARTD beverages, led by
share gains in the Philippines, South Korea and Japan.
Global Ventures
- Net revenues grew 3%, and organic revenues (non-GAAP) grew
1%.
- Operating income grew 7%, which included items impacting
comparability and a 3-point currency tailwind. Comparable currency
neutral operating income (non-GAAP) declined 4%, driven by an
increase in operating expenses and marketing investments.
Bottling Investments
- Unit case volume declined 7%, as growth in South Africa was
more than offset by the impact of refranchising bottling
operations.
- Price/mix grew 6%, driven by pricing actions across most
markets as well as favorable mix.
- Operating income grew 13%, which included items impacting
comparability and a 3-point currency headwind. Comparable currency
neutral operating income (non-GAAP) grew 19%, driven by organic
revenue (non-GAAP) growth, partially offset by higher operating
expenses.
Outlook
The 2024 outlook information provided below includes
forward-looking non-GAAP financial measures, which management uses
in measuring performance. The company is not able to reconcile
full-year 2024 projected organic revenues (non-GAAP) to full-year
2024 projected reported net revenues, full-year 2024 projected
comparable net revenues (non-GAAP) to full-year 2024 projected
reported net revenues, full-year 2024 projected underlying
effective tax rate (non-GAAP) to full-year 2024 projected reported
effective tax rate, full-year 2024 projected comparable currency
neutral EPS (non-GAAP) to full-year 2024 projected reported EPS, or
full-year 2024 projected comparable EPS (non-GAAP) to full-year
2024 projected reported EPS without unreasonable efforts because it
is not possible to predict with a reasonable degree of certainty
the exact timing and exact impact of acquisitions, divestitures and
structural changes throughout 2024; the exact timing and exact
amount of items impacting comparability throughout 2024; and the
exact impact of fluctuations in foreign currency exchange rates
throughout 2024. The unavailable information could have a
significant impact on the company’s full-year 2024 reported
financial results.
Full Year 2024
The company expects to deliver organic revenue (non-GAAP) growth
of 8% to 9%, which consists of operating performance at the high
end of the company’s long-term growth model and the anticipated
pricing impact of a number of markets experiencing intense
inflation. — Updated
For comparable net revenues (non-GAAP), the company expects a 4%
to 5% currency headwind based on the current rates and including
the impact of hedged positions. Comparable EPS (non-GAAP)
percentage growth is expected to include a 7% to 8% currency
headwind based on the current rates and including the impact of
hedged positions. The majority of currency headwinds are due to
currency devaluation resulting from intense inflation. —
Updated
For comparable net revenues (non-GAAP), the company expects a 4%
to 5% headwind from acquisitions, divestitures and structural
changes. Comparable EPS (non-GAAP) is expected to include an
approximate 2% headwind from acquisitions, divestitures and
structural changes. — No Update
The company’s underlying effective tax rate (non-GAAP) is
estimated to be 19.0%. This does not include the impact of ongoing
tax litigation with the U.S. Internal Revenue Service, if the
company were not to prevail. — Updated
The company expects to deliver comparable currency neutral EPS
(non-GAAP) growth of 11% to 13%. — Updated
The company expects comparable EPS (non-GAAP) growth of 4% to
5%, versus $2.69 in 2023. — No Update
The company expects to generate free cash flow (non-GAAP) of
approximately $9.2 billion through cash flow from operations of
approximately $11.4 billion, less capital expenditures of
approximately $2.2 billion. This does not include any potential
payments related to ongoing tax litigation with the IRS. — No
Update
Second Quarter 2024
Considerations — New
Comparable net revenues (non-GAAP) are expected to include an
approximate 6% currency headwind based on the current rates and
including the impact of hedged positions, in addition to an
approximate 5% to 6% headwind from acquisitions, divestitures and
structural changes.
Comparable EPS (non-GAAP) percentage growth is expected to
include an approximate 8% to 9% currency headwind based on the
current rates and including the impact of hedged positions, in
addition to an approximate 2% headwind from acquisitions,
divestitures and structural changes.
Notes
- All references to growth rate percentages and share compare the
results of the period to those of the prior year comparable period,
unless otherwise noted.
- All references to volume and volume percentage changes indicate
unit case volume, unless otherwise noted. All volume percentage
changes are computed based on average daily sales, unless otherwise
noted. “Unit case” means a unit of measurement equal to 192 U.S.
fluid ounces of finished beverage (24 eight-ounce servings), with
the exception of unit case equivalents for Costa non-ready-to-drink
beverage products which are primarily measured in number of
transactions. “Unit case volume” means the number of unit cases (or
unit case equivalents) of company beverages directly or indirectly
sold by the company and its bottling partners to customers or
consumers.
- “Concentrate sales” represents the amount of concentrates,
syrups, beverage bases, source waters and powders/minerals (in all
instances expressed in unit case equivalents) sold by, or used in
finished beverages sold by, the company to its bottling partners or
other customers. For Costa non-ready-to-drink beverage products,
“concentrate sales” represents the amount of beverages, primarily
measured in number of transactions (in all instances expressed in
unit case equivalents) sold by the company to customers or
consumers. In the reconciliation of reported net revenues,
“concentrate sales” represents the percent change in net revenues
attributable to the increase (decrease) in concentrate sales volume
for the geographic operating segments and the Global Ventures
operating segment after considering the impact of structural
changes, if any. For the Bottling Investments operating segment,
this represents the percent change in net revenues attributable to
the increase (decrease) in unit case volume computed based on total
sales (rather than average daily sales) in each of the
corresponding periods after considering the impact of structural
changes, if any. The Bottling Investments operating segment
reflects unit case volume growth for consolidated bottlers
only.
- “Price/mix” represents the change in net operating revenues
caused by factors such as price changes, the mix of products and
packages sold, and the mix of channels and geographic territories
where the sales occurred.
- First quarter 2024 financial results were impacted by one less
day as compared to first quarter 2023, and fourth quarter 2024
financial results will be impacted by two additional days as
compared to fourth quarter 2023. Unit case volume results for the
quarters are not impacted by the variances in days due to the
average daily sales computation referenced above.
Conference Call
The company is hosting a conference call with investors and
analysts to discuss first quarter operating results today, April
30, 2024, at 8:30 a.m. ET. The company invites participants to
listen to a live webcast of the conference call on the company’s
website, http://www.coca-colacompany.com, in the “Investors”
section. An audio replay in downloadable digital format and a
transcript of the call will be available on the website within 24
hours following the call. Further, the “Investors” section of the
website includes certain supplemental information and a
reconciliation of non-GAAP financial measures to the company’s
results as reported under GAAP, which may be used during the call
when discussing financial results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240430596387/en/
Investors and Analysts: Robin
Halpern, koinvestorrelations@coca-cola.com Media: Scott Leith, sleith@coca-cola.com
Grafico Azioni Coca Cola (NYSE:KO)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Coca Cola (NYSE:KO)
Storico
Da Mag 2023 a Mag 2024