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Mar 29, 2024

Coca-Cola Consolidated Q1 2024 Earnings Report

Coca-Cola Consolidated reported solid first quarter results driven by improved profit margins and strong free cash flow, and announced intention to repurchase up to $3.1 billion of its common stock.

Key Takeaways

Coca-Cola Consolidated's first quarter 2024 results showed a net sales increase of 1% to $1.6 billion. The company's operating income increased by 5% to $215.4 million, and the operating margin improved by 40 basis points to 13.5%. They also announced the intention to repurchase up to $3.1 billion of its common stock.

Net sales increased by 1% to $1.6 billion, driven by annual price increases.

Operating income rose by 5% to $215.4 million, with an operating margin of 13.5%.

Gross profit increased by 3% to $640.6 million, with gross margin improving to 40.2%.

The company intends to repurchase up to $3.1 billion of its common stock.

Total Revenue
$1.59B
Previous year: $1.57B
+1.3%
EPS
$17.3
Previous year: $16.2
+6.8%
Gross margin
40.2%
Previous year: 39.7%
+1.3%
Gross Profit
$641M
Previous year: $624M
+2.6%
Cash and Equivalents
$401M
Previous year: $290M
+38.5%
Free Cash Flow
$118M
Total Assets
$4.3B

Coca-Cola Consolidated

Coca-Cola Consolidated

Coca-Cola Consolidated Revenue by Segment

Forward Guidance

The company intends to utilize its solid financial position and projected strong cash flow to delever over the coming years while maintaining our current regular quarterly dividend and a solid investment grade rating profile.

Positive Outlook

  • Optimize balance sheet by raising a prudent amount of debt
  • Return cash to stockholders
  • Maintain current regular quarterly dividend
  • Maintain solid investment grade rating profile
  • Projected strong cash flow

Challenges Ahead

  • Increased costs due to inflation
  • Disruption of supply or unavailability or shortages of raw materials, fuel and other supplies
  • Changes in public and consumer perception and preferences
  • Changes in government regulations related to nonalcoholic beverages
  • Failure to attract, train and retain qualified employees while controlling labor costs, and other labor issues

Revenue & Expenses

Visualization of income flow from segment revenue to net income