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Sep 27, 2024
Coca-Cola Q3 2024 Earnings Report
Coca-Cola's Q3 2024 results were impacted by currency headwinds and a charge related to the fairlife acquisition, but demonstrated resilience with organic revenue growth.
Key Takeaways
Coca-Cola reported a 1% decline in net revenues, but organic revenues grew by 9%. EPS declined by 7% to $0.66, while comparable EPS grew by 5% to $0.77. The company gained value share in total nonalcoholic ready-to-drink beverages.
Net revenues declined 1%, while organic revenues (non-GAAP) grew 9%.
EPS declined 7% to $0.66, but comparable EPS (non-GAAP) grew 5% to $0.77.
Operating margin was 21.2% versus 27.4% in the prior year; comparable operating margin (non-GAAP) was 30.7% versus 29.7% in the prior year.
The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
Coca-Cola
Coca-Cola
Coca-Cola Revenue by Geographic Location
Revenue by Geographic Location
EMEA Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
The company expects to deliver organic revenue (non-GAAP) growth of approximately 10%. Comparable EPS (non-GAAP) growth is expected to include an approximate 9% currency headwind. The company expects to generate free cash flow excluding the IRS tax litigation deposit (non-GAAP) of approximately $9.2 billion.
Positive Outlook
- The company expects to deliver organic revenue (non-GAAP) growth of approximately 10%, 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.
- The company expects to generate free cash flow excluding the IRS tax litigation deposit (non-GAAP) of approximately $9.2 billion.
- Comparable net revenues (non-GAAP) are expected to include an approximate 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 4% to 5% headwind from acquisitions, divestitures and structural changes.
- The company expects elevated interest expense resulting from the debt issued to pay the IRS tax litigation deposit and the upcoming fairlife contingent consideration payment.
- The company will provide full-year 2025 guidance when it reports fourth quarter earnings.
Challenges Ahead
- For comparable net revenues (non-GAAP), the company expects an approximate 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 an approximate 9% currency headwind based on the current rates and including the impact of hedged positions. The majority of currency headwinds are due to devaluation resulting from intense inflation.
- For comparable net revenues (non-GAAP), the company expects a 4% to 5% headwind from acquisitions, divestitures and structural changes.
- Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 10% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 3% to 4% headwind from acquisitions, divestitures and structural changes.
- The company expects elevated interest expense resulting from the debt issued to pay the IRS tax litigation deposit and the upcoming fairlife contingent consideration payment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income