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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.
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
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