https://assets.capyfin.com/instruments/678fdc13234e27009c5d574e.png avatar
Coca-Cola
🇺🇸 NYSE:KO
View Company
OverviewEarningsDividends
•
Dec 31, 2019

Coca-Cola Q4 2019 Earnings Report

Coca-Cola reported strong growth in Q4 2019, achieving or exceeding all full-year guidance.

Key Takeaways

Coca-Cola reported a strong fourth quarter and full year 2019, with net revenues up 16% for the quarter and organic revenues up 7%. The company continued to execute its growth strategy, delivering strong revenue and profit growth while gaining value share globally.

Net revenues grew 16% for the quarter, reaching $9.1 billion.

Organic revenues (non-GAAP) increased by 7% for the quarter.

EPS grew 134% to $0.47, and comparable EPS (non-GAAP) grew 1% to $0.44.

The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Total Revenue
$9.07B
Previous year: $7.06B
+28.5%
EPS
$0.44
Previous year: $0.43
+2.3%
Organic Revenue Growth
7%
Unit Case Volume Growth
3%
Gross Profit
$5.5B
Previous year: $4.34B
+26.9%
Cash and Equivalents
$6.48B
Previous year: $9.08B
-28.6%
Free Cash Flow
$1.85B
Previous year: $1.2B
+54.3%
Total Assets
$86.4B
Previous year: $83.2B
+3.8%

Coca-Cola

Coca-Cola

Coca-Cola Revenue by Segment

Coca-Cola Revenue by Geographic Location

Forward Guidance

The company expects to deliver approximately 5% growth in organic revenues (non-GAAP) and approximately 8% growth in comparable currency neutral operating income (non-GAAP).

Positive Outlook

  • The company expects a slight tailwind from acquisitions, divestitures and structural items for comparable net revenues (non-GAAP).
  • The company’s underlying effective tax rate (non-GAAP) is estimated to be 19.5%.
  • The company expects to deliver comparable EPS (non-GAAP) of approximately $2.25 versus $2.11 in 2019, a 7% increase.
  • The company expects to deliver free cash flow (non-GAAP) of approximately $8.0 billion.
  • Comparable net revenues (non-GAAP) are expected to include a 0% to 1% tailwind from acquisitions, divestitures and structural items.

Challenges Ahead

  • The company is not able to reconcile full year 2020 projected organic revenues (non-GAAP) to full year 2020 projected reported net revenues.
  • The company is not able to reconcile full year 2020 projected comparable currency neutral operating income (non-GAAP) to full year 2020 projected reported operating income.
  • The company is not able to reconcile full year 2020 projected comparable EPS (non-GAAP) to full year 2020 projected reported EPS without unreasonable efforts.
  • For comparable net revenues (non-GAAP), the company expects a 0% to 1% currency headwind based on the current rates and including the impact of hedged positions.
  • Comparable operating income (non-GAAP) is expected to include a 5% currency headwind based on the current rates and including the impact of hedged positions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Coca-Cola