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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.
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.comBottling Revenue
CapyFin.com 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