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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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