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Dec 31, 2020
Coca-Cola Q4 2020 Earnings Report
Coca-Cola's Q4 2020 results reflected resilience amidst the global crisis, with sequential improvement in volume trends and progress in strategic transformation.
Key Takeaways
Coca-Cola reported a 5% decline in net revenues for Q4 2020, with organic revenues down by 3%. EPS decreased by 29% to $0.34, while comparable EPS grew by 6% to $0.47. The company saw improvement in volume trends compared to prior quarters and made progress on its strategic transformation.
Net revenues declined by 5%, and organic revenues decreased by 3%.
EPS declined by 29% to $0.34, while comparable EPS grew by 6% to $0.47.
Operating income grew by 8%, and comparable currency neutral operating income grew by 14%.
The company's value share in total nonalcoholic ready-to-drink (NARTD) beverages was even.
Revenue by Geographic Location
Forward Guidance
The company expects to deliver organic revenue (non-GAAP) percentage growth of high single digits. For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency tailwind based on the current rates and including the impact of hedged positions.
Positive Outlook
- The company expects to deliver organic revenue (non-GAAP) percentage growth of high single digits.
- For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency tailwind based on the current rates and including the impact of hedged positions.
- The company's underlying effective tax rate (non-GAAP) is estimated to be 19.5%.
- The company expects to deliver free cash flow (non-GAAP) of at least $8.5 billion through cash flow from operations of at least $10.0 billion and capital expenditures of approximately $1.5 billion.
- Given the above considerations, the company expects to deliver comparable EPS (non-GAAP) percentage growth of high single digits to low double digits versus $1.95 in 2020.
Challenges Ahead
- Comparable net revenues (non-GAAP) are expected to include a minimal currency impact based on the current rates and including the impact of hedged positions.
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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