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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.
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.com 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.
- Comparable EPS (non-GAAP) is expected to include an approximate 2% currency headwind based on the current rates and including the impact of hedged positions.
- The first quarter has five additional days compared to first quarter 2020.
- This does not include any potential payments related to the ongoing tax litigation with the IRS.
- The company is not able to reconcile full year 2021 projected organic revenues (non-GAAP) to full year 2021 projected reported net revenues
Revenue & Expenses
Visualization of income flow from segment revenue to net income