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Coca-Cola
🇺🇸 NYSE:KO
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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.

Total Revenue
$8.61B
Previous year: $9.07B
-5.0%
EPS
$0.47
Previous year: $0.44
+6.8%
Organic Revenue Growth
-3%
Previous year: 7%
-142.9%
Unit Case Volume Growth
-3%
Previous year: 3%
-200.0%
Gross Profit
$5.03B
Previous year: $5.5B
-8.5%
Cash and Equivalents
$6.8B
Previous year: $6.48B
+4.9%
Free Cash Flow
$3.21B
Previous year: $1.85B
+73.1%
Total Assets
$87.3B
Previous year: $86.4B
+1.1%

Coca-Cola

Coca-Cola

Coca-Cola Revenue by Segment

Coca-Cola 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.
  • 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

Company Overview

Full financial data and analysis

View Coca-Cola