The Coca-Cola Company reported its financial results for the fourth quarter and the entire year of 2024. Key highlights included revenue growth and improved profit metrics.
Revenue and Operating Income Growth
In Q4 2024, Coca-Cola increased its net revenues by 6%, reaching $11.5 billion. Key drivers included a 14% rise in organic revenues, influenced by a 9% increase in price/mix and a 5% rise in concentrate sales. Operating income rose by 19%, with comparable currency-neutral operating income increasing by 22%.
Company Challenges and Achievements
Despite positive outcomes, cash flow from operations for the full year was $6.8 billion, down 41% from the previous year due to a $6.0 billion deposit to the U.S. IRS related to ongoing tax disputes. The company faced currency fluctuations impacting EPS by 1 point for the quarter and 9 points for the full year. Efforts in package variety and brand leveraging contributed to volume growth.
Future Expectations for Coca-Cola
Coca-Cola anticipates 5-6% organic revenue growth in the future with a 3-4% currency headwind for comparable net revenues. The effective tax rate is projected at 20.8% for 2025, up from 18.6% in 2024. EPS growth is expected to be 8-10% currency-neutral and 2-3% compared to 2024.
Coca-Cola closed 2024 with strong results and optimistic forecasts for the future. However, currency shifts and tax policy changes might impact future performance.
