Coca-Cola Q4 Profit Down 3%, But Meets Estimates

(RTTNews) - Beverages giant Coca-Cola Co. (KO) reported Tuesday a profit for the fourth quarter that declined 3 percent from last year, reflecting steeply lower other income and higher interest expense, despite a 7 percent revenue growth.

Adjusted earnings per share met analysts' expectations, while quarterly revenues topped it. The company also initiated its adjusted earnings and organic revenue growth outlook for the full-year 2024.

For the fourth quarter, net income attributable to shareowners of Coca-Cola edged down to $1.97 billion or $0.46 per share from $2.03 billion or $0.47 per share in the prior-year quarter. Excluding items, comparable earnings per share were $0.49, compared to last year's $0.45.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter increased 7 percent to $10.85 billion from $10.13 billion in the same quarter last year, driven by 9 percent growth in price/mix and 3 percent growth in concentrate sales. Analysts expected revenues of $10.67 billion for the quarter.

Organic revenues also grew 12 percent in the quarter.

Global unit case volume grew 2 percent. Developed markets were even as growth in Mexico and Germany was offset by declines in the United States and Chile, while developing and emerging markets grew 4 percent, driven by growth in Brazil and India.

The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Looking ahead to the first quarter, Coca-Cola projects comparable net revenues to include an approximate 4 percent currency headwind and approximate 2 percent headwind from acquisitions, divestitures and structural changes. Comparable earnings are expected to include an approximate 8 percent currency headwind and approximate 1 percent headwind from acquisitions, divestitures and structural changes.

For fiscal 2024, the company now projects comparable currency neutral earnings to grow in a range of 8 to 10 percent and comparable earnings in a range of 4 to 5 percent from the $2.69 per share reported in 2023, implying earnings in a range of $2.80 to $2.82 per share.

It also now projects organic revenue growth of 6 to 7 percent, with a 2 to 3 percent currency headwind and 4 to 5 percent headwind from acquisitions, divestitures and structural changes.

The Street is looking for earnings of $2.81 per share on revenue growth of 3.5 percent to $47.08 billion for the year.

"As we begin a new year, we're confident that our all-weather strategy, powerful portfolio and harmonized system will continue to create value for our stakeholders in 2024 and for the long term," said James Quincey, Chairman and CEO.

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