What drove KO's earnings growth in 2024?

Coca-Cola's (KO) earnings growth in 2024 was primarily driven by strong revenue growth, effective pricing strategies, and improved gross and operating margins:

1. **Revenue Growth**: Total revenue grew by 0.03% to $47.06 billion, with organic revenue achieving a notable 9% increase in the third quarter. This growth was attributed to a 9% rise in price/mix and a 6% increase in concentrate sales.
2. **Price Mix Growth**: The price mix grew by 10%, primarily driven by pricing actions and mix. This reflects the company's successful strategy of passing on inflationary pressures to consumers while maintaining revenue growth.
3. **Gross Margin Improvement**: Coca-Cola's comparable gross margin increased by approximately 70 basis points. This improvement suggests enhanced operational efficiency and cost management.
4. **Operating Margin Expansion**: The comparable operating margin improved by approximately 100 basis points. This expansion is a result of strong business performance and the impact of refranchising bottling operations, despite currency headwinds and increased marketing investments.
5. **Unit Case Volume Trends**: While unit case volume declined by 1% in the third quarter, it grew by 2% overall. The volume growth in key markets like India, Brazil, and the Philippines contributed positively to revenue and earnings growth.
6. **Currency Headwinds**: Although currency headwinds posed a challenge, impacting comparable EPS by 9% for the full year, Coca-Cola's strategic actions and market performance in key regions helped mitigate these effects.

In summary, Coca-Cola's earnings growth in 2024 was driven by robust revenue growth, particularly from price/mix and concentrate sales, along with improvements in gross and operating margins. Despite currency headwinds and volume declines in certain regions, the company's strategic initiatives and market performance in key growth areas supported overall earnings growth.