Coca-Cola's 2024 Earnings: Revenue Surge, EPS Lags Behind

Coca-Cola reported its full year 2024 earnings on February 11, 2025, with revenues beating expectations but earnings per share (EPS) falling short. The beverage giant's strong organic revenue growth, driven by price/mix and concentrate sales, contributed to its overall revenue performance. However, higher input costs, operating expenses, and currency headwinds impacted its EPS.



Coca-Cola's organic revenue growth was primarily driven by price/mix and concentrate sales. In the fourth quarter, price/mix grew by 9%, with 4% coming from markets dealing with hyperinflation and the rest from price hikes and favorable mix. Concentrate sales increased by 5% in the quarter, 3 points ahead of unit case volume, primarily driven by two additional days and the timing of concentrate shipments. For the full year, concentrate sales grew by 2%, 1 point ahead of unit case volume, primarily due to the timing of concentrate shipments.



The company's refranchising of bottling operations had a significant impact on both its operating margin and comparable operating margin. Refranchising allowed Coca-Cola to focus more on its core competencies, reducing capital expenditure and operational costs. This strategic move enabled the company to improve its operating margin and comparable operating margin, contributing to its overall success in 2024.



Despite the strong revenue performance, Coca-Cola's EPS fell short of expectations. Higher input costs, operating expenses, and currency headwinds offset the positive impact of strong organic revenue growth and refranchising bottling operations. The company's EPS performance included the impact of a 9-point currency headwind for the full year.



James Quincey, Chairman and CEO of The Coca-Cola Company, stated, "Our all-weather strategy is working, and we continue to demonstrate our ability to lead through dynamic external environments. Our global scale, coupled with local-market expertise and the unwavering dedication of our people and our system, uniquely position us to capture the vast opportunities ahead."

In conclusion, Coca-Cola's 2024 earnings showed strong revenue growth driven by price/mix and concentrate sales, but EPS lagged behind due to higher input costs, operating expenses, and currency headwinds. The company's refranchising of bottling operations had a significant impact on its operating margin and comparable operating margin, contributing to its overall success in 2024. Despite the EPS shortfall, Coca-Cola remains well-positioned to capture future opportunities.