Coca-Cola projects 5%-6% organic revenue growth and 8%-10% EPS growth for 2025 amid strategic investments. The company's chairman and CEO, James Quincey, highlighted a 7% comparable EPS growth for 2024, despite challenges like double-digit currency headwinds and bottler refranchising.
Coca-Cola (KO) delivered a stellar fourth-quarter performance, surpassing expectations despite facing currency headwinds and significant market share gains from rival PepsiCo (PEP) [1]. The company's impressive 2024 results, characterized by volume growth, robust organic revenue growth, and expanded gross and operating margins, have fueled optimism for the future [1].
According to James Quincey, Coca-Cola's chairman and CEO, the company gained overall market share and experienced broad-based growth across its global beverage categories [1]. This positive momentum extends beyond sparkling soft drinks, as the company also reports momentum in other categories such as value-added dairy and tea, reflecting a successful diversification strategy [1].
One of Coca-Cola's key successes in 2024 was the performance of Maaza, a mango-flavored fruit drink brand in India. The brand surpassed the $1 billion milestone in that country, marking its 30th billion-dollar brand [1].
Coca-Cola's strong 2024 performance has set the stage for an ambitious 2025, with the company projecting 5-6% organic revenue growth and 8-10% currency-neutral EPS growth [1]. Despite these ambitious targets, the company remains confident in its ability to deliver on its objectives, given the momentum of its business [1].
However, the first quarter of 2025 is expected to include a 3-4% currency headwind [1]. CFO John Murphy reassured investors that the company remains committed to growing its dividend, which it has done for 62 consecutive years [1].
In summary, Coca-Cola's robust 2024 performance and ambitious 2025 outlook, which includes 5-6% organic revenue growth and 8-10% currency-neutral EPS growth, reflect the company's successful diversification strategy and its ability to navigate currency headwinds and market challenges.
References:
[1] Benzinga. (2025, February 11). Coca-Cola Won Overall Share From Pepsi, Maaza Crosses 1 Billion Milestone: Analyst. https://www.benzinga.com/25/02/43647586/coca-cola-won-overall-share-from-pepsi-maaza-crosses-1-billion-milestone-analyst-says-never-seen-fundamentals-this-good-amid-strong-2025-outlook
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