Coca-Cola Co., the beverage conglomerate, declared its fourth-quarter profits, which observed a slight dip of 3 percent from the preceding year. The decline in other income and mounting interest expenses played a significant role in this trajectory, despite a commendable revenue jump of 7 percent.
The company managed to meet analysts' predictions as per the adjusted earnings per share, and surpassed their revenue estimates for the quarter. Coca-Cola has devised its adjusted earnings and expectations for organic revenue growth for 2024.
The net income declared to Coca-Cola's shareholders for the fourth quarter exhibited a nominal decrease, settling at $1.97 billion or $0.46 per share, from the earlier $2.03 billion or $0.47 per share within the same quarter of the previous year. Barring certain elements, the comparable earnings per share amounted to $0.49, witnessing a growth trajectory from the preceding year's $0.45.
A poll involving 17 analysts conducted by Thomson Reuters anticipated an average earnings report of $0.49 per share for the quarter, which generally doesn't take into account special items.
Driven by price/mix growth by 9% and concentrate sales' growth of 3%, the net operating revenues for the quarter soared by 7 percent to reach $10.85 billion, from the past year's figure of $10.13 billion. Analysts projected revenues to touch down at $10.67 billion for the quarter.
The quarter also observed a growth in organic revenues by 12 percent. There was a 2 percent growth in global unit case volume. The growth rate remained flat in developed markets, with expansion in Mexico and Germany getting balanced by US and Chile's descending curves. The growth in developing and emerging markets was recorded at 4 percent, fueled by Brazil and India's surge.
The value share escalated in total nonalcoholic ready-to-drink (NARTD) beverages. With an outlook to the first quarter, Coca-Cola expects its comparable net revenues to include an estimated 4 percent currency headwind and almost a 2 percent headwind from acquisitions, divestitures, and structural amendments. Comparable earnings expected an approximate 8 percent currency headwind and around 1 percent headwind from acquisitions, divestitures, and structural changes.
For the fiscal year of 2024, Coca-Cola now predicts its comparable currency-neutral earnings to witness a growth between 8 to 10 percent and comparable earnings between 4 to 5 percent from the reported $2.69 per share in 2023, which denotes a range of $2.80 to $2.82 per share.
The company also anticipates an organic revenue growth between 6 to 7 percent, factoring in a 2 to 3 percent currency headwind and a 4 to 5 percent headwind from acquisitions, divestitures, and structural amendments. The market anticipates an earnings of $2.81 per share, correlating to a 3.5 percent growth in revenue amounting to $47.08 billion for the year.
James Quincey, Chairman and CEO, expressed confidence in the company's broad-spectrum strategy, robust portfolio, and harmonized system, anticipating it to create continued value for stakeholders in 2024 and beyond.
