Coca-Cola (KO) posted another strong quarter as it gains ground on rival PepsiCo (PEP).
In its fourth quarter earnings report, which came out before the market opened on Tuesday, the company bested the Street’s estimates across the board. Revenue came in at $11.5 billion, compared to expectations of $10.67 billion. Earnings per share came in at $0.55, compared to expectations of $0.52. That was largely driven by higher price/mix, which grew 9%, while unit case volume increased 2%.
CEO James Quincey said the company continues «to lead through dynamic external environments» with «global scale» and «local-market expertise» that allows it to «capture the vast opportunities ahead.”
«It’s only a handful of these consumer staple companies that are actually delivering the kind of growth that you would expect, or growth in line with their targets,» Bank of America analyst Bryan Spillane told Yahoo Finance prior to earnings. The company strikes «a decent balance between volume growth and price.»
For the full year, organic revenue grew 12%, as higher prices helped counter headwinds like more cautious consumers, less favorable commodity costs, and more challenging trends in international markets.
«We believe [Coca-Cola’s] ability to deliver strong positive mid-single digit organic revenue growth in an environment where many global staples peers are likely to deliver positive low-single digit growth (and in some cases are struggling to hit their algorithm) continues to stand out,» UBS analyst Peter Grom said in a note prior to earnings.
In 2025, the company expects to deliver organic revenue growth of 5% to 6%, as well as adjusted earnings growth of 2% to 3%.
Shares of the beverage giant are up 7% in the past year, compared to a 16% drop for PepsiCo. It still trails behind the S&P 500’s (^GSPC) 20% gain.
Here’s what Coca-Cola reported in the fourth quarter, compared to what Wall Street expected, according to Bloomberg consensus estimates.
Revenue: $11.5 billion versus $10.67 billion
Adjusted earnings per share: $0.55 versus $0.52
Price/mix growth: 9% versus 6.71%
Unit case volume growth: +2% versus -0.21%
Spillane said previously if the Latin America market ends the year «better than the last couple of quarters … that would be a good sign for 2025.»
For Q4, the region’s net revenue grew 3%, while price/mix and unit case volume were up 23% and 2%, respectively, led by the growth of Coca-Cola drinks in the region.
In North America, unit case volume grew 1%, driven by «growth in sparkling flavors, juice, value-added dairy and plant-based beverages, and Trademark Coca-Cola.» Price/mix for the region also grew 12%, «driven by pricing actions in the marketplace and favorable mix,» the company said.
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