Coca-Cola (NYSE:) has reported a positive start to 2024, with its first-quarter earnings and revenue surpassing analyst expectations. The beverage giant announced adjusted earnings per share (EPS) of $0.72, edging out the consensus estimate of $0.70. Revenue for the quarter also exceeded forecasts, coming in at $11.3 billion against the anticipated $11.02 billion.
The company’s net revenues grew by 3% compared to the same quarter last year, while organic revenues, which exclude the impact of currency fluctuations, acquisitions, and divestitures, saw an impressive 11% increase. This growth was attributed to a 13% rise in price/mix and despite a 2% decline in concentrate sales. The company’s global unit case volume also experienced a modest 1% growth. Coca-Cola’s operating income, however, saw a significant decline of 36%, primarily due to charges related to fairlife and BODYARMOR trademarks, as well as currency headwinds.
Chairman and CEO James Quincey expressed confidence in the company’s trajectory, stating, “We’re encouraged by our start to 2024, delivering another quarter of volume, topline and earnings growth amidst a dynamic backdrop.” The company’s strategic marketing initiatives, such as the launch of Coca-Cola Happy Tears Zero Sugar and the Foodmarks by Coca-Cola campaign, have been instrumental in driving volume growth and market share gains.
The stock responded positively to the earnings report, with shares rising 1.55% as investors reacted favorably to the earnings and revenue beat. This uptick reflects a market sentiment that is optimistic about Coca-Cola’s performance and future prospects.
Looking ahead, Coca-Cola has updated its full-year 2024 guidance, expecting organic revenue growth of 8% to 9%. The company anticipates a 4% to 5% currency headwind on comparable net revenues and a 7% to 8% currency headwind on comparable EPS growth. Despite these challenges, the company projects an 11% to 13% growth in comparable currency neutral EPS and a 4% to 5% growth in comparable EPS against the $2.69 reported in 2023.
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For the second quarter of 2024, Coca-Cola forecasts a 6% currency headwind on comparable net revenues and an 8% to 9% currency headwind on comparable EPS growth. The company remains committed to delivering value to its shareholders, with an expected free cash flow of approximately $9.2 billion for the full year.
Quincey concluded with a forward-looking statement, “We believe our global system is primed for sustained success, thanks to the right strategies, clear alignment, a powerful portfolio, and strong execution.”
