On Wednesday, Coca-Cola Company
Revenue performance included a 10% growth in price/mix and a 2% decline in concentrate sales. Concentrate sales were 1 point behind unit case volume, primarily due to the timing of concentrate shipments.
Adjusted operating margin was 30.7% versus 29.7% in the prior year, driven by a charge of $919 million related to the remeasurement of the contingent consideration liability to fair value related to the acquisition of Fairlife in 2020 and currency headwind.
Adjusted EPS reached $0.77, beating the consensus estimate of $0.74, up 5% year-over-year. Reported EPS declined 7% to $0.66.
Unit case volume declined by 1%. Growth led by Brazil, the Philippines, and Japan was more than offset by declines in China, Mexico, and Türkiye.
Outlook: Coca-Cola forecasts 2024 organic revenue growth of approximately 10%, compared to prior guidance of 9%-10%.
The global beverage company expects to deliver adjusted EPS growth of 14% to 15% compared to prior expectations of 13% - 15%.
For the fourth quarter, Coca-Cola says adjusted net revenues are expected to include an approximate 4% currency headwind and a 4% to 5% headwind from acquisitions, divestitures, and structural changes.
Adjusted EPS growth is expected to include an approximate 10% and 3% to 4% headwind from acquisitions, divestitures, and structural changes.
For fiscal 2025, Coca-Cola adjusted net revenues and EPS percentage growth are expected to include a low single-digit and mid-single-digit currency headwind, respectively.
Price Action: KO stock is down 1.28% at $68.58 during the premarket session at last check Wednesday.
