Coca-Cola Reports Fourth Quarter and Full-Year 2023 Results
Global Unit Case Volume Grew 2% for the Quarter and 2% for the Full Year
Net Revenues Grew 7% for the Quarter and 6% for the Full Year;
Organic Revenues (Non-GAAP) Grew 12% for the Quarter and 12% for the Full Year
Operating Income Grew 10% for the Quarter and 4% for the Full Year;
Comparable Currency Neutral Operating Income (Non-GAAP) Grew 20% for the Quarter and
16% for the Full Year
Fourth Quarter EPS Declined 2% to $0.46; Comparable EPS (Non-GAAP) Grew 10% to $0.49;
Full Year EPS Grew 13% to $2.47; Comparable EPS (Non-GAAP) Grew 8% to $2.69
Cash Flow from Operations Was $11.6 Billion for the Full Year, Up 5%;
Full-Year Free Cash Flow (Non-GAAP) Was $9.7 Billion for the Full Year, Up 2%
Company Provides 2024 Financial Outlook
ATLANTA--(BUSINESS WIRE)--February 13, 2024--
The Coca-Cola Company today reported fourth quarter and full-year 2023 results. “During the year, our people and partners rose to meet new challenges, allowing us to excel globally and deliver in a dynamic world, ” said James Quincey, Chairman and CEO of The Coca-Cola Company. “As we begin a new year, we’re confident that our all-weather strategy, powerful portfolio and harmonized system will continue to create value for our stakeholders in 2024 and for the long term.”
This press release features multimedia. View the full release here:
Highlights
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Quarterly / Full-Year Performance
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-- Revenues: For the quarter, net revenues grew 7% to $10.8 billion, and
organic revenues (non-GAAP) grew 12%, driven by 9% growth in price/mix
and 3% growth in concentrate sales. The quarter included one additional
day, which resulted in a 1-point tailwind to revenue growth. For the full
year, net revenues grew 6% to $45.8 billion, and organic revenues
(non-GAAP) grew 12%, driven by 10% growth in price/mix and 2% growth in
concentrate sales. For both the quarter and the full year, organic
revenue (non-GAAP) performance was strong across all operating segments.
-- Operating margin: For the quarter, operating margin was 21.0% versus
20.5% in the prior year, while comparable operating margin (non-GAAP) was
23.1% versus 22.7% in the prior year. For the full year, operating margin
was 24.7% versus 25.4% in the prior year, while comparable operating
margin (non-GAAP) was 29.1% versus 28.7% in the prior year. Operating
margin performance included items impacting comparability and currency
headwinds. For both the quarter and full year, comparable operating
margin (non-GAAP) expansion was primarily driven by strong topline growth,
partially offset by an increase in marketing investments versus the prior
year, as well as currency headwinds.
-- Earnings per share: For the quarter, EPS declined 2% to $0.46, while
comparable EPS (non-GAAP) grew 10% to $0.49. EPS performance included the
impact of a 14-point currency headwind, while comparable EPS (non-GAAP)
performance included the impact of a 13-point currency headwind. For the
full year, EPS grew 13% to $2.47, and comparable EPS (non-GAAP) grew 8%
to $2.69. EPS performance included the impact of an 8-point currency
headwind, while comparable EPS (non-GAAP) performance included the impact
of a 7-point currency headwind.
-- Market share: For both the quarter and the full year, the company
gained value share in total nonalcoholic ready-to-drink (NARTD)
beverages.
-- Cash flow: Cash flow from operations was $11.6 billion for the full
year, an increase of $581 million versus the prior year, driven by strong
business performance and working capital initiatives, partially offset by
a transition tax payment and currency headwinds. Free cash flow
(non-GAAP) was $9.7 billion for the full year, an increase of $213
million versus the prior year.
Company Updates
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-- Connecting with consumers through experiences and digital engagement:
The company continues to leverage its marketing transformation to build
globally scaled marketing platforms tailored to local consumers. In the
fourth quarter, "The World Needs More Santas" campaign was executed in
over 80 markets, continuing the company's rich history of celebrating the
holidays. The company leveraged the success of its first AI-based
platform, "Create Real Magic", by inviting consumers to create sharable,
digital greeting cards featuring iconic brand assets such as cherished
depictions of Santa Claus and the Coca-Cola polar bear. Local initiatives
generated buzz and excitement, such as the Coca-Cola Caravan Truck Tour,
which travelled throughout nearly 60 countries around the world making
over a thousand stops and meeting over 16 million consumers to share in
the magic. In total, the holiday campaign experiences garnered
approximately 9 billion impressions on social media. By combining the
company's global scale with local relevancy, the holiday activation
contributed to Trademark Coca-Cola(R) volume and value share gains as
well as unit case volume and transactions growth for both the quarter and
for the full year.
-- Building a system that is increasingly positioned for sustainable
long-term growth: Since the start of 2023, the company completed the
refranchising of company-owned bottling operations in Vietnam to a
subsidiary of Swire Pacific Limited (Swire), completed the sale of its
stake in the bottler in Pakistan to Coca-Cola İçecek and
completed the sale of its stake in the bottler in Indonesia to Coca-Cola
Europacific Partners (CCEP). More recently, the company completed the
refranchising of a portion of its company-owned bottling operations in
India to existing franchise bottlers and received regulatory approval to
sell its bottling operations in the Philippines to CCEP and Aboitiz
Equity Ventures, which is expected to close towards the end of February
2024. Additionally, the company recently completed the sale of its stake
in the largest bottler in Thailand to Swire and existing shareholders of
the bottler. Our franchise business model has enabled the company to
develop a strong global footprint with a local touch in markets around
the world. The company continuously works to optimize the system with
trusted, capable and motivated bottling partners allowing it to focus on
building and growing consumer-loved brands.
-- Delivering on our purpose by empowering people to drive growth: The
company's strategy is centered around people, starting with the employees
who are critical in bringing this strategy to life. In November, the
company was ranked #1 on the 2023 American Opportunity Index, which
assessed how effectively companies enable employees to progress in their
careers in the United States. Around the world, the company provides
thousands of jobs and is invested in the long-term success of its
employees. Over the year, the company enhanced its learning and related
technologies, making strides towards nurturing a more innovative and
informed workforce. The company's 2023 Culture & Engagement Survey
results underscore the strong levels of employee pride and growth
opportunities with a strong number of respondents saying they are proud
to work at The Coca-Cola Company and see good opportunities to learn and
grow in their roles.
Operating Review -- Three Months Ended December 31, 2023
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Revenues and Volume
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Acquisitions,
Divestitures
and Reported
Percent Concentrate Currency Structural Net Organic Unit Case
Change Sales(1) Price/Mix Impact Changes, Net Revenues Revenues(2) Volume(3)
-------------- ----------- --------- -------- ------------- -------- ----------- ---------
Consolidated 3 9 (4) (1) 7 12 2
-------------- ----------- --------- -------- ------------- -------- ----------- ---------
Europe,
Middle East
& Africa 2 24 (14) 0 11 25 1
Latin America 10 14 (8) 0 16 23 4
North America (3) 8 0 0 5 5 (1)
Asia Pacific 3 10 (5) (1) 7 13 2
Global
Ventures(4) 3 3 4 0 10 5 (1)
Bottling
Investments 7 7 (4) (8) 2 14 (1)
-------------- ----------- --------- -------- ------------- -------- ----------- ---------
Operating Income and EPS
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Comparable
Reported Currency Neutral
Operating Items Impacting Currency Operating
Percent Change Income Comparability Impact Income(2)
------------------ ------------ --------------- -------- -----------------