Coca-Cola Içecek Anonim Sirketi (CCOLA) Q4 2024 earnings summary

Executive summary

• 2024 was marked by macroeconomic challenges, high inflation, and geopolitical tensions, impacting consumer demand and purchasing power, but the company showed resilience and gradual volume recovery in Q4, with consolidated sales volume up 7.3% year-over-year.

• Net sales revenue declined 5.6% year-over-year to TL 137.7 billion under inflation accounting, with net income at TL 14.8 billion, down 50.1%; excluding inflation effects, NSR grew 42.6% and net profit increased 12.5% to TL 9.3 billion.

• Leadership transition: Çiçek Özgüneş appointed CFO as of March 1, 2024.

• Acquisition of Coca-Cola Bangladesh Beverages Limited completed in February 2024, with results consolidated from March.

• The Board proposes a gross dividend of TL 3,000 million from 2024 earnings, with the remainder to be added to extraordinary reserves.

Financial highlights

• Consolidated sales volume in Q4 2024 grew 7.3% year-over-year to 271 million unit cases; full-year volume declined 2.2% to 1.5 billion unit cases.

• Under TAS 29, consolidated NSR was TL 137.7 billion (-5.6% y/y), EBIT TL 18.9 billion (-9.6% y/y), and EBITDA TL 25.3 billion (-3.2% y/y); excluding inflation, NSR rose 42.6% to TL 129.8 billion, EBIT up 29.2%, and EBITDA up 36.0%.

• Gross profit margin increased by 259 basis points to 35.3% (TAS 29); EBITDA margin improved by 50 basis points year-over-year.

• Net income under TAS 29 was TL 14.8 billion (-50.1% y/y); excluding TAS 29, net income grew 12.5% to TL 9.3 billion.

• Adjusted EBITDA for 2024 was TL 25,347 million.

Outlook and guidance

• 2025 guidance: mid-single-digit consolidated volume growth, low to mid-single-digit in Türkiye, mid to high-single-digit in international operations.

• Expect mid-single-digit net sales revenue per unit growth (inflation-adjusted), with flat EBIT margin; FX-neutral NSR per unit growth in low 20s (non-inflation-adjusted), with slight EBIT margin pressure.

• Bangladesh now included in volume guidance, with long-term growth potential highlighted.

• Two new plants in Iraq and Azerbaijan to become operational in 2025, supporting long-term growth.

• No impact from the new Domestic Minimum Corporate Tax regulation on 2024 results; it will apply to earnings from 2025 onward.