The Coca-Cola Company (KO) Q4 2024 earnings summary

Executive summary

• Achieved 7% comparable EPS growth in 2024, overcoming double-digit currency headwinds and bottler refranchising impacts.

• Delivered robust organic revenue growth and expanded comparable gross and operating margins, with Q4 and FY 2024 margin expansion driven by favorable segment mix and refranchising tailwinds.

• Maintained strong momentum across global beverage categories, with broad-based share gains and successful innovation.

• Executed an all-weather strategy, adapting to dynamic market conditions and investing in digital, marketing, and execution capabilities.

• Margin improvements were partially offset by higher commodity costs and increased operating expenses.

Financial highlights

• Q4 2024 organic revenues grew 14% year-over-year; unit case growth was 2%.

• Q4 net revenues: $11.5B (+6% YoY); full-year net revenues: $47.1B (+3% YoY).

• Q4 operating margin: 23.5% (vs. 21.0% prior year); full-year operating margin: 21.2% (vs. 24.7%).

• Free cash flow (excluding IRS tax litigation deposit) reached $10.8B in 2024, up 11% from prior year; adjusted free cash flow conversion was 93%.

• Q4 diluted EPS: $0.51 (+12% YoY); full-year diluted EPS: $2.46 (flat YoY); comparable EPS increased 7% to $2.88.

Outlook and guidance

• 2025 guidance: organic revenue growth of 5%-6%, comparable currency-neutral EPS growth of 8%-10%.

• Anticipates 3%-4% currency headwind to net revenues and 6%-7% to EPS in 2025.

• Expects comparable EPS growth of 2%-3% versus $2.88 in 2024, with $9.5B free cash flow (excluding fairlife payment).

• Bottler refranchising to be a headwind in Q1 2025; productivity benefits expected to ramp in H2.