Coca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations, as global demand for its drinks rose.
Shares of the company climbed more than 3% in premarket trading.
Here’s what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 55 cents adjusted vs. 52 cents expected
- Revenue: $11.54 billion vs. $10.68 billion expected
The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier.
Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.
Net sales rose 6% to $11.54 billion.
Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices. Coke’s pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. The rest came from price hikes and “favorable mix,” meaning that customers bought products that were more expensive.
While most of Coke’s organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo.
Coke’s unit case volume grew 2%, reversing last quarter’s decline. The metric strips out the impact of pricing and foreign currency to reflect demand. The company attributed its increasing volume to growing demand in China, Brazil and the U.S.
The company’s sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter. Coke Zero Sugar’s volume climbed 13% during the period.
Coke’s water, sports, coffee and tea division reported 2% volume growth. Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.
Coke’s juice, value-added dairy and plant-based beverages division saw volume shrink 1%. The company said declines in Europe, the Middle East and Africa offset growth in North America.
Looking to 2025, Coke projects organic revenue will grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.