The Coca-Cola Company Presented Expectedly Stable Quarterly Results Enhanced by Strong Segment Sales and Solid Guidance

The Coca-Cola Company (KO) just reported Q4 and FY earnings per share (EPS) of $0.49, generally meeting expectations. The company's revenue of $10.8 billion showed a YoY increase of 6.9%, surpassing estimates by $150 million.

Coca-Cola experienced strong organic revenue growth of 12%, outperforming the consensus estimate of 8.8%. This growth was driven by significant gains in Latin America (+23%), EMEA (+25%), North America (+5%), Bottling Investments (+14%), and Global Ventures (+5%). Notably, Coca-Cola's organic sales growth exceeded PepsiCo's 4.5% growth rate during a similar period.

Unit case volume for Coca-Cola increased by 2% in the quarter. However, in North America, unit case volume declined by 1% compared to the previous quarter due to a decrease in water, sports, coffee, and tea sales, despite growth in juice, dairy, plant-based beverages, and branded Coke segments. Price/mix for the quarter grew by 8%. Consolidated operating income rose by 10% YoY, with the Latin America segment leading the way with a 20% increase, offsetting declines in operating income for the Asia Pacific segment (-11%). Looking ahead, Coca-Cola expects adjusted organic revenue growth of 6% to 7% for the full year, surpassing the consensus estimate of 5.9%. KO, hence, deserves an outperform rating.