KO Coca-Cola's revenue increased by 6% to $11.5 billion, surpassing estimates by $0.9 billion, while earnings per share (EPS) reached $0.55, exceeding expectations by $0.03. Organic revenue, which excludes acquisitions, divestitures, and currency effects, grew 14%, with unit case volume rising 2%, recovering from the previous quarter’s decline. Higher prices continued to drive growth, with a 9% increase in price/mix, though this is expected to stabilize in 2025. Coca-Cola Zero and Fairlife milk stood out, demonstrating the company's success in diversifying beyond its core soda offerings.
Looking ahead, the company anticipates 5%-6% organic revenue growth and 2%-3% EPS growth in 2025, slightly below forecasts. Foreign exchange fluctuations (expected to reduce EPS by 6%-7%) and a slowdown in price-driven growth pose challenges. However, management remains optimistic about gaining market share through digital strategies, international expansion, and growth in value-added beverages like protein shakes and dairy products.
KO Coca Cola's revenue decreased by 1% to $12 billion, surpassing estimates by $290 million. The company reported an adjusted earnings per share (EPS) of $0.77, beating expectations by $0.02. The revenue decline was mainly due to unfavorable currency effects. However, organic revenue rose by 9%, exceeding the expected 6% and significantly outperforming PepsiCo’s 1% organic growth reported two weeks ago. This was largely driven by a 10% increase in the price mix across all categories. Despite higher prices, unit case volume fell by just 1%, highlighting Coca-Cola’s ability to sustain consumer demand.
Coca-Cola maintained its full-year EPS growth forecast of 5% to 6%, while signaling a return to a "more normalized level of pricing" in the future. Looking ahead, the company faces challenges from a stronger U.S. dollar and the increasing use of obesity medications, which may impact future demand, especially in North America.