Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — CAGNY 2025
52 slides from Coca-cola Company (the)'s conference presentation, 2025
Slide 1: James Quincey, John Murphy
2025 James Quincey John Murphy CHAIRMAN & CEO PRESIDENT & CFO
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “opportunity,” “ahead,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “wil
Slide 3: Key Themes for Today
KEY THEMES FOR TODAY Boundless Executing with Enduring OPPORTUNITY EXCELLENCE VALUE 01 02 03 3
Slide 4: The Opportunity
THE Citela COM O opporruniy
Slide 5: Compelling Opportunity by Any Measure
COMPELLING OPPORTUNITY BY ANY MEASURE Capture Untapped Industry(a) Attract More Consumers Win New Customers(c) Developed Developing and Markets Emerging Markets $140B+ ~80% Traditional $305B+ Trade 30% World’s Population Away-from-Home 10% 12% 68% $385B+ Modern Trade 14% KO Share 48% 3% WEEKLY+ INTE
Slide 6: Starting with Our Consumer, Leading with Our Brands
STARTING WITH OUR CONSUMER, LEADING WITH OUR BRANDS Anticipating Consumer Needs Highly Relevant “For You” Elevating Insights and Predictive Capabilities Consumption History SUPERIOR PRODUCTS Behavior Patterns CREATIVE LASTING INNOVATION EXPERIENCES Drinking Occasions First-Party Data IDEAL PRICE OPT
Slide 7: Becoming Our Customers' Best Partner
BECOMING OUR CUSTOMERS’ BEST PARTNER Getting More Granular #1 In Customer Value Creation for 60%+ 7 Consecutive Years(d) Traditional Trade Small Stores, “Mom and Pops” #1 Customers Digitized(a) Fast-Moving 50%+ Modern Trade Large Stores, Club Stores, Consumer Goods Value Stores, Drug Stores, Global
Slide 8: Unmatched Reach: Franchise Model Creates Superior Value
UNMATCHED REACH FRANCHISE MODEL CREATES SUPERIOR VALUE $400B+ The Coca-Cola System Estimated Market Cap(a) ~6,000,000 the Coca-Cola Network People Servicing ~120,000 Suppliers ~3,000 Production Lines ~5,000 Warehouses ~30,000 Red Trucks ~14,000,000 Equipment Units of Cold-Drink Company-Owned Bottler
Slide 9: Steadfast Performance in a Dynamic World
“All Weather” at Work STEADFAST PERFORMANCE (c) (d) IN A DYNAMIC WORLD 2024 Results +1% (h) Volume Growth Extending Our Staying Power +12% Organic Revenue(a) Growth 29% +1pt NARTD Industry Value(i) +7% Value Comparable EPS(a) 26% Share Gain(j) Growth 40% 40% 43% $10.8B Free Cash Flow Excl. the IRS T
Slide 10: Well on Our Way to $3.00
WELL ON OUR WAY TO $3.00 Delivering on Our Long-Term Growth Model Ready for 2025(d) 4-6% Organic Revenue(a) 6-8% Comparable Currency Neutral Operating Income(a) 7-9% Comparable Currency Neutral EPS (a) 90-95% Adjusted Free Cash Flow Conversion Ratio(b) 5-6% Organic Revenue(a) Growth 8-10% Inflection
Slide 11: Executing with Excellence
Executing with EXCELLENCE 11
Slide 12: Enhancing Our Strategic Edge
ENHANCING OUR STRATEGIC EDGE Shaping Transforming Optimizing Building Enhancing a Portfolio of Our Marketing the KO Talent and Our License Loved Brands & Innovation Ecosystem Capabilities to Operate Agenda Grounded in Consumer Centricity and Customer Value Creation 12
Slide 13: 30 Billion-Dollar Brands
30 BILLION-DOLLAR BRANDS 1986 2000 2005 2010 2015 2020 2024 (a) 15 Billion-Dollar Brands Created Organically 3 Billion-Dollar Brands Added via Acquisition 12 Billion-Dollar Brands Created after Acquisition It Started with One | Creating New Brands | Building up Bolt-Ons 13 (a) Schweppes is owned by
Slide 14: Overnight Successes…Decades in the Making
OVERNIGHT SUCCESSES…DECADES IN THE MAKING “Sparkling Renaissance Continues”(a) KO Average Volume Growth Industry Average Volume Growth 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Significant Opportunity to Close the Share Gap(d) Top Consumer Brand in 4 the World(b) th Largest NARTD Compan
Slide 15: Total Beverage Portfolio Gaining Ground
TOTAL BEVERAGE PORTFOLIO GAINING GROUND #1 Global Player in Water(b) #1 International Sports Drink Brand(c) 5% ~$4B Nearly Doubling Retail Value over the Decade(a) 2024 Category 2024 $80B Volume Growth(d) Retail Value (e) #1 +6pts (g) Global Player Value Share Gain in Juice (f) Since 2019 $0B 2014 2
Slide 16: Doing What We Do Best… Even Better
DOING WHAT WE DO BEST… EVEN BETTER Streamlined Disciplined Efficient & Effective New Operating PORTFOLIO INNOVATION MARKETING MODEL ~200 Brands ~3x Success Rate versus 2019 ~65% Digital Mix in 2024 9 Operating Units Connected Through Studio X 2 Consecutive Innovation Speed from End-to-End Years of W
Slide 17: The "Studio X" Factor
LIVE PRODUCT THE Food Festivals Coca-Cola Zero Sugar Taste “STUDIO X” FACTOR Experience at Scale 1.4x Faster Speed(a) 80+ Markets Globally Coca-Cola Zero Sugar 9% Volume Growth in 2024 +10% More Effective(a) 13% Increase in Diet Coke’s Faster Speed(a) 3x +20% Overall Conversation(c) More Efficient(a
Slide 18: KO Ecosystem: Boosting Value Through Scale
KO ECOSYSTEM: BOOSTING VALUE THROUGH SCALE SUGGESTED INNOVATION ORDER Coke + Oreo Fuze Tea TOTAL Global Pilot BEVERAGEEverywhere COCA-COLA+ MARVEL DIGITIZATION 65%+ Customers 50+ Markets Digitized(a) Virtual Reality Connected Packs FANTA HALLOWEEN ALCOHOL RTD FOODMARKS 50 Markets Jack & Coke 1st Glo
Slide 19: Powered by Our People
POWERED BY OUR PEOPLE High Engagement on Retaining & Growing Externally Enterprise-Wide Capabilities Agenda Key Levers(b) Top Talent Recognized & Celebrated Investing in Digitally Savvy Leadership 92% 70%+ #1 +8% vs. 2021 Leadership Roles Employer of Choice in Food Sharing Capabilities Across Proud
Slide 20: Solidifying Our Social License Creates Flexibility
SOLIDIFYING OUR SOCIAL LICENSE CREATES FLEXIBILITY Key Results Partnering for Impact 68% 30% 800 PORTFOLIO of 2023 beverage of our volume sold in product reformulations Worked with key suppliers to execute POWER portfolio products have fewer than 100 calories 2023 was low- or no- calorie in 2023 and
Slide 21: Key Takeaways
KEY TAKEAWAYS EXPANDING THE INDUSTRY WITH BOUNDLESS OPPORTUNITY FURTHERING OUR COMPETITIVE ADVANTAGE FOR ENDURING GROWTH AMPLIFYING OUR ALL-WEATHER STRATEGY ADVANCING OUR TOTAL SYSTEM AGENDA WITH CONSUMER AND CUSTOMER CENTRICITY SCALING OUR TOTAL BEVERAGE PORTFOLIO WITH INCREASED LOCAL EDGE 21
Slide 22: Enduring Value
Enduring VALUE 22
Slide 23: Focus on Value Creation
FOCUS RELENTLESS QUALITY DYNAMIC LEADERSHIP RESOURCE ALLOCATION on VALUE CREATION VALUE SUPERIOR UNDERLYING CREATION CAPITAL RETURN CASH FLOW GENERATION FIT-FOR-PURPOSE BALANCE SHEET 23
Slide 24: Longevity of Topline Momentum
LONGEVITY OF TOPLINE MOMENTUM +9% 5-Year Average Organic Revenue(a) Growth 5-Year Average Organic Revenue(a) Growth 4 Consecutive Years of KO Transactions Growth Ahead of Volume Growth 5-Year Average Volume Growth KO Consistently Delivering Organic Revenue(a) Growth Ahead of CPG Peers 24 Note: Consu
Slide 25: Quality Leadership Drives Margin Expansion
QUALITY LEADERSHIP 2x QUALITY KO Billion- DRIVES MARGIN EXPANSION 1 4 Dollar Brands LEADERSHIP vs. Largest Competitor(c) DRIVES MARGINS KO’s Share of KO Comparable Operating Margins(a) Improving Efficiency Across Our Levers Total Billion- Dollar Brands in NARTD Industry(c) 30.0% Revenue Growth Manag
Slide 26: Spending Smarter, Going Further
SPENDING SMARTER, GOING FURTHER Dynamic Resource Allocation Improving Returns Unlocking New Growth Avenues Improved Productivity (SG&A as a % of Net Revenues) Always-On Analytics - 4% SPINNING 2019 2024 Across Our Entire Ecosystem THE FLYWHEEL Improved Effectiveness (Gross Profit/Ad Spend) Leveragin
Slide 27: Intently Focused on the Cash Agenda
INTENTLY FOCUSED ON THE CASH AGENDA Improving Free Cash Flows(a) Over Time 2024 Highlights Free Cash Flow(a) 93% IRS Tax Litigation Deposit Adjusted Free Cash Flow Conversion Ratio(c) 73% Dividends to Adjusted Free Cash Flow(d) 2018 2019 2020 2021 2022 2023 2024 (b) 27 (a) Free cash flow = net cash
Slide 28: Nurturing a Fit-for-Purpose Balance Sheet
NURTURING A FIT-FOR-PURPOSE BALANCE SHEET Leading Net Debt Leverage versus CPG Peers(d) 2015 2024 KO 2024 Net Debt Leverage(e) Impact from Upcoming fairlife 87% Contingent Consideration Payment 48% CPG Peers Net Debt Leverage(d) KO Net Revenue Contribution Excl. Bottling Investments(a) Target: 23% 2
Slide 29: Unwavering Consistency
UNWAVERING CONSISTENCY Prudent Capital Investment Accelerated Capital Return 19% 21% 23% 23% 103 Consecutive Years of Dividend Payments Made 62 Consecutive Years of Dividend Growth $2.1B $1.94 $1.9B $1.84 $1.76 $1.5B $1.68 5% $1.4B Dividend Growth 4.4% 4.0% 3.5% 3.5% 2% Dividend Growth 2021 2022 202
Slide 30: Staying Flexible and Opportunistic
STAYING FLEXIBLE AND OPPORTUNISTIC Acquisitions Divestitures Divestitures Confidence in Acquired Brands Creating Value Over Time Nearing Final Stages of Refranchising Journey Nearing Final Stages of Refranchising Journey ~25% EPS Growth Driven ~$18B Gross Proceeds from by Acquired Brands Bottler Ref
Slide 31: Committed to Enduring Long-Term Growth
COMMITTED TO ENDURING LONG-TERM GROWTH 4-6% 7-9% Comparable 90-95% Currency Neutral Organic Revenues(a) Earnings per Share(a) 6-8% Adjusted Free Cash Flow Conversion Ratio(b) Comparable Currency Neutral Operating Income(a) 31 (a) Non-GAAP; (b) Adjusted Free Cash Flow Conversion Ratio = Free cash flo
Slide 32: Key Takeaways
KEY TAKEAWAYS OUR INDUSTRY HAS BOUNDLESS OPPORTUNITY WE HAVE MANY LEVERS TO DRIVE TOPLINE GROWTH AND MARGIN EXPANSION WE ARE INVESTING WITH DISCIPLINE TO DRIVE QUALITY GROWTH FOR THE FUTURE WE RELISH COMPETING WITH THE BEST THE COCA-COLA ECOSYSTEM IS POISED TO DELIVER ENDURING VALUE 32
Slide 33: Built on a Simple Purpose
BUILT ON A SIMPLE PURPOSE THE WORLD. MAKE A DIFFERENCE. 33
Slide 34: Definitions
DEFINITIONS “Organic revenues” is a non-GAAP financial measure that excludes or has otherwise been adjusted for the impact of acquisitions, divestitures and structural changes, as applicable, and the impact of fluctuations in foreign currency exchange rates. Management believes the organic revenue (
Slide 35: Definitions (continued)
"Net operating profit" is a non-GAAP financial measure that represents the sum of operating income and equity income (loss) - net. "Comparable net operating profit" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. "Comparable net operati
Slide 36: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Organic Revenues: Less: Adjustments to Reported Net Revenues Impact of Acquisitions, Reported Divestitures Net Revenues and Structural Organic Revenues Percent Change (GAAP) Currency Impact Chan
Slide 37: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Earnings Per Share: Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Reported (GAAP) $ 1.79 $ 2.25
Slide 38: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Free Cash Flow: Year Ended December 31, 2024 Net Cash Provided by Operating Activities (GAAP) $ 6,805 Purchases of Property, Plant and Equipment (GAAP) (2,064) Free Cash Flow (Non-
Slide 39: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Earnings Per Share: Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2
Slide 40: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In billions) Projected 2025 Free Cash Flow Excluding the fairlife Contingent Consideration Payment: Year Ending December 31, 2025 Projected GAAP Net Cash Provided by Operating Activities $ 5.6
Slide 41: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Operating Margin: Year Ended Year Ended Basis Point December 31, 2024 December 31, 2017 Growth (Decline) Reported Operating Margin (GAAP) 21.23% 21.42% (19) Items Impacting Comparability (Non-GA
Slide 42: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Free Cash Flow: Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December
Slide 43: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Free Cash Flow and Adjusted Free Cash Flow Conversion Ratio: Year Ended December 31, 2024 Net Cash Provided by Operating Activities $ 6,805 Purchases of Property, Plant and Equipme
Slide 44: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Dividends as a Percentage of Adjusted Free Cash Flow: Year Ended December 31, 2024 Net Cash Provided by Operating Activities $ 6,805 Purchases of Property, Plant and Equipment (2,0
Slide 45: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2015 Operating income $ 8,787 Equity income (loss) — net 489 Net operating profit (Non-GAAP) 9,276 Items impacting
Slide 46: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2024 Operating income $ 9,992 Equity income (loss) — net 1,770 Net operating profit (Non-GAAP) 11,762 Items impact
Slide 47: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions except net debt leverage) Gross Debt and Net Debt: As of December 31, 2015 Cash and cash equivalents $ 7,309 Short-term investments 8,322 Marketable securities 4,269 Total cash, cas
Slide 48: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions except net debt leverage) Gross Debt and Net Debt: As of December 31, 2024 Cash and cash equivalents $ 10,828 Short-term investments 2,020 Marketable securities 1,723 Total cash, ca
Slide 49: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2021 Operating income $ 10,308 Equity income (loss) — net 1,438 Net operating profit (Non-GAAP) 11,746 Items impac
Slide 50: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2022 Operating income $ 10,909 Equity income (loss) — net 1,472 Net operating profit (Non-GAAP) 12,381 Items impac
Slide 51: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Operating Profit After Taxes (NOPAT): Year Ended December 31, 2023 Operating income $ 11,311 Equity income (loss) — net 1,691 Net operating profit (Non-GAAP) 13,002 Items impac
Slide 52: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (In millions) Net Share Repurchases: Year Ended Year Ended Year Ended Year Ended Year Ended December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Reported (GA