Business
Coca-Cola (KO) Q4 Earnings & Sales Beat Estimates, Rise Y/Y
Coca-Cola (KO) Q4 Earnings & Sales Beat Estimates, Rise Y/Y
About this update from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-
The Coca-Cola Company KO has reported fourth-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Earnings and sales also improved year over year. The company’s results have benefited from its continued business momentum. KO has outlined its view for 2024.Comparable earnings of 49 cents per share improved 10% from the year-ago period and beat the Zacks Consensus Estimate of 48 cents. However, unfavorable currency translations hurt comparable earnings by 13 percentage points. Comparable currency-neutral earnings per share rose 23% year over year.Revenues of $10,849 million surpassed the Zacks Consensus Estimate of $10,645 million and improved 7% year over year. Organic revenues rose 12% from the prior-year quarter. Coca-Cola’s top line benefited from strong revenue growth across most of its operating segments, aided by an improved price/mix and increased concentrate sales. In the reported quarter, Coca-Cola gained a global value share in total non-alcoholic ready-to-drink beverages.The Zacks Rank #3 (Hold) stock has risen 4.6% in the past three months compared with the industry’s growth of 4.9%. Volume & PricingIn the reported quarter, concentrate sales rose 3% year over year, whereas the price/mix improved 9%. The price/mix benefited from pricing actions in the marketplace, including the impacts of hyperinflationary markets, and a favorable mix. In the quarter, concentrate sales were one point higher than unit case volume.Coca-Cola’s total unit case volume increased 2% year over year in the fourth quarter. The unit case volume for the developed markets was flat with the prior-year quarter on growth in Mexico and Germany, offset by declines in the United States and Chile. The volumes for the developing and emerging markets also improved 4% on growth in India and Brazil.Our model had predicted year-over-year organic revenue growth of 8.8% for the fourth quarter, with a 6.9% gain from price/mix and 1.9% growth in concentrate sales volume. For 2023, our model estimated organic sales growth of 10.7%, including a 9.3% price/mix gain and a 1.5% rise in concentrate sales volume.Coming to the category cluster performance, the unit case volume increased 2% year over year for sparkling soft drinks. The sparkling soft drinks category benefited from growth in Latin America and the Asia Pacific. The trademark Coca-Cola reported...