- Coca-Cola reported a 6% revenue increase to $11.5 billion in Q4, with organic growth at 14%.
- The company is expanding distribution with 250,000 new retail outlets and focusing on innovation with products like Jack & Coke.
- Currency headwinds and rising taxes are expected to pressure 2025 earnings, despite a projected organic revenue growth of 5-6%.
The Coca-Cola Company (NYSE: KO) just delivered a strong Q4 earnings report, sending shares up 4.3% as investors cheered its ability to navigate a challenging economic landscape. With revenue up 6% to $11.5 billion and organic revenue surging 14%, the company is proving that it still has plenty of room to grow. However, challenges like currency headwinds, rising taxes, and shifting consumer preferences mean the road ahead won’t be without bumps.
Here are the key takeaways from Coca-Cola’s latest results and what’s next for the global beverage leader.
1. Solid Q4 Performance, but Full-Year EPS Took a Hit
- Q4 revenue increased 6% to $11.5 billion, with organic revenue up 14%.
- EPS jumped 12% to $0.51 for the quarter, but full-year EPS dipped slightly to $2.46 due to currency headwinds and a $3.1 billion fairlife acquisition charge.
- Free cash flow (excluding a $6 billion IRS tax deposit) was $10.8 billion in 2024, an 11% increase.
2. Coca-Cola Is Betting Big on Distribution and Innovation
- The company added 250,000 new retail outlets and nearly 600,000 coolers in 2024 to boost sales.
- Scaling returnable glass bottles across 110+ markets as part of its affordability and sustainability push.
- Fairlife, Fuze Tea, and new product innovations like Jack & Coke continue to drive revenue beyond traditional sodas.
3. Currency Headwinds and Rising Taxes Will Pressure 2025 Earnings
- Coca-Cola expects 5% to 6% organic revenue growth in 2025, but currency fluctuations could reduce net revenue by 3% to 4%.
- Comparable EPS growth is projected at 2% to 3%, with currency headwinds cutting into potential gains by 6% to 7%.
- Global minimum tax regulations will push the company’s effective tax rate up to 20.8% in 2025.
4. Coca-Cola Remains a Dividend Powerhouse
- The company has increased its dividend for 62 consecutive years, reinforcing its position as a reliable income stock.
- With a strong balance sheet and steady free cash flow, Coca-Cola has flexibility for further investments and shareholder returns.
What’s Next?
Coca-Cola’s focus on affordability, expanding its product lineup, and strengthening distribution will help drive future growth. However, challenges like currency volatility, higher taxes, and changing consumer trends mean investors should keep an eye on how the company adapts in 2025. While obstacles remain, the beverage giant’s strong execution suggests it’s well-positioned to maintain its dominance in the global market.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
