10-KPeriod: FY2024

COCA COLA CO Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:KO

Summary

The Coca-Cola Company's 2024 10-K filing indicates a resilient performance despite varied global economic conditions. The company achieved a 3% increase in net operating revenues to $47.1 billion, driven by strong pricing initiatives across its segments and a 1% growth in both unit case and concentrate sales volume. However, operating income saw a 12% decrease to $10.0 billion, largely due to increased commodity costs, higher SG&A expenses, and significant other operating charges, including a substantial impairment charge related to the BodyArmor trademark. Significant events during the year included the payment of a $6.0 billion tax litigation deposit to the IRS and the continued focus on strategic priorities such as portfolio management and digital transformation. The company also continued its commitment to returning capital to shareholders through dividends, with the 63rd consecutive annual increase, and share repurchases. While facing currency headwinds and ongoing competitive pressures, Coca-Cola's diversified global presence and brand strength position it to navigate market challenges.

Financial Highlights

52 data points
Beta

Revenue

$47.06B

61.1% Gross Margin

Net Income

$10.63B

22.6% Net Margin

EPS (Diluted)

$2.46

Total Assets

$100.55B

Cash & Equivalents

$10.83B

Free Cash Flow

$4.74B

Financial Statements
Beta
Revenue$47.06B
Cost of Revenue$18.32B
Gross Profit$28.74B
SG&A Expenses$14.58B
Operating Income$9.99B
Interest Expense$1.66B
Net Income$10.63B
EPS (Basic)$2.47
EPS (Diluted)$2.46
Shares Outstanding (Basic)4.31B
Shares Outstanding (Diluted)4.32B

Key Highlights

  • 1Net operating revenues increased by 3% to $47.1 billion in 2024, driven by favorable pricing and a modest volume increase.
  • 2Operating income decreased by 12% to $10.0 billion, impacted by higher commodity costs, increased SG&A, and significant other operating charges.
  • 3The company paid a $6.0 billion deposit to the IRS related to a tax litigation matter, impacting operating cash flows.
  • 4BodyArmor trademark impairment charge of $760 million negatively affected net income.
  • 5Coca-Cola maintained its commitment to shareholder returns with a 63rd consecutive annual dividend increase and continued share repurchases.
  • 6Unit case volume and concentrate sales volume both grew by 1% globally, reflecting stable consumer demand.
  • 7The company continues to invest in strategic capabilities, including digitalization and portfolio optimization, to drive future growth.

Frequently Asked Questions

Coca-Cola reported a 3% increase in net operating revenues for 2024, reaching $47.1 billion. This growth was primarily driven by favorable pricing initiatives across its operating segments and a slight increase in global unit case and concentrate sales volumes.

Profitability was impacted by several factors, including higher commodity costs, increased selling, general, and administrative (SG&A) expenses, and significant 'other operating charges.' Notably, a $760 million impairment charge for the BodyArmor trademark and substantial costs associated with the fairlife contingent consideration liability contributed to a 12% decrease in operating income.

Coca-Cola paid a $6.0 billion deposit to the IRS in September 2024 concerning tax years 2007-2009. The company strongly disagrees with the IRS's position and is vigorously defending its appeal in the U.S. Court of Appeals for the Eleventh Circuit. While the company believes it will ultimately prevail, the outcome could materially impact its financial position, results of operations, and cash flows. The company has also estimated a potential aggregate remaining incremental tax and interest liability of approximately $12 billion for tax years 2010 through 2024.