01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Net operating revenues increased by 3% to $47.1 billion in 2024, driven by favorable pricing and a modest volume increase.
- Operating income decreased by 12% to $10.0 billion, impacted by higher commodity costs, increased SG&A, and significant other operating charges.
- The company paid a $6.0 billion deposit to the IRS related to a tax litigation matter, impacting operating cash flows.
- BodyArmor trademark impairment charge of $760 million negatively affected net income.
- Coca-Cola maintained its commitment to shareholder returns with a 63rd consecutive annual dividend increase and continued share repurchases.
- Unit case volume and concentrate sales volume both grew by 1% globally, reflecting stable consumer demand.
- The company continues to invest in strategic capabilities, including digitalization and portfolio optimization, to drive future growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Coca Cola Co kept $0.23.
- Revenue$47.06B100.0%
- Cost of revenue−$18.32B38.9%
- Gross profit$28.74B61.1%
- Operating costs−$18.75B39.8%
- Operating income$9.99B21.2%
- Interest, other & tax$639.0M1.4%
- Net income$10.63B22.6%
Where FY2024 revenue went
$47.06B- Cost of revenue: $18.32B, 39% of revenue
- SG&A: $14.58B, 31% of revenue
- Operating income: $9.99B, 21% of revenue
- Other operating costs: $4.16B, 8.8% of revenue
Kept 21% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $47.06B$45.75B | +2.9% |
| Cost of Revenue | $18.32B$18.52B | −1.1% |
| Gross Profit | $28.74B$27.23B | +5.5% |
| SG&A Expenses | $14.58B$13.97B | +4.4% |
| Operating Income | $9.99B$11.31B | −11.7% |
| Interest Expense | $1.66B$1.53B | +8.4% |
| Net Income | $10.63B$10.71B | −0.8% |
| EPS (Basic) | $2.47$2.48 | −0.4% |
| EPS (Diluted) | $2.46$2.47 | −0.4% |
| Shares Outstanding (Basic) | 4.31B4.32B | −0.3% |
| Shares Outstanding (Diluted) | 4.32B4.34B | −0.4% |
05—Questions
Frequently Asked Questions
What was Coca-Cola's revenue growth in 2024?
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.
What were the main factors impacting Coca-Cola's profitability in 2024?
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.
How is the company addressing the significant IRS tax litigation?
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.
06—Continue