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10-QPeriod: Q3 FY2024

COCA COLA CO Quarterly Report for Q3 Ended Sep 27, 2024

Filed October 24, 2024For Securities:KO

Summary

The Coca-Cola Company reported net operating revenues of $11.85 billion for the third quarter of 2024, a slight decrease of 1% compared to the same period last year. Net income attributable to shareowners was $2.85 billion, or $0.66 per diluted share, down from $3.09 billion, or $0.71 per diluted share, in the prior year's quarter. The year-to-date net income attributable to shareowners was $8.44 billion, or $1.95 per diluted share, compared to $8.74 billion, or $2.01 per diluted share, for the same period in 2023. The company's financial performance this quarter was significantly impacted by several large, non-recurring items. Notably, the company recorded substantial other operating charges, including a $919 million remeasurement of contingent consideration for the fairlife acquisition and a $760 million impairment of the BodyArmor trademark. These charges, along with unfavorable foreign currency impacts and increased commodity costs, weighed on profitability. Despite these headwinds, the company saw positive price/mix contributions and continued strategic divestitures, such as the refranchising of bottling operations, which contributed to overall revenue stability.

Financial Statements
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Key Highlights

  • 1Net operating revenues for the third quarter of 2024 were $11.85 billion, a 1% decrease year-over-year, while year-to-date revenues increased by 2% to $35.52 billion.
  • 2Diluted EPS for the third quarter was $0.66, down from $0.71 in the prior year's quarter, reflecting increased operating charges.
  • 3Significant other operating charges were recorded, including $919 million for fairlife contingent consideration remeasurement and $760 million for the BodyArmor trademark impairment, impacting operating income.
  • 4The company generated strong positive price, product, and geographic mix impacts, contributing favorably to net operating revenues.
  • 5Strategic divestitures, particularly the refranchising of bottling operations in India, Bangladesh, and the Philippines, were completed, contributing to the 'Acquisitions & Divestitures' factor in revenue analysis.
  • 6The company paid a $6.0 billion tax liability related to a long-standing IRS dispute, which significantly impacted cash flow from operations for the nine-month period.
  • 7Liquidity remains strong with $13.9 billion in cash and cash equivalents and $4.6 billion in unused backup lines of credit as of September 27, 2024.

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