Coca-Cola Reports Mixed Q3 2024 Results: Key Highlights and Investor Insights

Coca-Cola (NYSE: KO) released its third-quarter 2024 earnings report on October 23, revealing mixed results. The company reported a 1% decline in net revenues to $11.9 billion, although organic revenues saw a significant 9% growth.

Despite the decline in net revenues, Coca-Cola managed to gain value share in the total nonalcoholic ready-to-drink (NARTD) beverages segment, driven by strong performance from Coca-Cola Zero Sugar, which grew 11%. The company also saw share gains in Trademark Coca-Cola and other categories such as juice, value-added dairy, and plant-based beverages.

The global unit case volume declined by 1%, with growth in Trademark Coca-Cola offset by declines in other segments like water, sports, coffee, and tea. Price/mix grew by 7%, driven by favorable pricing actions and mix improvements.

Earnings per share (EPS) fell 7% to $0.66, primarily due to a $919 million charge related to the fairlife acquisition, which impacted the operating margin. However, comparable EPS grew 5% to $0.77. The operating margin decreased to 21.2% from 27.4% in the previous year.

Cash flow from operations was $2.9 billion, affected by a $6.0 billion IRS tax litigation deposit. Analysts had anticipated earnings of about $0.75 per share and revenues of $11.6 billion, which were closely aligned with the reported figures.

In terms of investor interest, Coca-Cola’s stock has risen 21% this year, aligning with the S&P 500 index. The company’s dividend yield remains attractive, with an annual yield of 2%, translating to a quarterly dividend of 48.5 cents per share.