Coca-Cola (KO) raises 2024 guidance, Q2 earnings and revenue tops estimates

Coca-Cola (NYSE: KO) revealed its second-quarter 2024 earnings, surpassing analyst expectations with an adjusted EPS of $0.84, $0.04 higher than the consensus estimate of $0.80.

Revenue also exceeded forecasts, reaching $12.4 billion against the anticipated $11.77 billion. The beverage giant's stock showed a marginal decline of 0.1% following the announcement.

The company's net revenues saw a 3% increase, with organic revenues (adjusted) witnessing a notable 15% jump. This growth was attributed to a 9% rise in price/mix and a 6% increase in concentrate sales.

Operating income experienced a 10% growth, with the operating margin improving to 21.3% from 20.1% in the previous year. The comparable operating margin (adjusted) also saw an uptick, settling at 32.8% compared to 31.6% last year.

Despite the overall positive performance, reported EPS saw a 5% decline to $0.56. However, the comparable EPS (adjusted) told a different story, growing by 7%.

James Quincey, Chairman and CEO of Coca-Cola, expressed confidence in the results and the company's ability to meet its raised 2024 guidance and long-term objectives.

The company's unit case volume grew by 2%, with the growth primarily driven by developing and emerging markets like India, Brazil, and the Philippines. The sparkling soft drinks category saw a 3% increase, with Coca-Cola Zero Sugar growing by 6% across all geographic operating segments.

Looking ahead, Coca-Cola has updated its full-year 2024 outlook, now expecting to deliver an organic revenue (adjusted) growth of 9% to 10%.

The company also anticipates a 5% to 6% currency headwind on comparable net revenues (adjusted) and an 8% to 9% currency headwind on comparable EPS (adjusted) growth.

Despite these headwinds, the company is confident in delivering comparable currency neutral EPS (adjusted) growth of 13% to 15% and a comparable EPS (adjusted) growth of 5% to 6%, versus $2.69 in 2023.

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