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COKE Nasdaq· Coca-Cola Consolidated Inc
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COKE Nasdaq· Coca-Cola Consolidated Inc
Earnings report Q4 2023

COKE Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

COKE, in its latest quarter, reported a significant increase in net sales, reaching $6.65 billion, representing a 7.3% growth compared to the previous year. The company's revenue is divided into two main categories: bottle/can sales and other sales. Bottle/can sales, which include products primarily packaged in plastic bottles and aluminum cans, contributed $6.04 billion to the total revenue, representing a 9.0% increase. Within the bottle/can sales category, sparkling beverages accounted for $3.89 billion, showing a growth of 10.5%, while still beverages contributed $2.15 billion, reflecting a 6.4% increase. Other sales, including sales to other Coca-Cola bottlers, post-mix sales, transportation revenue, and equipment maintenance revenue, amounted to $353.8 million, indicating a modest growth of 1.1%.

Strengths

COKE's strong revenue performance in the latest quarter can be attributed to several factors. The primary driver of the increase in net sales was the higher average bottle/can sales price per unit charged to retail customers, which contributed approximately $515 million to the overall revenue growth. Additionally, the company's focus on expanding its product offerings and maintaining a strong distribution network has helped capture market share and drive sales. Management comments highlight the successful execution of pricing strategies and the ability to generate higher revenue despite a slight decrease in case sales volume compared to the previous year.

Challenges

Despite the overall positive revenue growth, COKE faced challenges in terms of case sales volume, which decreased by approximately $110 million compared to the previous year. This decline in volume impacted net sales negatively. The company may need to address this weakness by implementing targeted marketing and promotional strategies to stimulate demand and regain lost market share.

Noteworthy

It is worth mentioning that COKE's net sales growth of 7.3% in the latest quarter outperformed the industry average, indicating the company's ability to navigate challenging market conditions successfully. The increase in net sales by $452.9 million demonstrates the effectiveness of COKE's pricing strategies and the resilience of its brand in a competitive market.

Summary

COKE delivered a strong revenue performance in the latest quarter, with net sales reaching $6.65 billion, representing a 7.3% growth compared to the previous year. The increase in net sales was primarily driven by higher average bottle/can sales price per unit, offsetting the slight decrease in case sales volume. COKE's ability to execute effective pricing strategies and maintain a strong distribution network has contributed to its revenue growth. However, the company needs to address the challenge of declining case sales volume to ensure sustained growth in the future. Overall, COKE's latest quarter results demonstrate its resilience and competitive position in the market.

Source documents

Form 10-K  filed on Feb 21, 2024
127 pages scanned

Reference data

Company financials Q4 revenue 1.63B
Analyst estimates Q4 EPS missed by NaN%
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