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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's revenue is divided into two main categories: bottle/can sales and other sales. In the latest quarter, bottle/can sales accounted for $6.04 billion, representing a 9.0% increase compared to the previous year. Within this category, sparkling beverages generated $3.89 billion in sales, reflecting a 10.5% growth, while still beverages contributed $2.15 billion, showing 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 demonstrated strong revenue growth in the latest quarter, with net sales increasing by $452.9 million or 7.3% to reach $6.65 billion. The primary driver behind this growth was the higher average bottle/can sales price per unit charged to retail customers, which contributed approximately $515 million to the increase in net sales. Additionally, the company's focus on diversifying its product portfolio with both sparkling and still beverages has proven successful, as both categories experienced positive growth.

Challenges

Despite the overall revenue growth, COKE faced a challenge in terms of case sales volume, which decreased compared to the previous year. This decline in case sales volume resulted in a decrease in net sales by approximately $110 million. It is important for the company to address this weakness and find strategies to boost case sales volume in order to sustain long-term revenue growth.

Noteworthy

COKE's revenue growth in the latest quarter was primarily driven by higher average bottle/can sales prices, indicating the effectiveness of the company's pricing strategy. The increase in net sales was partially offset by the decline in case sales volume. It is worth noting that COKE's sales to other Coca-Cola bottlers remained steady, reflecting the company's strong relationships within the Coca-Cola system.

Summary

COKE reported strong revenue growth in the latest quarter, with net sales increasing by 7.3% to $6.65 billion. The company's focus on higher average bottle/can sales prices and diversification of its product portfolio contributed to this growth. However, a decline in case sales volume posed a challenge to the overall revenue performance. COKE should address this weakness and implement strategies to boost case sales volume in order to sustain long-term revenue growth.

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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