Coca-Cola Consolidated Inc (COKE, Financial) has announced its financial results for the fourth quarter and fiscal year ending December 31, 2024. The company reported a 7% increase in net sales for the fourth quarter compared to the same period in 2023, with gross profit rising by 9% to $698 million. Income from operations saw a substantial increase of 23% in the fourth quarter, reaching $219 million. For the full fiscal year, income from operations increased by $86 million to $920 million. The press release was issued on February 20, 2025.
Positive Highlights
- Fourth quarter net sales increased by 7% compared to the previous year.
- Gross profit rose by 9% in the fourth quarter, with a gross margin improvement of 70 basis points to 40%.
- Income from operations increased by 23% in the fourth quarter and 10.3% for the fiscal year.
- Net income for the fiscal year increased by $224.8 million, reaching $633.1 million.
- Strong cash flow from operations at $876.4 million for the fiscal year.
Negative Highlights
- Volume decreased by 0.6% for the fiscal year.
- SD&A expenses increased by 3.9% for the fiscal year, primarily due to higher labor costs.
- Still category volume declined by 6.4% in the fourth quarter.
Financial Analyst Perspective
From a financial analyst's perspective, Coca-Cola Consolidated Inc (COKE, Financial) has demonstrated robust financial health with significant growth in net sales and income from operations. The strategic pricing actions and focus on high-margin products like Sparkling beverages have contributed to improved gross margins. The company's ability to generate strong cash flows and reinvest in capital expenditures while returning cash to shareholders through stock repurchases and dividends indicates a well-balanced approach to growth and shareholder value.
Market Research Analyst Perspective
As a market research analyst, the performance of Coca-Cola Consolidated Inc (COKE, Financial) reflects a strong consumer demand for value-oriented packages and multi-serve options, particularly in the Sparkling category. The company's strategic shift in distribution methods, such as the non-DSD method for Dasani water, highlights its adaptability to market changes. However, the decline in Still category volume suggests a need for enhanced marketing strategies to bolster this segment.
Frequently Asked Questions (FAQ)
Q: What was the net sales growth for Coca-Cola Consolidated in the fourth quarter of 2024?
A: Net sales increased by 7% compared to the fourth quarter of 2023.
Q: How much did the income from operations increase in the fourth quarter of 2024?
A: Income from operations increased by 23% to $219 million.
Q: What was the gross margin for the fourth quarter of 2024?
A: The gross margin improved by 70 basis points to 40%.
Q: How did the volume change for the fiscal year 2024?
A: Volume decreased by 0.6% for the fiscal year 2024.
Q: What were the capital expenditures for Coca-Cola Consolidated in 2024?
A: The company invested over $370 million in capital expenditures during 2024.
Read the original press release here.
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