Coca-Cola Co. (The)

Overview Key strengths Key risks Strong brand portfolio Potential that consumers will reduce their consumption of sugary drinks Global market share leader in most of its product categories Significant utilization of single-use product packaging Substantial scale High dividend payout Geographically diverse IRS transfer pricing litigation risk Solid profit margins and free operating cash flow (FOCF) The Coca-Cola Co. (Coke) reported better-than-expected organic growth of 11% in the first quarter of 2024 (ended March 29, 2024), with price/mix contributing 13% and concentrate sales declining 2%. The company experienced higher-than-expected currency headwinds of 6% due to currency devaluation against a strong dollar. As a result, Coke updated its guidance for full-year 2024, with organic growth of 8%-9% spurred by higher pricing in

...We forecast the company's profitability will improve in 2024, spurred by continued organic growth and increased margins. The Coca-Cola Co. (Coke) reported better-than-expected organic growth of 11% in the first quarter of 2024 (ended March 29, 2024), with price/mix contributing 13% and concentrate sales declining 2%. The company experienced higher-than- expected currency headwinds of 6% due to currency devaluation against a strong dollar. As a result, Coke updated its guidance for full-year 2024, with organic growth of 8%-9% spurred by higher pricing in various inflationary markets and 4%-5% of currency headwinds. The company further expects a 4%-5% headwind from its acquisition, divestiture, and structural changes (mainly refranchising of bottling operations in the Philippines, Bangladesh, and certain parts of India that it completed in the first quarter). Therefore, S&P Global Ratings forecasts flattish net revenues in 2024 as strong organic growth will be offset by currency and other...

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