Coca-Cola Consolidated (COKE) Q2 2024 earnings summary

Executive summary

• Net sales rose 3.3% to $1.80B in Q2 2024 and 2.3% to $3.39B in H1, driven by pricing actions despite a 1.2% decline in case volume in Q2 and 0.8% in H1.

• Gross profit increased 7% to $716.7M in Q2, with gross margin up 130 bps to 39.9% due to pricing and stable commodity costs.

• Net income grew to $172.8M in Q2 (up $50.5M YoY), with adjusted Q2 net income at $192.8M (up $20.3M YoY).

• Operating income rose 11% to $259.1M in Q2 and 8% to $474.5M in H1; operating margin improved to 14.0% in H1.

• Cash from operations was $437.1M in H1, up from $383.3M YoY, reflecting strong performance.

Financial highlights

• Q2 2024 net sales: $1.80B (+3.3% YoY); H1 2024 net sales: $3.39B (+2.3% YoY).

• Q2 2024 net income: $172.8M ($18.57/share basic); H1 2024 net income: $338.6M ($36.26/share basic).

• Q2 2024 gross profit: $716.7M (+7% YoY); gross margin: 39.9% (+130 bps).

• Q2 2024 operating income: $259.1M (+11% YoY); H1 2024: $474.5M (+8% YoY).

• Q2 2024 SD&A expenses: $457.6M (+4.5% YoY); H1 2024: $882.7M (+3.1% YoY).

Outlook and guidance

• 2024 capital expenditures expected between $300M and $350M; $140M–$190M anticipated in H2.

• Over the next five years, annual capex is projected at $250M–$300M.

• Anticipates annual acquisition-related contingent consideration payments of $50M–$75M for the next five years.