Coca-Cola Consolidated (COKE) Q3 2024 earnings summary

Executive summary

• Net sales rose 3.1% to $1.77B in Q3 2024 and 2.6% to $5.15B for the first nine months, driven by Sparkling beverage growth and pricing actions.

• Sparkling beverage sales grew 5.8% in Q3, while Still beverage sales increased 1.7%, but Still category physical case volume declined 9.7%.

• Net income for Q3 reached $115.6M, up $23.5M YoY; adjusted net income for nine months was $521.9M.

• Operating margin improved to 13.6% for the first nine months, up 50 bps YoY.

• Company supported communities affected by Hurricane Helene, emphasizing local recovery efforts.

Financial highlights

• Q3 2024 net sales: $1.77B (+3.1% YoY); nine months: $5.15B (+2.6% YoY).

• Gross profit Q3: $698M (+5.5% YoY); gross margin up 90 bps to 39.5%.

• Q3 net income: $115.6M ($13.20/share basic); nine months: $454.2M ($49.71/share basic).

• Cash flows from operations for the first nine months were $707.9M, up from $644.5M.

• Diluted EPS for Q3 was $13.18, up from $9.80 in Q3 2023.

Outlook and guidance

• Full-year 2024 capital expenditures expected to be ~$350M; next five years: $250M–$300M annually.

• Management expects sufficient liquidity and capital resources for at least the next 12 months.

• Focus remains on margin improvement, Sparkling category growth, and new Still offerings.