Executive Summary

Q4 2024 delivered solid top-line and strong margin expansion: net sales rose 7.1% YoY to $1.746B, gross margin expanded 70 bps to 40.0%, and operating income increased 22.6% to $218.7M; GAAP diluted EPS was $20.46, aided by non-cash fair value adjustments .
Mix and pricing drove profitability: Sparkling and Still net sales grew 7.7% and 8.7% YoY, respectively, with pricing actions and stable commodities cited as key drivers; shift toward higher-margin Sparkling supported margins .
Non-GAAP context: Adjusted net income was $156.7M (Basic adjusted EPS $18.11) vs GAAP net income $178.9M (Basic EPS $20.48), reflecting non-cash contingent consideration fair value adjustments; EBITDA reached >$1.1B for FY24 with a 16.2% margin .
2025 outlook/guideposts: Management signaled “slower financial growth” in 2025 but expects “another solid year of margin performance and cash generation”; capex guided to ~$300M (vs ~$371M in 2024) .
Street estimates: S&P Global (Capital IQ) consensus for Q4 2024 EPS and revenue was unavailable due to API limits, so beat/miss vs estimates cannot be assessed at this time (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Pricing, mix, and Sparkling strength: “Sparkling and Still net sales increased 7.7% and 8.7%” YoY in Q4; management highlighted pricing actions and stable commodities as contributors to 70 bps gross margin expansion to 40.0% .
Margin and operating leverage: Operating income rose 22.6% YoY to $218.7M with operating margin of 12.5% in Q4; FY24 operating margin expanded 80 bps to 13.3% .
Cash returns and balance sheet capacity: FY24 capital allocation included ~$626M in buybacks and an annualized dividend increase to $10/share, underscoring robust cash generation and confidence in long-term growth (CEO quote) .

“Quote”: “We are very pleased with our solid operating and financial performance in 2024… [which] enabled us to reinvest in our business for long-term growth while returning substantial cash to our stockholders.” — J. Frank Harrison, III, Chairman & CEO .

What Went Wrong

Still category softness: On a comparable basis, Still category volume declined 6.4% in Q4; management flagged Dasani casepack and BODYARMOR softness earlier in 2024 .
Reported volume headwind from route-to-market shift: Non-DSD distribution for Walmart Dasani reduced reported case volume by ~1.3% in Q4 and 0.8% for FY24, muting reported volume optics despite healthy revenue per case .
Labor cost pressure in SD&A: Q4 SD&A expenses rose 3.5% YoY, driven primarily by higher labor costs; similar trends noted in Q2/Q3 .

Financial Results

Headline P&L Metrics (Quarterly progression: oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Sales ($USD Billions)	$1.796	$1.766	$1.746
YoY Net Sales Growth %	3.3%	3.1%	7.1%
Gross Margin %	39.9%	39.5%	40.0%
Income from Operations ($USD Millions)	$259.1	$227.1	$218.7
Operating Margin %	14.4%	12.9%	12.5%
Net Income ($USD Millions)	$172.8	$115.6	$178.9
Diluted EPS (GAAP)	$18.54	$13.18	$20.46
Adjusted EPS (Basic, Non-GAAP)	$20.71	$18.81	$18.11

Notes: Q4 included two extra selling days (≈$40M sales, ≈$10M operating income), and GAAP-to-Non-GAAP adjustments primarily reflect contingent consideration fair value changes and commodity hedge mark-to-market .

Segment Net Sales (Bottle/Can)

Segment ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
Sparkling bottle/can	$1,048.9	$1,034.7	$1,083.5
Still bottle/can	$597.5	$585.5	$531.3

KPIs and Operating Drivers

KPI	Q2 2024	Q3 2024	Q4 2024
Standard Physical Case Volume (Millions)	91.5	89.9	89.7
Comparable Volume (Millions)	—	—	87.8
Gross Profit ($USD Millions)	$716.7	$698.0	$697.9
SD&A Expense ($USD Millions)	$457.6	$471.0	$479.1

Key drivers: Pricing actions (implemented Q1 2024), stable commodities, and mix shift toward Sparkling supported margins; non-DSD distribution for Walmart Dasani reduced reported volume; labor inflation pressured SD&A .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures	FY 2025	N/A	≈$300M	Initial FY25 outlook (lower vs $371M actual FY24)
Dividend per Share (Quarterly)	Q1 2025	N/A	$2.50 declared (payable Feb 7, 2025)	Declared
Qualitative Outlook	FY 2025	N/A	“2025 will likely be a year of slower financial growth,” but “another solid year of margin performance and cash generation” expected	Cautious top-line; margin/cash resilient

No quantitative revenue/EPS/margin guidance ranges were issued in the Q4 materials beyond capex and qualitative commentary .

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available in our document set or via public sources checked; themes below synthesize Q2–Q4 disclosures and Q4 press release commentary [ListDocuments showed no transcript; Internet search did not surface a COKE Q4 call transcript].

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Pricing & Margin	Pricing actions in Q1; gross margin +130 bps to 39.9% in Q2; +90 bps to 39.5% in Q3; stable commodities; Sparkling mix helped	Gross margin 40.0% (+70 bps); continued pricing and stable commodities; Sparkling mix supportive	Improving/stable margins
Sparkling performance	Strong multi-serve can performance; Sparkling net sales +4.4% (Q2) and +5.8% (Q3); Sparkling volume +0.8% in Q3	Sparkling net sales +7.7% YoY; comparable Sparkling volume +0.8%	Consistently strong
Still portfolio	Softness in Dasani casepack and BODYARMOR; Still volume -3.5% in Q2; -9.7% in Q3	Comparable Still volume -6.4%; “robust commercial plans” to strengthen Still	Under pressure; plans in place
Route-to-market shift (non-DSD)	Walmart Dasani move reduced reported cases by 0.8% in Q2	-1.8% impact in Q3; -1.3% in Q4; -0.8% for FY24	Ongoing structural shift
SD&A / labor costs	SD&A +5% in Q2; labor/inflation cited	SD&A +5.8% in Q3; higher labor/incentives	SD&A +3.5% in Q4; higher labor costs
Capex & supply chain	Continued investments; Q2 capex $159M YTD; Q3: Nashville plant purchased	FY24 capex $371M; FY25E capex ≈$300M	Elevated, tapering in 2025
2025 outlook	—	“Slower financial growth,” margin and cash flow resilience	Cautious revenue, resilient margins

Management Commentary

Strategic focus and capital allocation: “Our financial performance has enabled us to reinvest in our business for long-term growth while returning substantial cash to our stockholders. During 2024, we invested over $370 million in capital expenditures, repurchased approximately $626 million of our Common Stock and increased our annualized regular dividend to $10 per share.” — J. Frank Harrison, III, Chairman & CEO .
Margin trajectory and 2025 context: “We achieved EBITDA of over $1.1 billion with an EBITDA margin of 16.2% — the highest level in decades… While 2025 will likely be a year of slower financial growth, we believe our operating plans will deliver another solid year of margin performance and cash generation.” — Dave Katz, President & COO .
Mix and category plans: Q4 saw a shift toward Sparkling, supporting margin; management plans “robust commercial plans… to strengthen the performance of our Still portfolio” in 2025 .

Q&A Highlights

A Q4 2024 earnings call transcript was not available in our sources; therefore, Q&A themes could not be reviewed. Commentary above reflects management’s Q4 press release statements rather than live Q&A [ListDocuments showed no transcript; Internet search surfaced none specific to COKE].

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q4 2024 EPS and revenue could not be retrieved due to a daily request limit, so we cannot assess beat/miss vs Street at this time. Values would typically be sourced from S&P Global; unavailable in this instance.

Key Takeaways for Investors

Quality quarter with broad-based profitability: Gross margin hit 40.0% (+70 bps YoY) and operating income grew 22.6% despite volume headwinds, driven by pricing, commodities stability, and Sparkling mix .
Non-GAAP lens matters: Q4 GAAP EPS was elevated by non-cash fair value adjustments; adjusted Basic EPS was $18.11 vs GAAP Basic EPS $20.48, a ~$2.37 delta — recalibrate models accordingly .
Still category is the swing factor: Continued softness (comparable Still volume -6.4% in Q4) with management citing plans to improve; watch execution on BODYARMOR/Dasani and innovation cadence .
Reported volume optics remain noisy: Walmart Dasani’s non-DSD shift reduces reported cases (-1.3% in Q4), but the economics include fees that support profitability; focus on revenue/margin vs cases .
2025 setup: Management flagged “slower financial growth,” but guided to resilient margins and cash generation; capex stepping down to ≈$300M supports FCF trajectory and capital returns .
Capital returns credible: ~$626M 2024 buybacks and annualized dividend raised to $10/share underpin capital discipline; Q1’25 dividend declared at $2.50/share .
Trading lens: Near-term catalysts include Still portfolio initiatives, commodity cost stability, and evidence that margin resilience persists amid slower top-line; lack of Street compare (unavailable estimates) tempers immediate beat/miss trading conclusions.

Appendix: Additional Data Points and Notes

Extra selling days: Q4 included two additional selling days vs Q4’23, adding ≈$40M to sales and ≈$10M to operating income — normalize for this when assessing run-rate growth .
FY24 EBITDA: $1.115B and EBITDA margin 16.2% (non-GAAP) .
Tax: Q4 effective tax not broken out; FY24 effective tax rate was 26.1% .
Cash flow: FY24 operating cash flow $876.4M; FY24 capex $371M .

Coca-Cola Consolidated, Inc. (COKE)·Q4 2024 Earnings Summary