| Metric / Quarter                  | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Unit Case Volume Growth**       | **-1%** **[0000021344-23-000005_a2022q4earningsreleaseex-9.htm:0]** **[0000021344-23-000005_a2022q4earningsreleaseex-9.htm:4]** **[0000021344-23-000005_a2022q4earningsreleaseex-9.htm:5]** | **3%** **[0000021344-23-000017_a2023q1earningsreleaseex-9.htm:0]** **[0000021344-23-000024_ko-20230331.htm:41]** **[0000021344-23-000024_ko-20230331.htm:42]** | **0%** **[0000021344-23-000045_a2023q2earningsreleaseex-9.htm:0]** **[0000021344-23-000048_ko-20230630.htm:47]** **[0000021344-23-000048_ko-20230630.htm:45]** | **2%** **[KO_3361644_5]** **[0000021344-23-000057_a2023q3earningsreleaseex-9.htm:0]** **[0000021344-23-000060_ko-20230929.htm:46]** | **2%** **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:0]** **[0000021344-24-000009_ko-20231231.htm:86]** | **1%** **[0000021344-24-000013_a2024q1earningsreleaseex-9.htm:0]** **[0000021344-24-000017_ko-20240329.htm:42]** **[0000021344-24-000017_ko-20240329.htm:40]** | **2%** **[0000021344-24-000037_a2024q2earningsreleaseex-9.htm:0]** | **-1%** **[0000021344-24-000056_a2024q3earningsreleaseex-9.htm:0]** **[0000021344-24-000060_ko-20240927.htm:55]** |
| **Concentrate Sales Volume Growth** | **2%** **[0000021344-23-000005_a2022q4earningsreleaseex-9.htm:4]** | **1%** **[0000021344-23-000024_ko-20230331.htm:42]** **[0000021344-23-000017_a2023q1earningsreleaseex-9.htm:0]** | **1%** **[0000021344-23-000048_ko-20230630.htm:47]** | **3%** **[0000021344-23-000060_ko-20230929.htm:46]** | **3%** **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:0]** | **-2%** **[0000021344-24-000017_ko-20240329.htm:42]** | **5%** **[0000021344-24-000044_ko-20240628.htm:49]** | **-1%** **[0000021344-24-000060_ko-20240927.htm:55]** **[0000021344-24-000060_ko-20240927.htm:52]** |

0fa0b243090c1563fe17a5894f320110794f52ca6148d7a4da473c5300f64155

b9695fd51b75c46b653506473dea905ce22fd6565a3d43da47725e739d6a91e3

| Segment/Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Europe, Middle East & Africa (Millions) | **$2,019**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$2,339**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$1,973**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$2,176**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| Latin America (Millions) | **$1,639**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$1,650**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$1,527**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$1,574**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| North America (Millions) | **$4,984**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$4,812**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$4,174**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$4,463**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| Asia Pacific (Millions) | **$1,349**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$1,512**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$1,469**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$1,402**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| Global Ventures (Millions) | **$781**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$768**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$730**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$779**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| Bottling Investments (Millions) | **$1,316**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$1,539**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$1,817**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$1,859**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| Corporate (Millions) | **$18**  **[0000021344-24-000060_ko-20240927.htm:45]**  | **$30**  **[0000021344-24-000044_ko-20240628.htm:40]**  | **$27**  **[0000021344-24-000017_ko-20240329.htm:35]**  | N/A | **$40**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | N/A | N/A |
| Eliminations (Millions) | **$(252)**  **[0000021344-24-000060_ko-20240927.htm:45]**  | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Concentrate Operations (Millions) | N/A | N/A | N/A | N/A | N/A | N/A | **$6,333**  **[0000021344-23-000024_ko-20230331.htm:9]**  | N/A |
| Finished Product Operations (Millions) | N/A | N/A | N/A | N/A | N/A | N/A | **$4,647**  **[0000021344-23-000024_ko-20230331.htm:9]**  | N/A |

095796c257624613e4a098c4b2249c0bd0c370d08406f283214c65f3d815f6ff

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

cc341b921f4dd2025d1225433c0fc3789e8938f88a8355942efbf77412f6005f

| Geographical Segment | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Europe, Middle East & Africa (USD Million) | **1,690**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **2,176**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **2,024**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| Latin America (USD Million) | **1,492**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **1,574**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **1,386**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| North America (USD Million) | **4,040**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **4,463**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **3,904**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| Asia Pacific (USD Million) | **1,115**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **1,402**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **1,371**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| Global Ventures (USD Million) | **813**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **779**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **707**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| Bottling Investments (USD Million) | **2,013**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **1,859**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **1,946**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| Corporate (USD Million) | **31**  **[0000021344-24-000004_a2023q4earningsreleaseex-9.htm:11]**  | **40**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **25**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |
| Eliminations (USD Million) | N/A | **-340**  **[0000021344-23-000060_ko-20230929.htm:39]**  | N/A | **-383**  **[0000021344-23-000024_ko-20230331.htm:34]**  | N/A | N/A | N/A | N/A |

e890cfd62f4f79a427652937f87a65f3383df8f3dbc137ab9ab6df634c3e4b9f

The Coca-Cola Company is a total beverage company with products sold in more than 200 countries and territories. It operates in two main lines of business: concentrate operations and finished product operations. The company sells beverage concentrates and syrups to authorized bottling partners, as well as sparkling soft drinks and other beverages directly to retailers, distributors, and wholesalers **[0000021344-24-000009_ko-20231231.htm:127]** **[0000021344-24-000009_ko-20231231.htm:73]**. Its product lines include sparkling soft drinks, juice, value-added dairy, plant-based beverages, water, sports drinks, coffee, tea, and emerging beverages **[0000021344-24-000009_ko-20231231.htm:72]** **[0001558370-24-003468_ko-20240501xdef14a.htm:7]**.

1. **Concentrate Operations** - Sells beverage concentrates and syrups to authorized bottling partners, who produce and package the finished beverages.
2. **Finished Product Operations** - Sells sparkling soft drinks and other beverages directly to retailers, distributors, and wholesalers.
3. **Sparkling Soft Drinks** - Offers popular brands such as Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, and Sprite.
4. **Juice, Value-Added Dairy, and Plant-Based Beverages** - Includes brands like Minute Maid and Simply.
5. **Water, Sports, Coffee, and Tea Brands** - Features products such as Dasani, Powerade, and Costa.
6. **Emerging Beverages** - Includes new offerings like Topo Chico Hard Seltzer.
7. **Direct-to-Consumer Sales** - Engages in retail through Costa-operated stores, part of its Global Ventures operating segment.

82c0076b049376ac358a5ed3bef9c6dbb9ad167a0f8f97a2c49e80ed956552c7

8167e434f13948dcb4b6072f2ae562a2312df31ce02404b6e70ed4fd9c91b9ee

1. With fairlife surpassing $1 billion in sales and significantly impacting your North American mix, how do you plan to sustain its growth given capacity constraints and tough year-over-year comparisons, especially before the New York plant becomes operational?  **[KO_3403352_17]** 

2. Given the recent food contamination issues at McDonald's, your largest customer, how are you preparing to mitigate potential impacts on your business, and do you foresee any long-term repercussions in affected markets?  **[KO_3403352_14]** 

3. With higher net interest expenses due to deposits related to the ongoing IRS tax dispute and the upcoming fairlife contingent consideration payment, how are these factors impacting your financial outlook, and what steps are you taking to resolve the IRS dispute promptly?  **[KO_3403352_5]** 

4. Observing softness in discretionary spending in North America, especially in small-format stores and foodservice, how are you adjusting your strategies to address potential declines in impulse purchases and revitalize consumer spending in these channels?  **[KO_3403352_9]** 

5. While your U.S. carbonated soft drink business is currently outperforming, how sustainable is this growth given the market shifts towards healthier options, and what strategies are you implementing to maintain relevance among younger consumers who may prefer non-carbonated beverages?  **[KO_3403352_15]** 

77a137d13c668191b73e5fd90ef30736701f1628b4cc436f11a66ebaafccb463

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

a456758db0288822d91c9ff1329139e6e6381f915284fa4796969d5492327424

Worldwide Unit Case Volume Growth (percentage)

Worldwide Concentrate Sales Volume Growth (percentage)

Europe, Middle East & Africa Unit Case Volume Growth (percentage)

Europe, Middle East & Africa Concentrate Sales Volume Growth (percentage)

Latin America Unit Case Volume Growth (percentage)

Latin America Concentrate Sales Volume Growth (percentage)

North America Unit Case Volume Growth (percentage)

North America Concentrate Sales Volume Growth (percentage)

Asia Pacific Unit Case Volume Growth (percentage)

Asia Pacific Concentrate Sales Volume Growth (percentage)

Global Ventures Unit Case Volume Growth (percentage)

Global Ventures Concentrate Sales Volume Growth (percentage)

Bottling Investments Unit Case Volume Growth (percentage)

b979bb38116d30996b6147001955dd755a192d0255ba50eb6bf514ca44625202

**Unit Case Volume Growth**

**Concentrate Sales Volume Growth**

5b3efc8d7c7a964ef481d02c6fda58bcbd7d3740b0238e19f597a5165c0568bc

- PepsiCo, Inc. - A primary competitor in many of the countries where the company does business  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Nestlé S.A. - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Keurig Dr Pepper Inc. - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Danone S.A. - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Suntory Beverage & Food Limited - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- AB InBev - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Kirin Holdings - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Heineken N.V. - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Diageo - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .
- Red Bull GmbH - Significant competitor  **[0000021344-24-000009_ko-20231231.htm:12]** .

2ec4e2dfce8e3e64c002b8a02f7d3fb5fbeeed7bd8a82e93d3de982e590ef480

7f03f3f5fb495643e86ba2fc5f2c1ffbf57172ff0e99498d8fabd433939e868b

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: Approximately **10%**  **[KO_3403352_4]** .
  2. **Comparable Currency-Neutral Earnings Per Share Growth**: **14% to 15%**  **[KO_3403352_4]** .
  3. **Comparable Earnings Per Share Growth**: **5% to 6%** versus $2.69 in 2023  **[KO_3403352_4]** .
  4. **Currency Headwinds**: Approximate **5-point** headwind to comparable net revenues and **9-point** headwind to comparable earnings per share  **[KO_3403352_4]** .
  5. **Net Interest Expense**: Expected to be elevated due to IRS tax dispute and fairlife contingent consideration payment  **[KO_3403352_5]** .
  6. **2025 Considerations**: Pricing from inflationary markets expected to moderate, cycling impact of currency devaluations  **[KO_3403352_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: **9% to 10%**  **[KO_3393922_5]** .
  2. **Comparable Currency-Neutral Earnings Per Share Growth**: **13% to 15%**  **[KO_3393922_5]** .
  3. **Bottler Refranchising Impact**: **4- to 5-point headwind** to net revenues, **1- to 2-point headwind** to earnings per share  **[KO_3393922_5]** .
  4. **Currency Headwind**: **5- to 6-point** headwind to net revenues, **8- to 9-point** headwind to earnings per share  **[KO_3393922_5]** .
  5. **Comparable Earnings Per Share Growth**: **5% to 6%** versus $2.69 in 2023  **[KO_3393922_5]** .
  6. **Unit Cases and Concentrate Shipments**: Expected to align  **[KO_3393922_5]** .
  7. **Earnings Growth**: Weighted towards Q4 2024  **[KO_3393922_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: **8% to 9%**  **[KO_3381481_5]** .
  2. **Comparable Currency-Neutral Earnings Per Share Growth**: **11% to 13%**  **[KO_3381481_5]** .
  3. **Bottler Refranchising Impact**: **4- to 5-point headwind** to net revenues, **2-point headwind** to earnings per share  **[KO_3381481_5]** .
  4. **Currency Headwind**: **4- to 5-point** headwind to net revenues, **7 to 8-point** headwind to earnings per share  **[KO_3381481_5]** .
  5. **Underlying Effective Tax Rate**: **19%**  **[KO_3381481_5]** .
  6. **Comparable Earnings Per Share Growth**: **4% to 5%** versus $2.69 in 2023  **[KO_3381481_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: **6% to 7%**  **[KO_3373047_5]** .
  2. **Comparable Currency-Neutral Earnings Per Share Growth**: **8% to 10%**  **[KO_3373047_5]** .
  3. **Currency Headwinds**: **2- to 3-point** headwind to net revenues, **4- to 5-point** headwind to earnings per share  **[KO_3373047_6]** .
  4. **Underlying Effective Tax Rate**: **19.2%**  **[KO_3373047_6]** .
  5. **Comparable Earnings Per Share Growth**: **4% to 5%** versus $2.69 in 2023  **[KO_3373047_6]** .
  6. **Free Cash Flow**: Approximately **$9.2 billion** through **$11.4 billion** in cash from operations, less **$2.2 billion** in capital investments  **[KO_3373047_6]** .
  7. **Impact of Hyperinflationary Pricing**: Expected to moderate  **[KO_3373047_5]** .
  8. **Bottler Refranchising**: **4- to 5-point** headwind to net revenues, **2-point headwind** to earnings per share, positive impact on margins and return profile  **[KO_3373047_5]** .
  9. **Capital Investments**: Significant portion for fairlife and India business  **[KO_3373047_6]** .

e3dc0117d00a826cc37b265cfc71561397abe1fff7389810b71ba96febcdf1f0

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

c07c3586392500107fc654dd52ef19dc7bc8d1bde00990de49b9743ae0a31994

| Name                  | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Manuel Arroyo         | Executive Vice President, Global Chief Marketing Officer                 | January 2024        | Manuel Arroyo has been serving as Executive Vice President since January 2024 and as Global Chief Marketing Officer since January 2020. He was previously President of the Asia Pacific Group and Mexico business unit  **[0000021344-24-000009_ko-20231231.htm:69]** **[0001552781-24-000276_e24224_ex99-1.htm:1]** .                  |
| Henrique Braun        | Executive Vice President, President, International Development            | January 2023        | Henrique Braun has been serving as Executive Vice President since January 2024 and President, International Development since January 2023. He joined Coca-Cola in 1996 and has held various roles across multiple regions  **[0000021344-24-000009_ko-20231231.htm:69]** **[0001552781-24-000626_e24365_ko-8k.htm:1]** **[0001552781-24-000626_e24365_ex99-1.htm:0]** .          |
| Lisa Chang            | Executive Vice President, Global Chief People Officer                    | January 2024        | Lisa Chang has been serving as Executive Vice President since January 2024 and Global Chief People Officer since March 2019. She joined Coca-Cola in March 2019 after serving as SVP and CHRO for AMB Group LLC  **[0000021344-24-000009_ko-20231231.htm:69]** **[0000021344-24-000009_ko-20231231.htm:70]** .                        |
| Monica Howard Douglas | Executive Vice President, Global General Counsel                         | January 2024        | Monica Howard Douglas has been serving as Executive Vice President since January 2024 and Global General Counsel since April 2021. She was previously Chief Compliance Officer and Associate General Counsel for North America  **[0000021344-24-000009_ko-20231231.htm:69]** .             |
| Nikolaos Koumettis    | President, Europe Operating Unit                                          | January 2021        | Nikolaos Koumettis has been President of the Europe operating unit since January 2021. He previously served as President of the Europe, Middle East, and Africa Group and other regional business units  **[0000021344-24-000009_ko-20231231.htm:69]** **[0000021344-23-000011_ko-20221231.htm:65]** .                                 |
| Jennifer K. Mann      | Executive Vice President, President, North America Operating Unit         | January 2023        | Jennifer K. Mann has been Executive Vice President since January 2024 and President of the North America operating unit since January 2023. She has been with Coca-Cola for 27 years, holding various leadership roles  **[0000021344-24-000009_ko-20231231.htm:70]** **[KO_3378154_2]** .                  |
| John Murphy           | President, Chief Financial Officer                                       | October 2022        | John Murphy has been President since October 2022 and Chief Financial Officer since March 2019. He previously served as Executive Vice President and held other senior financial roles within the company  **[0000021344-24-000009_ko-20231231.htm:70]** .                                   |
| Beatriz Perez         | Executive Vice President, Global Chief Communications, Sustainability and Strategic Partnerships Officer | January 2024        | Beatriz Perez has been Executive Vice President since January 2024 and Global Chief Communications, Sustainability and Strategic Partnerships Officer since May 2017. She was the company's first Chief Sustainability Officer  **[0000021344-24-000009_ko-20231231.htm:70]** **[0001552781-24-000276_e24224_ex99-1.htm:1]** .          |
| Bruno Pietracci       | President, Latin America Operating Unit                                  | February 2023       | Bruno Pietracci has been President of the Latin America operating unit since February 2023. He previously served as President of the Africa operating unit and other regional business units  **[0000021344-24-000009_ko-20231231.htm:70]** **[0000021344-23-000011_ko-20221231.htm:65]** .                                             |
| Nancy Quan            | Executive Vice President, Global Chief Technical and Innovation Officer  | January 2024        | Nancy Quan has been Executive Vice President since January 2024 and Global Chief Technical and Innovation Officer since February 2021. She previously served as Chief Technical Officer for Coca-Cola North America  **[0000021344-24-000009_ko-20231231.htm:70]** **[0000021344-24-000009_ko-20231231.htm:69]** .                     |
| James Quincey         | Chairman of the Board of Directors, Chief Executive Officer              | April 2019          | James Quincey has been Chairman of the Board since April 2019 and Chief Executive Officer since May 2017. He joined Coca-Cola in 1996 and has held various leadership positions, including President of the Europe Group  **[0001558370-24-003468_ko-20240501xdef14a.htm:38]** **[0000021344-24-000009_ko-20231231.htm:70]** **[0001308179-23-000117_ko4104401-def14a.htm:44]** .             |
| Bela Bajaria          | Director, Member of the Talent and Compensation Committee                 | October 17, 2024    | Bela Bajaria was elected as a Director on October 17, 2024. She is also a member of the Talent and Compensation Committee and serves as Chief Content Officer for Netflix Inc., overseeing global television and film content  **[0000021344-24-000051_ko-20241017.htm:1]** **[0000021344-24-000051_ex991oct17pressreleaseofth.htm:0]** .           |

bc4f568c89fe734857791be8538c15e01a36207039e2573c766fc4e800f0dca0

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **February 2019**  **[0000021344-24-000060_ko-20240927.htm:84]**  |
| End Date/Duration        | N/A                |
| Total additional amount  | **150 million shares**  **[0000021344-24-000060_ko-20240927.htm:84]**  |
| Remaining authorization  | **84,844,097 shares**  **[0000021344-24-000060_ko-20240927.htm:84]**  |
| Details                  | Offset dilution from employee stock-based compensation plans  **[0000021344-23-000048_ko-20230630.htm:58]** **[0000021344-24-000044_ko-20240628.htm:62]** **[0000021344-24-000060_ko-20240927.htm:68]**  |

4970b32e0990993b7b2ddaa9583462036b5e281ce220af3a44229d7430904686

**Annual guidance for FY 2024:**
- **Organic Revenue Growth**: Approximately 10%  **[KO_3403352_4]**  (raised from 9% to 10%  **[KO_3393922_5]** )  
- **Comparable Currency-Neutral Earnings Per Share Growth**: 14% to 15%  **[KO_3403352_4]**  (raised from 13% to 15%  **[KO_3393922_5]** )  
- **Comparable Earnings Per Share Growth**: 5% to 6% versus $2.69 in 2023  **[KO_3403352_4]**  (no change from prior guidance  **[KO_3393922_5]** )  
- **Currency headwinds (net revenues)**: Approximately 5-point headwind  **[KO_3403352_4]**  (lowered from 5- to 6-point headwind  **[KO_3393922_5]** )  
- **Currency headwinds (EPS)**: Approximately 9-point headwind  **[KO_3403352_4]**  (raised from 8- to 9-point headwind  **[KO_3393922_5]** )  
- **Net Interest Expense**: Expected to be elevated due to IRS tax dispute and fairlife contingent consideration payment  **[KO_3403352_5]**  (no prior guidance)  
- **2025 Considerations**: Pricing from inflationary markets expected to moderate, cycling impact of currency devaluations  **[KO_3403352_4]**  (no prior guidance)

2c7399b0f6c303dec3e4f6fd9bc70d25f585ea105f45de113ecfe6cb164ee744

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1921  **[0000021344-24-000009_ko-20231231.htm:195]**  | Present  | Current auditor   |

4a9e459102452ad791cf10a198b367da5a2ed5166e8b39bd605a8aab51813ca7

ce133d42c5f566abcb2737a512250078fcdd75a764f8183266074f431ba2b201

- Total Revenue: $11.854B (-1% YoY)  **[0000021344-24-000060_ko-20240927.htm:45]** **[0000021344-23-000060_ko-20230929.htm:9]**   
- Europe, Middle East & Africa: $2.019B (-7% YoY)  **[0000021344-23-000060_ko-20230929.htm:39]** **[0000021344-24-000060_ko-20240927.htm:45]**   
- North America: $4.984B (**+12%** YoY)  **[0000021344-23-000060_ko-20230929.htm:39]** **[0000021344-24-000060_ko-20240927.htm:45]**   
- Bottling Investments: $1.316B (**-29%** YoY)  **[0000021344-23-000060_ko-20230929.htm:39]** **[0000021344-24-000060_ko-20240927.htm:45]**   
- Operating Income (EBIT): $2.51B (**-23%** YoY)  **[0000021344-23-000060_ko-20230929.htm:3]** **[0000021344-23-000060_ko-20230929.htm:40]** **[0000021344-24-000060_ko-20240927.htm:3]** **[0000021344-24-000060_ko-20240927.htm:46]** **[0000021344-24-000060_ko-20240927.htm:45]**   
- Net Income: $2.848B (-8% YoY)  **[0000021344-23-000060_ko-20230929.htm:3]** **[0000021344-23-000060_ko-20230929.htm:4]** **[0000021344-24-000060_ko-20240927.htm:3]** **[0000021344-24-000060_ko-20240927.htm:46]** **[0000021344-24-000060_ko-20240927.htm:45]**   
- EPS (Basic): $0.66 (-7% YoY)  **[0000021344-23-000060_ko-20230929.htm:3]** **[0000021344-24-000060_ko-20240927.htm:3]** **[0000021344-24-000060_ko-20240927.htm:46]** **[0000021344-24-000060_ko-20240927.htm:45]**   

16edb41fd0f937dea4050c985dd20867d09fdf8cb3dfd254926114d58ee3165c

7ba2ef53e24c9de8860c88b6596185b8461f16ae4d586b770d351ce0aebd7e42

- **Coca-Cola's dual-brand strategy in sports drinks is gaining traction**, with innovative products like **BODYARMOR Zero Sugar performing ahead of expectations** and improved market share trends, indicating potential for growth in this category.  **[KO_3381481_9]**
- **The company anticipates ongoing gross margin expansion driven by refranchising efforts and underlying business performance**, which is expected to enhance profitability and support future earnings growth.  **[KO_3381481_6]**
- **Strong volume growth in key Latin American markets**, such as **Mexico, Brazil, and Colombia**, demonstrates Coca-Cola's ability to drive growth even in challenging macroeconomic conditions, and the company expects this momentum to continue.  **[KO_3381481_13]**

baf2e04d6786f203b8fb661c510f5f3c67227ce09bd9137ecf962d52cd2dbb1a

1. **Volume Decline Analysis**  
   **Q:** Why did unit case volume decline by 1% in Q3?  
   **A:** The decline was due to atypical volume makeup, with good performance in developed markets but pressure from emerging markets. Developed markets like North America, Europe, Japan, and Australia grew, while emerging markets faced factors like Mexico cycling a strong Q3 last year and India affected by heavy monsoons. Ongoing issues in China and Eurasia also contributed to the decline.  **[KO_3403352_16]** 

2. **Managing FX Headwinds and Strategy**  
   **Q:** How will you manage FX headwinds into 2025?  
   **A:** We pursue an **all-weather strategy** to drive growth despite headwinds. In 2025, FX headwinds are expected to be **less** than this year. Emerging market devaluations allow quicker inflation pass-through, linking to pricing. We focus on investing behind brands, understanding profit drivers, and maintaining productivity efforts to offset challenges.  **[KO_3403352_10]** 

3. **Margin Expansion Levers**  
   **Q:** What are the levers for margin expansion next year?  
   **A:** We expect underlying gross margin expansion to continue, aiming to offset FX headwinds through **Revenue Growth Management** and cost efficiency efforts. Despite challenges like inflation in agricultural commodities, we'll leverage levers on both revenue and cost lines, such as optimizing promotions, simplifying product specs, and leveraging our supplier base.  **[KO_3403352_12]** 

4. **Price Mix Sustainability**  
   **Q:** Is the price/mix growth of 3% sustainable into 2025?  
   **A:** The mix has enduring elements like managing affordability and premiumization to drive growth. Temporary factors, such as slower growth in emerging markets, boosted price/mix this quarter. We expect a return to normal growth patterns, with emerging markets growing faster, normalizing volume and price/mix.  **[KO_3403352_7]** 

5. **North America Pricing and Mix**  
   **Q:** Can you elaborate on North America's strong price/mix?  
   **A:** In Q3, North America's price/mix was **half price and half mix**. Mix was driven by focus on premium brands like **fairlife**, **Topo Chico**, and **Coca-Cola**, with less emphasis on case pack water. We anticipate moving towards a more normalized level of pricing next year, tracking similar rates to CPI, while continuing to invest in both affordability and premiumization options.  **[KO_3403352_11]** 

6. **Volume Growth Expectations**  
   **Q:** Will lower price/mix next year boost volume?  
   **A:** We expect emerging markets to resume growing faster than developed economies, contributing to **volume growth** but not to positive price/mix. This should stabilize the relationship between volume and price/mix, making next year resemble this year with normal volume growth and pricing levels.  **[KO_3403352_19]** 

7. **Fairlife Growth and Impact**  
   **Q:** How significant is fairlife's impact on mix and sales?  
   **A:** **fairlife** is a **$1 billion brand**, contributing to mix due to our vertically integrated business model, boosting both revenue and the bottom line. Importantly, North America excluding fairlife is also growing in top line and profit, so all engines are firing. We're expanding capacity to support fairlife's continued growth.  **[KO_3403352_17]** 

8. **US CSD Growth Drivers**  
   **Q:** What is driving US carbonated soft drink growth?  
   **A:** Growth is driven by making brands more relevant through marketing transformation and improved execution. In Q3, **Coke Zero** had **double-digit growth**, and even **Diet Coke** grew. Efforts in Revenue Growth Management and pack mix are strengthening the sparkling beverage business.  **[KO_3403352_15]** 

9. **North America Consumer Demand**  
   **Q:** Are you seeing softness in US consumer demand?  
   **A:** There's some marginal softness, but the beverage industry remains robust with growth in total dollars. While some consumers exhibit value-seeking behavior, strong purchasing power in other segments offsets this. Overall, the US market has remained resilient.  **[KO_3403352_9]** 

10. **Alcohol Strategy and Learnings**  
    **Q:** What are the learnings from your alcohol strategy?  
    **A:** It's early days, but we've learned that building scale takes time. We're taking a measured approach, focusing on a robust portfolio combining partnered ready-to-drink offerings like **Jack and Coke**, **Bacardi and Coke**, **Absolut and Sprite**, and our own brands like **Simply Spiked**. The goal is to make alcoholic ready-to-drink a meaningful category.  **[KO_3403352_18]** 

11. **Quick Adaptations and Macro Environment**  
    **Q:** What quick adaptations are you making amid macro challenges?  
    **A:** We're expanding affordable options, investing in cold drink equipment to increase availability, adjusting marketing messaging, and working with local bottlers to fine-tune relevance with consumers and retailers. The macro environment shows resilience globally.  **[KO_3403352_8]** 

12. **Digital Capabilities and Bottler Investments**  
    **Q:** How are you enhancing digital capabilities with bottlers?  
    **A:** We're expanding digital engagement with retailers, especially in traditional trade, allowing 24/7 ordering and service requests. With AI, we can suggest orders to retailers based on trends. This enhances human productivity, and bottlers are investing in these capabilities.  **[KO_3403352_20]** 

13. **Q4 Outlook and Mexico CSD Ban**  
    **Q:** How should we think about Q4 growth and potential Mexico CSD ban?  
    **A:** We expect a strong outlook for Q4. Excluding high-inflation markets, Q3 price/mix was **6%**, volume **-1%**, net **5%**, aligning with our growth algorithm. Regarding Mexico, a potential CSD ban in schools is expected to have a very small impact, as we largely sell no-sugar portfolios to schools.  **[KO_3403352_13]** 

14. **McDonald's Food Safety Impact**  
    **Q:** Will McDonald's food contamination issue affect you?  
    **A:** As a partner, we'll support McDonald's as needed. Based on current information, we don't expect a significant impact on our business.  **[KO_3403352_14]** 

15. **Growth Outlook**  
    **Q:** Can you return to positive growth in Q4?  
    **A:** Despite a challenging Q3 volume, we believe it's within our control to return to growth by focusing on our marketing innovation, price pack strategies, and system execution. The macro environment shows resilience, supporting our expectations for Q4 and into 2025.  **[KO_3403352_6]** 

47ca4ed3149320c4be528e5fd00b780eac56b7c3c7dbc15dd0362643481bf08c

- **Coca-Cola faces an ongoing IRS tax dispute, which could impact cash flows due to potential payments related to the appeal.**  **[KO_3373047_12]**
- **Hyperinflationary markets are causing significant currency headwinds and distorting financial results, leading to uncertainties in predicting earnings.**  **[KO_3373047_11]**
- **Volume growth softened in China in the last three quarters of 2023, with expectations of continued weakness in the first quarter of 2024.**  **[KO_3373047_15]**

d8b7db6e000bf82b6ff61d5b0c617106325f9c79cd7f550448a89a27905d4129

- **Declining unit case volumes and pressure in emerging markets:** Coca-Cola experienced a 1% decline in unit case volumes in Q3 2024, driven by challenging conditions in emerging markets like China, India, and Eurasia, with factors such as heavy monsoons, economic adjustments, and macroeconomic pressures impacting performance.  **[KO_3403352_16]**
- **Significant financial obligations impacting cash flow and leverage:** The company made a $6 billion deposit related to an ongoing IRS tax dispute and expects to make a $6.1 billion payment for the fairlife contingent consideration in the first half of 2025, leading to elevated net interest expense and increased net debt leverage.  **[KO_3403352_4]** **[KO_3403352_2]**
- **Pressure on margins due to expected commodity price volatility and higher agricultural costs:** Coca-Cola expects agricultural commodities to continue facing volatility and higher prices, which could pressure margins in 2025. Additionally, currency headwinds are anticipated to have a mid-single-digit impact on comparable earnings per share for full year 2025.  **[KO_3403352_2]**

0c1bff4e11eae15a43220d6382f31346e24cfefee9d8cdc30085410bf6b2f821

- **Slower-than-expected progress with BODYARMOR in the U.S. market, reflecting challenges in executing the dual-brand strategy with POWERADE and BODYARMOR.**  **[KO_3381481_9]**
- **Softness in key categories in North America, including tea, coffee, and water, contributing to modest volume growth expectations and potential pressure on future sales.**  **[KO_3381481_18]**
- **Negative impact from currency headwinds and strong U.S. dollar, especially in emerging markets experiencing intense inflation and devaluation, leading to declines in dollar value earnings despite local currency growth.**  **[KO_3381481_6]** **[KO_3381481_8]**

f06dfa2fcd93e9b29bb0c7ec6a9211907ed0bdea720017239414ebd5b8fe621e

- **Strong performance in Latin America is driving the company's overall growth**, with sustained volume momentum, broad-based category success, and **Coca-Cola Zero Sugar achieving over 20% volume growth**.  **[KO_3393922_11]**
- The company is effectively managing **pricing and mix**, expecting **normalization of price/mix as inflation trends down**, while continuing to invest in **marketing, innovation, and price pack architecture** to drive growth.  **[KO_3393922_13]** **[KO_3393922_6]**
- Despite challenges in certain markets, **Coca-Cola is achieving positive volume growth** in key developing markets like Latin America, India, Africa, and Southeast Asia, by **keeping consumers within the franchise** and balancing volume and price mix for sustainable growth.  **[KO_3393922_14]** **[KO_3393922_11]** **[KO_3393922_17]**

c47b90c1074c6478cf811ec6e6afc0a830fb0bdfa651ec23b1a1c35078b999b6

1. **Pricing Strategy and Margin Outlook**  
   **Q:** How will pricing and margins evolve given inflation trends?  
   **A:** Management noted that only half of the **11%** price/mix growth in North America was due to actual price increases; the other half was mix effects from higher-priced products like fairlife and juices growing faster.  **[KO_3393922_6]**  They expect the mix effect to subside in the back half of the year, leading to more normalized pricing.  **[KO_3393922_13]**  With inflation approaching the "landing zone," they anticipate future pricing to be earned through marketing, innovation, and execution rather than inflation-driven increases.  **[KO_3393922_6]**  Gross margins benefited slightly from stocking, adding tens of basis points, but overall margin trends are expected to remain similar in the second half of the year.  **[KO_3393922_10]** 

2. **Volume Growth Expectations**  
   **Q:** What is the outlook for volume growth versus pricing?  
   **A:** The company aims for balanced growth with revenue growth of **4–6%**, targeting the **5–6%** range through a mix of **2–3%** volume growth and **2–3%** price/mix.  **[KO_3393922_14]**  In the short term, they expect slightly more price and slightly less volume due to inflation trends.  **[KO_3393922_14]**  Positive volume growth is driven by developing economies like Latin America, India, and Africa, while North America and Europe face some softness.  **[KO_3393922_14]** 

3. **Cash Flow and Capital Allocation**  
   **Q:** How will fairlife and tax payments impact cash flow?  
   **A:** The company is managing upcoming outflows, including the fairlife acquisition and an IRS tax payment, through a combination of cash from operations, proceeds from refranchising, and the issuance of long-term debt.  **[KO_3393922_12]**  The balance sheet remains strong with a clear line of sight into needs for the next **12–18 months**.  **[KO_3393922_12]**  They continue to invest in the business and support the dividend while addressing these obligations.  **[KO_3393922_12]** 

4. **North America Performance**  
   **Q:** What are the trends in North America consumer spending and price/mix?  
   **A:** Consumer sentiment is **strong and resilient**, with some softness in away-from-home channels due to lower traffic and value-seeking behavior among lower-income consumers.  **[KO_3393922_6]**  The company saw **strong growth** across the portfolio, including Coca-Cola Trademark, fairlife, Topo Chico, and juices, winning value share in the quarter.  **[KO_3393922_6]**  Only half of the **11%** price/mix growth was due to actual pricing; the rest was mix from higher-priced products.  **[KO_3393922_6]** 

5. **Latin America Performance**  
   **Q:** What drove strong results in Latin America?  
   **A:** Latin America had **strong volume momentum**, driven by Mexico and Brazil, with broad-based category success including Coca-Cola Trademark and **20%** volume growth in Coke Zero.  **[KO_3393922_11]**  The price/mix was heavily affected by Argentina's high inflation, which accounted for two-thirds of the price/mix growth.  **[KO_3393922_11]**  Excluding Argentina, price/mix was around **6%** in other countries.  **[KO_3393922_11]** 

6. **Away-from-Home Channel Trends**  
   **Q:** How is the away-from-home business performing and what's the outlook?  
   **A:** The softness in away-from-home channels is a **slow softening** rather than a big deceleration.  **[KO_3393922_9]**  Lower-income consumers are making fewer trips and seeking value deals.  **[KO_3393922_9]**  The company is focusing on affordability and price-pack architecture to provide value offerings and retain consumers in this channel.  **[KO_3393922_9]** 

7. **Energy and Sports Drinks Performance**  
   **Q:** How are energy and sports drink categories performing?  
   **A:** In North America, Coca-Cola and fairlife were the top trademarks providing the most dollar retail growth in Q2.  **[KO_3393922_15]**  The sports drink category is improving, with **positive volume growth** in BODYARMOR and Powerade, and new innovations like Zero Sugar and Flash I.V..  **[KO_3393922_15]**  In energy drinks, category growth has slowed in the U.S. due to new entrants and innovations, but internationally, energy drinks continue to show **robust growth**.  **[KO_3393922_16]** 

8. **Concentrate Shipments and Margins**  
   **Q:** How did concentrate shipments impact margins, and will this continue?  
   **A:** Concentrate shipments were affected by events like the ingestion in the Red Sea, restocking after floods in Brazil, and stocking up in India.  **[KO_3393922_8]**  This led to a slight benefit to gross and operating margins in the **tens of basis points**.  **[KO_3393922_8]**  The company expects a more normal relationship between unit cases and concentrate shipments in the second half of the year.  **[KO_3393922_8]** 

9. **Refranchising and EPS Impact**  
   **Q:** What's the timing and EPS impact of bottler refranchising?  
   **A:** The company is not providing specific dates but expects to complete most refranchising efforts over the next couple of years.  **[KO_3393922_18]**  While refranchising can have a mechanical impact on EPS due to dilution, management believes it benefits the overall system and aligns with their focus on core competencies.  **[KO_3393922_18]** 

10. **Marketing Investment Intentions**  
    **Q:** Has there been a change in marketing investment plans?  
    **A:** The company's bias is to invest where they see opportunities.  **[KO_3393922_19]**  There's no radical change in marketing investment intentions, and they continue to see the need for marketing support to drive the top line.  **[KO_3393922_19]** 

11. **Europe and EMEA Performance**  
    **Q:** What are the trends in Western Europe and EMEA?  
    **A:** Europe is not performing as well as desired, with more pressure on away-from-home channels in the West.  **[KO_3393922_7]**  Sporting events have helped, but weather challenges and lower-income consumers seeking value have impacted performance.  **[KO_3393922_7]**  Africa had a strong quarter with good volume growth and value share gains.  **[KO_3393922_7]**  The Middle East faces headwinds due to ongoing conflict.  **[KO_3393922_7]** 

12. **Asia Pacific Performance and China**  
    **Q:** How did Asia Pacific perform, and what's happening in China?  
    **A:** Asia Pacific volumes were up **3%**, with price/mix down **3%** due to mix effects.  **[KO_3393922_17]**  India had a **strong double-digit volume growth** after a soft first quarter.  **[KO_3393922_17]**  In China, overall volumes were negative due to the deprioritization of unprofitable case-pack water.  **[KO_3393922_17]**  Sparkling volumes in China were slightly positive.  **[KO_3393922_17]** 

13. **Category Dynamics in North America**  
    **Q:** Any notable category trends in North America?  
    **A:** Sparkling beverages are performing better than energy drinks as a sector.  **[KO_3393922_15]**  The company is focusing on multiple brands to meet consumer needs and responding to category evolution with partners like Monster.  **[KO_3393922_16]**  The sports drink category is showing improvement with product innovations and marketing efforts.  **[KO_3393922_15]** 

14. **Energy Drinks Weakness in the U.S.**  
    **Q:** What is causing weakness in the U.S. energy drink market?  
    **A:** New entrants and innovations are changing the category dynamics, leading to slowed growth for established brands.  **[KO_3393922_16]**  The company is working with Monster to respond to consumer evolution and is seeing robust growth in energy drinks internationally.  **[KO_3393922_16]** 

3c85b3cc1eadeb9379ff4e117c566dd26a30d9316c47eb096de54ec08b3ab54d

1. **2024 Earnings Growth Amid Hyperinflation**  
   **Q:** How will you achieve U.S. dollar earnings growth in 2024 despite hyperinflation and other headwinds?  
   **A:** We expect mid-single-digit earnings growth in 2024, which, excluding structural changes, translates to a **6–7%** growth.  **[KO_3373047_7]**  This reflects the continued strength and momentum of our core business, with consistent volume growth and normalized pricing in most countries.  **[KO_3373047_7]**  We've managed inflation cycles effectively, and while hyperinflation adds a few points to the top line, our all-weather strategy positions us to navigate headwinds and deliver growth in line with our algorithm.  **[KO_3373047_7]** 

2. **Volume vs. Pricing in Growth Guidance**  
   **Q:** Can you clarify the balance of volume and pricing in your 6–7% organic sales growth guidance for 2024?  
   **A:** In 2023, we achieved **2% volume growth**, consistent over the last five years, and plan to maintain this momentum.  **[KO_3373047_8]**  In non-hyperinflationary markets, we had around **3.5%** price/mix growth in Q4.  **[KO_3373047_8]**  For 2024, we aim for a balanced combination of volume growth and normalized pricing across 95% of our business.  **[KO_3373047_8]**  Hyperinflationary markets may contribute a couple of points to the top line, but our core focus remains on delivering revenue growth at the top end of our long-term algorithm.  **[KO_3373047_8]** 

3. **Gross Margin Outlook and Drivers**  
   **Q:** What are the key drivers of your gross margin expansion, and how might margins evolve in 2024?  
   **A:** In 2023, our gross margins benefited from pricing actions, partially offset by higher inflation in commodity and non-commodity costs.  **[KO_3373047_9]**  For 2024, we expect margin expansion, considering the mechanical impact of refranchising markets and more normalized cost inflation.  **[KO_3373047_9]**  We'll continue leveraging revenue growth management tools, a resilient supply chain, and local sourcing to drive productivity and sustain margin expansion.  **[KO_3373047_9]** 

4. **Currency Headwinds Impact**  
   **Q:** How will currency headwinds affect your revenue and EPS in 2024?  
   **A:** We anticipate a **2–3%** currency headwind on revenue and a **4–5%** headwind on EPS for 2024.  **[KO_3373047_11]**  The incremental bottom-line impact is challenging to precisely quantify due to numerous variables, including remeasurement of monetary assets.  **[KO_3373047_11]**  Typically, the multiplier effect is **1.5 to 2x**, but hyperinflationary markets introduce distortions.  **[KO_3373047_11]**  We'll continue providing guidance as the year progresses.  **[KO_3373047_11]** 

5. **Capital Allocation and Share Buybacks**  
   **Q:** Will share buybacks become a larger part of your capital allocation strategy going forward?  
   **A:** While we remain committed to increasing our dividend, we recognize the potential for share repurchases.  **[KO_3373047_12]**  Our debt leverage stands at **1.7x**, below our goal of **2–2.5x**.  **[KO_3373047_12]**  We've increased CapEx for 2024 to build growth foundations.  **[KO_3373047_12]**  We did execute share repurchases in the back half of the year, taking advantage of proceeds from bottler sales.  **[KO_3373047_12]**  Going forward, we'll balance investment needs, cash flows, and considerations like the pending IRS tax case when deciding on share buybacks.  **[KO_3373047_12]** 

6. **Refranchising and System Evolution**  
   **Q:** How has refranchising improved your system performance, and what are your priorities moving forward?  
   **A:** Refranchising has enhanced performance every time we've partnered with the right bottlers, leading to stronger execution and growth.  **[KO_3373047_11]**  We're nearing the completion of our refranchising efforts, with only a few pieces remaining.  **[KO_3373047_11]**  Our focus remains on leveraging the combined strengths of our company and bottling partners to sustain momentum and deliver growth at the top end of our algorithm.  **[KO_3373047_11]** 

7. **North America Consumer Trends**  
   **Q:** How are you addressing varying consumer segments and channel dynamics in North America?  
   **A:** The U.S. consumer landscape is diverse; while overall spending power is strong, some segments face income pressures due to inflation.  **[KO_3373047_10]**  We've focused on affordability for these consumers through individual pack sizes and multipacks.  **[KO_3373047_10]**  At the same time, we've seen strong growth in premium segments like **fairlife**, **Core Power**, and **Simply** among consumers with greater purchasing power.  **[KO_3373047_10]**  Channel dynamics are normalizing post-COVID, with away-from-home channels slightly ahead of at-home, returning to pre-pandemic patterns.  **[KO_3373047_10]** 

8. **China Consumer Outlook**  
   **Q:** What is your outlook for consumer demand in China for 2024?  
   **A:** In 2023, China started strong but softened over the last three quarters.  **[KO_3373047_15]**  We anticipate a reversal in 2024, with a slower first quarter due to tough comparisons, followed by improvement throughout the year.  **[KO_3373047_15]**  We're investing in key moments like Chinese New Year and focusing on reigniting momentum in sparkling beverages through marketing and execution initiatives.  **[KO_3373047_15]** 

9. **Scaling Innovations and Capacity Expansion**  
   **Q:** How are you scaling successful innovations like fairlife and Core Power?  
   **A:** **fairlife** has experienced near double-digit volume growth for several years, with even faster revenue growth.  **[KO_3373047_16]**  To support this, we've begun constructing a mega plant in upstate New York to expand capacity.  **[KO_3373047_16]**  **Core Power** is also performing exceptionally well.  **[KO_3373047_16]**  We continue to experiment with new products and plan to scale successful ones, leveraging innovation to drive growth.  **[KO_3373047_16]** 

10. **Sparkling Category Growth**  
    **Q:** What is your perspective on the sparkling category's future growth?  
    **A:** The sparkling category remains robust globally, both in volume and revenue growth.  **[KO_3373047_18]**  We've consistently achieved **2% volume growth** in sparkling beverages, averaging **3%** over the past 20 quarters.  **[KO_3373047_18]**  Innovations like **Coca-Cola Spiced** and targeted marketing aimed at Gen Z and other consumers drive engagement and reconsideration.  **[KO_3373047_18]**  By focusing on brands like **Coke**, **Sprite**, and **Fanta**, and tailoring our strategies, we continue to lead and grow this category.  **[KO_3373047_18]** 

11. **Global Away-From-Home Channel Dynamics**  
    **Q:** How are away-from-home channels performing globally, and what are your expectations for 2024?  
    **A:** Post-COVID, away-from-home channels have rebounded and are slightly ahead of at-home channels in markets like the U.S. and Europe.  **[KO_3373047_13]**  This reflects a return to pre-pandemic norms.  **[KO_3373047_13]**  We don't anticipate significant mix effects from channel shifts in 2024, as the renormalization is largely complete.  **[KO_3373047_13]**  Our strategies account for varying dynamics across regions, but overall, we expect stability in channel performance.  **[KO_3373047_13]** 

12. **Investing in Digital Capabilities**  
    **Q:** What is the status of your digital investments and bottler CapEx globally?  
    **A:** Investment levels in digital capabilities and bottler CapEx are at the highest percentage of system revenue we've seen.  **[KO_3373047_19]**  This commitment is consistent worldwide, not just in Latin America.  **[KO_3373047_19]**  Our system partners are investing ahead of the curve in digital initiatives, enhancing our competitive advantage across all markets, including the U.S..  **[KO_3373047_19]** 

13. **U.S. Market Performance Expectations**  
    **Q:** Did the U.S. market perform as expected, and what do you anticipate for 2024?  
    **A:** The U.S. market's performance in Q4 was largely in line with our expectations, with only fractional differences from full-year growth.  **[KO_3373047_17]**  We observed a slight softening due to inflation outpacing wage growth but anticipate improvement as consumers regain purchasing power.  **[KO_3373047_17]**  In 2024, we expect stable or slightly increasing volume with continued pricing initiatives.  **[KO_3373047_17]**  This aligns with our global strategy of balancing price and volume growth across different markets.  **[KO_3373047_17]** 

530e06da8040a287fffb6d2aa28f101104a2a4de0ceef5432ead4d1bf70b6d16

- **Coca-Cola's digital initiatives**, including enhanced platforms for retailers and AI-driven order suggestions, are driving productivity and engagement in traditional trade channels, leading to confidence in delivering long-term sustainable value for stakeholders.  **[KO_3403352_20]**
- **Strong performance in developed markets**, particularly in North America where **Trademark Coca-Cola and sparkling flavors both grew volume**; **Coke Zero experienced double-digit growth** and **Diet Coke grew**, leading to robust top-line growth and value share gains. Additionally, **Coca-Cola Trademark and fairlife were the leaders in the beverage industry in at-home retail sales growth**.  **[KO_3403352_16]** **[KO_3403352_17]** **[KO_3403352_1]** **[KO_3403352_15]**
- Successful innovations like **fairlife**, which is expected to be a **$1 billion brand**, and **Topo Chico**, which grew volume nearly **20% globally**, demonstrate Coca-Cola's ability to drive significant growth through both new and existing brands.  **[KO_3403352_2]** **[KO_3403352_17]**

90a7e7c6f5025e0bd70bfea7c60dba55875cce13f2203e0c4535d1067eaac590

1. **Gross Margin Outlook**  
   **Q:** How will gross margins trend this year?  
   **A:** Management expects gross margins to expand, primarily driven by tailwinds from refranchising efforts and underlying expansion, despite currency headwinds. Input costs are normalizing, though there is some elevation in juice and sugar prices. Overall, they anticipate positive margin expansion going forward, though not as aggressive every quarter.  **[KO_3381481_6]** **[KO_3381481_19]** 

2. **Volume Growth Outlook**  
   **Q:** Is 2% volume growth still expected?  
   **A:** They reaffirm a target of **2%** volume growth, with a balanced contribution from volume and price/mix. Despite anomalies in Q1 due to the Middle East conflict and timing differences, they expect to maintain this growth rate, aligning with their long-term algorithm.  **[KO_3381481_17]** 

3. **North America Performance**  
   **Q:** How is the U.S. consumer and price/mix?  
   **A:** The U.S. consumer remains in good shape, though lower-income consumers face pressure, leading to slight shifts towards value and at-home channels. Of the **7%** price/mix growth in North America, approximately **2%** was mix or timing related, with the rest from pricing. Pricing is expected to moderate throughout the year, returning to pre-COVID patterns and a more balanced growth equation.  **[KO_3381481_7]** 

4. **Asia Performance**  
   **Q:** How did Asia, especially China, perform?  
   **A:** In China, they had a solid quarter, focusing on sparkling beverages during Chinese New Year, despite cycling a strong prior year. Consumer confidence hasn't fully rebounded, but growth is expected, though not at historic levels. Other markets like Japan, South Korea, and the Philippines showed strong performance. India had a slower start but bounced back in March and April, with expectations for strong growth this year.  **[KO_3381481_10]** 

5. **Latin America Performance**  
   **Q:** Can volume growth continue in Latin America?  
   **A:** Management believes they can continue to grow volume and revenue in Latin America, building on recent momentum. Strong performance was seen in Mexico, Brazil, and Colombia, while Argentina was impacted by macroeconomic conditions. They remain focused on marketing, innovation, execution, and revenue growth management to unlock volume growth.  **[KO_3381481_13]** 

6. **Fairlife Liability Impact**  
   **Q:** How will the fairlife liability affect earnings?  
   **A:** The fairlife liability, linked to the business's strong performance, has increased in estimate as the earnout ending in early 2025 approaches. Management notes the business's momentum is very strong and may present more upside, updating projections as they evolve.  **[KO_3381481_14]** 

7. **Currency Headwinds Management**  
   **Q:** How do you manage FX headwinds?  
   **A:** In markets with local currency competition, they compete locally and use long-term hedging to anticipate dollar impacts. In high inflation and devaluation markets, they focus on winning locally using revenue growth management and investments, accepting that dollar values may fluctuate. Prioritizing investments ensures they deliver consistent **U.S. dollar EPS growth**, leveraging the portfolio effect of different markets.  **[KO_3381481_8]** 

8. **EMEA Performance**  
   **Q:** How is the consumer in EMEA?  
   **A:** EMEA had various moving parts; high inflation countries contributed to strong pricing, while Europe saw more normalized pricing and consumer behavior similar to the U.S., with lower-income consumers under pressure and slight shifts towards value and at-home channels. They focus on marketing, innovation, and revenue growth management to drive growth despite macro challenges.  **[KO_3381481_11]** 

9. **Sports Drink Strategy**  
   **Q:** What's the update on BODYARMOR and POWERADE?  
   **A:** While progress hasn't been as fast as desired, they see long-term value in the dual-brand strategy. New product innovations, like Zero Calorie versions, are gaining traction, with **double-digit share** for offerings like Flash I.V. New marketing partnerships, such as with the NHL, and improved execution are helping market share trends, expecting further progress throughout the year.  **[KO_3381481_9]** 

10. **Innovation Strategy**  
    **Q:** Are there guardrails around innovation?  
    **A:** They focus on different types of innovation, including core brand renovation, limited-time offerings, and new products. They track metrics like whether products are still growing in the **fifth quarter** after launch but do not set artificial targets for percentage of sales from innovation. The goal is to sell what consumers want, whether that's legacy products or new innovations.  **[KO_3381481_15]** 

11. **Market Development Evolution**  
    **Q:** How is market development evolving?  
    **A:** They focus on adding value to retailers by moving from shelf replenishment to account development roles. Utilizing AI for suggested orders enhances efficiency, allowing salespeople to expand accounts. Growth in capabilities is tailored to regional channel structures, aiming for mutual growth with bottling partners by delivering on shared high ambitions.  **[KO_3381481_16]** 

12. **Digital B2B Impact**  
    **Q:** How does digital B2B affect performance?  
    **A:** Digital B2B enhances efficiency and supports growth. In large modern retailers, digital tools aid inventory management, while in mom-and-pop stores, platforms enable 24/7 ordering and services. These tools strengthen relationships and support growth, though the impact on market share is harder to quantify as they're enabling tools rather than consumer-facing.  **[KO_3381481_20]** 

faa8292ea213b6333673cc54ceaa468cdec8ea0b8def8898eb0908b483d05b71

- **Strong and consistent top-line growth at the top end of the company's growth algorithm, achieving approximately 5% over the past five years despite numerous headwinds, demonstrating resilience and momentum.**  **[KO_3373047_12]** **[KO_3373047_7]** **[KO_3373047_9]**
- **Robust balance sheet with net debt leverage of 1.7× EBITDA, below the targeted range, providing financial flexibility for reinvestment and potential share repurchases to enhance shareholder value.**  **[KO_3373047_12]** **[KO_3373047_19]**
- **Successful refranchising efforts improving system performance, with increased bottler investments in capacity and digital capabilities, leading to higher CapEx levels and driving growth.**  **[KO_3373047_11]** **[KO_3373047_19]**

72cd535de3296fc20ccadbfac32598116075024b5411ae4f242f535ad7ced930

- **Softening of away-from-home channels in developed markets**: Coca-Cola is experiencing a "slow softening" in away-from-home channels, particularly in the U.S. and Western Europe, due to reduced foot traffic, adverse weather, and consumers cutting back on away-from-home trips. This has led to slower growth in immediate consumption packs.  **[KO_3393922_2]** ,  **[KO_3393922_9]**
- **Weak performance in China with negative volume growth**: The company reported that consumer confidence in China "remains subdued," resulting in **negative volumes**. While this is partly due to the deprioritization of case pack water, overall macroeconomic softness is impacting their performance in China.  **[KO_3393922_17]**
- **Increased competition and slowdown in the energy drinks category in the U.S.**: Growth in sparkling beverages is now surpassing that of energy drinks. Coca-Cola acknowledges that the energy category is facing challenges due to competition and the need to respond to evolving consumer preferences, which could affect future growth prospects in this high-margin category.  **[KO_3393922_15]** ,  **[KO_3393922_16]**

5b1d858e75ddb8054d63c38985e00944d3a755b39eb2dbc33ed8ba0f5b16f76f

Coca-Cola Co (KO)

Financials