On Tuesday, Coca-Cola reported better-than-expected earnings for the fourth quarter and full year 2024, with strong volume growth in China driving global performance for the beverage corporation.
In the fourth quarter, Coca-Cola's net operating revenues grew 6 percent year-over-year to $11.54 billion, surpassing market expectations of $10.7 billion. Consolidated net income rose 11 percent to $2.21 billion. Global unit case volume increased by 2 percent, with notable contributions from China, Brazil and the United States, while the Asia-Pacific region saw a 6 percent rise.
For year 2024, its net operating revenues grew 3 percent to $47.06 billion, exceeding market expectations of $46.2 billion. Comparable EPS increased 7 percent to $2.88 Global unit case volume expanded by 1 percent, with growth in sparkling soft drinks (up 2 percent) and Coca-Cola Zero Sugar (up 9 percent).
During the earnings call, Chairman and CEO James Quincey said of the company's performance in China: "We grew volumes during the quarter, and while early, we are seeing improved trends across our business."
He said that core brand Coca-Cola continued to gain share, and Sprite, Fanta, and Minute Maid, achieved volume growth. Its system in China has accelerated cold drink equipment placement and integrated marketing campaigns in 2024, he added.
To align with evolving consumer behaviors, Coca-Cola China is emphasizing key beverage consumption occasions including on-the-go, with meals, festivals and events. The company launched a 248ml pocket-sized format for Coca-Cola, Sprite, and Fanta, catering to China's growing "City Walk" trend while attracting more first-time consumers.
The company hosted BBQ festivals across nine cities, leveraging the rising popularity of outdoor dining to boost the "Coke with meal" occasions.
For the Year of the Snake Spring Festival, the company introduced limited-edition firework-themed packaging for its sparkling drinks and juices, along with interactive consumer campaigns celebrating family reunions.
Tapping youth culture and fashion, the company partnered with LABUBU, a popular IP, and Pop Mart, a local leading trend toy maker, in November to launch a co-branded collectible figurine series.
That same month, Coca-Cola opened a clothing store in Shanghai, offering branded footwear and apparel.
Coca-Cola expects organic revenue growth of 5 percent to 6 percent and comparable EPS growth of 2 percent to 3 percent in 2025.
