The Coca-Cola Company today reported fourth quarter and full-year 2023 results. “During the year, our people and partners rose to meet new challenges, allowing us to excel globally and deliver in a dynamic world,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “As we begin a new year, we’re confident that our all-weather strategy, powerful portfolio and harmonized system will continue to create value for our stakeholders in 2024 and for the long term.”

• Revenues: For the quarter, net revenues grew 7% to $10.8 billion, and organic revenues (non-GAAP) grew 12%, driven by 9% growth in price/mix and 3% growth in concentrate sales. The quarter included one additional day, which resulted in a 1-point tailwind to revenue growth. For the full year, net revenues grew 6% to $45.8 billion, and organic revenues (non-GAAP) grew 12%, driven by 10% growth in price/mix and 2% growth in concentrate sales. For both the quarter and the full year, organic revenue (non-GAAP) performance was strong across all operating segments.

• Operating margin: For the quarter, operating margin was 21.0% versus 20.5% in the prior year, while comparable operating margin (non-GAAP) was 23.1% versus 22.7% in the prior year. For the full year, operating margin was 24.7% versus 25.4% in the prior year, while comparable operating margin (non-GAAP) was 29.1% versus 28.7% in the prior year. Operating margin performance included items impacting comparability and currency headwinds. For both the quarter and full year, comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth, partially offset by an increase in marketing investments versus the prior year, as well as currency headwinds.

• Earnings per share: For the quarter, EPS declined 2% to $0.46, while comparable EPS (non-GAAP) grew 10% to $0.49. EPS performance included the impact of a 14-point currency headwind, while comparable EPS (non-GAAP) performance included the impact of a 13-point currency headwind. For the full year, EPS grew 13% to $2.47, and comparable EPS (non-GAAP) grew 8% to $2.69. EPS performance included the impact of an 8-point currency headwind, while comparable EPS (non-GAAP) performance included the impact of a 7-point currency headwind.

• Market share: For both the quarter and the full year, the company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

• Cash flow: Cash flow from operations was $11.6 billion for the full year, an increase of $581 million versus the prior year, driven by strong business performance and working capital initiatives, partially offset by a transition tax payment and currency headwinds. Free cash flow (non-GAAP) was $9.7 billion for the full year, an increase of $213 million versus the prior year.

• Connecting with consumers through experiences and digital engagement: The company continues to leverage its marketing transformation to build globally scaled marketing platforms tailored to local consumers. In the fourth quarter, “The World Needs More Santas” campaign was executed in over 80 markets, continuing the company’s rich history of celebrating the holidays. The company leveraged the success of its first AI-based platform, “Create Real Magic”, by inviting consumers to create sharable, digital greeting cards featuring iconic brand assets such as cherished depictions of Santa Claus and the Coca-Cola polar bear. Local initiatives generated buzz and excitement, such as the Coca-Cola Caravan Truck Tour, which travelled throughout nearly 60 countries around the world making over a thousand stops and meeting over 16 million consumers to share in the magic. In total, the holiday campaign experiences garnered approximately 9 billion impressions on social media. By combining the company’s global scale with local relevancy, the holiday activation contributed to Trademark Coca-Cola® volume and value share gains as well as unit case volume and transactions growth for both the quarter and for the full year.

• Building a system that is increasingly positioned for sustainable long-term growth: Since the start of 2023, the company completed the refranchising of company-owned bottling operations in Vietnam to a subsidiary of Swire Pacific Limited (Swire), completed the sale of its stake in the bottler in Pakistan to Coca-Cola İçecek and completed the sale of its stake in the bottler in Indonesia to Coca-Cola Europacific Partners (CCEP). More recently, the company completed the refranchising of a portion of its company-owned bottling operations in India to existing franchise bottlers and received regulatory approval to sell its bottling operations in the Philippines to CCEP and Aboitiz Equity Ventures, which is expected to close towards the end of February 2024. Additionally, the company recently completed the sale of its stake in the largest bottler in Thailand to Swire and existing shareholders of the bottler. Our franchise business model has enabled the company to develop a strong global footprint with a local touch in markets around the world. The company continuously works to optimize the system with trusted, capable and motivated bottling partners allowing it to focus on building and growing consumer-loved brands.

• Delivering on our purpose by empowering people to drive growth: The company’s strategy is centered around people, starting with the employees who are critical in bringing this strategy to life. In November, the company was ranked #1 on the 2023 American Opportunity Index, which assessed how effectively companies enable employees to progress in their careers in the United States. Around the world, the company provides thousands of jobs and is invested in the long-term success of its employees. Over the year, the company enhanced its learning and related technologies, making strides towards nurturing a more innovative and informed workforce. The company’s 2023 Culture & Engagement Survey results underscore the strong levels of employee pride and growth opportunities with a strong number of respondents saying they are proud to work at The Coca-Cola Company and see good opportunities to learn and grow in their roles.

In addition to the data in the preceding tables, operating results included the following: