Coca-Cola Revenue Surpasses Estimates Due to Increased Demand

More people are drinking Coca-Cola, and recent financial figures from the company show it. Revenue and earnings for the beverage giant were better than expected in the fourth quarter.

For the three-month period that ended on Dec. 31, 2024, Coca-Cola brought in $11.54 billion in revenue, beating analysts’ projections of $10.68 billion. Net income reached $2.20 billion, topping the $1.97 billion earned in the same quarter of 2023.

Organic revenue, which does not count divestitures, acquisitions, and foreign currency, grew 14% in the quarter. Product pricing increased during the quarter by 9%, with nearly half of it in markets where inflation was high. Even with the price increases, Coke saw greater demand for products, with many consumers still choosing more expensive items.

Volume rose 2% in Coke’s sparkling drinks category, which includes the company’s namesake beverage. In the coffee, water, sports, and tea segment, volume also grew by 2% overall. While water and tea saw demand gains, declining sales of coffee and sports products dragged the category down. Juice, dairy, and plant-based products’ volume fell 1% in Q4 2024.

Coca-Cola’s 2025 Earnings and Strategy

Organic revenue will likely rise 5% to 6% in 2025, according to Coca-Cola. Earnings per share will potentially climb 2% to 3%.

“It seems more likely in ’25, there’ll be a little more price and a little less volume, but there will be volume growth,” said Coke CEO James Quincey on a conference call, per CNBC.

While this year looks promising for the drink company, there are market uncertainties that will need to be dealt with. Should tariffs initiated by the Trump Administration hold, imported aluminum needed for cans may become more expensive.

Yet, Quincey assured investors that Coca-Cola has a strategy to ensure affordability for consumers. In brief, the CEO noted that should one product offering suffer from increased packaging costs, other Coke product packaging options would still be widely accessible. As an example, should aluminum’s price increase, the company could focus on plastic bottles instead.

Just as the quarter started last year, Coke gave up on its new Spiced flavor. Only seven months after launching, the company axed the beverage despite previously announcing it would be a permanent addition to its lineup.