Press Releases
- Second quarter of 2024 net sales increased 3% versus the second quarter of 2023.
- Gross profit in the second quarter of 2024 was
$717 million , an increase of 7% versus the second quarter of 2023. Gross margin in the second quarter of 2024 improved by 130 basis points(a) to 39.9%.
- Income from operations for the second quarter of 2024 was
$259 million , up$25 million , or 11%, versus the second quarter of 2023. Operating margin for the second quarter of 2024 was 14.4% as compared to 13.4% for the second quarter of 2023, an increase of 100 basis points.
Key Results
| Second Quarter | First Half | |||||||||||||||||||
| (in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
| Standard physical case volume | 91.5 | 92.6 | (1.2)% | 173.6 | 175.0 | (0.8)% | ||||||||||||||
| Net sales | $ | 1,795.9 | $ | 1,738.8 | 3.3% | $ | 3,387.6 | $ | 3,310.5 | 2.3% | ||||||||||
| Gross profit | $ | 716.7 | $ | 671.6 | 6.7% | $ | 1,357.3 | $ | 1,295.7 | 4.8% | ||||||||||
| Gross margin | 39.9 | % | 38.6 | % | 40.1 | % | 39.1 | % | ||||||||||||
| Income from operations | $ | 259.1 | $ | 233.7 | 10.9% | $ | 474.5 | $ | 439.7 | 7.9% | ||||||||||
| Operating margin | 14.4 | % | 13.4 | % | 14.0 | % | 13.3 | % | ||||||||||||
| Beverage Sales | Second Quarter | First Half | ||||||||||||||||||
| (in millions) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
| Sparkling bottle/can | $ | 1,048.9 | $ | 1,004.4 | 4.4% | $ | 1,996.4 | $ | 1,918.7 | 4.0% | ||||||||||
| Still bottle/can | $ | 597.5 | $ | 573.6 | 4.2% | $ | 1,108.4 | $ | 1,082.9 | 2.4% | ||||||||||
Second Quarter and First Half 2024 Review
“We are pleased to report strong second quarter results that reflect our continued focus on margin management and operating efficiency,” said
Net sales increased 3.3% to
Standard physical case volume was down 1.2% in the second quarter of 2024 and down 0.8% in the first half of the year. For the first half of 2024, comparable(b) standard physical case volume decreased 0.3% compared to the first half of 2023, which included one additional selling day. Sparkling category volume remained relatively flat during the second quarter with strong performance of multi-serve can packages sold in larger retail stores. Still category physical case volume declined 3.5% during the second quarter of 2024. We continue to see softness in Dasani casepack water as well as BODYARMOR but we experienced strength in several key brands including Monster, POWERade,
“Our local teams did outstanding work executing our commercial plan leading up to the
Direct store delivery (“DSD”) is our preferred and primary route to market. However, as our business becomes more complex with an increasing number of brands and packages, we are expanding our delivery methods to include routes to market outside our traditional DSD capabilities. We receive fees associated with our non-DSD sales that benefit our overall profitability but the volume is not reported as part of our standard physical case volume. For example, we have shifted the distribution of casepack Dasani water sold in Walmart stores to a non-DSD method of distribution which reduced our second quarter reported case sales by 0.8%.
Gross profit in the second quarter of 2024 was
“Our consistent capital investments in mini can and small PET production capabilities over the past several years have enabled us to actively respond to the evolving needs of our consumers and retail partners,”
Selling, delivery and administrative (“SD&A”) expenses in the second quarter of 2024 increased
Income from operations in the second quarter of 2024 was
Net income in the second quarter of 2024 was
Net income in the first half of 2024 was
Cash flows provided by operations for the first half of 2024 were
| (a) | All comparisons are to the corresponding period in the prior year unless specified otherwise. |
| (b) | The discussion of the operating results for the second quarter ended |
| CONTACTS: | ||
| Director, |
Executive Vice President & Chief Financial Officer | |
| (803) 979-2849 | (704) 557-4633 | |
| Ashley.Brown@cokeconsolidated.com | Scott.Anthony@cokeconsolidated.com | |
A PDF accompanying this release is available at: http://ml.globenewswire.com/Resource/Download/4d7c45cd-360c-4122-8b6c-574350fe4608
About
Coca‑Cola Consolidated is the largest Coca‑Cola bottler in
Headquartered in
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release are “forward-looking statements” that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words “anticipate,” “believe,” “expect,” “intend,” “project,” “may,” “will,” “should,” “could” and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company’s best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company’s actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: increased costs (including due to inflation), disruption of supply or unavailability or shortages of raw materials, fuel and other supplies; the reliance on purchased finished products from external sources; changes in public and consumer perception and preferences, including concerns related to product safety and sustainability, artificial ingredients, brand reputation and obesity; changes in government regulations related to nonalcoholic beverages, including regulations related to obesity, public health, artificial ingredients and product safety and sustainability; decreases from historic levels of marketing funding support provided to us by The Coca‑Cola Company and other beverage companies; material changes in the performance requirements for marketing funding support or our inability to meet such requirements; decreases from historic levels of advertising, marketing and product innovation spending by The Coca‑Cola Company and other beverage companies, or advertising campaigns that are negatively perceived by the public; any failure of the several Coca‑Cola system governance entities of which we are a participant to function efficiently or on our best behalf and any failure or delay of ours to receive anticipated benefits from these governance entities; provisions in our beverage distribution and manufacturing agreements with The Coca‑Cola Company that could delay or prevent a change in control of us or a sale of our Coca‑Cola distribution or manufacturing businesses; the concentration of our capital stock ownership; our inability to meet requirements under our beverage distribution and manufacturing agreements; changes in the inputs used to calculate our acquisition related contingent consideration liability; technology failures or cyberattacks on our information technology systems or our effective response to technology failures or cyberattacks on our customers’, suppliers’ or other third parties’ information technology systems; unfavorable changes in the general economy; the concentration risks among our customers and suppliers; lower than expected net pricing of our products resulting from continued and increased customer and competitor consolidations and marketplace competition; the effect of changes in our level of debt, borrowing costs and credit ratings on our access to capital and credit markets, operating flexibility and ability to obtain additional financing to fund future needs; the failure to attract, train and retain qualified employees while controlling labor costs, and other labor issues; the failure to maintain productive relationships with our employees covered by collective bargaining agreements, including failing to renegotiate collective bargaining agreements; changes in accounting standards; our use of estimates and assumptions; changes in tax laws, disagreements with tax authorities or additional tax liabilities; changes in legal contingencies; natural disasters, changing weather patterns and unfavorable weather; climate change or legislative or regulatory responses to such change; and the impact of any pandemic or public health situation. These and other factors are discussed in the Company’s regulatory filings with the
| FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||||
| Second Quarter | First Half | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 |
2024 | 2023 |
||||||||||||
| Net sales | $ | 1,795,943 | $ | 1,738,832 | $ | 3,387,569 | $ | 3,310,474 | ||||||||
| Cost of sales | 1,079,233 | 1,067,255 | 2,030,300 | 2,014,791 | ||||||||||||
| Gross profit | 716,710 | 671,577 | 1,357,269 | 1,295,683 | ||||||||||||
| Selling, delivery and administrative expenses | 457,570 | 437,907 | 882,723 | 855,959 | ||||||||||||
| Income from operations | 259,140 | 233,670 | 474,546 | 439,724 | ||||||||||||
| Interest (income) expense, net | (1,620 | ) | 1,353 | (4,336 | ) | 4,282 | ||||||||||
| Pension plan settlement expense | — | 39,777 | — | 39,777 | ||||||||||||
| Other expense, net | 28,535 | 27,788 | 23,822 | 71,711 | ||||||||||||
| Income before taxes | 232,225 | 164,752 | 455,060 | 323,954 | ||||||||||||
| Income tax expense | 59,413 | 42,433 | 116,507 | 83,508 | ||||||||||||
| Net income | $ | 172,812 | $ | 122,319 | $ | 338,553 | $ | 240,446 | ||||||||
| Basic net income per share: | ||||||||||||||||
| Common Stock | $ | 18.57 | $ | 13.05 | $ | 36.26 | $ | 25.65 | ||||||||
| Weighted average number of Common Stock shares outstanding | 8,302 | 8,369 | 8,335 | 8,369 | ||||||||||||
| Class B Common Stock | $ | 18.56 | $ | 13.05 | $ | 36.18 | $ | 25.65 | ||||||||
| Weighted average number of Class B Common Stock shares outstanding | 1,005 | 1,005 | 1,005 | 1,005 | ||||||||||||
| Diluted net income per share: | ||||||||||||||||
| Common Stock | $ | 18.54 | $ | 13.02 | $ | 36.19 | $ | 25.59 | ||||||||
| Weighted average number of Common Stock shares outstanding – assuming dilution | 9,321 | 9,396 | 9,354 | 9,396 | ||||||||||||
| Class B Common Stock | $ | 18.53 | $ | 13.01 | $ | 35.92 | $ | 25.51 | ||||||||
| Weighted average number of Class B Common Stock shares outstanding – assuming dilution | 1,019 | 1,027 | 1,019 | 1,027 | ||||||||||||
| FINANCIAL STATEMENTS CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
| (in thousands) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 1,699,288 | $ | 635,269 | ||||
| Short-term investments | 198,771 | — | ||||||
| Trade accounts receivable, net | 602,563 | 539,873 | ||||||
| Other accounts receivable | 114,248 | 119,469 | ||||||
| Inventories | 338,249 | 321,932 | ||||||
| Prepaid expenses and other current assets | 83,225 | 88,585 | ||||||
| Total current assets | 3,036,344 | 1,705,128 | ||||||
| Property, plant and equipment, net | 1,366,054 | 1,320,563 | ||||||
| Right-of-use assets - operating leases | 110,139 | 122,708 | ||||||
| Leased property under financing leases, net | 3,962 | 4,785 | ||||||
| Other assets | 162,285 | 145,213 | ||||||
| 165,903 | 165,903 | |||||||
| Other identifiable intangible assets, net | 811,385 | 824,642 | ||||||
| Total assets | $ | 5,656,072 | $ | 4,288,942 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Current portion of obligations under operating leases | $ | 23,923 | $ | 26,194 | ||||
| Current portion of obligations under financing leases | 2,584 | 2,487 | ||||||
| Dividends payable | — | 154,666 | ||||||
| Share repurchase obligation to The Coca-Cola Company | 553,723 | — | ||||||
| Accounts payable and accrued expenses | 959,383 | 907,987 | ||||||
| Total current liabilities | 1,539,613 | 1,091,334 | ||||||
| Deferred income taxes | 130,658 | 128,435 | ||||||
| Pension and postretirement benefit obligations and other liabilities | 909,543 | 927,113 | ||||||
| Noncurrent portion of obligations under operating leases | 92,248 | 102,271 | ||||||
| Noncurrent portion of obligations under financing leases | 3,714 | 5,032 | ||||||
| Long-term debt | 1,785,102 | 599,159 | ||||||
| Total liabilities | 4,460,878 | 2,853,344 | ||||||
| Equity: | ||||||||
| Stockholders’ equity | 1,195,194 | 1,435,598 | ||||||
| Total liabilities and equity | $ | 5,656,072 | $ | 4,288,942 | ||||
| FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
| First Half | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | 338,553 | $ | 240,446 | ||||
| Depreciation expense, amortization of intangible assets and deferred proceeds, net | 94,409 | 87,185 | ||||||
| Fair value adjustment of acquisition related contingent consideration | 22,285 | 67,174 | ||||||
| Deferred income taxes | 2,264 | (7,848 | ) | |||||
| Pension plan settlement expense | — | 39,777 | ||||||
| Change in current assets and current liabilities | 257 | (41,957 | ) | |||||
| Change in noncurrent assets and noncurrent liabilities | (23,583 | ) | (6,061 | ) | ||||
| Other | 2,946 | 4,622 | ||||||
| Net cash provided by operating activities | $ | 437,131 | $ | 383,338 | ||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases and disposals of short-term investments | $ | (196,480 | ) | $ | — | |||
| Additions to property, plant and equipment | (159,400 | ) | (92,893 | ) | ||||
| Other | (6,299 | ) | (5,766 | ) | ||||
| Net cash used in investing activities | $ | (362,179 | ) | $ | (98,659 | ) | ||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from bond issuance | $ | 1,200,000 | $ | — | ||||
| Cash dividends paid | (159,353 | ) | (37,495 | ) | ||||
| Payments of acquisition related contingent consideration | (23,676 | ) | (13,376 | ) | ||||
| Payments related to share repurchases | (14,471 | ) | — | |||||
| Debt issuance fees | (12,212 | ) | (154 | ) | ||||
| Other | (1,221 | ) | (1,130 | ) | ||||
| Net cash provided by (used in) financing activities | $ | 989,067 | $ | (52,155 | ) | |||
| Net increase in cash during period | $ | 1,064,019 | $ | 232,524 | ||||
| Cash at beginning of period | 635,269 | 197,648 | ||||||
| Cash at end of period | $ | 1,699,288 | $ | 430,172 | ||||
| COMPARABLE AND NON-GAAP FINANCIAL MEASURES(c) The following tables reconcile reported results (GAAP) to comparable and adjusted results (non-GAAP): |
||||||||||||||||||||||||
| Second Quarter 2024 | ||||||||||||||||||||||||
| (in thousands, except per share data) | Gross profit | SD&A expenses | Income from operations | Income before taxes | Net income | Basic net income per share | ||||||||||||||||||
| Reported results (GAAP) | $ | 716,710 | $ | 457,570 | $ | 259,140 | $ | 232,225 | $ | 172,812 | $ | 18.57 | ||||||||||||
| Fair value adjustment of acquisition related contingent consideration | — | — | — | 27,826 | 20,950 | 2.25 | ||||||||||||||||||
| Fair value adjustments for commodity derivative instruments | (1,075 | ) | 254 | (1,329 | ) | (1,329 | ) | (1,001 | ) | (0.11 | ) | |||||||||||||
| Total reconciling items | (1,075 | ) | 254 | (1,329 | ) | 26,497 | 19,949 | 2.14 | ||||||||||||||||
| Adjusted results (non-GAAP) | $ | 715,635 | $ | 457,824 | $ | 257,811 | $ | 258,722 | $ | 192,761 | $ | 20.71 | ||||||||||||
| Adjusted % Change vs. Second Quarter 2023 | 6.4 | % | 4.6 | % | 9.7 | % | ||||||||||||||||||
| Second Quarter 2023 | ||||||||||||||||||||||||
| (in thousands, except per share data) | Gross profit | SD&A expenses | Income from operations | Income before taxes | Net income | Basic net income per share | ||||||||||||||||||
| Reported results (GAAP) | $ | 671,577 | $ | 437,907 | $ | 233,670 | $ | 164,752 | $ | 122,319 | $ | 13.05 | ||||||||||||
| Fair value adjustment of acquisition related contingent consideration | — | — | — | 25,520 | 19,214 | 2.05 | ||||||||||||||||||
| Fair value adjustments for commodity derivative instruments | 1,097 | (224 | ) | 1,321 | 1,321 | 994 | 0.10 | |||||||||||||||||
| Pension plan settlement expense | — | — | — | 39,777 | 29,948 | 3.19 | ||||||||||||||||||
| Total reconciling items | 1,097 | (224 | ) | 1,321 | 66,618 | 50,156 | 5.34 | |||||||||||||||||
| Adjusted results (non-GAAP) | $ | 672,674 | $ | 437,683 | $ | 234,991 | $ | 231,370 | $ | 172,475 | $ | 18.39 | ||||||||||||
Results for the first half of 2023 include one additional selling day compared to the first half of 2024. For comparison purposes, the estimated impact of the additional selling day in the first half of 2023 has been excluded from our comparable(b) volume results.
| First Half | |||||||||
| (in millions) | 2024 |
2023 | Change | ||||||
| Standard physical case volume | 173.6 | 175.0 | (0.8 | )% | |||||
| Volume related to extra day in fiscal period | — | (0.9 | ) | ||||||
| Comparable standard physical case volume | 173.6 | 174.1 | (0.3 | )% | |||||
| First Half 2024 | ||||||||||||||||||||||||
| (in thousands, except per share data) | Gross profit | SD&A expenses | Income from operations | Income before taxes | Net income | Basic net income per share | ||||||||||||||||||
| Reported results (GAAP) | $ | 1,357,269 | $ | 882,723 | $ | 474,546 | $ | 455,060 | $ | 338,553 | $ | 36.26 | ||||||||||||
| Fair value adjustment of acquisition related contingent consideration | — | — | — | 22,285 | 16,778 | 1.80 | ||||||||||||||||||
| Fair value adjustments for commodity derivative instruments | 81 | 211 | (130 | ) | (130 | ) | (98 | ) | (0.01 | ) | ||||||||||||||
| Total reconciling items | 81 | 211 | (130 | ) | 22,155 | 16,680 | 1.79 | |||||||||||||||||
| Adjusted results (non-GAAP) | $ | 1,357,350 | $ | 882,934 | $ | 474,416 | $ | 477,215 | $ | 355,233 | $ | 38.05 | ||||||||||||
| Adjusted % Change vs. First Half 2023 | 4.6 | % | 3.5 | % | 6.8 | % | ||||||||||||||||||
| First Half 2023 | ||||||||||||||||||||||||
| (in thousands, except per share data) | Gross profit | SD&A expenses | Income from operations | Income before taxes | Net income | Basic net income per share | ||||||||||||||||||
| Reported results (GAAP) | $ | 1,295,683 | $ | 855,959 | $ | 439,724 | $ | 323,954 | $ | 240,446 | $ | 25.65 | ||||||||||||
| Fair value adjustment of acquisition related contingent consideration | — | — | — | 67,174 | 50,575 | 5.40 | ||||||||||||||||||
| Fair value adjustments for commodity derivative instruments | 1,492 | (2,914 | ) | 4,406 | 4,406 | 3,317 | 0.35 | |||||||||||||||||
| Pension plan settlement expense | — | — | — | 39,777 | 29,948 | 3.19 | ||||||||||||||||||
| Total reconciling items | 1,492 | (2,914 | ) | 4,406 | 111,357 | 83,840 | 8.94 | |||||||||||||||||
| Adjusted results (non-GAAP) | $ | 1,297,175 | $ | 853,045 | $ | 444,130 | $ | 435,311 | $ | 324,286 | $ | 34.59 | ||||||||||||
| (c) | The Company reports its financial results in accordance with accounting principles generally accepted in |
Source: Coca-Cola Consolidated, Inc.