USA – The Coca-Cola Company reported a 9% growth in net revenues to US$37.3 billion and a 6% growth in organic revenues for the full year ending December 31, 2019.
The company also managed to achieve or exceeds all full year guidance and grew its annual operating income by 10% as the beverage giant continued to deliver strong revenue and profit growth.
Revenue growth for the year was driven by concentrate sales growth of 1% and price/mix growth of 5% and continued to gain value share in total non-alcoholic ready-to-drink (NARTD) beverages.
During the period, Coca-Cola expanded its portfolio, which led to the largest value share gains in almost a decade, with contribution from both sparkling and non-sparkling offerings.
In sparkling, trademark Coca-Cola grew 6% retail value globally as it continued to scale innovative offerings such as Coca-Cola Plus Coffee, now available in more than 40 markets while achieving a double digit volume growth for its Coca-Cola Zero Sugar.
In the non-sparkling portfolio, innocent, one of the company’s juice and smoothie brands, continued to perform well led by innovative products such as innocent plus.The innocent brand scaled beyond its flagship market of Europe, launching in Japan during 2019 with more expansion planned in 2020.
During the period, Coca-Cola also continued to expand its portfolio and capabilities through strategic acquisitions of brands in on-trend categories and most recently acquired full ownership of the value-added dairy business, fairlife, LLC.
The company also reported a 2% growth in unit case volume for the quarter led by broad-based growth in developing and emerging markets, along with positive performance in developed markets.
Its enhanced water and sports drinks grew 3% for the year, led by Ciel and Cristal in Latin America and strong global growth in the sports drinks portfolio while tea and coffee grew by 1% led by strong performance across the company’s portfolio in Japan and the Fuze Tea brand.
“We made good progress in 2019 by delivering on our financial commitments and growing in a more sustainable way,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“We continue to transform the organization to act with a growth mindset, which gives us confidence in our 2020 targets and our ability to create a better shared future for all of our stakeholders.”
The company expects to deliver approximately 5% growth in organic revenues (non-GAAP) and comparable EPS (non-GAAP) of approximately $2.25 versus $2.11 in 2019, a 7% increase.