Coca-Cola Consolidated, Inc. (COKE) Bundle
A Brief History of Coca-Cola Consolidated, Inc.
Company Overview
Coca-Cola Consolidated, Inc. (COKE) is the largest independent Coca-Cola bottler in the United States. As of September 27, 2024, the company operates in various regions, focusing on the bottling and distribution of Coca-Cola products.
Financial Performance
For the third quarter of 2024, Coca-Cola Consolidated reported:
- Net Sales: $1.77 billion, a 3.1% increase from $1.71 billion in Q3 2023.
- Net Income: $115.6 million, compared to $92.1 million in Q3 2023, reflecting an increase of $23.5 million.
- Gross Profit: $698 million, up from $661.6 million in Q3 2023.
- Income from Operations: $227.1 million, compared to $216.3 million in the same quarter of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $1,765,652 | $1,712,428 | +3.1% |
| Net Income | $115,624 | $92,093 | +25.5% |
| Gross Profit | $698,036 | $661,550 | +5.5% |
| Income from Operations | $227,055 | $216,260 | +5.0% |
Product Categories
Net sales by product category for the third quarter of 2024 were as follows:
| Product Category | Net Sales (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Sparkling Beverages | $1,034,690 | $977,663 | +5.8% |
| Still Beverages | $585,527 | $575,954 | +1.7% |
| Total Bottle/Can Sales | $1,620,217 | $1,553,617 | +4.3% |
Operational Highlights
During the first nine months of 2024, the company reported:
- Net Sales: $5.15 billion, a 2.6% increase from $5.02 billion in the first nine months of 2023.
- Net Income: $454.2 million, compared to $332.5 million in the first nine months of 2023, an increase of $121.6 million.
- Gross Profit: $2.06 billion, up from $1.96 billion in the same period of 2023.
- Cash Flows from Operations: $707.9 million, compared to $644.5 million in the first nine months of 2023.
| Financial Metrics | First Nine Months 2024 | First Nine Months 2023 | Change |
|---|---|---|---|
| Net Sales | $5,153,221 | $5,022,902 | +2.6% |
| Net Income | $454,177 | $332,539 | +36.5% |
| Gross Profit | $2,055,305 | $1,957,233 | +5.0% |
| Cash Flows from Operations | $707,900 | $644,500 | +9.8% |
Balance Sheet Highlights
As of September 27, 2024, Coca-Cola Consolidated reported:
- Total Assets: $5.27 billion, an increase of $983.8 million from December 31, 2023.
- Net Working Capital: $1.53 billion, reflecting an increase of $916.5 million.
- Long-term Debt: $1.79 billion as of September 27, 2024.
| Balance Sheet Metrics | Amount (in thousands) |
|---|---|
| Total Assets | $5,270,000 |
| Net Working Capital | $1,530,000 |
| Long-term Debt | $1,785,782 |
Capital Expenditures
In the first nine months of 2024, Coca-Cola Consolidated invested $287.3 million in capital expenditures, with expectations to total approximately $350 million for the full year.
A Who Owns Coca-Cola Consolidated, Inc. (COKE)
Ownership Structure
As of September 27, 2024, the ownership structure of Coca-Cola Consolidated, Inc. (COKE) is characterized by significant control held by key individuals and entities:
- J. Frank Harrison, III, Chairman of the Board and CEO, controls approximately 1,004,394 shares of Class B Common Stock, representing around 72% of the total voting power of the Company.
- The Coca-Cola Company owns approximately 7% of the total voting power of the Company through its holdings of Common Stock.
Shareholder Breakdown
The following table summarizes the shareholder breakdown of Coca-Cola Consolidated, Inc. as of September 27, 2024:
| Shareholder | Type of Stock | Number of Shares | Voting Power (%) |
|---|---|---|---|
| J. Frank Harrison, III | Class B Common Stock | 1,004,394 | 72% |
| The Coca-Cola Company | Common Stock | Approx. 7% of voting power | 7% |
| Other Public Shareholders | Common Stock | Remaining Shares | 21% |
Recent Transactions and Share Repurchase Programs
In May 2024, Coca-Cola Consolidated, Inc. announced plans to repurchase up to $3.10 billion worth of its Common Stock through a modified Dutch auction tender offer and a separate share purchase agreement with Carolina Coca-Cola Bottling Investments, Inc. This included:
- Tender Offer for up to $2.00 billion of Common Stock.
- Share repurchases totaling $13.3 million for 14,391.5 shares at $925 per share in June 2024.
Financial Overview
As of September 27, 2024, Coca-Cola Consolidated, Inc. reported total assets of $5.27 billion, with net working capital reported at $1.53 billion. Key financial metrics include:
| Financial Metric | Amount |
|---|---|
| Total Assets | $5.27 billion |
| Net Working Capital | $1.53 billion |
| Cash and Cash Equivalents | $1.24 billion |
| Short-term Investments | $215 million |
Recent Performance
In the third quarter of 2024, Coca-Cola Consolidated, Inc. reported:
- Net sales of $1.77 billion, a 3.1% increase compared to the same period in 2023.
- Net income of $115.6 million, up from $92.1 million in Q3 2023.
Conclusion on Ownership and Control
The ownership of Coca-Cola Consolidated, Inc. is predominantly controlled by J. Frank Harrison, III, and The Coca-Cola Company, reflecting a concentrated voting power structure. This has implications for corporate governance and decision-making within the company.
Coca-Cola Consolidated, Inc. (COKE) Mission Statement
The mission statement of Coca-Cola Consolidated, Inc. (COKE) focuses on refreshing the world, inspiring moments of optimism and happiness, creating value, and making a difference. The company aims to be the leading Coca-Cola bottler in the United States and is committed to sustainable practices, community engagement, and delivering high-quality products that meet consumer preferences.
Financial Overview
As of the third quarter of 2024, Coca-Cola Consolidated reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $1.77 billion | $1.71 billion | 3.1% |
| Gross Profit | $698 million | $661 million | 5.5% |
| Income from Operations | $227 million | $216 million | 5.0% |
| Net Income | $115 million | $92 million | 25.7% |
| Comprehensive Income | $116 million | $149 million | (22.2%) |
Sales Breakdown
Net sales by product category for the third quarter of 2024 were as follows:
| Category | Net Sales (in thousands) | % Change |
|---|---|---|
| Sparkling Beverages | $1,034,690 | 5.8% |
| Still Beverages | $585,527 | 1.7% |
| Total Bottle/Can Sales | $1,620,217 | 4.3% |
| Sales to Other Coca-Cola Bottlers | $88,363 | 0.7% |
| Post-Mix Sales and Other | $57,072 | (19.7%) |
Operational Metrics
The operational metrics for Coca-Cola Consolidated in the first nine months of 2024 are detailed below:
| Metric | Value |
|---|---|
| Net Sales | $5.15 billion |
| Gross Profit | $2.06 billion |
| Net Income | $454 million |
| Basic Net Income per Share | $49.71 |
| Capital Expenditures | $287.3 million |
Market Position
Coca-Cola Consolidated holds significant market share among its largest customers:
| Customer | % of Total Bottle/Can Sales Volume (2024) | % of Total Net Sales (2024) |
|---|---|---|
| Walmart Inc. | 21% | 17% |
| The Kroger Co. | 15% | 12% |
| Total | 36% | 29% |
Future Outlook and Strategic Initiatives
The company continues to focus on executing its commercial strategy, optimizing its supply chain, and enhancing its digital selling platforms. Expectations for capital expenditures in 2024 are approximately $350 million, aimed at supporting growth and improving operational efficiency.
How Coca-Cola Consolidated, Inc. (COKE) Works
Company Overview
Coca-Cola Consolidated, Inc. (COKE) operates as the largest independent Coca-Cola bottler in the United States, distributing a variety of nonalcoholic beverages. The company primarily focuses on sparkling and still beverages, leveraging its extensive distribution network to reach diverse retail and on-premise locations.
Financial Performance
As of the third quarter of 2024, Coca-Cola Consolidated reported net sales of $1.77 billion, reflecting a 3.1% increase compared to the same period in 2023. For the first nine months of 2024, net sales reached $5.15 billion, a 2.6% rise year-over-year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,765,652,000 | $1,712,428,000 | 3.1 |
| Gross Profit | $698,036,000 | $661,550,000 | 5.5 |
| Net Income | $115,624,000 | $92,093,000 | 25.5 |
Sales Breakdown
The increase in net sales was predominantly driven by higher average sales prices across products. The sales distribution by product category for Q3 2024 is as follows:
| Product Category | Net Sales (in thousands) | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|---|
| Sparkling Beverages | $1,034,690 | $977,663 | 5.8 | |
| Still Beverages | $585,527 | $575,954 | 1.7 | |
| Total Bottle/Can Sales | $1,620,217 | $1,553,617 | 4.3 | |
| Other Sales | $145,435 | $158,811 | (8.4) |
Operational Efficiency
Gross profit for Q3 2024 was reported at $698 million, with a gross margin of 39.5%, an improvement from the previous year. This increase is attributed to pricing actions and a favorable product mix leaning towards higher-margin sparkling beverages.
Expenses and Income
Selling, delivery, and administrative (SD&A) expenses rose to $470.98 million in Q3 2024, representing 26.7% of net sales. Income from operations for the quarter was $227.1 million, up from $216.3 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Income from Operations | $227,055,000 | $216,260,000 | 5.0 |
| Income Tax Expense | $39,939,000 | $28,891,000 | 38.2 |
| Effective Income Tax Rate | 25.7% | 23.9% | 7.5 |
Cash Flow and Investments
Cash flows from operations for the first nine months of 2024 totaled $707.9 million, an increase from $644.5 million in the same period of 2023. The company invested $287.3 million in capital expenditures during this period, focusing on supply chain enhancements.
Market Position and Competition
Coca-Cola Consolidated faces competition primarily from local bottlers of PepsiCo and Dr Pepper products. The company competes on various fronts, including product quality, pricing strategies, and promotional activities, ensuring strong market presence in its operating territories.
Segment Reporting
The company identifies three operational segments, with Nonalcoholic Beverages being the primary contributor to net sales and income. The segment results for Q3 2024 are detailed below:
| Segment | Net Sales (in thousands) | Income from Operations (in thousands) |
|---|---|---|
| Nonalcoholic Beverages | $1,751,495 | $224,072 |
| All Other | $86,230 | $2,983 |
| Eliminations | $(72,073) | |
| Total Consolidated | $1,765,652 | $227,055 |
Outlook and Strategic Focus
The company is focused on optimizing its supply chain, enhancing revenue management, and executing its commercial strategies to ensure sustained growth and profitability in the competitive beverage market.
How Coca-Cola Consolidated, Inc. (COKE) Makes Money
Revenue Sources
Coca-Cola Consolidated, Inc. generates revenue primarily through the sale of nonalcoholic beverages. In the first nine months of 2024, the company reported total net sales of $5.15 billion, which is an increase of 2.6% compared to the same period in 2023.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Nonalcoholic Beverages | $5,106,359 | $4,951,334 | 3.1% |
| All Other | $260,930 | $281,186 | (7.2%) |
| Total Net Sales | $5,153,221 | $5,022,902 | 2.6% |
Sales Breakdown by Product Category
The sales breakdown by product category for the first nine months of 2024 is as follows:
| Product Category | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Sparkling Beverages | $3,025,902 | $2,892,106 | 4.6% |
| Still Beverages | $1,694,676 | $1,660,469 | 2.1% |
| Total Bottle/Can Sales | $4,720,578 | $4,552,575 | 3.7% |
| Sales to Other Coca-Cola Bottlers | $259,459 | $267,362 | (3.0%) |
| Post-Mix Sales | $173,184 | $202,965 | (14.7%) |
| Total Other Sales | $432,643 | $470,327 | (8.0%) |
Income and Profitability
In the first nine months of 2024, Coca-Cola Consolidated reported net income of $454.2 million, up from $332.5 million in the first nine months of 2023, marking an increase of 36.6%.
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Income | $454,177 | $332,539 | 36.6% |
| Gross Profit | $2,055,305 | $1,957,233 | 5.0% |
| Income from Operations | $701,601 | $655,984 | 6.9% |
| Operating Margin | 13.6% | 13.1% | 0.5% |
Cost Structure
Cost of sales for the first nine months of 2024 was reported at $3.10 billion, an increase from $3.07 billion in the first nine months of 2023.
| Cost Category | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Cost of Sales | $3,097,916 | $3,065,669 | 1.1% |
| SD&A Expenses | $1,353,704 | $1,301,249 | 4.0% |
Market Strategy and Distribution
Coca-Cola Consolidated employs a multi-channel distribution strategy, selling directly to customers, including grocery stores, convenience stores, and restaurants. The company has shifted to alternative distribution methods for certain products, impacting sales volume but maintaining revenue through service fees.
Customer Concentration
The company's largest customers contribute significantly to its sales volume. In the first nine months of 2024, approximately 29% of total net sales came from its top two customers, Walmart and Kroger.
| Customer | 2024 % of Total Sales | 2023 % of Total Sales |
|---|---|---|
| Walmart Inc. | 17% | 16% |
| The Kroger Co. | 12% | 11% |
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Article updated on 8 Nov 2024
Resources:
- Coca-Cola Consolidated, Inc. (COKE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Coca-Cola Consolidated, Inc. (COKE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Coca-Cola Consolidated, Inc. (COKE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.