Coca-Cola has reported a mixed financial performance for the quarter ended March 29, 2024. The company's net operating revenues increased by 3% to $11.3 billion compared to $10.98 billion in the same period last year. Operating income, however, decreased by 36% to $2.141 billion, primarily due to a decline in concentrate sales volume, higher commodity costs, and higher operating expenses. The company also recorded a significant asset impairment charge of $760 million related to the BodyArmor trademark. Despite these challenges, Coca-Cola's gross profit margin improved to 62.5% from 60.7% year-over-year, driven by favorable pricing initiatives and structural changes. The company's business development was marked by strategic refranchising activities in Vietnam, India, Bangladesh, and the Philippines, as well as the sale of an equity...Show More

Coca-Cola has reported a mixed financial performance for the quarter ended March 29, 2024. The company's net operating revenues increased by 3% to $11.3 billion compared to $10.98 billion in the same period last year. Operating income, however, decreased by 36% to $2.141 billion, primarily due to a decline in concentrate sales volume, higher commodity costs, and higher operating expenses. The company also recorded a significant asset impairment charge of $760 million related to the BodyArmor trademark. Despite these challenges, Coca-Cola's gross profit margin improved to 62.5% from 60.7% year-over-year, driven by favorable pricing initiatives and structural changes. The company's business development was marked by strategic refranchising activities in Vietnam, India, Bangladesh, and the Philippines, as well as the sale of an equity method investee in Thailand. Looking ahead, Coca-Cola plans to continue investing in its business operations, grow its dividend, enhance its beverage portfolio through acquisitions, and repurchase shares to offset dilution from employee stock-based compensation. The company expects capital expenditures of approximately $2.2 billion for 2024 and is currently in litigation with the IRS, with a potential tax and interest liability of approximately $16 billion as of December 31, 2023.