「第3四半期の業績は、当社のビジネスの運営基盤への着実な焦点を反映しています。世界クラスの飲料ポートフォリオに対する強力な商業的な実行、適切な費用管理、そして当社が日々行う活動の中心にある目的志向の文化の構築があります」と、J. Frank Harrison, III会長兼最高経営責任者は述べています。続けて「当社の堅調な成長は、チームメンバーの献身と、ビジネスに再投資して長期的な価値を築くという当社のコミットメントの証しです。」
$112.4 million for the first nine months of 2023, resulting in an effective income tax rate of 25.6% and 25.3% for the first nine months of 2024 and 2023, respectively.
Cash flows provided by operations for the first nine months of 2024 were $707.9 million, compared to $644.5 million for the first nine months of 2023. Cash flows from operations reflected our strong operating performance during the first nine months of 2024. In the first nine months of 2024, we invested $287 million in capital expenditures as we continue to enhance our supply chain and invest for future growth. During the quarter, we purchased our leased Nashville, Tennessee production facility for approximately $56.0 million. For the full year of 2024, we expect capital expenditures to total approximately $350 million.
(a) All comparisons are to the corresponding period in the prior year unless specified otherwise.
(b) The discussion of the operating results for the third quarter ended September 27, 2024 and the first nine months of fiscal 2024 includes selected non-GAAP financial information, such as “comparable” and “adjusted” results. The schedules in this news release reconcile such non-GAAP financial measures to the most directly comparable GAAP financial measures.
CONTACTS:
Brian K. Little (Media)
Scott Anthony (Investors)
Vice President, Corporate Communications Officer
Executive Vice President & Chief Financial Officer
(980) 378-5537
(704) 557-4633
Brian.Little@cokeconsolidated.com
Scott.Anthony@cokeconsolidated.com
About Coca-Cola Consolidated, Inc.
Headquartered in Charlotte, N.C., Coca‑Cola Consolidated (NASDAQ: COKE) is the largest Coca‑Cola bottler in the United States. We make, sell and distribute beverages of The Coca‑Cola Company and other partner companies in more than 300 brands and flavors across 14 states and the District of Columbia, to approximately 60 million consumers. For over 122 years, we have been deeply committed to the consumers, customers and communities we serve and passionate about the broad portfolio of beverages and services we offer. Our Purpose is to honor God in all we do, to serve others, to pursue excellence and to grow profitably.
More information about the Company is available at www.cokeconsolidated.com. Follow Coca‑Cola Consolidated on Facebook, X, Instagram and LinkedIn.
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 United States Securities and Exchange Commission, including those in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The forward-looking statements contained in this news release speak only as of this date, and the Company does not assume any obligation to update them, except as may be required by applicable law.
###
FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Third Quarter
First Nine Months
(in thousands, except per share data)
2024
2023
2024
2023
Net sales
$
1,765,652
$
1,712,428
$
5,153,221
$
5,022,902
Cost of sales
1,067,616
1,050,878
3,097,916
3,065,669
Gross profit
698,036
661,550
2,055,305
1,957,233
Selling, delivery and administrative expenses
470,981
445,290
1,353,704
1,301,249
Income from operations
227,055
216,260
701,601
655,984
Interest expense (income), net
2,187
(1,516)
(2,149)
2,766
Pension plan settlement expense
—
77,319
—
117,096
Other expense, net
69,305
19,473
93,127
91,184
Income before taxes
155,563
120,984
610,623
444,938
Income tax expense
39,939
28,891
156,446
112,399
Net income
$
115,624
$
92,093
$
454,177
$
332,539
Basic net income per share:
Common Stock
$
13.20
$
9.82
$
49.71
$
35.47
Weighted average number of Common Stock shares outstanding
7,756
8,369
8,141
8,369
Class B Common Stock
$
13.20
$
9.82
$
49.25
$
35.47
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
$
13.18
$
9.80
$
49.59
$
35.38
Weighted average number of Common Stock shares outstanding – assuming dilution
8,772
9,395
9,158
9,398
Class B Common Stock
$
13.18
$
9.79
$
49.00
$
35.29
Weighted average number of Class B Common Stock shares outstanding – assuming dilution
Current portion of obligations under operating leases
$
22,323
$
26,194
Current portion of obligations under financing leases
2,635
2,487
Dividends payable
21,902
154,666
Accounts payable and accrued expenses
993,995
907,987
Total current liabilities
1,040,855
1,091,334
Deferred income taxes
110,510
128,435
Pension and postretirement benefit obligations and other liabilities
961,691
927,113
Noncurrent portion of obligations under operating leases
85,863
102,271
Noncurrent portion of obligations under financing leases
3,036
5,032
Long-term debt
1,785,782
599,159
Total liabilities
3,987,737
2,853,344
Equity:
Stockholders’ equity
1,284,987
1,435,598
Total liabilities and equity
$
5,272,724
$
4,288,942
FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
First Nine Months
(in thousands)
2024
2023
Cash Flows from Operating Activities:
Net income
$
454,177
$
332,539
Depreciation expense, amortization of intangible assets and deferred proceeds, net
143,179
131,296
Fair value adjustment of acquisition related contingent consideration
90,877
86,038
Deferred income taxes
(18,030)
(34,881)
Pension plan settlement expense
—
117,096
Change in current assets and current liabilities
55,763
35,791
Change in noncurrent assets and noncurrent liabilities
(23,650)
(29,935)
Other
5,577
6,605
Net cash provided by operating activities
$
707,893
$
644,549
Cash Flows from Investing Activities:
Additions to property, plant and equipment
$
(287,333)
$
(152,260)
Purchases and disposals of short-term investments
(211,256)
—
Other
(9,369)
(8,603)
Net cash used in investing activities
$
(507,958)
$
(160,863)
Cash Flows from Financing Activities:
Proceeds from bond issuance
$
1,200,000
$
—
Payments related to share repurchases
(574,009)
—
Cash dividends paid
(163,733)
(42,182)
Payments of acquisition related contingent consideration
(44,243)
(20,979)
Debt issuance fees
(15,365)
(244)
Other
(1,848)
(1,712)
Net cash provided by (used in) financing activities
$
400,802
$
(65,117)
Net increase in cash during period
$
600,737
$
418,569
Cash at beginning of period
635,269
197,648
Cash at end of period
$
1,236,006
$
616,217
COMPARABLE AND NON-GAAP FINANCIAL MEASURES(c)
The following tables reconcile reported results (GAAP) to comparable and adjusted results (non-GAAP):
Third 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)
$
698,036
$
470,981
$
227,055
$
155,563
$
115,624
$
13.20
Fair value adjustment of acquisition related contingent consideration
—
—
—
68,592
51,652
5.68
Fair value adjustments for commodity derivative instruments
(1,426)
(631)
(795)
(795)
(599)
(0.07)
Total reconciling items
(1,426)
(631)
(795)
67,797
51,053
5.61
Adjusted results (non-GAAP)
$
696,610
$
470,350
$
226,260
$
223,360
$
166,677
$
18.81
Adjusted % Change vs. Third Quarter 2023
5.3
%
5.5
%
5.0
%
Third 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)
$
661,550
$
445,290
$
216,260
$
120,984
$
92,093
$
9.82
Fair value adjustment of acquisition related contingent consideration
—
—
—
18,864
14,212
1.51
Fair value adjustments for commodity derivative instruments
25
703
(678)
(678)
(510)
(0.05)
Pension plan settlement expense
—
—
—
77,319
58,225
6.22
Total reconciling items
25
703
(678)
95,505
71,927
7.68
Adjusted results (non-GAAP)
$
661,575
$
445,993
$
215,582
$
216,489
$
164,020
$
17.50
Results for the first nine months of 2023 include one additional selling day compared to the first nine months of 2024. For comparison purposes, the estimated impact of the additional selling day in the first nine months of 2023 has been excluded from our comparable(b) volume results.
First Nine Months
(in millions)
2024
2023
Change
Standard physical case volume
263.4
266.8
(1.3)
%
Volume related to extra day in fiscal period
—
(0.9)
Comparable standard physical case volume
263.4
265.9
(0.9)
%
First Nine Months 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)
$
2,055,305
$
1,353,704
$
701,601
$
610,623
$
454,177
$
49.71
Fair value adjustment of acquisition related contingent consideration
—
—
—
90,877
68,430
7.48
Fair value adjustments for commodity derivative instruments
(1,345)
(420)
(925)
(925)
(697)
(0.08)
Total reconciling items
(1,345)
(420)
(925)
89,952
67,733
7.40
Adjusted results (non-GAAP)
$
2,053,960
$
1,353,284
$
700,676
$
700,575
$
521,910
$
57.11
Adjusted % Change vs. First Nine Months 2023
4.9
%
4.2
%
6.2
%
First Nine Months 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)
$
1,957,233
$
1,301,249
$
655,984
$
444,938
$
332,539
$
35.47
Fair value adjustment of acquisition related contingent consideration
—
—
—
86,038
64,787
6.91
Fair value adjustments for commodity derivative instruments
1,517
(2,211)
3,728
3,728
2,807
0.30
Pension plan settlement expense
—
—
—
117,096
88,173
9.41
Total reconciling items
1,517
(2,211)
3,728
206,862
155,767
16.62
Adjusted results (non-GAAP)
$
1,958,750
$
1,299,038
$
659,712
$
651,800
$
488,306
$
52.09
(c) The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). However, management believes that certain non-GAAP financial measures provide users of the financial statements with additional, meaningful financial information that should be considered, in addition to the measures reported in accordance with GAAP, when assessing the Company’s ongoing performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The Company’s non-GAAP financial information does not represent a comprehensive basis of accounting.