Investor Relations


Confident In Our Long-Term Targets

At The Coca-Cola Company, our strengths give us confidence in our ability to deliver long-term, sustainable shareowner value. Our long-term targets consist of solid revenue growth of 4% to 6%, strong operating leverage driving 6% to 8% operating income growth, delivering meaningful EPS growth and improving on our free cash flow conversion. Our focal points remain the two flywheels that drive our Total Beverage Company Strategy – enabling us to convert the top line to value creation.

Long-Term Targets

(a) Non-GAAP
(b) Comparable currency neutral (non-GAAP)
Note: Adjusted free cash flow conversion ratio = FCF adjusted for pension contributions / GAAP net income adjusted for non-cash items impacting comparability

Topline Growth

Driving Ongoing Topline Growth at the High End of Our Target

Our confidence stems from the fact that we operate in an industry that will enjoy growth for a long time to come driven by macro, social, economic and behavioral factors. On top of this we have some category-related headwind while we expect a tailwind from emerging markets.

Our global system is fitter than ever before with a ruthless focus on a few strategic initiatives. This gives us the confidence to believe 5% to 6% top-line growth is very much in reach.

Top-Line Growth

(a) Retail value of categories where TCCC strategically participates
(b) Excludes Hot Beverages
(c) Emerging category represents Alcohol Ready-to-Drink Beverages
Source for industry retail value and expected category growth is internal estimates

Leveraging the Strategy - Pursuing Enhanced Topline Growth

We are focused on leveraging the growth strategy to drive bottom-line profitability and maximize returns, while continuing to invest for growth through resource allocation, margin expansion, and asset optimization – ultimately leading to strong cash flow generation.

Investing for Growth

(a) Non-GAAP


Driving Topline... While Expanding Underlying Margin

Driving some level of margin expansion over time as implied by our long-term growth model comes down to a healthy mix of leveraging topline growth across our lines of business and prioritizing investments to maximize returns. On resource allocation, we continue to consider the stage of development of the various geographies we operate in and categories we play in, making sure we’re nurturing the right brands in the right markets, and supporting the appropriate activities in the proper channels to drive the most transactions. Dynamic resource allocation is a key capability, and we’re leveraging the power of the networked organization to evolve our investment framework.

Driving Top-line... While Expanding Underlying Margin

(a) Non-GAAP
(b) Last 5 years average organic revenue (non-GAAP) growth is 7% and last 5 years average comparable currency neutral operating income (non-GAAP) growth is 10%
(c) 2017 to 2021 comparable operating margin (non-GAAP) change has outperformed selected U.S. beverage and consumer goods peers

Managing Margins While Expanding the Portfolio

Margins are not dictated necessarily by the category in which you play in, but more by how you choose to play and your leadership position within a category. We believe we can grow our portfolio offerings while expanding margins through disciplined portfolio growth.

Disciplined portfolio growth will help drive margin expansion in the long term...

  • Category Expansion
  • Gain Scale in Non-Sparkling
  • Drive Profitability in Sparkling (RGM)
  • Benefit from Geographic Mix
  • Productivity & Disciplined Growth
  • Long-Term Operating Margin the short term, non-sparkling categories are lower margin, but generate solid dollar profits

Gross Margin

*2018 core gross margin and gross profit dollars per case, excluding gross profit inventory elimination adjustments (non-GAAP). Note: Charts are not on scale with each other.

Cost Management

Balanced Resource Allocation Fuels a Growth & Productivity Culture

2023 will continue to be an inflationary year, and we’ve provided some guidance regarding how we expect prevailing commodity prices to impact our per case cost. But there are many other costs – from freight to marketing – which have seen some level of inflation in the past three years. We continue to use the levers at our disposal from revenue growth management to some of the productivity measures listed here to manage cost pressures to the best of our ability. We remain focused on margin expansion across our lines of business.

Resource Allocation

*Comparable (non-GAAP)

Fit For Purpose Balance Sheet

Asset “Right” Model - Built for the Future

We know our balance sheet will need to be both strong and flexible to support our ambitious growth agenda going forward, and as such, have taken a wholistic approach to optimizing our investments, identifying and activating passive capital to drive the business on hand. We will continue to pursue our “asset right” agenda, becoming the “world’s smallest bottler” to allow us and our bottling partners to focus on our core competencies. Lastly, our net debt leverage ratio is below our targeted range, including the impact of acquisitions in 2021.


Focused on Maximizing Free Cash Flow Conversion

On cash flow, we have made great progress in the past three years driven by the execution of a comprehensive program we have put in place since 2019. But, it is very much a continuous process and we know there are still opportunities ahead for us to reach. We will continue to focus on strong free cash flow generation through working capital management and optimal levels of capital investment.

Maximizing Cash Flow Chart

Note: 2023 free cash flow (non-GAAP) outlook does not include any potential payments related to our ongoing tax litigation with the U.S. Internal Revenue Service
(a) Non-GAAP; Adjusted Free Cash Flow Conversion Ratio = Free cash flow adjusted for pension contributions (non-GAAP) / GAAP net income adjusted for noncash items impacting comparability
(b) Non-GAAP

Capital Allocation

Balancing Financial Flexibility & Efficient Capital Structure

Our capital allocation strategy supports both our growth ambitions and returning cash to shareowners.

Cash from Operations

(a) Non-GAAP

Non-GAAP Reconciliations

Financial metrics referenced on this page are from Coca-Cola's CAGNY 2023 Conference. View the reconciliation of Non-GAAP Financial Measures for more information.