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 Beverages for Life Strategy – enabling us to convert the top line to value creation. Our Emerging Stronger priorities and the acceleration of our transformation have been designed to get us back to this long-term growth algorithm as fast as possible.
** 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
Our capital allocation strategy supports both our growth ambitions and returning cash to shareowners.
Our confidence stems from the fact that we operate in an industry that will enjoy growth for a long time to come driven by the macro social, economic, and behavioral factors you see here. On top of this we have some category related headwind while we expect a tailwind from emerging markets.
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.
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.
We are taking a surgical approach to how we allocate our resources from a product and portfolio perspective in addition to market, channel, and customer considerations. We’ll do this while stretching our dollars further and leveraging the power of the organization to drive synergies across the globe.
We're viewing asset optimization through a holistic lens. Whether that is driving strong performance and value creation in our company-owned bottling operations today or challenging all investments on the balance sheet to ensure we are generating the right return on that capital, we are looking at everything.
Financial metrics referenced on this page are from Coca-Cola's CAGNY 2021 Conference. View the reconciliation of Non-GAAP Financial Measures for more information.