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.
** 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.
Capital and other investments to support the growth agenda.
Striking the right balance between strategic rationale, financial returns, and risk profile.
Continue to grow dividend with a target of 75% free cash flow* payout over time.
Return excess cash over time.
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.
Margins are not dictated necessarily by the category in which you play in, but more how you chose to play and your leadership position within a category. We believe we can grow our portfolio offering while expanding margins through disciplined portfolio growth.
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.
Financial metrics referenced on this page are from Coca-Cola's CAGNY 2020 Conference. View the reconciliation of Non-GAAP Financial Measures for more information.