Topline Growth
Driving Ongoing Topline Growth at the High End of Our Target
Despite a handful of headwinds in recent years (e.g. the COVID pandemic), we have delivered consistent volume and revenue growth in recent years. As of the fourth quarter 2023, we've realized concentrate sales volume growth in a majority of the last 20 quarters and organic revenue growth ahead of our long-term growth model in 12 of the last 20 quarters.
Note: Consumer packaged goods (CPG) represents select large cap, food, household products and beverage peers. 2023 amounts are based on year-to-date Q3 except for KO, which is based on full year 2023. All data obtained from FactSet. (a) Non-GAAP; 5-year average
Consistently delivering on the top line has allowed us to transform our ability to sustainably deliver on the bottom line. We are well positioned to continue to grow the top line, to expand margins and to reinvest for further growth.
(a) 2013 to 2017, Non-GAAP
(b) 2014 to 2016, Non-GAAP
(c) 2013 to 2017, Non-GAAP
(d) 2017 and 2018, Non-GAAP
(e) Non-GAAP
Quality Leadership and Disciplined Investment
A key driver of our growth strategy is how we invest our resources. Each of our country-category combinations has a distinctive role to play in our portfolio and each of those roles has a very specific job description. We continually track our performance so that we can iterate this allocation agenda to help sustain our overall performance. For example, in areas where we have a strong leadership position, our intent might be to grow gross profit ahead of marketing investment growth. In areas where we’re looking to build our leadership position, we might actually seek to drive marketing investments somewhat ahead of gross profit. This dynamic, yet disciplined approach to resource allocation underscores our belief that quality leadership – backed by our total beverage portfolio – and disciplined investment drives profitability.
Strong Balance Sheet and Underlying Cash Flow Generation
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 of 2.0x – 2.5x, providing us with flexibility to meet the needs ahead of us.
(a) Bottling Investments net revenues as a percentage of total Company net revenues
(b) Return on Invested Capital (ROIC) = Net Operating Profit After Tax (NOPAT) divided by two-year average of invested capital; ROIC is a non-GAAP financial measure
(c) Non-GAAP
(d) Non-GAAP. Transition tax impact is scheduled to end in 2025.
Dynamic and Unwavering Capital Priorities
Our capital allocation strategy supports both our growth ambitions and returning cash to shareowners.
(a) Acquisitions since 2006
(b) Bottling investment divestitures from 2018 to 2023, net of tax
(c) Non-GAAP
(d) 2023 net share repurchases include purchases made in anticipation of expected proceeds from bottler refranchising
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 organic revenue growth of 4% to 6%, strong operating leverage driving 6% to 8% operating income growth, delivering meaningful EPS growth and free cash flow conversion.
(a) Non-GAAP
(b) Non-GAAP; Adjusted Free Cash Flow Conversion Ratio = Free cash flow adjusted for the payment of transition tax and other significant cash inflows & outflows / GAAP net income adjusted for noncash items impacting comparability.