What is Coca Cola Consolidated Net Worth and Financial Performance Overview 2024

Curious about Coca Cola Consolidated net worth? Let’s dive into their key revenue drivers and financial performance.

Here, Ando Money provides an in-depth analysis of how this beverage giant continues to grow. From operational efficiency to regional contributions, there’s a lot to explore.

Quick Facts

What is the Net Worth/Market Cap Of Coca Cola Consolidated in 2024?

As of October 2024, Coca Cola Consolidated’s market cap stands at $11.34 billion.

It may not be the largest in its industry but certainly has a notable standing when compared to several key competitors and partners in the beverage sector.

Many similar companies have made a significant impact, which helps put its valuation into context. To illustrate, here are some other well-known names in the industry:

• PepsiCo
• Monster Beverage
• Keurig Dr Pepper
• BodyArmor
• Red Bull GmbH
• The Coca-Cola Company
• National Beverage Corp
• Jones Soda
• Dr Pepper Snapple Group
• Sprite

You can explore further details about the top companies leading in financial strength.

Coca Cola Consolidated Financial Performance Overview

Coca Cola Consolidated has shown steady growth in recent years, characterized by increases in both revenue and profitability.

In the first half of 2024, total revenue reached $3.39 billion, up 2.3% compared to the same period in 2023.

Additionally, net income for the first half stood at $338.6 million, reflecting a substantial improvement compared to the previous year.

The company’s financial health is marked by consistent growth in net sales and a focus on increasing operational efficiency, leading to higher profitability margins.

Key Revenue Drivers and Product Segments

Revenue growth at Coca Cola Consolidated is driven primarily by both sparkling and still beverages. Sparkling bottle/can products generated $1,996.4 million in the first half of 2024, showing an increase of 4% from 2023.

Still beverages also played a substantial role, with revenue climbing to $1,108.4 million, representing a 2.4% increase.

This growth is the result of the company’s consistent efforts in maintaining a robust beverage portfolio, including both the traditional Coca Cola offerings and products from partner brands like Monster and Powerade.

Operational Efficiency and Profit Margins

Operational efficiency remains a core focus for Coca Cola Consolidated. In the second quarter of 2024, gross profit rose to $716.7 million, showing an increase of 6.7%.

The operating margin also improved, reaching 14.4% in the same period.

The company has made significant strides in maintaining operational discipline, which has been crucial in managing costs and increasing overall profitability.

They managed to keep selling, delivery, and administrative expenses as a relatively consistent percentage of net sales, allowing them to achieve stable profit margins.

Cash Flow Analysis and Capital Allocation

For the first half of 2024, Coca Cola Consolidated generated $437.1 million from operating activities, which was used in part to fund $159 million in capital expenditures.

This substantial investment in their supply chain infrastructure and production capabilities is intended to support future growth.

Capital expenditures have been allocated towards enhancing production, especially for mini cans and small PET bottles, which continue to gain popularity among consumers.

Cash flow management plays a vital role in their financial strategy, ensuring both short-term and long-term financial health.

Role of Direct Store Delivery (DSD) in Revenue

Direct Store Delivery (DSD) continues to be a key contributor to Coca Cola Consolidated’s revenue, though the company has also started exploring other methods of distribution.

The DSD system enables them to directly connect with retailers and manage product placement effectively.

However, the second quarter of 2024 saw the company adopt alternative routes to market, including a shift in distribution methods for Dasani water.

This diversification not only improves efficiency but also enhances profitability by focusing on channels that yield better margins.

Geographical Influence on Revenue

The diverse geographical footprint of Coca Cola Consolidated plays a significant role in the company’s overall revenue growth.

The organization operates in 14 states and the District of Columbia, providing beverages to approximately 60 million consumers.

Each regional market contributes differently to the company’s revenue, depending on market size, consumer preferences, and economic conditions.

The demand for both sparkling and still beverages remains consistent across the regions, though the performance of certain product lines can vary depending on local consumer preferences.

Strategic Partnerships and Collaborations

Partnerships with The Coca-Cola Company and other brands like Monster and Powerade have had a major financial impact.

These collaborations help Coca Cola Consolidated diversify its product offerings, ensuring continued consumer interest and a steady revenue stream.

The expansion of their product portfolio with value-oriented packages and partnerships has not only strengthened their market position but also contributed significantly to overall sales growth.

Share Repurchases and Equity Impact

In the second quarter of 2024, Coca Cola Consolidated made a substantial repurchase of common shares, a move aimed at generating long-term value for shareholders.

Such buybacks effectively reduced the outstanding shares, thereby increasing stock value and enhancing stockholder equity, which stands at $1.20 billion as of June 28, 2024.

These strategic actions indicate a focus on returning value to shareholders and strengthening the company’s financial foundation.

Cost Management and Inflation Impact

In response to rising labor costs and inflation, Coca Cola Consolidated has implemented effective cost management strategies.

For example, selling, delivery, and administrative expenses increased by only 5% in the second quarter of 2024, a manageable rise considering the economic environment.

The company has focused on managing input costs through strategic sourcing and operational efficiency, which has helped mitigate the impact of inflation and safeguard profit margins.

Future Growth Projections

With the strategic investments and share repurchases made during 2024, Coca Cola Consolidated is well-positioned for future growth.

Their capital expenditures, ranging between $300 million to $350 million for the full year, focus on expanding production capabilities and improving the overall supply chain.

These initiatives, along with a diversified product portfolio and enhanced operational efficiency, are expected to support long-term financial health and profitability.

FAQs About Coca Cola Consolidated

What Products Contribute Most to Revenue?

Sparkling and still beverages are major contributors to revenue, with products like Coca Cola, Powerade, and Monster leading the way.

Where is Coca Cola Consolidated Based?

The headquarters of Coca Cola Consolidated is located in Charlotte, North Carolina, United States.

Who is the CEO of Coca Cola Consolidated?

The Chief Executive Officer is J. Frank Harrison, III, who plays a pivotal role in guiding the company’s strategic vision.

How Much Revenue Did The Company Generate in the First Half of 2024?

The company reported revenue of $3.39 billion for the first half of 2024, showing steady growth from the previous year.

What Distribution Methods Are Used by Coca Cola Consolidated?

The primary distribution method is Direct Store Delivery (DSD), although other methods are also used to optimize distribution for specific products.

Conclusion

I’ve provided an in-depth look at Coca Cola Consolidated’s financial performance and its key drivers.

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