Core Insights - Coca-Cola Consolidated, Inc. reported a decline in key financial metrics for the first quarter of 2025, including net sales and income from operations, attributed to fewer selling days and changes in distribution methods [3][5][10]. Financial Performance - Volume decreased by 6.6% in Q1 2025 compared to Q1 2024, with two fewer selling days accounting for approximately 2.1% of this decline [4][5]. - Net sales fell by 0.7% to $1.58 billion, negatively impacted by the two fewer selling days, which accounted for about $40 million or 2.5% of the change [5][7]. - Gross profit decreased by 2.1% to $627.1 million, with a gross margin of 39.7%, down 50 basis points from the previous year [7][8]. - Income from operations was $189.8 million, a decrease of 11.9% from $215.4 million in Q1 2024, with the two fewer selling days contributing approximately $10 million to this decline [10][11]. Beverage Sales - Sparkling beverage sales decreased by 1.9%, while still beverage sales saw a smaller decline of 0.5% compared to the previous year [6]. - The decline in Sparkling category sales was partially due to softness in the Coca-Cola Original Taste brand, although other core products showed solid growth [6][9]. - Excluding Dasani, net sales in the Still category increased by 1.8%, driven by growth in sports drinks and enhanced water products [6]. Operating Expenses - Selling, delivery, and administrative (SD&A) expenses increased by 2.9% to $437.3 million, with SD&A as a percentage of net sales rising to 27.7% [9][10]. - The increase in SD&A expenses was primarily due to higher labor costs and inflationary pressures [9]. Cash Flow and Investments - Cash flows from operations for Q1 2025 were $198.2 million, compared to $194.3 million in Q1 2024 [12]. - The company invested approximately $98 million in capital expenditures during the quarter, with expectations of around $300 million for the fiscal year 2025 [12].

Core Viewpoint - Coca-Cola Consolidated, Inc. will announce its operating results for the first quarter ended March 28, 2025, after market close on April 30, 2025 [1] Company Overview - Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, headquartered in Charlotte, N.C. [3] - The company produces, sells, and distributes beverages from The Coca-Cola Company and other partner companies, offering over 300 brands and flavors across 14 states and the District of Columbia [3] - Coca-Cola Consolidated serves approximately 60 million consumers and has been committed to its consumers, customers, and communities for over 123 years [3] - The company's purpose includes honoring God, serving others, pursuing excellence, and growing profitably [3]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

Core Points - Coca-Cola Consolidated, Inc. announced a 10-for-1 stock split for its Common Stock and Class B Common Stock, pending stockholder approval [1][2] - The stockholder approval for the amendment to the Company's Restated Certificate of Incorporation will be sought at the Annual Meeting on May 13, 2025 [2] - If approved, stockholders of record as of May 16, 2025, will receive 9 additional shares for each share held, with distribution expected around May 23, 2025 [3] - The shares are anticipated to begin trading on a split-adjusted basis on or about May 27, 2025 [3] - The Chairman and CEO expressed that the stock split aims to enhance accessibility for a broader range of investors, reflecting the company's strong financial performance and increased investor interest [4] Company Overview - Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, serving approximately 60 million consumers across 14 states and the District of Columbia [5] - The company has been operational for over 123 years, focusing on a diverse portfolio of beverages and services [5] - The company's purpose emphasizes honoring God, serving others, pursuing excellence, and achieving profitable growth [5]

Financial Performance - Net sales increased by $245.9 million, or 3.7%, to $6.90 billion in 2024 compared to $6.65 billion in 2023[191] - Gross profit rose by $154.5 million, or 5.9%, with gross margin increasing by 80 basis points to 39.9% in 2024[175] - Income from operations increased by $85.9 million to $920.4 million, while net income rose by $224.8 million to $633.1 million in 2024[177] - Sparkling beverage net sales increased by 5.5% to $4.11 billion, while still beverage net sales rose by 3.6% to $2.23 billion in 2024[192] - Net sales for the Nonalcoholic Beverages segment reached $6.84 billion in 2024, compared to $6.56 billion in 2023, reflecting a growth of approximately 4.3%[214] - Gross profit for the Company was $2.75 billion in 2024, an increase from $2.60 billion in 2023, representing a growth of approximately 6.0%[219] - Basic net income per share increased to $70.10 in 2024 from $43.56 in 2023, reflecting a significant growth in profitability[219] Cash Flow and Investments - Cash flows from operations for 2024 were $876.4 million, up from $810.7 million in 2023[178] - Capital expenditures for 2024 were $371.0 million, focusing on supply chain enhancements and future growth[178] - The company expects to continue significant investments in supply chain optimization during fiscal year 2025[184] - Cash provided by operating activities was $876.4 million, an increase of $65.7 million compared to 2023[239] - Cash used in investing activities during 2024 was $682.2 million, an increase of $386.9 million from 2023, primarily due to higher additions to property, plant, and equipment of $371.0 million[240] - Cash provided by financing activities was $306.4 million in 2024, a change of $384.1 million from cash used in financing activities of $77.7 million in 2023, driven by bond proceeds of $1.20 billion[244] Expenses and Costs - Selling, delivery, and administrative expenses increased by $68.6 million, or 3.9%, representing 26.6% of net sales in 2024[176] - Cost of sales increased by $91.4 million, or 2.3%, to $4.15 billion in 2024 compared to $4.06 billion in 2023, primarily due to higher input costs[200] - Selling, delivery, and administrative (SD&A) expenses rose by $68.6 million, or 3.9%, to $1.83 billion in 2024, with labor costs accounting for approximately $48 million of the increase[203] - The net impact of commodity derivative instruments on the consolidated statements of operations was a decrease in cost of sales of $590, and an increase in SD&A expenses of $2,647 in 2024[256] - Inflation has increased both cost of goods sold and selling, general & administrative (SD&A) expenses for the Company[299] Debt and Financing - Total debt as of December 31, 2024, was $1.79 billion, up from $599.2 million on December 31, 2023[228] - The Company completed the issuance of $700 million in 2029 Senior Bonds and $500 million in 2034 Senior Bonds on May 29, 2024[231] - The Company has a maximum borrowing capacity of $500 million under its Revolving Credit Facility, maturing on June 10, 2029[232] - As of December 31, 2024, the company had outstanding debt of $1.80 billion, with approximately $350 million due in fiscal year 2025[247] Tax and Regulatory - The effective income tax rate decreased to 26.1% in 2024 from 26.7% in 2023, while income tax expense increased by $74.4 million, or 49.9%, to $223.5 million[209] - The Company does not recognize a tax benefit unless it is more likely than not that the benefit will be sustained on audit[276] Assets and Liabilities - Total assets increased by $1.02 billion to $5.31 billion as of December 31, 2024, compared to $4.29 billion on December 31, 2023[220] - Net working capital rose by $620.3 million to $1.23 billion on December 31, 2024[220] - Cash and cash equivalents increased by $500.6 million, primarily due to bond proceeds of $1.20 billion and strong operating performance[222] - The ending balance of the Level 3 liability related to acquisition contingent consideration was $654.2 million as of 2024, down from $669.3 million in 2023[237] Shareholder Returns - The Board of Directors approved an increase in the quarterly cash dividend from $0.50 to $2.50 per share on August 20, 2024[235] - The Company repurchased 14,391.5 shares of Common Stock for an aggregate purchase price of $13.3 million, representing 0.2% of the shares outstanding as of June 18, 2024[225] Market and Economic Conditions - Walmart and Kroger accounted for approximately 29% of total net sales in 2024, maintaining similar percentages from 2023[196] - A 10% increase in key commodity prices would increase costs by approximately $66 million over the next 12 months[294] - The annual rate of inflation in the U.S. was 2.9% in 2024, 3.4% in 2023, and 6.5% in 2022, affecting commodity prices relevant to the Company's business[298] - The Company can offset cost increases by raising selling prices, but consumer buying power may limit this ability[299] - If consumers reduce their purchase volume due to higher prices, selling price increases may not fully cover the Company's cost increases[299] Pension and Benefits - Pension costs for the Bargaining Plan were $3.7 million in both 2024 and 2023[281] - The discount rate for the Bargaining Plan was 5.89% in 2024 and 5.16% in 2023, significantly impacting projected benefit obligations[280] - A 0.25% increase in the discount rate assumption would decrease the projected benefit obligation by $1,842,000, while a decrease would increase it by $1,965,000[282] - The discount rate for the postretirement benefit obligation was 5.68% in 2024 and 5.02% in 2023[285] - The actual return on pension plan assets for the Bargaining Plan was a gain of 3.7% in 2024 and a gain of 13.5% in 2023[280] Impairment and Valuation - The Company did not identify any impairment triggers related to property, plant, and equipment and other intangibles during 2024 and 2023[267] - The Company performed its annual impairment test of goodwill and determined there was no impairment for both 2024 and 2023[270] - The fair value of the acquisition related contingent consideration liability is influenced by the Company's WACC and estimated future payments, with a 10-basis point change in the risk-free interest rate resulting in a $6 million change in liability[273]

Financial Performance - Fourth quarter 2024 net sales increased by 7.1% to $1,746.5 million compared to the same period in 2023, while fiscal year 2024 net sales rose by 3.7% to $6,899.7 million[5][7] - Gross profit for the fourth quarter of 2024 was $697.9 million, an increase of 8.8% year-over-year, with a gross margin improvement of 70 basis points to 40.0%[9][11] - Income from operations in the fourth quarter of 2024 was $218.7 million, a 22.6% increase from $178.5 million in the fourth quarter of 2023, with fiscal year 2024 income from operations reaching $920.4 million, up 10.3%[11][12] - Net income for the fourth quarter of 2024 was $178.9 million, a significant increase of $103.1 million compared to $75.8 million in the fourth quarter of 2023[12] - Net income for fiscal year 2024 was $633,125, representing a 55% increase compared to $408,375 in fiscal year 2023[23] - Basic net income per share for Q4 2024 was $20.48, compared to $8.09 in Q4 2023, reflecting a 153% increase[19] - Adjusted net income per share for Fiscal Year 2024 is $75.13, up from $65.48 in Fiscal Year 2023, reflecting a 14% increase[25] Sales Performance - Sparkling beverage sales in the fourth quarter of 2024 increased by 7.7% to $1,083.5 million, while still beverage sales rose by 8.7% to $531.3 million compared to the fourth quarter of 2023[2][7] - Comparable volume for the fourth quarter of 2024 was up 1.3%, with a 0.8% increase in Sparkling category volume and a 6.4% decline in Still category volume[8][9] - Comparable volume for Q4 2024 was 87.8 million, a decrease of 0.9% from 88.5 million in Q4 2023[24] Cash Flow and Investments - Cash flows from operations for fiscal year 2024 were $876.4 million, reflecting strong operating performance, with capital expenditures of $371 million during the year[12] - The company plans to invest approximately $300 million in capital expenditures for fiscal year 2025[12] - The company reported a net cash provided by operating activities of $876,357 for fiscal year 2024, compared to $810,690 in fiscal year 2023[23] Assets and Liabilities - Total assets increased to $5,313,139 in December 2024, up from $4,288,942 in December 2023[21] - Cash and cash equivalents rose to $1,135,824 in December 2024, a significant increase from $635,269 in December 2023[21] - Total liabilities increased to $3,895,528 in December 2024, up from $2,853,344 in December 2023[21] Operational Efficiency - Operating margin for fiscal year 2024 improved to 13.3%, an increase of 80 basis points from 12.5% in fiscal year 2023[11] - Gross profit for Fiscal Year 2024 is $2,753,179,000, a 4% increase compared to $2,598,711,000 in Fiscal Year 2023[25] - Total income from operations for Fiscal Year 2024 is $921,625,000, which is a 10.3% increase from $834,451,000 in Fiscal Year 2023[25] - The company experienced a 6% increase in selling, general and administrative expenses, totaling $1,832,829,000 in Fiscal Year 2024[25] Future Outlook - Future outlook includes continued focus on market expansion and new product development, aiming for sustained growth in revenue and profitability[25] - The company emphasizes the importance of non-GAAP financial measures for assessing ongoing performance and making strategic decisions[25] Other Financial Metrics - The company repurchased approximately $626 million of its common stock and increased its annualized regular dividend to $10 per share during 2024[7] - The company issued $1,200,000 in bonds during fiscal year 2024[23] - Adjusted EBITDA for Fiscal Year 2024 is $1,115,416,000, with an EBITDA margin of 16.2%[25] - Income tax expense for Fiscal Year 2024 is $223,529,000, compared to $119,834,000 in Fiscal Year 2023, indicating a significant increase[25] - The company reported a fair value adjustment for commodity derivative instruments of $1,275,000 in Fiscal Year 2024, compared to a loss of $1,220,000 in Fiscal Year 2023[25]

Core Insights - Coca-Cola Consolidated, Inc. reported solid financial performance for the fourth quarter and fiscal year 2024, with net sales increasing by 7.1% to $1.7 billion in Q4 and 3.7% to $6.9 billion for the fiscal year [4][7][12] - The company achieved a gross profit of $697.9 million in Q4, an increase of 8.8% year-over-year, and a gross margin improvement to 40.0% [9][11] - Income from operations rose by 22.6% to $218.7 million in Q4 and by 10.3% to $920.4 million for the fiscal year, with operating margins improving to 12.5% [11][14] Financial Performance - Net sales for Q4 2024 were $1,746.5 million, up from $1,631.0 million in Q4 2023, while fiscal year net sales reached $6,899.7 million compared to $6,653.9 million in the previous year [2][4] - Gross profit for Q4 2024 was $697.9 million, compared to $641.5 million in Q4 2023, with a gross margin of 40.0% [9][11] - The company reported an income from operations of $218.7 million in Q4 2024, up from $178.5 million in Q4 2023, and $920.4 million for the fiscal year, an increase from $834.5 million [11][12] Beverage Sales - Sparkling beverage sales in Q4 2024 increased by 7.7% to $1,083.5 million, while still beverage sales rose by 8.7% to $531.3 million [4][5] - For the fiscal year, sparkling beverage sales totaled $4,106.1 million, a 5.5% increase, and still beverage sales reached $2,227.2 million, up 3.6% [4][5] Operational Highlights - The company invested over $370 million in capital expenditures during 2024 and repurchased approximately $626 million of its common stock [4][10] - Cash flows from operations for fiscal year 2024 were $876.4 million, compared to $810.7 million in fiscal year 2023 [14][23] - The company achieved an EBITDA of over $1.1 billion with an EBITDA margin of 16.2%, the highest level in decades [10][28] Market Dynamics - The increase in net sales was positively impacted by two additional selling days in Q4 2024, contributing approximately $40 million to net sales growth [4][11] - Consumer demand for multi-serve, value-oriented packages remained strong, particularly among large retail customers [4][5]

Core Viewpoint - Coca-Cola Consolidated, Inc. will announce its operating results for the fourth quarter and fiscal year ended December 31, 2024, on February 20, 2025, after market close [1] Company Overview - Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, headquartered in Charlotte, N.C. [2] - The company produces, sells, and distributes beverages from The Coca-Cola Company and other partners, offering over 300 brands and flavors across 14 states and the District of Columbia, serving approximately 60 million consumers [2] - With a history of over 122 years, the company is committed to its consumers, customers, and communities, focusing on a broad portfolio of beverages and services [2] - The company's purpose includes honoring God, serving others, pursuing excellence, and achieving profitable growth [2]

Core Points - Coca-Cola Consolidated, Inc. declared a dividend of $2.50 per share for the first quarter of 2025 [1] - The dividend is payable on February 7, 2025, to shareholders of record as of January 24, 2025 [1] Company Overview - Coca-Cola Consolidated is the largest Coca-Cola bottler in the United States, headquartered in Charlotte, N.C. [2] - The company distributes beverages from The Coca-Cola Company and other partners across more than 300 brands and flavors in 14 states and the District of Columbia, serving approximately 60 million consumers [2] - The company has a commitment to consumers, customers, and communities, with a focus on excellence and profitable growth [2]

Group 1 - Coca-Cola Consolidated, Inc. announced the retirement of Executive Vice President and Chief Financial Officer Scott Anthony effective March 31, 2025, after serving in this role since 2018 [1] - Matthew J. Blickley will succeed Scott Anthony as Executive Vice President and Chief Financial Officer starting April 1, 2025, while continuing his role as Chief Accounting Officer [2] - The Chairman and CEO, J. Frank Harrison, III, expressed gratitude for Scott Anthony's contributions, highlighting his strategic leadership and the company's exceptional financial performance since 2019 [3] Group 2 - Matthew Blickley has been with Coca-Cola Consolidated since 2014 and has held various financial roles, including Corporate Controller, and is a certified public accountant [2] - The company emphasizes its commitment to succession planning and the depth of talent within its leadership team [3] - Coca-Cola Consolidated is the largest Coca-Cola bottler in the United States, serving approximately 60 million consumers across 14 states and the District of Columbia [5]