News
Coca-Cola Consolidated reports strong Q4 results
February 26, 2020
Coca-Cola Consolidated Inc. reported strong operating results for the fourth quarter and fiscal year ended Dec. 29, 2019, according to a press release.
"2019 was an outstanding year for Coca-Cola Consolidated," Frank Harrison, chairman and CEO, said in the press release. "We delivered record operating profit, generated strong cash flow and made significant investments in our business that strengthen our long-term growth outlook.
The company opened n automated warehouse facility in Erlanger, Kentucky, and began work on its announced plant consolidation in the Memphis region.
"These investments will increase the efficiency of our operations and drive long-term value for our stockholders," Harrison said. "We begin 2020 confident in the health of our business and we look forward to building on our strong 2019 operating performance."
Revenue grew 3.7% in the fourth quarter of 2019 ($1,178.9 million versus $1,136.6 million), driven primarily by strong price growth and a continued shift in product mix to higher-priced still products. Physical case volume increased 1.2% in the quarter (83.9 million versus 82.9 million). Revenue from bottle/can sparkling beverages increased 2.8% in the fourth quarter of 2019 ($653.3 million versus $635.5 million), primarily driven by price increases, as sparkling brands continue to demonstrate strength in the marketplace. Revenue from still beverages grew 6.9% in the fourth quarter of 2019 ($357 million versus $334.1 million), driven primarily by growth in sports drinks and energy categories.
For 2019, revenue increased $201.2 million, or 4.3% ($4,826.5 million versus $4,625.4 million), driven by physical case volume growth of 1.6% ($343.2 million versus $337.7 million), price increases on products and the positive influence of higher priced still products on revenue growth. The 2019 results were also positively impacted by the contribution of BodyArmor products in their first full year of distribution across the territory. In addition, the company executed several product innovations, including Coke Orange Vanilla and Reign, which contributed to revenue growth for the year, according to the release.
Gross profit increased $32.5 million, or 8.5%, in the fourth quarter of 2019, and gross margin increased 150 basis points to 35.0%. On an adjusted basis, gross profit grew $17.8 million, or 4.6%, while gross margin increased 30 basis points versus the fourth quarter of 2018.
