The Coca-Cola Company enjoyed a 16% increase in net revenue during Q4 2019 and a 9% increase for the year, thanks to strong performance from sports drinks and premium water.
Sales for the quarter totaled $9.07 billion, surpassing analysts’ estimates of $8.89 billion.
Organic revenue grew 7% in Q4, outpacing expectations. Full year organic growth for 2020 is projected at 5%.
In North America, operating income grew 30% in Q4. Coca-Cola gained value share in total non-alcoholic ready-to-drink beverages and across all individual categories, with the exception of tea and coffee, according to an SEC filing.
Water, enhanced water and sports drinks grew 2% in the quarter and 4% for the full year. In North America, volume was flat for the quarter across categories, except for water, enhanced water and sports drinks, which grew 3%. Coca-Cola Zero Sugar had double-digit growth.
Coke continues to take steps towards its long-stated goal of shifting towards “total beverage.” This month, the soda giant closed the full acquisition of dairy brand Fairlife, part of efforts to “expand its portfolio and capabilities through strategic acquisitions of brands in on-trend categories,” according to the SEC filing.
At retail, Coke is introducing new energy line Coca-Cola Energy to the U.S. market in January, which will be followed in March by the debut of flavored sparkling water brand AHA. In the SEC filing, the company also noted global growth for premium juice brand innocent, which is now available in Japan, its first market outside Europe. More expansion for the brand is planned for this year, according to the company.
“We made good progress in 2019 by delivering on our financial commitments and growing in a more sustainable way,” said James Quincey, Coca-Cola chairman and CEO, in the filing. “We continue to transform the organization to act with a growth mindset, which gives us confidence in our 2020 targets and our ability to create a better shared future for all of our stakeholders.”