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The
health crisis has accelerated the soda maker's efforts to trim
hundreds of its underperforming brands and shift toward popular
products such as sparkling waters and zero-sugar sodas, while
also influencing a major restructuring that included thousands
of job cuts.
"The progress we made in 2020, including the actions taken to
accelerate the transformation of our company, gives us
confidence in returning to growth in the year ahead," Chief
Executive Officer James Quincey said in a statement.
For 2021, the company expects adjusted earnings to grow in the
high-single digits to low-double digits and organic revenue to
rise in the high-single digits.
Organic revenue declined 9% last year, as pandemic-related curbs
closed the doors of non-retail channels such as restaurants,
cinemas and sporting events that account for over a third of the
company's sales.
Meanwhile, the company warned it expects a liability of about
$12 billion related to a dispute with the U.S. Internal Revenue
Service (IRS) on how much it charged foreign affiliates for the
rights to make and sell Coke products abroad.
The U.S. Tax Court sided with the IRS in November, but Coca-Cola
said it "intends to vigorously defend its position" even as the
company recorded a tax reserve of $438 million for the year
ended Dec. 31.
Net revenue fell 5% to $8.60 billion in the three months ended
Dec. 31, just short of expectations of $8.63 billion, according
to IBES data from Refinitiv.
On a per share basis, the Atlanta-based company earned 47 cents
per share, 5 cents more than estimates.
(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj
Kalluvila)
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