Coca-Cola Reports Third Quarter 2022 Results
and Raises Full-Year Guidance
Global Unit Case Volume Grew 4%
Net Revenues Grew 10%;
Organic Revenues (Non-GAAP) Grew 16%
Operating Income Grew 7%;
Comparable Currency Neutral Operating Income (Non-GAAP) Grew 18%
Operating Margin Was 27.9% Versus 28.9% in the Prior Year;
Comparable Operating Margin (Non-GAAP) Was 29.5% Versus 30.0% in the Prior Year
EPS Grew 14% to $0.65; Comparable EPS (Non-GAAP) Grew 7% to $0.69
October 25, 2022 – The Coca-Cola Company today reported strong third quarter 2022 results as the company continued to build on the momentum from the first half of the year. “Our strong capabilities and consumer insights continue to help us win in the marketplace,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “Our business is resilient amidst a dynamic operating and macroeconomic environment. We are investing in our strong portfolio of brands, which is a cornerstone of our ability to deliver long-term value for our stakeholders.”
Overall Highlights Quarterly Performance:
- Revenues – Net revenues grew 10% to $11.1 billion, and organic revenues (non-GAAP) grew 16%. Organic revenue (non-GAAP) performance was strong across operating segments and included 12% growth in price/mix and 4% growth in concentrate sales.
- Margin – Operating margin, which included items impacting comparability, was 27.9% versus 28.9% in the prior year, while comparable operating margin (non-GAAP) was 29.5% versus 30.0% in the prior year. Comparable operating margin (non-GAAP) compressed as strong topline growth was more than offset by the impact of the BODYARMOR acquisition, higher operating costs, an increase in marketing investments versus the prior year, and currency headwinds.
- Earnings per share – EPS grew 14% to $0.65, and comparable EPS (non-GAAP) grew 7% to $0.69. Comparable EPS (non-GAAP) performance included the impact of an 11-point currency headwind.
- Market share – The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
- Cash flow – Cash flow from operations was $8.1 billion year-to-date, a decline of $1.2 billion versus the prior year, as strong business performance was more than offset by the impact of cycling the timing of working capital benefits in the prior year and higher 2021 annual incentives in the current year. Free cash flow (non-GAAP) was $7.3 billion, a decline of $1.2 billion versus the prior year.
India Specific Pointers:
- We drove 2.5 billion transactions in India at affordable price points through the expansion of returnable glass bottles and single-serve PET packages.
- Sprite has grown to become a billion-dollar brand in the market, driven by the success of locally adapted, occasion-based global marketing campaigns and screentime.
- Category-led performance:
- In India, we continue to strengthen the first half of the year as we gain share in sparklings offerings. Trademark Coke delivered strong growth through effective execution and occasion-based marketing.
- Sparkling soft drinks grew 3%, driven by growth across all geographic operating segments, primarily led by India, Mexico and China. Trademark Coca-Cola grew 3%, driven by growth across all geographic operating segments. Coca-Cola® Zero Sugar grew 11%, driven by low double-digit growth across developed markets and high single-digit growth across developing and emerging markets. Sparkling flavors grew 3%, led by Asia Pacific and Latin America.
- Nutrition, juice, dairy and plant-based beverages were even, as growth led by Minute Maid Pulpy in China, Maaza® in India and fairlife® in the United States was offset by declines primarily in local brands in Eastern Europe.
- Asia Pacific: Unit case volume grew 9%, driven by strong growth in India and China. Growth was led by sparkling soft drinks and hydration.