Vending

Coca-Cola boosts Q1 2022 sales, earnings

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April 25, 2022

The Coca-Cola Co. surpassed revenue estimates for Q1 2022 with a 16% revenue gain over Q1 2021, according to an earnings release. Highlights include:

• Net revenues grew 16% from $9.02 billion for Q1 2021 to $10.5 billion for the quarter ending April 1, 2022, and organic revenues (non-GAAP) grew 18%.
• Revenue performance included 7% growth in price/mix and 11% growth in concentrate sales.
• Concentrate sales were 3 points ahead of unit case volume, largely due to the timing of concentrate shipments in the current quarter, partially offset by the impact of one less day in the quarter.
• Operating income grew 25% from $2.72 billion to $3.4 billion in the comparative quarters, while consolidated net income grew 24% from $2.55 billion to $2.79 billion.
• Earnings per share grew 23% from 52 cents to 64 cents on both a basic and diluted basis, and comparable EPS (non-GAAP) grew 16% to 64 cents.
• Unit case volume grew 8%, with broad-based growth across all operating segments. Volume performance was driven by continued investments in the marketplace and a benefit from cycling the impact of the pandemic in the prior year.
• Developed markets as well as developing and emerging markets grew in high single digits. Growth in developed markets was led by the U.S., the U.K. and Mexico, while growth in developing and emerging markets was led by Brazil and India.
• Sparkling soft drinks grew 7%, driven by growth across all geographic operating segments, primarily Europe, Middle East and Africa and Latin America.
• Trademark Coca-Cola grew 6%, driven by growth across all geographic operating segments.
• Coca-Cola Zero Sugar grew 14%, driven by double-digit growth across all geographic operating segments.
• Nutrition, juice, dairy and plant-based beverages grew 12%, led by fairlife in the U.S., Minute Maid Pulpy in China and Maaza in India.
• Hydration, sports, coffee and tea grew 10%. Hydration grew 8%, led by strong growth in Latin America and Europe, Middle East and Africa. Sports drinks grew 22%, primarily driven by strong growth of Body Armor and Powerade. Tea grew 8%, led by growth in Brazil, Japan and Mexico. Coffee grew 27%, primarily driven by cycling the impact of Costa retail store closures in the U.K. in the prior year and continued expansion of Costa coffee across markets.

Shares traded today at $66.40 against a 52-week range of $52.28-$67.20.

The $10.5 billion in quarterly revenue beat analyst expectations by $670 million, and the non-GAAP EPS of 64 cents beat expectations by 6 cents, according to Seeking Alpha.

"We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment," James Quincey, chairman and CEO, said in the press release. "We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders."

The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8% for the full year.

Comparable EPS (non-GAAP) percentage growth is expected to include a 3% to 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a minimal tailwind from acquisitions.