Vending

Coca-Cola boosts Q2 2022 revenue

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July 26, 2022

The Coca-Cola Co. surpassed growth expectations for Q2 2022 revenue and expects strong full year results, according to an earnings report. Highlights include:

• Net revenues grew 12% to $11.3 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.
• Earnings per share declined 28% to 44 cents, while comparable EPS (non-GAAP) grew 4% to 70 cents. Comparable EPS (non-GAAP) performance included the impact of a 9-point currency headwind.
• Sparkling soft drinks grew 8%, driven by growth across all geographic operating segments, primarily led by India, Mexico and Brazil.
• Trademark Coca-Cola grew 7%, driven by growth across all geographic operating segments and operating units.
• Nutrition, juice, dairy and plant-based beverages grew 6%, led by Maaza in India, Del Valle in Latin America and fairlife in the U.S.
• Hydration, sports, coffee and tea grew 7%. Hydration grew 7%, led by strong growth in Latin America and Europe, Middle East and Africa. Sports drinks grew 7%, primarily driven by strong growth of Body Armor and Powerade. Tea grew 4%, led by growth in Brazil, Western Europe and Japan. Coffee grew 15%, 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.
• North America unit case volume grew 2% driven by solid performance in away-from-home channels. Sparkling soft drinks and dairy beverages led growth during the quarter.
• Latin America unit case volume grew 9%, with strong growth across almost all categories. Growth was led by Mexico, Brazil and Argentina.
• Asia unit case volume grew 11%, driven by strong growth in India and the Philippines, partially offset by pressure in China due to reduced consumer mobility resulting from a resurgence in COVID-19 cases.

Shares traded today at $63.19 against a 52-week range of $52.28-$67.20.

The $11.3 billion in quarterly revenue beat analyst expectations by $730 million while non-GAAP EPS of 70 cents missed estimates by 3 cents, according to Seeking Alpha.

"Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we've taken to execute for growth in the face of challenges in the operating and macroeconomic environment," James Quincey, chairman and CEO, said in the press release.

For full year 2022, the company expects to deliver organic revenue growth of 12% to 13%, comparable currency neutral non-GAAP EPS of 14% to 15% and comparable non-GAAP EPS growth of 5% to 6%.