Vending

Coca-Cola boosts Q2 2023 results, surpasses expectations

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July 26, 2023

The Coca-Cola Co. boosted its sales and earnings for Q2 2023 over the prior year quarter, surpassing analyst expectations, according to an earnings report. Highlights include:

• Net revenues grew 6% from $11.325 billion in Q2 2022 to $12 billion in the quarter ending June 30, 2023, while organic revenue (non-GAAP) grew 11%. Revenue performance included 10% growth in price/mix and 1% growth in concentrate sales. Concentrate sales were one point ahead of unit case volume, largely due to the timing of concentrate shipments.
• Net income rose 34% from $1.9 billion to $2.55 billion in the comparative quarters.
• Net income per share on both a basic and diluted basis rose from 44 cents to 59 cents in the comparative quarters.
• Non-GAAP EPS grew 11% to 78 cents which included the impact of a 6-point currency headwind.
• Sparkling soft drinks were even, as strong performance in Asia Pacific and Latin America was offset by a decline in Europe, Middle East and Africa, primarily due to the suspension of business in Russia. Trademark Coca-Cola was even, as strong performance in Latin America and Asia Pacific was offset by a decline in Europe, Middle East and Africa. Coca-Cola Zero Sugar grew 5%, reflecting strong growth in Latin America and North America. Sparkling flavors declined 1%, driven by a decline in Europe, Middle East and Africa, partially offset by growth in Asia Pacific and Latin America.
• Juice, value-added dairy and plant-based beverages were even, as strong growth in fairlife in the U.S. and Minute Maid Pulpy in China was offset by the suspension of business in Russia.
• Water, sports, coffee and tea were even. Water was even, as growth in Latin America was offset by Europe, Middle East and Africa and North America. Sports drinks declined 3%, primarily driven by Body Armor and Powerade in the U.S. Coffee grew 5%, primarily driven by the strong performance of Costa coffee in the U.K. and China. Tea grew 1%, primarily driven by growth in Latin America, partially offset by a decline in doğadan in Turkey.

Shares traded at $62.52 today against a 52-week range of $54.02 to $65.47.

The $12 billion in quarterly revenue beat analyst expectations by $250 million and the non-GAAP EPS of 78 cents beat expectations by 6 cents, according to Seeking Alpha.

For full year 2023, the company expects to deliver organic revenue (non-GAAP) growth of 8% to 9%.

For full year comparable net revenue (non-GAAP), the company expects a 3% to 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes.