Vending

Coca-Cola boosts Q4 and FY 2021 sales and earnings

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February 10, 2022

The Coca-Cola Co. boosted its revenue 10% and its earnings 66% for Q4 2021 ending Dec. 31, 2021, aided by price increases, according to an earnings release.

Net revenues for Q4 2021 grew 10% over Q4 2020 to $9.5 billion, resulting in net revenues ahead of 2019, while organic revenues (non-GAAP) grew 9%. Revenue performance included 10% growth in price/mix and a decline of 1% in concentrate sales. The quarter included six fewer days, which resulted in an approximate 6-point headwind to revenue growth.

For the full year, net revenues grew 17% to $38.7 billion, and organic revenues (non-GAAP) grew 16%, driven by 9% growth in concentrate sales and 6% growth in price/mix.

• Net income rose 66% from $1.46 billion to $2.41 billion in the comparative quarters.
• Earnings per share on both a basic and diluted basis rose 65% to 56 cents, and comparable EPS (non-GAAP) declined 5% to 45 cents.
• For the full year, operating revenue rose 17% from $33 billion in 2020 to $38.6 billion in 2021.
• For the full year, EPS on a basic basis grew 26% from $1.80 to $2.25 while EPS on a diluted basis rose 26% from $1.79 to $2.25. Comparable EPS (non-GAAP) grew 19% to $2.32.
• Sparkling soft drinks grew 8% for the quarter and 7% for the year, resulting in volume ahead of 2019, driven by strong performance across all geographic operating segments.
• Nutrition, juice, dairy and plant-based beverages grew 11% for the quarter and 12% for the year, resulting in volume ahead of 2019. For both the quarter and the year, there was strong growth across all geographic operating segments.
• Hydration, sports, coffee and tea grew 12% for the quarter and 7% for the year. Hydration grew 11% for the quarter and 5% for the year, with growth across all geographic operating segments.
• North America unit case volume grew 8% for the quarter, resulting in even performance versus 2019. Growth was driven by recovery in the fountain business as coronavirus-related uncertainty abated. Sparkling soft drinks and sports drinks led the growth during the quarter.
• Europe, the Middle East and Africa unit case volume grew 11% for the quarter, a low single-digit increase versus 2019, driven by ongoing recovery in markets where coronavirus-related uncertainty was abating, along with the benefit from cycling the impact of the pandemic in the prior year.
• Latin America unit case volume grew 5% for the quarter, a mid single-digit increase versus 2019. Growth was led by Mexico, Argentina and Chile, driven by growth in most categories.
• Asia Pacific unit case volume grew 11% for the quarter, resulting in a low single-digit increase versus 2019. Growth was driven by China, India and the Philippines, partially offset by pressure in Australia due to the impact of the pandemic.

For full year 2022, the company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.

For comparable net revenue (non-GAAP), the company expects a 2% to 3% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 3% tailwind from acquisitions.

Shares traded today at $62.02 against a 52-week range of $48.97-$62.33.

The $9.5 billion in quarterly revenue beat analyst expectations by $570 million, while the non-GAAP EPS of 45 cents beat expectations by 4 cents, according to Seeking Alpha.

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