Vending

Coca-Cola boosts sales, earnings for Q3 2021

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October 27, 2021

The Coca Cola Co. today reported strong third quarter 2021 results and year-to-date performance, according to an earnings release.

"Our strategic transformation is enabling us to effectively navigate a dynamic environment and emerge stronger from the pandemic," James Quincey, chairman and CEO, said in a press release. "We are updating our full-year guidance to reflect another quarter of momentum in the business. While the recovery continues to be asynchronous around the world, we are investing for growth to drive long-term value for the system. Our strong system alignment and networked organization are helping us unlock enormous potential in our brands and across our markets."

Net revenues grew 16% to $10 billion for the quarter ending Oct. 1, 2021, resulting in net revenues ahead of 2019, and organic revenues (non-GAAP) grew 14%. Revenue performance included 8% growth in concentrate sales and 6% growth in price/mix. Revenue growth was broad-based with particular strength in markets where coronavirus-related uncertainty is abating.

Earnings per share rose 41% to 57 cents, and comparable EPS (non-GAAP) grew 18% to 65 cents.

Unit case volume grew 6% in the quarter, resulting in volume ahead of 2019, primarily led by developing and emerging markets. This was driven by ongoing recovery in markets where coronavirus-related uncertainty is abating, along with the benefit from cycling the impact of the pandemic last year.

Growth in developing and emerging markets was led by India, Russia and Brazil, while growth in developed markets was led by the United States, Great Britain and Mexico.

Sparkling soft drinks grew 6%, resulting in volume ahead of 2019, driven by strong performance across all geographic operating segments.

Trademark Coca Cola grew 5%, resulting in volume ahead of 2019, led by Europe, the Middle East, Africa and Latin America.

Sparkling flavors grew 7%, resulting in even performance on a two-year basis, led by solid growth in both Trademark Sprite and Trademark Fanta.

Nutrition, juice, dairy and plant-based beverages grew 12%, a low single-digit acceleration versus 2019, due to solid performance by Minute Maid Pulpy in China, Maaza in India and Del Vall in Mexico.

Hydration, sports, coffee and tea grew 6%.

• Hydration grew 5%, with growth across all geographic operating segments.
• Sports drinks grew 5%, resulting in volume ahead of 2019, primarily driven by the U.S. and Mexico.
• Tea grew 4%, led by growth in Hajime in Japan and Gold Peak in the U.S..
• Coffee grew 19%, primarily driven by the ongoing reopening of Costa retail stores in the U.K. as coronavirus-related uncertainty continued to abate.

The $10 billion in quarterly revenue beat analyst estimates by $280 million, while the non-GAAP EPS of 65 cents beat estimates by 7 cents and the GAAP EPS of 57 cents was in line with estimates, according to Seeking Alpha.

Shares traded at $55.60 today against a 52-week range of $47.30-$57.56.

For 2022, the company expects comparable net revenues (non-GAAP) are expected to include an approximate 2% to 3% currency headwind based on the current rates and including the impact of hedged positions.