Vending

Coca-Cola Consolidated improves Q3 2021 sales, earnings, despite supply chain issues

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November 10, 2021

Coca-Cola Consolidated Inc. improved its sales and earnings for the third quarter of 2021 despite supply chain and pandemic challenges, according to a press release.

Net sales increased 10% from $1.33 billion in Q3, 2020 to $1.46 billion in Q3, 2021, driven primarily by pricing actions taken throughout the third quarter of 2021 on most sparkling and still beverages.

These pricing actions were taken to help offset increases to input costs including aluminum, PET resin and transportation costs.

The company experienced significant supply chain challenges with several of still beverage brands during the third quarter of 2021, which negatively impacted growth in the still beverage category.

Net income rose from $51.9 million to $68.9 million in the comparative quarters.

Diluted net income per share rose from $5.51 to $7.32.

Sparkling volume decreased 0.6% in the third quarter of 2021, outperforming the price elasticity historically associated with higher pricing.

Still volume decreased 0.7%, while net sales increased 8%.

Net sales for the first nine months increased 3.3% from $3.73 billion to $4.16 billion. Net income rose from $113.3 million to $170 million, while diluted net income per share rose from $11.25 to $18.11.

The GAAP EPS of $7.32 missed analyst expectations by 54 cents, according to Seeking Alpha.

Shares traded at $426.90 Tuesday against a 52-week range of $242.50-$460.00.

"Our results through the first nine months of 2021 reflect a strong balance of volume growth, price realization and prudent operating expense management," J. Frank Harrison, III, chairman and chief executive officer, said in the press release. "Our 60% growth in income from operations is even more remarkable when considering the pandemic-related challenges and supply chain disruptions across many industries."

For an update on how the coronavirus pandemic has affected convenience services, click here.