Vending

Coca-Cola delivers strong Q3 2022 results, beats expectations

October 25, 2022

The Coca-Cola Co. today reported strong third quarter 2022 results, surpassing sales and earnings expectations, as the company continued to build on the momentum from the first half of the year, according to an earnings release. Highlights include:

• Net revenues grew 10% to $11.1 billion for the quarter ending Sept. 30, 2022, and organic revenues grew 16% and included 12% growth in price/mix and 4% growth in concentrate sales.
• EPS grew 14% to 65 cents, and comparable EPS (non-GAAP) grew 7% to 69 cents. Comparable EPS (non-GAAP) performance included the impact of an 11-point currency headwind.
• Volume performance was driven by strength in away-from-home channels and ongoing investments in the marketplace. Developed markets grew mid-single digits, while developing and emerging markets grew low single digits.
• Growth in developed markets was led by Western Europe, Mexico and the U.S., while growth in developing and emerging markets was led by India, China and Brazil.
• Sparkling soft drinks grew 3%, driven by growth across all geographic operating segments, primarily led by India, Mexico and China.
• Trademark Coca-Cola grew 3%, driven by growth across all geographic operating segments.
• Coca-Cola Zero Sugar grew 11%, driven by low double-digit growth across developed markets and high single-digit growth across developing and emerging markets.
• Sparkling flavors grew 3%, led by Asia Pacific and Latin America.
• Nutrition, juice, dairy and plant-based beverages were even, as growth led by Minute Maid Pulpy in China, Maaza in India and Fairlife in the U.S. was offset by declines primarily in local brands in Eastern Europe.
• Hydration, sports, coffee and tea grew 5%. Hydration grew 6%, led by strong growth in Asia Pacific and Latin America. Sports drinks grew 6%, primarily driven by growth of Aquarius, Body Armor and Powerade.
• Coffee grew 5%, primarily driven by cycling the impact of pandemic-related Costa retail store closures in the U.K. in the prior year and continued expansion of Costa coffee across markets.
• Tea was even, as strong growth in Brazil and Mexico was offset by a decline due to the suspension of business in Russia.
• Europe, Middle East and Africa unit case volume declined 1%, as strong growth in Spain, Germany and France was more than offset by a decline due to the suspension of business in Russia.
• Latin America unit case volume grew 5%, with strong growth across nearly all categories. Growth was led by Mexico, Brazil and Argentina.
• North America unit case volume grew 1%, driven by continued recovery in away-from-home channels.
• Asia Pacific Unit case volume grew 9%, driven by strong growth in India and China.

For the full year the company expects to deliver organic revenue (non-GAAP) growth of 14% to 15%.

For comparable net revenues (non-GAAP), the company expects a 7% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 2% tailwind from acquisitions and divestitures.

Shares traded today at $58.47 against a 52-week range of $52.28-$67.20.

The $11.1 billion in quarterly revenue beat analyst expectations by $600 million while the non-GAAP EPS of 69 cents beat expectations by 5 cents, according to Seeking Alpha.

"Our business is resilient amidst a dynamic operating and macroeconomic environment," James Quincey, chairman and CEO, said in the press release.