Vending

Coca-Cola lifts Q1 2023 results boosted by away-from-home sales

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April 24, 2023

Coca-Cola Co. lifted its Q1 2023 revenue and earnings partially driven by away-from-home sales, according to a press release. Highlights include:

• Net revenues grew 5% to $11 billion for the quarter ending March 31, 2023 compared to the prior year period, while organic revenues (non-GAAP) grew 12%. Revenue performance included 11% growth in price/mix and 1% growth in concentrate sales.
• Unit case volume grew 3%, driven by strength in away-from-home channels and continued 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 Mexico, Western Europe and Australia, while growth in developing and emerging markets was led by China, India and Brazil. Developing and emerging markets growth was impacted by the suspension of business in Russia.
• Sparkling soft drinks grew 3%, led by strong performance in Asia Pacific and Latin America, partially offset by the suspension of business in Russia.
• Trademark Coca-Cola grew 3%, driven by growth across all geographic operating segments.
• Coca-Cola Zero Sugar grew 8%, reflecting strong growth across all geographic operating segments.
• Sparkling flavors grew 3%, driven by Asia Pacific, Latin America and North America, partially offset by Europe, the Middle East and Africa.
• Juice, value-added dairy and plant-based beverages were even, as strong growth in fairlife in the U.S., Minute Maid Pulpy in China and Maaza in India was offset by the suspension of business in Russia.
• Water, sports, coffee and tea grew 4%. Water grew 5%, led by strong growth in Asia Pacific and Latin America. Sports drinks declined 1%, primarily driven by Body Armor and Powerade in the U.S. Tea declined 3%, primarily due to doğadan, which was impacted by an earthquake in Turkey in February. Coffee grew 9%, primarily driven by the strong performance of Costa coffee in the U.K. and China.
• Earnings per share grew 12% to 72 cents, and comparable EPS (non-GAAP) grew 5% to 68 cents. Comparable EPS (non-GAAP) performance included the impact of a 7-point currency headwind.

Shares traded today at $64.32 against a 52-week range of $54.02-$67.20.

The $11 billion in quarterly revenue beat analyst expectations by $220 million, while the non-GAAP EPS of 68 cents beat estimates by 3 cents, according to Seeking Alpha.

"We are encouraged by our first quarter 2023 results," James Quincey, chairman and CEO at Coca-Cola, said in the press release. "We are confident in our ability to deliver on our 2023 objectives."

The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.

It also expects to deliver comparable currency neutral EPS (non-GAAP) growth of 7% to 9% and comparable EPS (non-GAAP) growth of 4% to 5%.