Vending

Coca-Cola lifts Q4, FY 2022 revenue; earnings dip

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February 14, 2023

The Coca-Cola Co. lifted Q4 and FY 2022 revenue, boosted by strong organic growth, while income dipped, according to an earnings release.

Highlights include:

• Net revenue grew 7%, from $9.46 billion in Q4 2021 to $10.1 billion for the quarter ending Dec. 31, 2022. Organic revenue grew 15%, was strong across operating segments and included 12% growth in price/mix and 2% growth in concentrate sales. The quarter included one additional day, which resulted in a 1-point tailwind to revenue growth. The quarter also benefited from the timing of concentrate shipments.
• Net income dipped 2%, from $9.77 billion to $9.54 billion.
• Diluted net income per share fell 3%, from $2.25 to $2.19.
• Net income per share on both a basic and diluted basis fell 16%, from 56 cents to 47 cents in the comparative quarters.
• Non-GAAP EPS remained even at 45 cents.
• Full year net revenue grew 11% to $43 billion, and organic revenues grew 16%, driven by 11% growth in price/mix and 5% growth in concentrate sales.
• Full year consolidated net income dipped 2%, from $9.8 billion to $9.57 billion.
• Full year basic net income per share fell 3%, from $2.26 to $2.20, while diluted net income per share fell 3%, from $2.25 to $2.19.
• Full year EPS declined 3% to $2.19 while non-GAAP EPS grew 7% to $2.48.
• Sparkling soft drinks were even for the quarter and grew 4% for the year, benefiting from strong performance in Latin America and Asia Pacific and unfavorably impacted by the suspension of business in Russia.
• Trademark Coca-Cola was even for the quarter, as strong performance in Brazil and the Philippines was offset by the suspension of business in Russia, and grew 4% for the year, driven by broad-based strength across all geographic operating segments.
• Coca-Cola Zero Sugar grew 9% for the quarter and 11% for the year, driven by strong growth across developed markets as well as developing and emerging markets.
• Sparkling flavors declined 2% for the quarter and grew 5% for the year. This performance benefited from strong growth in India and the United States and was unfavorably impacted by the suspension of business in Russia.
• Juice, value-added dairy and plant-based beverages declined 7% for the quarter and grew 3% for the year. This performance benefited from strong growth in developed markets and was unfavorably impacted by the suspension of business in Russia.
• Water, sports, coffee and tea were even for the quarter and grew 6% for the year. Water was even for the quarter and grew 5% for the year. This performance benefited from strong growth in Latin America and was unfavorably impacted by a decline in China due to varying levels of pandemic-related mobility restrictions.
• Sports drinks grew 1% for the quarter and 8% for the year, driven by strong performance in Latin America and Europe, Middle East and Africa.
• Coffee grew 11% for the quarter and 13% for the year, primarily driven by cycling the impact of pandemic-related Costa retail store closures in the United Kingdom in the prior year and the continued expansion of Costa coffee across markets.
• Tea declined 9% for the quarter and grew 1% for the year. This performance benefited from strong growth of Fuze Tea in Latin America and was unfavorably impacted by doğadan performance in Turkey.

Shares traded today at $60.32 against a 52-week range of $54.02-$67.20.

The $10.13 billion in quarterly revenue beat the Zacks Consensus Estimate by 1.2%, while the 45 cents in quarterly earnings was in line with expectations, according to Yahoo Finance.

"While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment," James Quincey, chairman and CEO, said in the press release. "As we begin 2023, we continue to invest in our capabilities and strengthen alignment with our bottling partners to maintain flexibility."

The company expects to deliver organic revenue growth of 7% to 8% in 2023. For comparable net revenues, the company expects a 2% to 3% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes.