Vending

Coca-Cola reports strong Q2, 2021 results, boosts outlook

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July 21, 2021

The Coca-Cola Co. today reported strong second quarter 2021 results and year-to-date performance.

Net revenues grew 42% to $10.1 billion, while organic revenues grew 37%, for the quarter ending July 2, 2021.

Earnings per share grew 48% to 61 cents, and comparable EPS (non-GAAP) grew 61% to 68 cents.

Revenue performance included 26% growth in concentrate sales and 11% growth in price/mix.

Revenue growth was driven by the ongoing recovery in markets where coronavirus-related uncertainty is abating, along with the benefit from cycling revenue declines from the impact of the coronavirus pandemic last year.

Unit case volume grew 18% in the quarter, resulting in even performance on a two-year basis, driven by the ongoing recovery in markets where coronavirus-related uncertainty is abating along with the benefit from cycling the impact of the coronavirus pandemic last year. Markets such as China, Brazil and Nigeria grew volume ahead of 2019 levels while other markets, including India, continued to be under pressure versus 2019, driven by the continued impact of the coronavirus pandemic.

Category performance was as follows:

• Sparkling soft drinks grew 14%, led by strong growth in the U.S., India and Brazil.
• Trademark Coca-Cola grew 12%, resulting in volume ahead of the 2019 level, led by Europe, Middle East and Africa and Latin America. Sparkling flavors grew 18%, led by solid growth in both Sprite and Fanta.
• Nutrition, juice, dairy and plant-based beverages grew 25% due to solid performance by Minute Maid and Fairlife in North America, Minute Maid Pulpy in China and Maaza in India.
• Hydration, sports, coffee and tea grew 25%. Hydration grew 21%, with double-digit growth across all geographic operating segments. Sports drinks grew 35%, resulting in volume ahead of the 2019 level, primarily driven by Powerade in North America. Tea grew 18%, led by growth in the U.S., Japan and Brazil. Coffee grew 78%, primarily driven by the reopening of Costa retail stores in the U.K. as coronavirus-related uncertainty continued to abate.

Global unit case volume benefited from the ongoing recovery in many markets, partially offset by the impact of a resurgence of the coronavirus in several markets. As a result, when compared to 2019 volume levels, second quarter volume growth was in line with the first quarter of 2021.

The company saw away-from-home channels rebound as restrictions eased in certain markets, driving value across the enterprise and leading to second quarter revenues ahead of the 2019 level.

"Our results in the second quarter show how our business is rebounding faster than the overall economic recovery, led by our accelerated transformation," James Quincey, chairman and CEO, said in a press release. "As a result, we are encouraged and, despite the asynchronous nature of the recovery, we are raising our full year guidance."

The $10.1 billion in revenue beat analyst expectations by $800 million, while the 61 cents EPS beat expectations by 5 cents and the Non-GAAP EPS of 68 cents beat expectations by 12 cents, according to Seeking Alpha.

Shares traded at $56.61 today against a 52-week range of $44.78-$57.56.

The company expects to deliver organic revenue (non-GAAP) growth of 12% to 14% for full year 2021.

For comparable net revenues (non-GAAP), the company expects a 1% to 2% currency tailwind based on the current rates and including the impact of hedged position.

For an update on how the coronavirus pandemic is affecting convenience services, click here.