Vending

Coca-Cola revenues rise, earnings fall for Q1 2021

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April 19, 2021

The Coca-Cola Co. revenues increased 5% from $8.6 billion for Q1 2020 to $9 billion for Q1 2021, ending April 2, 2021, as organic revenue rose 6% for Q1 2021, according to an earnings release.

Net income attributable to shareholders fell 19% from $2.8 billion in Q1 2020 to $2.24 billion in Q1 2021.

Earnings per share fell 19% from 65 cents in Q1 2020 to 52 cents in Q1 2021, while comparable EPS (non-GAAP) rose 8% from 51 cents in Q1 2020 to to 55 cents in Q1 2021.

The 6% organic sales growth for Q1 2021 surpassed expectations of flat sales, according to Seeking Alpha, while the non-GAAP EPS of 55 cents beat analyst expectations by 5 cents and GAAP EPS of 52 cents beat expectations by 2 cents.

Shares traded at $54.21 today against a 52-week range of $41.79-$54.48.

"We remain focused on emerging stronger and executing against our growth accelerators during the recovery phase. We are pleased with the progress we are making," James Quincey, chairman and CEO, said in the release. "We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our full year guidance."

Global unit case volume trends remained closely linked to consumer mobility, driven by vaccination rates in different markets and related improvements in away-from-home channels. Through the first quarter, volume trends steadily improved each month, driven by recovery in markets where coronavirus-related uncertainty has abated.

The path to recovery, however, remains asynchronous around the world. March volume was back to 2019 levels, with growth in at-home channels being offset by pressure in away-from-home channels. Solid growth in trademark Coca-Cola, sparkling flavors and the nutrition, juice, dairy and plant-based beverages category was offset by pressure in the hydration category during the quarter.

The company launched new products across several categories. In the U.S., the company launched smartwater, a lineup of infused hydration options tailored for specific wellness occasions. Three smartwater variants — smartwater clarity, smartwater tranquility and smartwater renew — are the latest addition to the company's portfolio of beverages.

After initial success in international markets, the company launched Coca-Cola with Coffee and Coca-Cola with Coffee Zero Sugar in the U.S.

Unit case volume was even, as continued strength in at-home channels was offset by coronavirus-related pressure in away-from-home channels. Volume benefited from cycling the impact of the coronavirus pandemic in certain parts of the world last year.

Strong growth in developing and emerging markets, led by China and India, was offset by pressure in developed markets, primarily the U.S. and Western Europe.

Sparkling soft drinks grew 4% as solid growth in China, India and Latin America was partially offset by pressure in the fountain business in North America and away-from-home channels in Europe due to the coronavirus pandemic.

Trademark Coca-Cola grew 4%, led by Asia Pacific and Latin America, along with solid growth in Coca-Cola Zero Sugar, which grew 8%, driven by strong performance across all geographic operating segments.

Sparkling flavors grew 2%, led by growth in Trademark Sprite in Asia Pacific.

Nutrition, juice, dairy and plant-based beverages grew 3% due to solid performance by Minute Maid Pulpy in China and Maaza in India.

In North America, continued strong growth in Simply and fairlife was more than offset by a decline in Minute Maid.

Hydration, sports, coffee and tea declined 11%.

Hydration declined 12%, driven by a broad-based decline across all geographic operating segments.

Sports drinks declined 1%, driven by a decline in Europe, Middle East and Africa, partially offset by continued strength in premium offerings and the zeros/lights portfolio in North America.

Tea declined 6%, driven by declines in North America and Asia Pacific. Coffee declined 21%, driven by coronavirus-related pressure on Costa retail stores.

The company expects to deliver comparable EPS (non-GAAP) percentage growth of high single digits to low double digits for 2021 versus $1.95 in 2020.

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