Coca-Cola Consolidated Q1 2023 Earnings Report
Key Takeaways
Coca-Cola Consolidated reported a strong start to 2023 with a 12% increase in net sales and a 23% increase in gross profit compared to the first quarter of 2022. The company's revenue growth management and operating strategies drove impressive free cash flow, enabling reinvestments in the business.
Net sales increased by 12% compared to Q1 2022, driven by price increases.
Gross profit increased by 23% with gross margin improving to 39.7%.
Income from operations increased by 57% compared to Q1 2022.
Comparable standard physical case volume declined 2.0%, with Sparkling category volume up 0.2%.
Coca-Cola Consolidated
Coca-Cola Consolidated
Coca-Cola Consolidated Revenue by Segment
Forward Guidance
Pricing growth in the first quarter was above our expected annual rate and we expect the rate of increase to slow as we hurdle our 2022 price increases later this year. We expect our operating expense growth to moderate this year as we cycle front-line teammate investments made throughout 2022.
Positive Outlook
- Solid volume performance of Sparkling brands
- Strong gross margin expansion
- Actively investing with our retail partners
- Approaching the summer selling season
- Supporting overall commercial plans and driving consumer engagement
Challenges Ahead
- High cost, inflationary environment
- Pricing growth rate of increase to slow as we hurdle our 2022 price increases later this year
- Operating expense growth to moderate this year as we cycle front-line teammate investments made throughout 2022.
- Consumer traffic patterns continue to change within our sales channels
- Total shopping trips to large stores have declined
Revenue & Expenses
Visualization of income flow from segment revenue to net income