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Jul 02, 2021
Coca-Cola Consolidated Q2 2021 Earnings Report
Coca-Cola Consolidated's Q2 2021 operating income increased by 45% due to positive volume growth, solid price realization and disciplined operating expense management.
Key Takeaways
Coca-Cola Consolidated reported strong Q2 2021 results with a 17% increase in net sales and a 45% increase in operating income. The company benefited from positive volume growth in Still beverages and price realization in Sparkling beverages.
Net sales increased 17% versus the second quarter of 2020, with physical case volume up 6%.
Income from operations was $121 million, up $38 million, or 45%, versus the second quarter of 2020.
Still volume increased 20.9%, driven primarily by BodyArmor, AHA and Monster brands.
Gross profit increased $65.6 million, or 15.3%, while gross margin decreased 50 basis points to 34.5%.
Revenue by Segment
Forward Guidance
Coca-Cola Consolidated remains optimistic about the balance of 2021, increasing pricing on key packages to offset rising input costs, executing against a robust commercial calendar and continuing to drive efficiencies throughout operations.
Positive Outlook
- Increase pricing on key packages to offset rising input costs
- Execute against a robust commercial calendar
- Continue to drive efficiencies throughout operations
- Strong sales growth of 17% in the second quarter
- Consumer activity gains momentum in channels that were closed or severely restricted by COVID protocols
Challenges Ahead
- Rising commodity costs
- Labor shortages for many front line positions
- Challenges with some inbound manufacturing inputs
- Increased mix of Still beverages, which generally carry lower gross margins than Sparkling packages
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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