Loading...
•
Apr 01, 2022
Coca-Cola Q1 2022 Earnings Report
Coca-Cola's marketplace performance continued to show momentum.
Key Takeaways
Coca-Cola reported strong first-quarter 2022 results, with net revenues growing 16% to $10.5 billion and organic revenues growing 18%. EPS grew 23% to $0.64, and comparable EPS grew 16% to $0.64. The company gained value share in total nonalcoholic ready-to-drink beverages.
Net revenues grew 16% to $10.5 billion, and organic revenues (non-GAAP) grew 18%.
Operating margin was 32.5% versus 30.2% in the prior year; comparable operating margin (non-GAAP) was 31.4% versus 31.0% in the prior year.
EPS grew 23% to $0.64, and comparable EPS (non-GAAP) grew 16% to $0.64.
The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages, which included share gains in both at-home and away-from-home channels.
Coca-Cola
Coca-Cola
Coca-Cola Revenue by Geographic Location
Revenue by Geographic Location
EMEA Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comBottling Revenue
CapyFin.com Forward Guidance
The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%. The company expects to generate free cash flow (non-GAAP) of approximately $10.5 billion through cash flow from operations of approximately $12.0 billion, less capital expenditures of approximately $1.5 billion.
Positive Outlook
- The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.
- For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 3% tailwind from acquisitions.
- The company expects commodity price inflation to be a mid single-digit percentage headwind on comparable cost of goods sold (non-GAAP), based on the current rates and including the impact of hedged positions.
- Given the above considerations, the company expects to deliver comparable currency neutral EPS (non-GAAP) growth of 8% to 10% and comparable EPS (non-GAAP) growth of 5% to 6%, versus $2.32 in 2021.
- The company expects to generate free cash flow (non-GAAP) of approximately $10.5 billion through cash flow from operations of approximately $12.0 billion, less capital expenditures of approximately $1.5 billion.
Challenges Ahead
- On March 8, 2022, the company announced the suspension of its business in Russia as a result of the conflict in Ukraine.
- The approximate direct impacts of this are estimated to be as follows: 1% impact to unit case volume.
- The approximate direct impacts of this are estimated to be as follows: 1% to 2% impact to net revenues and operating income.
- The approximate direct impacts of this are estimated to be as follows: $0.04 impact to comparable EPS (non-GAAP).
- Comparable EPS (non-GAAP) percentage growth is expected to include a 3% to 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a minimal tailwind from acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income