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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.
Revenue by Geographic Location
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.
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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