Loading...
•
Jul 02, 2021
Coca-Cola Q2 2021 Earnings Report
Coca-Cola reported strong second-quarter results, demonstrating a faster business rebound than the overall economic recovery, driven by accelerated transformation and raised full-year guidance.
Key Takeaways
Coca-Cola's Q2 2021 results showed a strong rebound with net revenues growing by 42% to $10.1 billion and organic revenues (non-GAAP) increasing by 37%. EPS grew by 48% to $0.61, and comparable EPS (non-GAAP) grew by 61% to $0.68. The company is raising its full-year guidance.
Net revenues grew 42% to $10.1 billion, with organic revenues (non-GAAP) up 37%.
EPS increased 48% to $0.61, while comparable EPS (non-GAAP) rose 61% to $0.68.
Operating margin was 29.8% versus 27.7% in the prior year; comparable operating margin (non-GAAP) was 31.7% versus 30.0% in the prior year.
Global unit case volume grew 18%, driven by recovery in markets and cycling the impact of the coronavirus pandemic last year.
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 12% to 14%. The company expects to deliver comparable EPS (non-GAAP) growth of 13% to 15% versus $1.95 in 2020. The company expects to generate free cash flow (non-GAAP) of at least $9.0 billion through cash flow from operations of at least $10.5 billion less capital expenditures of approximately $1.5 billion.
Positive Outlook
- Organic revenue (non-GAAP) growth of 12% to 14% is expected.
- Comparable net revenues (non-GAAP) are expected to include a 1% to 2% currency tailwind.
- The company's underlying effective tax rate (non-GAAP) is estimated to be 19.1%.
- Comparable EPS (non-GAAP) growth of 13% to 15% versus $1.95 in 2020 is expected.
- Comparable EPS (non-GAAP) percentage growth includes a 2% to 3% currency tailwind.
Challenges Ahead
- The company is not able to reconcile full year 2021 projected organic revenues (non-GAAP) to full year 2021 projected reported net revenues.
- The company is not able to reconcile full year 2021 projected comparable net revenues (non-GAAP) to full year 2021 projected reported net revenues.
- The company is not able to reconcile full year 2021 projected underlying effective tax rate (non-GAAP) to full year 2021 projected reported effective tax rate.
- The company is not able to reconcile full year 2021 projected comparable EPS (non-GAAP) to full year 2021 projected reported EPS without unreasonable efforts.
- This does not include the impact of the ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.
Revenue & Expenses
Visualization of income flow from segment revenue to net income