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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.
Revenue by Geographic Location
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.
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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