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Coca-Cola
🇺🇸 NYSE:KO
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Jul 01, 2022

Coca-Cola Q2 2022 Earnings Report

Demonstrated resilience amidst ongoing global challenges.

Key Takeaways

Coca-Cola reported strong Q2 2022 results with net revenues growing by 12% to $11.3 billion and organic revenues growing by 16%. EPS declined 28% to $0.44, while comparable EPS grew 4% to $0.70.

Net revenues grew 12% to $11.3 billion, and organic revenues (non-GAAP) grew 16%.

EPS declined 28% to $0.44, and comparable EPS (non-GAAP) grew 4% to $0.70.

Unit case volume grew 8%, with broad-based growth across all operating segments.

The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Total Revenue
$11.3B
Previous year: $10.1B
+11.8%
EPS
$0.7
Previous year: $0.68
+2.9%
Organic Revenue Growth
16%
Previous year: 37%
-56.8%
Unit Case Volume Growth
8%
Previous year: 18%
-55.6%
Gross Profit
$6.5B
Previous year: $6.34B
+2.4%
Cash and Equivalents
$8.98B
Previous year: $9.19B
-2.3%
Free Cash Flow
$4.1B
Previous year: $3.66B
+12.2%
Total Assets
$93.2B
Previous year: $90.2B
+3.3%

Coca-Cola

Coca-Cola

Coca-Cola Revenue by Segment

Coca-Cola Revenue by Geographic Location

Forward Guidance

The company expects to deliver organic revenue (non-GAAP) growth of 12% to 13%. The company expects to deliver comparable currency neutral EPS (non-GAAP) growth of 14% to 15% and comparable EPS (non-GAAP) growth of 5% to 6%, versus $2.32 in 2021.

Positive Outlook

  • Organic revenue (non-GAAP) growth of 12% to 13%.
  • Comparable net revenues (non-GAAP) are expected to include a 2% tailwind from acquisitions and divestitures.
  • The company’s underlying effective tax rate (non-GAAP) is estimated to be 19.5%.
  • Comparable currency neutral EPS (non-GAAP) growth of 14% to 15%.
  • 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

  • 1% impact to unit case volume due to suspension of business in Russia.
  • 1% to 2% impact to net revenues and operating income due to suspension of business in Russia.
  • $0.03 impact to comparable EPS (non-GAAP) due to suspension of business in Russia.
  • For comparable net revenues (non-GAAP), the company expects a 6% currency headwind based on the current rates and including the impact of hedged positions.
  • The company expects commodity price inflation to be a high single-digit percentage headwind on comparable cost of goods sold (non-GAAP), based on the current rates and including the impact of hedged positions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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