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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.
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 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