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Jun 30, 2023
Coca-Cola Q2 2023 Earnings Report
Reported strong results driven by all-weather strategy and effective execution.
Key Takeaways
Coca-Cola reported strong second quarter 2023 results, with net revenues growing 6% to $12.0 billion and organic revenues growing 11%. EPS grew 34% to $0.59, and comparable EPS grew 11% to $0.78. The company also raised its full-year guidance.
Net revenues grew 6%; organic revenues (non-GAAP) grew 11%.
Operating income grew 3%; comparable currency neutral operating income (non-GAAP) grew 15%.
EPS grew 34% to $0.59; comparable EPS (non-GAAP) grew 11% to $0.78.
The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
Revenue by Geographic Location
Forward Guidance
The company expects to deliver organic revenue (non-GAAP) growth of 8% to 9%. The company expects to generate free cash flow (non-GAAP) of approximately $9.5 billion through cash flow from operations of approximately $11.4 billion, less capital expenditures of approximately $1.9 billion.
Positive Outlook
- Comparable net revenues (non-GAAP) are expected to include an approximate 2% currency headwind based on the current rates and including the impact of hedged positions, in addition to an approximate 1% headwind from acquisitions, divestitures and structural changes.
- 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.
- The company’s underlying effective tax rate (non-GAAP) is estimated to be 19.3%.
- Given the above considerations, the company expects to deliver comparable currency neutral EPS (non-GAAP) growth of 9% to 11% and comparable EPS (non-GAAP) growth of 5% to 6%, versus $2.48 in 2022.
- The company expects to generate free cash flow (non-GAAP) of approximately $9.5 billion through cash flow from operations of approximately $11.4 billion, less capital expenditures of approximately $1.9 billion.
Challenges Ahead
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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