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Sep 30, 2022
Coca-Cola Q3 2022 Earnings Report
Coca-Cola reported strong results driven by resilient business amidst a dynamic operating and macroeconomic environment.
Key Takeaways
Coca-Cola reported a strong third quarter in 2022, with net revenues growing by 10% to $11.1 billion and organic revenues (non-GAAP) growing by 16%. EPS grew 14% to $0.65, and comparable EPS (non-GAAP) grew 7% to $0.69. The company's business remained resilient amidst a dynamic operating and macroeconomic environment, with a focus on investing in strong brands to deliver long-term value.
Net revenues grew 10% to $11.1 billion, and organic revenues (non-GAAP) grew 16%.
EPS grew 14% to $0.65, and comparable EPS (non-GAAP) grew 7% to $0.69.
Operating margin was 27.9%, while comparable operating margin (non-GAAP) was 29.5%.
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 14% to 15%. For comparable net revenues (non-GAAP), the company expects a 7% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 2% tailwind from acquisitions and divestitures. 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.
Positive Outlook
- The company is encouraged by the underlying topline momentum.
- The company will leverage its capabilities to sustain topline growth amidst the ongoing inflationary backdrop.
- The company has benefited from its hedges in 2022.
- The company expects to deliver organic revenue (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
- Comparable net revenues (non-GAAP) are expected to include an 8% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 1% tailwind from acquisitions.
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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