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Coca-Cola
🇺🇸 NYSE:KO
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Sep 29, 2023

Coca-Cola Q3 2023 Earnings Report

Coca-Cola reported solid results and raised full-year guidance due to year-to-date performance.

Key Takeaways

Coca-Cola reported an 8% increase in net revenues, reaching $12.0 billion, and an 11% growth in organic revenues. EPS grew by 9% to $0.71, and comparable EPS grew by 7% to $0.74. The company is raising its full-year topline and bottom-line guidance.

Net revenues grew 8% to $12.0 billion, with organic revenues growing 11%.

EPS grew 9% to $0.71, and comparable EPS grew 7% to $0.74.

Operating margin was 27.4%, while comparable operating margin was 29.7%.

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

Total Revenue
$12B
Previous year: $11.1B
+8.0%
EPS
$0.74
Previous year: $0.69
+7.2%
Organic Revenue Growth
11%
Previous year: 16%
-31.3%
Unit Case Volume Growth
2%
Previous year: 4%
-50.0%
Gross Profit
$7.3B
Previous year: $6.5B
+12.3%
Cash and Equivalents
$15.4B
Previous year: $10.1B
+52.4%
Free Cash Flow
$3.91B
Previous year: $3.23B
+21.1%
Total Assets
$97.6B
Previous year: $92.5B
+5.5%

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 10% to 11%. Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 6% currency headwind. The company expects to generate free cash flow (non-GAAP) of approximately $9.5 billion.

Positive Outlook

  • The company expects to deliver organic revenue (non-GAAP) growth of 10% to 11%.
  • The company expects commodity price inflation to be a mid single-digit percentage headwind on comparable cost of goods sold (non-GAAP).
  • The company's underlying effective tax rate (non-GAAP) is estimated to be 19.0%.
  • The company expects to generate free cash flow (non-GAAP) of approximately $9.5 billion.
  • The company continues to expect to repurchase shares to offset dilution resulting from employee stock-based compensation plans and may also use a portion of the proceeds we expect to receive from nonoperating activities to repurchase additional shares.

Challenges Ahead

  • For comparable net revenues (non-GAAP), the company expects an approximate 4% currency headwind.
  • The company expects an approximate 1% headwind from acquisitions, divestitures and structural changes.
  • Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 6% currency headwind.
  • Comparable EPS (non-GAAP) percentage growth is expected to include a slight headwind from acquisitions, divestitures and structural changes.
  • Comparable net revenues (non-GAAP) are expected to include an approximate 4% 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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