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Dec 31, 2021

Coca-Cola Q4 2021 Earnings Report

Coca-Cola demonstrated resilience and flexibility, navigating through uncertainty and focusing on key strategies.

Key Takeaways

Coca-Cola reported a strong Q4 2021, with net revenues growing by 10% to $9.5 billion and organic revenues (non-GAAP) increasing by 9%. EPS grew 65% to $0.56, while comparable EPS (non-GAAP) declined 5% to $0.45. The company's global unit case volume grew by 9%, driven by investments in the marketplace and ongoing recovery in various markets.

Net revenues grew 10% for the quarter, reaching $9.5 billion.

Organic revenues (non-GAAP) grew 9% for the quarter.

EPS grew 65% to $0.56, and comparable EPS (non-GAAP) declined 5% to $0.45.

Global unit case volume grew 9% for the quarter.

Total Revenue
$9.46B
Previous year: $8.61B
+9.9%
EPS
$0.45
Previous year: $0.47
-4.3%
Organic Revenue Growth
9%
Previous year: -3%
-400.0%
Unit Case Volume Growth
9%
Previous year: -3%
-400.0%
Gross Profit
$5.38B
Previous year: $5.03B
+6.8%
Cash and Equivalents
$9.68B
Previous year: $6.8B
+42.5%
Free Cash Flow
$2.76B
Previous year: $3.21B
-14.1%
Total Assets
$94.4B
Previous year: $87.3B
+8.1%

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 7% to 8% and comparable currency neutral EPS (non-GAAP) growth of 8% to 10% in 2022.

Positive Outlook

  • The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.
  • For comparable net revenues (non-GAAP), the company expects a 3% tailwind from acquisitions.
  • The company’s underlying effective tax rate (non-GAAP) is estimated to be 20%.
  • The company expects to deliver comparable currency neutral EPS (non-GAAP) growth of 8% to 10%.
  • The company expects to generate free cash flow (non-GAAP) of approximately $10.5 billion.

Challenges Ahead

  • For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency headwind.
  • The company expects commodity price inflation to be a mid single-digit percentage headwind on comparable cost of goods sold (non-GAAP).
  • Comparable EPS (non-GAAP) percentage growth is expected to include a 3% to 4% currency headwind.
  • First quarter 2022 Considerations Comparable net revenues (non-GAAP) are expected to include an approximate 3% currency headwind.
  • The first quarter has one less day compared to first quarter 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income