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Dec 31, 2022
Coca-Cola Q4 2022 Earnings Report
Coca-Cola reported strong fourth quarter results, with revenue growth and operating income increase.
Key Takeaways
Coca-Cola's Q4 2022 results showed strong revenue growth of 7% to $10.1 billion and a 24% increase in operating income. EPS declined 16% to $0.47, while comparable EPS was even at $0.45. The company gained value share in total nonalcoholic ready-to-drink beverages.
Net revenues grew 7% to $10.1 billion, while organic revenues (non-GAAP) grew 15%.
Operating income grew 24%, and comparable currency neutral operating income (non-GAAP) grew 21%.
EPS declined 16% to $0.47, with comparable EPS (non-GAAP) at $0.45.
The company gained value share in total nonalcoholic ready-to-drink 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.com Forward Guidance
The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.
Positive Outlook
- The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.
- The company’s underlying effective tax rate (non-GAAP) is estimated to be 19.5%.
- 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.
- Comparable currency neutral EPS (non-GAAP) growth of 7% to 9%
- Comparable EPS (non-GAAP) growth of 4% to 5%
Challenges Ahead
- For comparable net revenues (non-GAAP), the company expects a 2% to 3% 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.
- This does not include the impact of ongoing tax litigation with the IRS, if the company were not to prevail.
- Comparable EPS (non-GAAP) percentage growth is expected to include a 3% to 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a slight headwind from acquisitions, divestitures and structural changes.
- The first quarter has one less day compared to first quarter 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income