Coca-Cola Sales Rise 16%, Net Jumps 24%
- Scott Peters
- U.S.A. New York City
-
The Coca-Cola Company reported first quarter 2022 revenues increased 16% on unit case volume growth, improved business mix and price increase. Sparkling soft drinks grew 7% driven by increases in all geographies and hydration, sports, coffee and tea reported 10% increase in the quarter.
The Coca-Cola Company reported first-quarter 2022 revenues increased 16% to $10.5 billion, net income rose 24% to $2.8 billion, and diluted earnings per share rose 23% to 64 cents from 52 cents a year ago.
The revenue growth was driven by 7% increase in price and business mix and 11% increase in concentrate sale partly driven by shipment calendar and partially offset by one day less in the quarter.
Revenues in North America increased 22% on 5% growth in case volume, in Latin America rose 34% and 9%, and in Europe, Middle East & Africa gained 22% and 11% respectively.
Operating margin improved to 32.5% from 30.2% a year ago and cash flow from operations declined to $620 million from $1.6 billion and free cash flow fell to $420 million from $1.4 billion.
Guidance and Outlook
The company reaffirmed its organic sales growth range between 7% and 8%.
The company expects commodities price increase in the mid-single digit percentage increase on a comparable basis.
For the full-year, on a constant currency basis, the company expects comparable EPS growth between 8% and 10% and adjusted earnings per share increase between 5% and 6% from $2.31 in 2021.
In the second quarter, 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 a 3% tailwind from acquisitions.
Comparable EPS (non-GAAP) percentage growth is expected to include an approximate 4% currency headwind based on the current rates and including the impact of hedged positions.
The suspension of Russian business is expected to decrease full-year revenues between 1% and 2%, unit case volume by 1%, and non-GAAP earnings per share to fall by 4 cents.
Russia-related impacts on financial results are included in the full-year estimates.
Consolidated
Unit case volume grew 8%, with broad-based growth across all operating segments. Volume performance was driven by continued investments in the marketplace and a benefit from cycling the impact of the pandemic in the prior year.
Developed markets as well as developing and emerging markets grew high single digits. Growth in developed markets was led by the United States, the United Kingdom and Mexico, while growth in developing and emerging markets was led by Brazil and India.
Consolidated
Price/mix grew 7%, driven by pricing actions in the marketplace along with favorable channel and package mix due to cycling the impact of the pandemic in the prior year. Price/mix further benefited by positive segment mix. Concentrate sales were 3 points ahead of unit case volume, largely due to the timing of concentrate shipments in the current quarter, partially offset by the impact of one less day in the quarter.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Coca Cola Company The | KO | 15% | 6% | -6% |