Coca-Cola Sales Rise 16%, Net Jumps 24%

Scott Peters
25 Apr, 2022
New York City

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.