Coca-Cola Reports First Quarter 2022 Results

By Staff Writer Atlanta Trend
  • May 01, 2022

The Coca-Cola Company today reported first quarter 2022 results, showing continued momentum in our marketplace performance. “We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders.”


  • Revenues: Net revenues grew 16% to $10.5 billion, and organic revenues (non-GAAP) grew 18%. Revenue performance included 7% growth in price/mix and 11% growth in concentrate sales. 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.


  • Margin: Operating margin, which included items impacting comparability, was 32.5% versus 30.2% in the prior year, while comparable operating margin (non-GAAP) was 31.4% versus 31.0% in the prior year. Operating margin expansion was primarily driven by strong topline growth, partially offset by an increase in marketing investments versus the prior year, the impact of the BODYARMOR acquisition and currency headwinds.


  • Earnings per share: EPS grew 23% to $0.64, and comparable EPS (non-GAAP) grew 16% to $0.64. Comparable EPS (non-GAAP) performance included the impact of an 8-point currency headwind.


  • Market share: The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages, which included share gains in both at-home and away-from-home channels.


  • Cash flow: Cash flow from operations was approximately $620 million, a decline of $1.0 billion versus the prior year, as strong business performance was more than offset by the impact of cycling the timing of working capital benefits in the prior year and higher 2021 annual incentives in the current year. Free cash flow (non-GAAP) was approximately $400 million, a decline of $1.0 billion versus the prior year.


  • Support for employees and people in Ukraine: The company and its bottling partners continue to prioritize the safety of associates and their families in Ukraine. The company has activated relief funds to provide urgent financial assistance to all Ukraine-based system employees. To support humanitarian relief efforts in the region, the company, its global bottling partners and The Coca-Cola Foundation have committed to contributions and product donations totaling nearly $15 million. This funding will support further relief efforts by the Red Cross and other organizations operating in Ukraine and neighboring countries, helping millions of displaced people.


  • Driving beverage incidence through end-to-end consumer engagement: The company is continuing to leverage insights and passion points to improve its connection with existing and potential consumers. The company launched the “Magic Weekends” campaign for Trademark Coca-Cola, which is the next chapter of the “Real Magic” platform. The company is partnering with food service aggregators across all nine of its operating units for this campaign, with a strong focus on Coca-Cola Zero Sugar. The campaign, which is the largest “Coke and Meals” activation by the company planned for 2022, launched in the North America market with DoorDash as a delivery partner. Through this campaign, the company will optimize consumers’ digital purchasing experience by engaging with consumers at the point-of-sale, driving beverage incidence intended to create value for all stakeholders.


  • Building a competitive edge through excellence in revenue growth management (RGM): The company, in close alignment with its bottling partners, continues to raise the bar in integrated execution to deliver value to its customers and consumers in an inflationary environment. Accelerated cost pressures and ongoing supply challenges continue across markets, and the company is leveraging RGM to provide compelling customer and consumer solutions by segmenting markets based on occasion, brand, price, package and channel. For example, in India, the company is increasing its consumer base by expanding affordable offerings at key transaction-driving price points through the use of single-serve packages. In the first quarter, this strategy yielded strong results with more than 500 million incremental transactions added in India, up nearly 20% versus the prior year. Approximately 70% of these incremental transactions were driven by small packages such as returnable glass bottles and affordable, single-serve PET packages.


  • Partnering to make a difference and create shared value: The company continues to focus on issues that have a measurable, positive impact on communities as well as create opportunities for business growth. The company and its bottling partners are investing in various partnerships in order to expand the collection infrastructure and increase recycling in many markets, including Australia, Brazil, Japan and Mexico, while also expanding our reusable packaging portfolio. As part of a global partnership with the company, The Ocean Cleanup launched its trash collection system for testing in Vietnam. The system will intercept plastic debris in primary waterways before it can reach the ocean. Actions such as these help drive packaging circularity and support the company’s World Without Waste initiatives, including recyclability, virgin plastic reduction, reusable packaging and the company’s goal to collect and recycle a bottle or can for every one it sells by 2030.