ATLANTA, USA – The Coca-Cola Company yesterday reported third quarter 2023 results, reflecting continued momentum from the first half of the year. Coffee grew 6%, primarily driven by the strong performance of Costa coffee in the United Kingdom and China. Tea declined 1%, as growth in Asia Pacific was more than offset by declines in Latin America and doğadan in Türkiye.
“We delivered an overall solid quarter and are raising our full-year topline and bottom-line guidance in light of our year-to-date performance,” said James Quincey, Chairman and CEO of The Coca-Cola Company.
“Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today while also laying the groundwork for the long term.”
Revenues: Net revenues grew 8% to $12.0 billion, and organic revenues (non-GAAP) grew 11%. Revenue performance included 9% growth in price/mix and 2% growth in concentrate sales. Concentrate sales were in line with unit case volume.
Operating margin: Operating margin was 27.4% versus 27.9% in the prior year, while comparable operating margin (non-GAAP) was 29.7% versus 29.5% in the prior year. Operating margin decline was primarily driven by items impacting comparability and currency headwinds.
Comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments versus the prior year, as well as currency headwinds.
Earnings per share: EPS grew 9% to $0.71, and comparable EPS (non-GAAP) grew 7% to $0.74. Comparable EPS (non-GAAP) performance included the impact of a 4-point currency headwind.
Market share: The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.
Cash flow: Cash flow from operations was $8.9 billion year-to-date, an increase of $861 million versus the prior year, driven by strong business performance and working capital initiatives, partially offset by the transition tax payment made during the second quarter. Free cash flow (non-GAAP) was $7.9 billion year-to-date, an increase of $636 million versus the prior year.
