ATLANTA, USA – The Coca-Cola Company on October 25, 2022, reported strong third quarter 2022 results as the company continued to build on the momentum from the first half of the year. “Our strong capabilities and consumer insights continue to help us win in the marketplace,” said James Quincey, Chairman and CEO of The Coca-Cola Company.
“Our business is resilient amidst a dynamic operating and macroeconomic environment. We are investing in our strong portfolio of brands, which is a cornerstone of our ability to deliver long-term value for our stakeholders.”
The Coca-Cola Company: Quarterly Performance
Revenues: Net revenues grew 10% to $11.1 billion, and organic revenues (non-GAAP) grew 16%. Organic revenue (non-GAAP) performance was strong across operating segments and included 12% growth in price/mix and 4% growth in concentrate sales.
Margin: Operating margin, which included items impacting comparability, was 27.9% versus 28.9% in the prior year, while comparable operating margin (non-GAAP) was 29.5% versus 30.0% in the prior year. Comparable operating margin (non-GAAP) compressed as strong topline growth was more than offset by the impact of the BODYARMOR acquisition, higher operating costs, an increase in marketing investments versus the prior year, and currency headwinds.
Earnings per share: EPS grew 14% to $0.65, and comparable EPS (non-GAAP) grew 7% to $0.69. Comparable EPS (non-GAAP) performance included the impact of an 11-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 $8.1 billion year-to-date, a decline of $1.2 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 $7.3 billion, a decline of $1.2 billion versus the prior year.
Hydration, sports, coffee and tea
Hydration, sports, coffee and tea grew 5%. Hydration grew 6%, led by strong growth in Asia Pacific and Latin America. Sports drinks grew 6%, primarily driven by growth of Aquarius, BODYARMOR and Powerade.
Coffee grew 5%, primarily driven by cycling the impact of pandemic-related Costa retail store closures in the United Kingdom in the prior year and continued expansion of Costa coffee across markets. Tea was even, as strong growth in Brazil and Mexico was offset by a decline due to the suspension of business in Russia.
