NYSE$KO

Coca-Cola · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Coca-Cola's marketplace performance continued to show momentum.

Coca-Cola reported strong first-quarter 2022 results, with net revenues growing 16% to $10.5 billion and organic revenues growing 18%. EPS grew 23% to $0.64, and comparable EPS grew 16% to $0.64. The company gained value share in total nonalcoholic ready-to-drink beverages.

  • Net revenues grew 16% to $10.5 billion, and organic revenues (non-GAAP) grew 18%.
  • Operating margin was 32.5% versus 30.2% in the prior year; comparable operating margin (non-GAAP) was 31.4% versus 31.0% in the prior year.
  • EPS grew 23% to $0.64, and comparable EPS (non-GAAP) grew 16% to $0.64.
  • 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.

Headline financials

Total Revenue

$10.5B

Previous: $9.02B+16.3%
EPS (adj)

$0.64

Previous: $0.55+16.4%
Organic revenue growth

18.0%

Previous: 6.0%+200.0%
Unit case volume growth

8.0%

Previous: 0.0%
Capital Expenditures

-$217M

Previous: -$216M-0.5%
Free Cash Flow

$2.56B

Previous: $2.03B+26.4%
Net Income

$2.78B

Previous: $2.25B+23.9%
Operating Income

$3.41B

Previous: $2.72B+25.1%
Gross Profit

$6.4B

Previous: $5.52B+16.0%
Cash & Equivalents

$7.68B

Previous: $8.48B-9.5%
Total Assets

$94.1B

Previous: $90B+4.5%
Stock-Based Comp

$87M

Previous: $58M+50.0%

Revenue & EPS history

Coca-Cola · Revenue · Quarterly

$10.5B

Q1 2022+16.3%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%. The company expects to generate free cash flow (non-GAAP) of approximately $10.5 billion through cash flow from operations of approximately $12.0 billion, less capital expenditures of approximately $1.5 billion.

Tailwinds

  • The company expects to deliver organic revenue (non-GAAP) growth of 7% to 8%.
  • For comparable net revenues (non-GAAP), the company expects a 2% to 3% currency headwind based on the current rates and including the impact of hedged positions, in addition to a 3% tailwind from acquisitions.
  • The company expects commodity price inflation to be a mid single-digit percentage headwind on comparable cost of goods sold (non-GAAP), based on the current rates and including the impact of hedged positions.
  • Given the above considerations, the company expects to deliver comparable currency neutral EPS (non-GAAP) growth of 8% to 10% and comparable EPS (non-GAAP) growth of 5% to 6%, versus $2.32 in 2021.
  • The company expects to generate free cash flow (non-GAAP) of approximately $10.5 billion through cash flow from operations of approximately $12.0 billion, less capital expenditures of approximately $1.5 billion.

Headwinds

  • On March 8, 2022, the company announced the suspension of its business in Russia as a result of the conflict in Ukraine.
  • The approximate direct impacts of this are estimated to be as follows: 1% impact to unit case volume.
  • The approximate direct impacts of this are estimated to be as follows: 1% to 2% impact to net revenues and operating income.
  • The approximate direct impacts of this are estimated to be as follows: $0.04 impact to comparable EPS (non-GAAP).
  • Comparable EPS (non-GAAP) percentage growth is expected to include a 3% to 4% currency headwind based on the current rates and including the impact of hedged positions, in addition to a minimal tailwind from acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.5%

Avg return

30 days after

59%

43 / 73 earnings

Positive

+6.1%

Q1 2013

Best reaction

-9.1%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+4.2%+6.6%
Q4 2025-1.5%+0.9%-0.5%
Q3 2025+3.7%+1.9%+4.0%
Q2 2025+0.6%-0.6%-3.6%
Q1 2025+0.8%-0.2%-0.4%
Q4 2024+4.7%+6.7%+7.9%
Q3 2024-3.1%-4.0%-8.0%
Q2 2024+1.6%+3.5%+7.0%
Q1 2024-0.2%+0.2%-0.1%
Q4 2023-0.7%-0.5%+1.3%
Q3 2023+3.8%+2.1%+8.0%
Q2 2023+0.3%-0.5%-3.0%
Q1 2023-0.3%+0.2%-4.9%
Q4 2022-1.7%-0.8%-0.5%
Q3 2022+3.2%+5.5%+8.8%
Q2 2022+1.3%+3.2%+4.0%
Q1 2022-0.3%-1.0%-1.8%
Q4 2021-1.2%-0.2%-5.1%
Q3 2021+2.9%+3.1%-1.4%
Q2 2021+1.1%+2.2%+1.5%
Q1 2021+0.9%+1.5%+0.9%
Q4 2020+1.2%+2.0%+1.3%
Q3 2020+1.1%-0.2%+5.4%
Q2 2020+5.1%+5.1%+2.7%
Q1 2020-1.8%-2.4%-2.9%
Q4 2019+2.4%+3.2%-6.2%
Q3 2019+0.8%+1.6%-2.1%
Q2 2019+5.0%+5.8%+6.4%
Q1 2019+1.2%+1.8%+5.2%
Q4 2018-9.1%-10.0%-9.0%
Q3 2018+3.1%+3.3%+5.4%
Q2 2018+2.2%+2.1%+0.8%
Q1 2018-3.5%-1.5%-3.8%
Q4 2017-1.8%-3.2%-2.9%
Q3 2017+0.1%-0.7%-0.6%
Q2 2017+1.9%+1.3%+0.7%
Q1 2017-0.1%-0.3%+4.9%
Q4 2016-3.4%-3.5%+0.6%
Q3 2016-1.0%-0.3%-2.4%
Q2 2016-2.7%-3.2%-3.5%
Q1 2016-6.3%
Q4 2015-0.2%
Q3 2015+2.2%
Q2 2015-0.8%
Q1 2015+0.4%
Q4 2014+2.8%
Q3 2014-6.2%
Q2 2014-3.7%
Q1 2014+4.8%
Q4 2013-4.7%
Q3 2013+0.2%
Q2 2013-0.4%
Q1 2013+6.1%
Q4 2012-3.6%
Q3 2012-1.0%
Q2 2012+1.3%
Q1 2012+0.8%
Q4 2011-0.4%
Q3 2011+2.1%
Q2 2011-1.4%
Q1 2011+2.0%
Q4 2010+0.9%
Q3 2010+0.8%
Q2 2010+2.3%
Q1 2009+0.2%
Q1 2010-0.8%
Q4 2007+0.3%
Q4 2009+0.3%
Q3 2008-0.3%
Q3 2009-0.3%
Q4 2008+1.1%
Q2 2008+1.1%
Q2 2009+1.1%

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