NYSE$KO

Coca-Cola · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Coca-Cola reported strong second-quarter results, demonstrating a faster business rebound than the overall economic recovery, driven by accelerated transformation and raised full-year guidance.

Coca-Cola's Q2 2021 results showed a strong rebound with net revenues growing by 42% to $10.1 billion and organic revenues (non-GAAP) increasing by 37%. EPS grew by 48% to $0.61, and comparable EPS (non-GAAP) grew by 61% to $0.68. The company is raising its full-year guidance.

  • Net revenues grew 42% to $10.1 billion, with organic revenues (non-GAAP) up 37%.
  • EPS increased 48% to $0.61, while comparable EPS (non-GAAP) rose 61% to $0.68.
  • Operating margin was 29.8% versus 27.7% in the prior year; comparable operating margin (non-GAAP) was 31.7% versus 30.0% in the prior year.
  • Global unit case volume grew 18%, driven by recovery in markets and cycling the impact of the coronavirus pandemic last year.

Headline financials

Total Revenue

$10.1B

Previous: $7.15B+41.7%
EPS (adj)

$0.68

Previous: $0.42+61.9%
Organic revenue growth

37.0%

Previous: -26.0%+242.3%
Unit case volume growth

18.0%

No prior period
Capital Expenditures

-$450M

Previous: -$536M+16.0%
Free Cash Flow

$2.19B

Previous: $1.24B+76.3%
Net Income

$2.64B

Previous: $1.78B+48.5%
Operating Income

$3.02B

Previous: $1.98B+52.2%
Gross Profit

$6.34B

Previous: $4.14B+53.3%
Cash & Equivalents

$9.19B

Previous: $10B-8.5%
Total Assets

$90.2B

Previous: $94.7B-4.7%
Stock-Based Comp

$90M

Previous: $41M+119.5%

Revenue & EPS history

Coca-Cola · Revenue · Quarterly

$10.1B

Q2 2021+41.7%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company expects to deliver organic revenue (non-GAAP) growth of 12% to 14%. The company expects to deliver comparable EPS (non-GAAP) growth of 13% to 15% versus $1.95 in 2020. The company expects to generate free cash flow (non-GAAP) of at least $9.0 billion through cash flow from operations of at least $10.5 billion less capital expenditures of approximately $1.5 billion.

Tailwinds

  • Organic revenue (non-GAAP) growth of 12% to 14% is expected.
  • Comparable net revenues (non-GAAP) are expected to include a 1% to 2% currency tailwind.
  • The company's underlying effective tax rate (non-GAAP) is estimated to be 19.1%.
  • Comparable EPS (non-GAAP) growth of 13% to 15% versus $1.95 in 2020 is expected.
  • Comparable EPS (non-GAAP) percentage growth includes a 2% to 3% currency tailwind.

Headwinds

  • The company is not able to reconcile full year 2021 projected organic revenues (non-GAAP) to full year 2021 projected reported net revenues.
  • The company is not able to reconcile full year 2021 projected comparable net revenues (non-GAAP) to full year 2021 projected reported net revenues.
  • The company is not able to reconcile full year 2021 projected underlying effective tax rate (non-GAAP) to full year 2021 projected reported effective tax rate.
  • The company is not able to reconcile full year 2021 projected comparable EPS (non-GAAP) to full year 2021 projected reported EPS without unreasonable efforts.
  • This does not include the impact of the ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.

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 Q2 2021

Historical avgQ2 2021

+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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