NYSE$KO

Coca-Cola · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong results with increased revenues and EPS, driven by strategic transformation and effective navigation of a dynamic environment.

Coca-Cola reported strong Q3 2021 results with net revenues growing 16% to $10.0 billion and organic revenues growing 14%. EPS grew 41% to $0.57, and comparable EPS grew 18% to $0.65. The company is updating its full-year guidance to reflect the momentum in the business.

  • Net revenues grew 16% to $10.0 billion, with organic revenues (non-GAAP) growing 14%.
  • Operating income grew 26%, and comparable currency neutral operating income (non-GAAP) grew 11%.
  • EPS grew 41% to $0.57, and comparable EPS (non-GAAP) grew 18% to $0.65.
  • The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Headline financials

Total Revenue

$10B

Previous: $8.65B+16.1%
EPS (adj)

$0.65

Previous: $0.55+18.2%
Organic revenue growth

14.0%

Previous: -6.0%+333.3%
Unit case volume growth

6.0%

Previous: -4.0%+250.0%
Capital Expenditures

-$728M

Previous: -$759M+4.1%
Free Cash Flow

$1.74B

Previous: $978M+78.2%
Net Income

$2.47B

Previous: $1.74B+42.3%
Operating Income

$2.9B

Previous: $2.3B+26.1%
Gross Profit

$6.07B

Previous: $5.18B+17.1%
Cash & Equivalents

$11.3B

Previous: $11.4B-0.7%
Total Assets

$90.6B

Previous: $97.2B-6.8%
Stock-Based Comp

$88M

Previous: $52M+69.2%

Revenue & EPS history

Coca-Cola · Revenue · Quarterly

$10B

Q3 2021+16.1%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The company expects to deliver organic revenue (non-GAAP) growth of 13% to 14%. 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

  • Confident in underlying momentum in the business.
  • Supported by transformation work.
  • Supported by innovation agenda.
  • More efficient and effective approach to marketing.
  • Expects to deliver organic revenue (non-GAAP) growth of 13% to 14%.

Headwinds

  • The company expects elevated commodity inflation.
  • Comparable cost of goods sold (non-GAAP) is expected to include a mid single-digit percentage commodity headwind.
  • Comparable net revenues (non-GAAP) are expected to include an approximate 2% to 3% currency headwind.
  • Comparable EPS (non-GAAP) is expected to include an approximate 2% to 3% currency headwind.
  • Fourth quarter 2021 financial results will be impacted by six fewer days as compared to fourth quarter 2020.

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 Q3 2021

Historical avgQ3 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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