Shares of The Coca-Cola Company (NYSE: KO) were up over 1% on Tuesday after the company delivered better-than-expected results for the second quarter of 2022 and raised its revenue guidance for the full year. The stock has gained 7% year-to-date and 10% over the past 12 months.
Strong results
Net revenue increased 12% year-over-year to $11.3 billion helped by higher pricing and growth in sales volume. Organic revenues rose 16%. Adjusted EPS grew 4% to $0.70. Both revenue and adjusted EPS surpassed market projections.
Trends
Revenue growth in the quarter was fueled by an 8% increase in unit case volume which was driven by recovery in away-from-home channels and investments in the marketplace. Volume growth was broad-based across all segments.
On its quarterly conference call, the company said it saw macro strength in some regions while others continue to experience inflationary pressures. Although consumer elasticities have been better-than-expected thus far, the company is watching out for changes in consumer behavior as the year progresses and the average cost of the consumer basket goes up.
In the South Pacific region, macro fundamentals remained strong despite supply chain headwinds. The company added new customers and transactions grew ahead of volume. It also increased distribution across key entry packs and multi-packs. In North America, Coca-Cola gained both volume and value share despite headwinds like higher labor and freight costs.
In Latin America, the company’s flavoured alcohol beverage business is seeing strong growth. It continues to gain share in the direct-to-consumer business and is reaching approx. 6.3 million consumers through digital channels.
Outlook
Coca-Cola raised its revenue guidance for the full year of 2022. The company now expects organic revenue to grow 12-13% versus its previous range of 7-8%. The beverage giant expects to see a 1-2% impact to net revenues and operating income due to the suspension of its business in Russia.
Coca-Cola expects comparable EPS for FY2022 to grow 5-6% compared to FY2021. The company expects the impact of commodity price inflation to be in the high single-digit percentage range. Comparable revenues for the third quarter of 2022 are expected to include a currency headwind of around 7-8%.
Click here to access the full transcripts of the latest earnings conference calls
Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!
Most Popular
AAPL Earnings: Apple’s Q2 sales and profit beat estimates; iPhone sales down 10%
Apple Inc. (NASDAQ: AAPL) on Thursday reported better-than-expected profit and revenue for the second quarter of 2024. There was a 10% decrease in iPhone sales. The gadget giant reported revenues
Shopify (SHOP) is all set to report Q1 2024 results. Here’s what to expect
Over the years, Shopify Inc. (NYSE: SHOP) has steadily expanded its footprint in the online retail market through constant innovation, like the recent launch of a mobile POS device for
eBay (EBAY): A look at how the ecommerce company fared in Q1 2024
Shares of eBay Inc. (NASDAQ: EBAY) were down over 2% on Thursday. The company reported its earnings results for the first quarter of 2024 a day ago, with revenue and