The Coca-Cola Company issues half-year report, reveals excellent growth

The Coca-Cola Company has released its half-year report for 2023, demonstrating strong and continuing performance in a complex operating environment.

According to the corporation, net revenues increased 6% to $12.0 billion, while organic revenues (non-GAAP) increased 11%. The revenue performance comprised a 10% increase in price/mix and a 1% increase in concentrate sales. Concentrate sales were one point higher than unit case volume, owing to the timing of concentrate shipments.

The operating margin was 20.1%, up from 20.7% the previous year, while the comparable operating margin (non-GAAP) was 31.6%, up from 30.7% the previous year. The fall in operating margins was primarily due to items affecting comparability and currency headwinds. Strong topline growth and the benefit of refranchising bottling operations drove comparable operating margin (non-GAAP) expansion, which was somewhat offset by an increase in marketing investments and increased operational costs against the prior year, as well as currency headwinds.

James Quincey, Chairman and CEO of The Coca-Cola Company, speaking on the company’s growth said: “I am encouraged that our all-weather strategy, working together with our bottling partners, has delivered strong second quarter results. We are executing efficiently and effectively on a local level, while maintaining flexibility on a global level. The strength of our first half results and the resiliency of our business give us the confidence to raise our 2023 guidance.”

The company increased its value share of nonalcoholic ready-to-drink (NARTD) beverages. EPS increased 34% to $0.59, while comparable EPS (non-GAAP) increased 11% to $0.78. The impact of a 6-point currency headwind on comparable EPS (non-GAAP) performance was included.

Year-to-date cash flow from operations was $4.6 billion, an increase of $83 million over the prior year, driven by strong business performance and working capital efforts, offset in part by the transition tax payment made during the second quarter. Year-to-date non-GAAP free cash flow was $4.0 billion, a $45 million decrease from the previous year.