The Coca-Cola Company has reported a strong performance for Q2 2023, indicating sustained momentum in a fluctuating operating landscape. The net revenues witnessed a 6% growth, reaching $12.0 billion, while the organic revenues (non-GAAP) grew by 11%. The revenue growth was bolstered by a 10% increase in price/mix and a 1% growth in concentrate sales, with concentrate sales being 1 point ahead of unit case volume due to the timing of concentrate shipments.

The Operating margin recorded was 20.1%, a decrease compared to 20.7% from the previous year. The comparable operating margin (non-GAAP) stood at 31.6%, up from 30.7% in the previous year. The dip in Operating margin was mainly attributed to factors impacting comparability and currency headwinds. However, the expansion of comparable operating margin (non-GAAP) was driven by strong topline growth and refranchising of bottling operations. This expansion was partially offset by an increase in marketing investments, higher operating costs compared to the previous year, and currency headwinds.

Earnings per Share (EPS) registered a 34% growth, arriving at $0.59, and the comparable EPS (non-GAAP) increased by 11% to $0.78, inclusive of the effect of a 6-point currency headwind. The company also marked an increase in market share in the total nonalcoholic ready-to-drink (NARTD) beverages segment.

The cash flow from operations was $4.6 billion year-to-date, an increase of $83 million compared to the previous year. This was fueled by robust business performance and working capital initiatives but was partially offset by the transition tax payment made during the second quarter. The Free cash flow (non-GAAP) was $4.0 billion year-to-date, marking a decline of $45 million compared to the previous year.

Commenting on the positive performance, James Quincey, Chairman and CEO of The Coca-Cola Company, stated, “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.”

  James Quincey, The Coca-Cola Company, USA