Coca-Cola Q3 2023: From revenues to operating margin, here’s what you need to know

In the third quarter of 2023, The Coca-Cola Company highlighted its financial trajectory by reporting a net revenue growth of 8% to reach $12.0 billion. Additionally, organic revenues (non-GAAP) saw an 11% upsurge. James Quincey, the Chairman and CEO, commented, “We delivered an overall solid quarter and are raising our full-year topline and bottom-line guidance in light of our year-to-date performance.”

Diving Deeper: Detailed Analysis of Financial Metrics

– Revenue Highlights:

Net revenues reached $12.0 billion, marking an 8% increment. Organic revenues, on a non-GAAP basis, surged by 11%. This increment in revenue encompassed a 9% growth in price/mix and a 2% uptick in concentrate sales, which aligned with the unit case volume.

– Operating Margin Analysis:

The operating margin was calculated at 27.4%, a slight decrease from the previous year’s 27.9%. However, when compared on a non-GAAP basis, the comparable operating margin showed a modest rise to 29.7% from 29.5%.

– Earnings Per Share:

Earnings per share (EPS) recorded a growth of 9%, standing at $0.71, with the non-GAAP EPS growing 7% to reach $0.74.

– Market Share Dynamics:

Coca-Cola managed to gain value share in the nonalcoholic ready-to-drink (NARTD) beverages segment.

– Cash Flow Situation:

Year-to-date cash flow from operations touched $8.9 billion, marking an $861 million growth from the preceding year.

Global Footprint: Geographical Segment Insights

• Asia Pacific: Unit case volume remained steady. Despite challenges in some areas, growth in India and the Philippines compensated for the declines in regions like China and Indonesia.
• Latin America: Recording a 7% growth in unit case volume, the region saw positive performance in almost all beverage categories.
• North America: The region maintained its unit case volume with a balanced performance across categories.
• Europe, Middle East & Africa: A slight dip of 1% was observed in the unit case volume, attributed largely to challenges in Russia and Pakistan.

Operational Dynamics Across Global Ventures and Bottling

Costa coffee’s robust performance in the UK and China played a pivotal role in driving a 15% growth in net revenues for Global Ventures. Bottling Investments, on the other hand, reported a 2% growth in unit case volume.