Coca-Cola: Reports Second Quarter 2021 Results

Atlanta / GA. (ccc) The Coca-Cola Company, since January 2019 parent company of British Costa Limited, reported second quarter 2021 results and year-to-date performance. «Our results in the second quarter show how our business is rebounding faster than the overall economic recovery, led by our accelerated transformation. As a result, we are encouraged and, despite the asynchronous nature of the recovery, we are raising our full year guidance,» said James Quincey, Chairman and CEO of The Coca-Cola Company. «We are executing against our growth plans and our system is aligned. We are better equipped than ever to win in this growing, vibrant industry and to accelerate value creation for our stakeholders.» Summary:

  • Revenues: Net revenues grew 42 percent to USD 10.1 billion, and organic revenues (non-GAAP) grew 37 percent. Revenue performance included 26 percent growth in concentrate sales and 11 percent growth in price/mix. Revenue growth was driven by the ongoing recovery in markets where coronavirus-related uncertainty is abating, along with the benefit from cycling revenue declines from the impact of the coronavirus pandemic last year.
  • Margin: Operating margin, which included items impacting comparability, was 29.8 percent versus 27.7 percent in the prior year, while comparable operating margin (non-GAAP) was 31.7 percent versus 30.0 percent in the prior year. Operating margin expansion was primarily driven by favorable channel and package mix where coronavirus-related uncertainty is abating, partially offset by a significant increase in marketing expenses versus the prior year.
  • Earnings per share: EPS grew 48 percent to USD 0.61, and comparable EPS (non-GAAP) grew 61 percent to USD 0.68. Comparable EPS (non-GAAP) growth included the impact of a 5-point currency tailwind.
  • Market share: The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages driven by a share gain in both at-home and away-from-home channels. The company’s value share in total NARTD beverages is now ahead of the 2019 level.
  • Cash flow: Year-to-date cash flow from operations was USD 5.5 billion, up USD 2.7 billion versus the prior year, driven by strong business performance, five additional days in the first quarter and working capital initiatives. Year-to-date free cash flow (non-GAAP) was USD 5.1 billion, up USD 2.8 billion versus the prior year, driven by cash flow from operations along with lower capital expenditures versus the prior year.

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