The Coca-Cola Company releases half year report, records strong growth
By Abimbola Mohammed
Global beverage giant The Coca-Cola Company has announced its half year report for 2023, showing a strong and continued momentum in a dynamic operating environment.
According to the company, its net revenues grew 6% to $12.0 billion and organic revenues (non-GAAP) grew 11%. Revenue performance included 10% growth in price/mix and 1% growth in concentrate sales. Concentrate sales were 1 point ahead of unit case volume, largely due to the timing of concentrate shipments.
The operating margin was 20.1% versus 20.7% in the prior year, while comparable operating margin (non-GAAP) was 31.6% versus 30.7% in the prior year. Operating margin decline was primarily driven by items impacting comparability and currency headwinds. Comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments and higher operating costs versus 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 gained value share in total nonalcoholic ready-to-drink (NARTD) beverages. EPS grew 34% to $0.59, and comparable EPS (non-GAAP) grew 11% to $0.78. Comparable EPS (non-GAAP) performance included the impact of a 6-point currency headwinds.
Cash flow from operations was $4.6 billion year-to-date, an increase of $83 million versus the prior year, driven by strong business performance and working capital initiatives, partially offset by the transition tax payment made during the second quarter. Free cash flow (non-GAAP) was $4.0 billion year-to-date, a decline of $45 million versus the prior year.
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