The Coca-Cola Company reported net revenue growth of 8% during Q3, leading the company to raise its full year topline and bottom-line guidance.
“In the third quarter, we delivered strong top line growth, comparable operating margin expansion and earnings per share growth,” said James Quincey, Chairman and CEO of The Coca-Cola Company during a call with investors. “Our strategy is working [and] these results continue our track record of consistent delivery.”
Here’s a quick look at the numbers:
- Organic revenue grew 11% during Q3 which Quincey said was largely driven by volume increases, pricing in the market and carry over price increases from last year
- Volumes grew 2%; the month of September saw the greatest volume growth during the quarter
- Price/mix increased 9% across operating segments and was impacted by “a few hyperinflationary markets”
- Operating margin declined 0.5 points, dropping from 27.9% to 27.4% due to comparability and currency headwinds
- Cash flow increased $861 million to $8.9 billion year-to-date; non-GAAP
- Earnings per share rose 9% to $0.71.
Within Coke’s North American business, the company continues to see away from home channels outperform at-home occasions. Sparking brands have benefited from promotional displays at point of sale, driving household penetration and adding nearly two points of value share year-over-year, Quincy highlighted during the call.
Unit case volume for beverages in North America was flat during the quarter, with sparkling flavors, juice and value-added dairy beverages helping to offset declines in other categories.
Outside of sparkling, BODYARMOR, Powerade, Fairlife Core Power, SmartWater and Gold Peak generated measurable value-share gains.
Digital media spend has outpaced traditional media spend and the company continues to shift that strategy in order to capture Gen Z consumers who spend “seven to nine hours” online every day, Quincy noted.
While the company continues to see consumers trading down to non-alcoholic private label alternatives or shifting to discount channels in Europe, Coke’s Jack Daniels alcoholic RTD innovation has seen “promising early results” and Quincy believes the introduction of Absolut Vodka and Sprite will help drive future positive results.
The company has continued efforts for more sustainable packaging. In the U.S. it has expanded the availability of its 20 oz. bottles made from 100% recycled PET (rPET) materials to 11 new markets across the country. These efforts are also taking place in Europe, where Coke unveiled a new refillable glass bottling line located in Austria.