After presenting these figures, the shares of the Atlanta-based company rose slightly in the pre-opening of Wall Street. So far this year, The Coca-Cola Company’s rights have fallen about 5% in the market.
“While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment. As we enter 2023, we continue to invest in our capabilities and strengthen alignment with our bottling partners to maintain flexibility. We keep consumers at the center of our innovation and marketing investments, while leveraging our experience managing and executing revenue growth. Our culture of growth is giving rise to new approaches, more experimentation and greater agility to drive growth and value for our stakeholders”, said James Quincey, president and CEO of the company.
Coca-Cola’s revenues have risen 7% in the last quarter of the year, up to 10,125 million dollars, more than 100 more than the consensus estimate. Likewise, for the entire year 2022, sales have risen 11% to 43,004 million from the previous 38,665 million.
Likewise, the operating margin was 20.5% compared to 17.7% in the same quarter of the previous year. In contrast, in all of 2022 the operating margin fell slightly from 26.7% to 25.4%. In this sense, the company highlights that, both in the quarter and in the year as a whole, the operating margin benefited from the strong growth in gross income, but was impacted by the acquisition of BODYARMOR, the higher operating costs, the increased marketing spend, negative currency effects, and other factors not mentioned.
On the other hand, the company expects organic revenue growth of between 7% and 8% in 2023 and expects commodity price inflation to have “a negative single-digit percentage effect on cost comparable value of goods sold on the basis of current rates and including the impact of hedged positions. Coca-Cola has also indicated that they expect to generate free cash flow of $9.5 billion this year and an underlying effective tax rate of 19.5%.
“Based on the above considerations, the company expects comparable currency-neutral comparable earnings per share growth of between 7% and 9% and comparable EPS growth of between 4% and 5%, vs. the 2.48 dollars of 2022”, they concluded.
Source: Ambito
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