Coca-Cola revenues grew 11 per cent on back of increased prices

The Coca-Cola Company has reported strong growth in its revenues for the 2022 fiscal, thanks to the increase in prices as well as volume growth.

Net revenues for the full year grew 11 per cent to $43 billion (£35.76bn), driven by 11 per cent growth in price/mix and 5 per cent growth in concentrate sales.

“While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment,” said James Quincey, chairman and chief executive of the Coca-Cola Company.

“As we begin 2023, we continue to invest in our capabilities and strengthen alignment with our bottling partners to maintain flexibility. We are keeping consumers at the centre of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution. Our growth culture is leading to new approaches, more experimentation, and improved agility to drive growth and value for our stakeholders.”

The operating margin, which included items impacting comparability, was 25.4 per cent versus 26.7 per cent, after unfavorably impacted by the BODYARMOR acquisition, higher operating costs, an increase in marketing investments and currency headwinds , despite benefitting from strong topline growth.

For the full year, earnings per share declined 3 per cent to $2.19, but comparable EPS grew 7 per cent to $2.48.

Sparkling soft drinks volume grew 4 per cent for the year, benefiting from strong performance in Latin America and Asia Pacific and unfavorably impacted by the suspension of business in Russia.

Flagship Coca-Cola brand has also grew 4 per cent in the year, driven by broad-based strength across all geographic operating segments. Coca-Cola Zero Sugar meanwhile grew 11 per cent for the year.

Sparkling flavors grew 5 per cent for the year, benefitting from strong growth in India and the US, despite the unfavorable impact by the suspension of business in Russia. Juice, value-added dairy and plant-based beverages grew 3 per cent, whereas water, sports, coffee and tea grew 6 per cent for the year.

The price/mix growth of 11 per cent was primarily driven by pricing actions in the marketplace across operating segments along with favorable channel and package mix.

The company said it expects to deliver organic revenue growth of 7-8 per cent in 2023, and comparable currency neutral EPS growth of 7-9 per cent.