Coca-Cola Co. today reported strong third-quarter 2021 results and year-to-date performance, with global sales and case volume increasing, respectively, 16% and 6%, compared with last year's same quarter. During the quarter, the beverage giant's global unit case volume continued to benefit from ongoing recovery in many markets.
The company said its third-quarter volume was ahead of 2019 and there was sequential improvement in volume versus the second quarter on a two-year basis driven by improved performance in away-from-home channels, along with continued strength in at-home channels.
“Our strategic transformation is enabling us to effectively navigate a dynamic environment and emerge stronger from the pandemic,” said Coke chairman and chief executve James Quincey. “We are updating our full-year guidance to reflect another quarter of momentum in the business.
"While the recovery continues to be asynchronous around the world," Quincey added, "we are investing for growth to drive long-term value for the system. Our strong system alignment and networked organization are helping us unlock enormous potential in our brands and across our markets.”
KEY POINTS
- Revenues: Net revenues grew 16% to $10 billion, resulting in net revenues ahead of 2019, and organic revenues (non-GAAP) grew 14%. Revenue performance included 8% growth in concentrate sales and 6% growth in price/mix. Revenue growth was broad-based with particular strength in markets where coronavirus-related uncertainty is abating.
- Margin: Operating margin, which included items impacting comparability, was 28.9% versus 26.6% in the prior year, while comparable operating margin (non-GAAP) was 30% versus 30.4% in the prior year. Comparable operating margin (non-GAAP) compression was primarily driven by a significant increase in marketing investments versus the prior year, partially offset by strong revenue growth.
- Earnings per share: EPS grew 41% to $0.57, and comparable EPS (non-GAAP) grew 18% to $0.65. Comparable EPS (non-GAAP) growth included the impact of a three-point currency tailwind.
- Market share: The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages, which included share gains in both at-home and away-from-home channels. The company’s value share in total NARTD beverages remains ahead of the 2019 level.
- Cash flow: Year-to-date cash flow from operations was $9.2 billion, up $3 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 $8.5 billion, up $3 billion versus the prior year, driven by strong cash flow from operations.
See Coca-Cola's full third-quarter announcement with regional and beverage category breakdowns on Business Wire.
