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Shares of The Coca-Cola Company (NYSE: KO ) fell more than 1% on Tuesday following the announcement of fourth-quarter 2022 earnings results. will come
Quarterly figures
Coca-Cola’s revenue in the fourth quarter of 2022 rose 7% year over year to $10.1 billion, beating estimates of $10.02 billion. Organic revenue grew 15%. Top line performance was driven by price action as well as a good channel and package mix. Adjusted EPS of $0.45 was flat with the year-ago quarter and in line with consensus targets.
Business performance
During the fourth quarter, Coca-Cola recorded organic revenue growth in all segments with the highest 32% from Latin America. North America and Asia Pacific posted double-digit growth while the Europe, Middle East & Africa (EMEA) region witnessed single-digit growth of 9%.
Unit case volume declined 1% in Q4, as strong growth in India, Brazil, Mexico and the United Kingdom was more than offset by business delays in Russia. While developed markets grew in the low single digits, developing and emerging markets declined in the low single digits for the quarter.
Unit volume remained flat for the convenience beverages and water, sports, coffee and tea categories during the fourth quarter, while the juice, value-added milk and plant-based beverage categories declined 7%. While volumes benefited from strong growth in Latin America, Asia Pacific and other developed markets, they were hurt by shutdowns in Russia and pandemic-related headwinds in China.
During the fourth quarter, unit case volume declined by 5% in EMEA, as strong growth in Western Europe was offset by the suspension of business in Russia. Volume increased by 2% in Latin America with growth led by Brazil and Mexico. Unit case volume remained flat in North America as growth in soft drinks, juice drinks and dairy drinks was offset by declines in other beverage categories. Volume fell 1% in Asia Pacific as growth in India and Vietnam was offset by a decline in China.
Outlook
For the full year 2023, Coca-Cola expects organic revenue growth of 7-8% and comparable EPS growth of 4-5% compared to the previous year. The company expects commodity price inflation to be in the single-digit percentages amid the cost of goods sold.
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