Coca Cola (KO) Q4 Earnings Summary
$Coca-Cola(KO.US$ just released their Q4’FY22 earnings:
- EPS of $0.45, in line with the estimated $0.45
- Revenue of $10.1 bil, slightly higher than the estimated $10.01 bil, representing a 15% organic growth q-o-q
Such strong growth is in line with KO’s plan to drive sales expansion through digital campaigns and focus on emerging markets (which makes up ~20% of their total sales).
12% q-o-q growth in price/mix also shows KO’s ability to foster localized consumer connection and establish its value proposition through effective marketing channels, such as their global digital campaigns during the FIFA World Cup 2022, as well as localized food and music events catering to consumers in Cambodia and Brazil.
Gross margin of 55.4% for the quarter (lower than the 56.8% in Q4’FY21) is expected as they are offsetting the high double-digit inflation of commodities in emerging markets. However, operating margin of 22.7% for the quarter was higher than the 22.1% in Q4’FY21 thanks to a better leverage of marketing expenses.
As pandemic subsides and consumers continue to return to public events (stadiums, theaters and restaurants), this provides a strong basis for KO’s sale and such trend will likely continue even in the face of a resilient inflation environment, because, who doesn’t love a cold can of Coca-Cola?
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萧条 : It surpassed consensus expectations, driven by investment bottlenecks and growth in North America in Latin America. Although the chassis capacity dropped by 1%, it still gained a share of value in the total amount of non-alcoholic ready-to-drink beverages.
Ziet InvestsOP 萧条: thanks for chipping that in! indeed a very resilient business model in such times