Coca-Cola reports impressive growth in Q1 2023 Results

Revenue performance included an 11% growth in price/mix and 1% growth in concentrate sales. Concentrate sales were 2 points behind unit case volume, largely due to the timing of concentrate shipments and the impact of one less day in the quarter.

The operating margin was 30.7% versus 32.5% in the prior year, while comparable operating margin (non-GAAP) was 31.8% versus 31.4% in the prior year. The operating margin decline was primarily driven by items impacting comparability and currency headwinds. However, comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments and higher operating costs versus the prior year, as well as currency headwinds.

EPS grew 12% to $0.72, and comparable EPS (non-GAAP) grew 5% to $0.68. Comparable EPS (non-GAAP) performance included the impact of a 7-point currency headwind. Cash flow from operations was $160 million, a decline of approximately $460 million versus the prior year, largely due to the timing of working capital initiatives and payments related to acquisitions and divestitures. Free cash flow (non-GAAP) declined approximately $520 million versus the prior year, resulting in negative free cash flow of approximately $120 million.

The company expects commodity price inflation to be a mid-single-digit percentage headwind on comparable cost of goods sold (non-GAAP) based on the current rates and including the impact of hedged positions.

Coca-Cola is focused on growing loved brands through consumer-centric innovation and occasion-based marketing. Smartwater, a billion-dollar brand that is available in 28 markets, grew volume by 8% in the first quarter. The company continues to innovate with the brand, recently launching Smartwater Alkaline with Antioxidant to offer premium hydration for consumers with active lifestyles.

In conclusion, Coca-Cola's Q1 2023 financial results were impressive, thanks to the strong growth in revenue, EPS, and organic revenue. The company continues to innovate and focus on growing its loved brands, despite the challenging market conditions. Coca-Cola remains optimistic about the future and is committed to maintaining its leadership position in the beverage industry.