Coca-Cola Q4 Profit Surges 66%, Results Top Estimates

(RTTNews) - Beverages giant Coca-Cola Co. (KO) reported Thursday a profit for the fourth quarter that surged 66 percent from last year, on a revenue growth of 10 percent, steeply higher other income and lower interest expense.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company initiated its adjusted earnings and organic revenue growth outlook for the full-year 2022.

For the fourth quarter, net income attributable to shareowners of Coca-Cola surged to $2.41 billion or $0.56 per share from $1.46 billion or $0.34 per share in the prior-year quarter. Excluding items, comparable earnings per share were $0.45, compared to last year's $0.47.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Net operating revenues for the quarter increased 10 percent to $9.46 billion from $8.61 billion in the same quarter last year, driven by a 10 percent growth in price/mix, but concentrate sales edged down 1 percent. The Street expected revenue of $8.96 billion for the quarter.

Organic revenues also grew 9 percent in the quarter. Global unit case volume grew 9 percent on strong across most markets, driven by investments in the marketplace and ongoing recovery in markets. Growth in developing and emerging markets was led by China, Russia and India, while growth in developed markets was led primarily the United States, Mexico and the United Kingdom.

Looking ahead to the first quarter, Coca-Cola projects comparable net revenues on an adjusted basis to be impacted by about 3 percent currency tailwind based on the current rates and including the impact of hedged positions. Comparable earnings are expected to include an approximate 5 percent currency tailwind.

For fiscal 2022, the company now projects comparable earnings growth of 5 to 6 percent compared to $2.32 per share in 2021, with a 3 to 4 percent currency tailwind. It also projects organic revenue growth of 7 to 8 percent, with a 2 to 3 percent currency tailwind.

The Street is looking for earnings of $2.43 per share on revenue growth of 6.1 percent to $40.45 billion for the year.

"We are confident that progress on our strategic transformation has made us a nimbler total beverage company. While the environment remains dynamic, we will build on the momentum from 2021 to drive topline growth and maximize returns," said James Quincey, Chairman and CEO.