Coca-Cola Company (NYSE:KO) reported third-quarter FY23 sales growth of 8% year-on-year to $11.95 billion, beating the analyst consensus estimate of $11.44 billion.
Revenue performance included a 2% growth in concentrate sales and a 9% growth in price/mix.
Unit case volume grew 2% in the quarter. Organic revenues increased 11%.
Gross profit rose 12% to $7.296 billion with a profit margin of 61%.
The operating margin contracted 50 basis points to 27.4%, while the comparable operating margin gained 20 basis points to 29.7%.
Operating income for the quarter increased 6% to $3.27 billion.
Adjusted EPS of $0.74 beat the analyst consensus estimate of $0.69.
Operating cash flow generated year-to-date was $8.9 billion, an increase of $861 million from the prior year.
KO held $15.4 billion in cash and equivalents as of Sept. 29, 2023.
Coca-Cola’s regular quarterly dividend of $0.46 per common share is payable Dec. 15 to shareowners of record of the company as of the close of business Dec. 1.
Outlook: Coca-Cola raises FY23 organic revenue growth outlook from 8% – 9% to 10% – 11%,
KO sees comparable currency neutral EPS growth of 13%-14% (prior 9%-11%) and comparable EPS growth of 7%-8% (prior 5%-6%) versus $2.48 in 2022.
Coca-Cola continues to expect to repurchase shares to offset dilution resulting from employee stock-based compensation plans.
Price Action: KO shares are trading higher by 2.81% at $55.60 in premarket on the last check Tuesday.
