Coca-Cola Co (NYSE:KO) reported second-quarter FY23 sales growth of 6% year-on-year to $11.97 billion, beating the consensus of $10.56 billion.
Revenue performance included a 1% growth in concentrate sales and a 10% growth in price/mix.
Unit case volume was even for the quarter.
Gross profit rose 9% to $7.06 billion with a profit margin of 58.9%.
The operating margin contracted 60 basis points to 20.1%, while the comparable operating margin gained 90 basis points to 31.6%.
Operating income for the quarter increased 3% to $2.4 billion.
Adjusted EPS of $0.78 beat the analyst consensus of $0.65.
Operating cash flow generated year-to-date was $4.6 billion, a 2% increase Y/Y.
KO held $15.7 billion in cash and equivalents as of June 30, 2023.
Outlook: Coca-Cola raises FY23 organic revenue growth outlook from 7%-8% to 8% – 9%.
KO sees comparable currency neutral EPS growth of 9%-11% (prior 7%-9%) and comparable EPS growth of 5%-6% (prior 4%-5%) versus $2.48 in 2022.
Coca-Cola expects FY23 free cash flow of about $9.5 billion and $11.4 billion in cash flow from operations.
Price Action: KO shares are trading higher by 1.25% at $63.03 in premarket on the last check Wednesday.
