Coca-Cola Co reported strong results for the fourth quarter of 2022, with net revenue growing by 7% to $10.1 billion on a YoY basis. The growth in revenue was mainly driven by an increase in price and better product mix, as well as timing of concentrated shipments, which resulted in concentrated sales. Additionally, an additional day in 2022 helped to boost sales for the company.
However, in terms of unit case volume, KO was still impacted by the suspension of business in Russia. In terms of product breakdown, sparkling soft drinks were even for the quarter, while juice, value-added dairy, and plant-based beverages declined 7% for the quarter, primarily due to the suspension of business in Russia. Water, sports, coffee, and tea were even for the quarter.
The operating margin, however, was partly impacted by the acquisition of BODYARMOR, higher operating costs on a group level, as well as increased spending on marketing activities. Nevertheless, the margin grew from 17.7% to 20.5% in the current quarter, but dipped from 26.7% to 25.4% in the full 2022 financial year.
Notably, KO has increased its dividend payment for the past 60 years, and the beverage giant paid a total of $7.6 billion during 2022. This highlights the company’s commitment to delivering long-term value to its shareholders.
KO leverages digital engagement to build deeper connections with consumers through linking consumption occasions with consumer passion points, such as the successful “Believing is Magic” global campaign for the FIFA World Cup, the company also collaborates with partners to address challenges and create a circular economy for packaging, including initiatives in India and Latin America and transitioning packaging in the Philippines to 100% recycled PET.
Meanwhile, the company is focused on having a balance sheet that supports sustainable value creation and completed the refranchising of bottling operations in Cambodia and Egypt and will list Coca-Cola Beverages Africa as a publicly traded company in the future.
Looking ahead, KO remains focused on expanding its portfolio of products and enhancing its marketing and distribution capabilities. The company has a strong brand and a loyal customer base, and it continues to invest in innovation and sustainability initiatives to drive growth in the years to come. Investors will be keeping a close eye on KO’s progress as it seeks to maintain its position as a leading player in the beverage industry.
For more details about NASDAQ stocks, checkout moomoo site (inclusive trading site): https://linktr.ee/moomooforyou
moomoo Promotion:
Disclaimer:
The author of this article may have an intentional or existing investment in the company discussed. Therefore, readers are advised to independently evaluate the independence of the content and views presented.
12Invest is not a professional platform that holds licenses for analyzing stocks. The information, news, and content shared in this article are obtained by the author through various channels. All information provided in the article is intended for reference, learning, education, and informational purposes only, and should not be construed as professional financial, investment, or trading advice. If you require investment advice, please consult a professional stock analyst or investment bank and make your own judgment about the risks and potential returns. It is hereby reiterated that 12Invest assumes no responsibility for the accuracy, completeness, correctness, or timeliness of any of the views or opinions expressed in this article. Any decision made by readers after reading this article is solely their responsibility. Please remember that all investments carry risks, so please take appropriate measures to protect yourself.
