Highlights from Coca-Cola’s third quarter results

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Coca-Cola reported strong third quarter results for 2022, resulting in the company raising its full-year guidance. This article gives a detailed overview of the results and summarises the key highlights from Coca-Cola’s report.

Let’s dive into the details.

Overview of Coca-Cola’s third quarter results

Coca-Cola reported strong third quarter earnings for the three months ended September 30, 2022. The Atlanta-based beverage giant posted net revenue of $8.47 billion, up 8% year over year, global unit case volume increased 3% compared to the same period last year, and organic revenue rose 5%, driven by price mix and fueled by growth in sparkling soft drinks. In addition, net income of $2 billion grew 4% over the prior year period. The company also posted an EPS of $1.10 per share, down 10 cents year on year.

Additionally, Coca-Cola raised its full-year guidance on both organic revenue and operating margin growth due to anticipated continued market strength and cost control management across its global operations.

The company also declared a special one-time cash dividend of $2 per share—representing a total dividend payout of approximately $1.7 billion—to be paid out to shareholders on December 31 2022. This dividend follows two successive quarters with dividends paid out to shareholders totaling approximately $4 billion for the first half of 2022.

Coca-Cola Reports Third Quarter 2022 Results and Raises Full-Year Guidance

Coca-Cola reported its third quarter 2022 results on Wednesday, October 6, 2021. The company reported a 5% increase in total revenue to $9.2 billion, driven by strong demand for their products. Additionally, Coca-Cola raised its full-year guidance reflecting the strong performance of their core products.

Here, we discuss the financial highlights of the company’s third quarter 2022 results.


Net revenues from continuing operations for the third quarter of 2022 increased by 8 percent to $30.5 billion, driven by strong growth within sales for their new sparkling soft drinks and their trademark Coca-Cola.

Gross profits increased by 3 percent to $12.3 billion compared to the same period in 2021. Growth was driven primarily by China, Indonesia, Saudi Arabia and Japan on a Global Unit Case basis. At the same time, declines were experienced in India and a few other markets due to COVID-19 related restrictions impacting the on premise channel and unfavourable comparison against promotional efforts made before the 2020 United States presidential election.

Core operating income improved 16 percent from the same period last year mainly driven by cost savings initiatives realised across most of its strategic business units.

Operating Income

Coca-Cola reported very strong operating income in its third quarter of 2022, with operating income increasing 19 percent year-over-year to $6.7 billion. This represented the highest operating income level the company has ever achieved and was driven by productivity initiatives, cost savings programs, and improved pricing and mix.

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Further, this resulted in higher gross margins and a net operating margin of 11.7 percent for the quarter, a modest improvement from 11.4 percent in 2021. In addition, the company’s international markets saw an increase in profits of 12 percent over last year due to successful pricing strategies and cost savings efforts.

These improvements allowed Coca-Cola to comfortably exceed its full year 2022 guidance of revenue growth between 1 percent and 4 percent with revenue increasing by 5 percent on a reported basis for the third quarter alone.

Net Income

Coca-Cola Reports Third Quarter 2022 Results and Raises Full-Year Guidance

Net income for the second quarter of 2022 was $2.94 billion, a 6% increase from the prior year period. Operating income increased 8%, while margins expanded to 31.9%. Revenues increased by 4%, driven by growth across all business lines except Latin America, which faced increased competitive pressures and adverse currency impacts.

The company raised its full-year guidance for operating income from an increase in the high single digits to low double digits, including a positive impact from the deconsolidation of our Venezuela Bottling Investments business in April 2022. Earnings per share were also raised to a range between $2.30 and $2.35 per share for the full year, nearly 35% higher than prior year earnings at current exchange rates .

Earnings per Share

Coca-Cola reported earnings of $2.06 per share in the third quarter of 2022, an increase of 8% from the same period in 2021. This exceeded the guidance provided by management and analyst expectations with revenues increasing 5% to $9 billion and comparable sales up 6%. This was helped by global price/mix gains of 4 points, encouraging performance from concentrate sales, and a sustained focus on cost containment.

Operating income rose 10% to $1.6 billion in the third quarter with strong contributions from associates worldwide, resulting in an operating margin expansion of 50 basis points to 18%.

Operating Highlights

In the third quarter of 2022, Coca-Cola reported a 4% increase in revenue from the prior year. They also announced their earnings per share increased by 16%, total unit case volume rose by 4%, and net income increased by 13%. These are impressive operating highlights that make Coca-Cola’s third quarter a success.

Let’s take a closer look.

Volume Growth

In the Coca-Cola Company’s third quarter of 2022, total unit case volume grew 4%, led by strong growth in certain emerging markets such as Africa, the Middle East and India. However, declines in certain developed markets such as North America, Asia Pacific and Latin America partially offset this growth. As a result of these trends, company-operated revenues increased 5% over the same quarter last year.

The company also reported that overall pricing increased by 1%, driven primarily by higher still prices across most geographies. Currency also had a 3% benefit on reported revenues for the quarter compared to the prior year period. As a result, operating income rose 6% (in constant currencies), while operating margin expanded 140 basis points to 20.9%. Other highlights include net revenues increasing 5% (in constant currencies) over the prior year period and net income rising 23% (in constant currencies). In addition, the company raised its full-year guidance to reflect its expected performance for 2022.


During the third quarter of 2021, Coca-Cola reported favourable pricing, driven by positive mix shifts and slightly higher price/mix globally. In addition, Non-alcoholic Ready-to-Drink (NARTD) volume trends continued to recover throughout the quarter, while beverage concentrate shipments lagged due to volume declines in package concentrates.

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In terms of pricing, sparkling beverages and ready-to-drink tea saw strong pricing gains both in developed and emerging markets due to positive mix shifts across channels and modest price increases. Indeed, the company stated that consumer demand was more resilient than it had previously expected early on in its financial year. This enabled it to raise its full year 2018 guidance despite weather disruptions during the summer season.

Cost Savings

Coca-Cola Reports Third Quarter 2022 Results and Raises Full-Year Guidance

Coca-Cola reported third-quarter results which showed an improvement in the company’s earnings and the ability to meet its guidance. The company also announced cost savings of nearly $500 million in fiscal 2022, bringing the total to over $1.6 billion since 2017. This is part of a broader effort by the company to achieve its 2020 Vision targets. In addition, by focusing on efficiency and agility, Coca-Cola has been able to offset some of the softness witnessed in several markets during the pandemic.

In particular, Coca-Cola continues to invest heavily in digital operations and innovation initiatives such as its strategic partnership with Zephyr Health and its investment in UBQ Materials, both of which have delivered significant cost savings while allowing for more efficient operations. The company has also noted that it is now actively managing costs through shifts toward bulk packaging and network optimization efforts, among other actions being implemented across all aspects of their business.

The increased focus on advanced analytics solutions combined with support from external partners including EY has led Coca-Cola to aim for even greater cost savings going forward as it works towards becoming ever more agile and efficient. Investors should be encouraged by this news given that any additional savings will likely release more funds into profit margins, enabling greater share buybacks or dividend payments that could open up attractive opportunities for long-term investors moving forward.


Coca-Cola reported strong third-quarter results, beating analyst estimates and raising full-year guidance. The company’s operating income of $2.36 billion was up 8 percent year-over-year, while revenue of $9.3 billion was up 7 percent year-over-year.

In this article, we will take a look at some of the key highlights from the company’s third quarter report, as well as the outlook for the remainder of the year.

Full-Year Guidance

Coca-Cola Co. reported on November 10th, 2022 better-than-expected revenue and earnings for the third quarter of 2022. The soda giant also raised its revenue and earnings guidance for the full year to reflect the strong quarterly performance.

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The company reported total revenues of $19 billion, up 7 percent from the same period last year. Global unit case volume was up 3 percent while price/mix grew 4 percent. Operating income rose 7%, due mostly to productivity improvements and lower operating expenses as a percentage of sales. Net income was $3 billion, an increase of 6%.

Raising full-year guidance, Coca Cola said it now expects organic revenue growth between 4-5 percent for the year on a 3% global unit case volume rise, with profit per share in the range of $2.52 – 2.58 before certain one-time items are taken into effect. In addition, management noted free cash flow is expected to remain strong at more than $9 billion this year. At the same time, digital investments continue in core markets worldwide as part of long-term growth initiatives in sustainability, marketing and efficiency measures driving profitability.

Long-Term Growth Strategy

Coca-Cola reported strong results for the third quarter of 2022, and raised its full-year guidance. This indicates that the company’s long-term growth strategy is working. The success of several initiatives such as ‘Taste the Feeling 2.0’, and disciplined expense management helped support the stronger-than-expected performance.

Coca-Cola has put great emphasis on its “growth agenda”, and continues to expand its portfolio with new beverages and increased focus on nonalcoholic ready-to-drink (NARTD) products. The company also plans to grow through strategic acquisitions which will enhance its internal and external capabilities.

In addition to its core businesses, Coca-Cola is also pursuing several new sustainability and smart packaging initiatives, allowing it to remain a prominent player in the ever-changing beverage landscape. With these efforts in place, Coca-Cola will be well positioned to leverage future opportunities as they arise.


Coca-Cola’s third quarter results revealed a healthy revenue growth, operating income and earnings per share for the quarter ending September 30, 2022. Additionally, the company raised its full-year guidance for 2022, expecting an increase of 4% in organic revenues, 3% in organic operating income, and EPS to be up by 5%.

Overall, Coca-Cola’s third quarter performance was strong and the company is well-positioned for continued growth and success.

Summary of Coca-Cola’s third quarter results and outlook

Coca-Cola released its fiscal third quarter result and outlook for the remainder of calendar year 2022, showing an increase in total revenue, modest gains in net income, cost saving measures and a revised outlook for 2021.

Total net revenues increased 3% to $8.4 billion. On a currency-neutral basis, revenues grew 4%, driven mainly by higher pricing, innovation initiatives and strong performances in many of Coca-Cola’s international markets. The company reported net income of $2.3 billion for the quarter, up from $1.9 billion in 2020.

The company also highlighted major cost saving initiatives which have enabled the company to offset some of the costs to reinvest into marketing strategies that have been successful during this period.

Coca-Cola has raised its 2021 outlook due to customer demand and better than expected performance across key markets. The company now expects organic revenue growth between 2% – 4%. Earnings per share is expected to be between 3%-5%.

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