Coca-Cola reports continued strong results in Q3; net revenues up 8%

The Coca-Cola Company continued to execute on its key strategies in the third quarter, with strong revenue growth and value share gains globally. Reported net revenues grew 8 per cent and organic revenues (non-GAAP) grew 5 per cent, driven by innovation, revenue growth management and improving execution. The company’s performance year-to-date has led to an update in full year guidance. 

Net revenues grew 8 per cent to $9.5 billion. Revenue growth was driven by price/ mix growth of 6 per cent, partially offset by a 2 per cent decline in concentrate sales. On the other hand, operating income declined by 4 per cent. 

Operating margin, which included items impacting comparability, was 26.3 per cent versus 29.8 per cent in the prior year. Margins were negatively impacted by currency headwinds and acquisitions. 

Year-to-date cash from operations was $7.8 billion, up 37 per cent largely due to strong underlying growth, working capital initiatives and the timing of tax payments. Year-to-date free cash flow (non-GAAP) was $6.6 billion, up 41 per cent. 

“Our performance gives us confidence that our strategies are taking hold with our consumers, customers and system,” remarked James Quincey, Chairman and CEO, The Coca-Cola Company. “We are positioning the company to create a better shared future for all of our stakeholders by delivering on our vision and growing sustainably.” 

In the Asia-Pacific region, volume growth was led by Southeast Asia, China and India. Price/ mix grew 2 per cent for the quarter, largely driven by solid performance from the company’s bottling operations in India.