The Coca-Cola Company - KO'ed estimates?

It beat estimates.

Many investors, and even Wall Street, would be eager to know whether consumer goods companies like Coca-Cola can pass on inflationary costs to end consumers.

Here are some observations of Coca-Cola's Q1'23 results.

Net revenues grew 5% to $11.0 billion, and organic revenues (non-GAAP), which strips away the impact of acquisitions and divestitures, grew 12%.

Even though price hikes might dissuade consumers from buying, this was not the case, as the company’s unit case volume, which excludes the impact of pricing and currency changes, grew 3% in the quarter.

Q1'23 operating margin was 30.7% versus 32.5% in the prior year. The operating margin decline was due to items impacting comparability and currency headwinds.

Coca-Cola's operating cash flow for Q1'23 is USD 160 million, a decline of approximately USD 460 million versus the prior year.

This might be alarming since the company reported better EPS, but due to the timing of working capital initiatives and payments related to acquisitions and divestitures, the operating cash flow is much lower, resulting in a negative free cash flow.

DISCLAIMER
The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.

No warranty is made with respect to the accuracy, adequacy, reliability, suitability, applicability, or completeness of the information contained. The author disclaims any reward or responsibility for any gains or losses arising from the direct and indirect use & application of any contents of the article/report/written material.