Pricing Actions To Bolster Coca-Cola’s Q2?

Coca-Cola (NYSE: KO) will report its Q2 2023 results on Wednesday, July 26. We expect the company’s revenues to come in at $11.7 billion, aligning with the consensus estimate. This would mark year-over-year growth of about 4%. Earnings will likely come in at about $0.72 on a per-share and adjusted basis, in line with the consensus estimate. See our interactive dashboard analysis on Coca-Cola Earnings Preview for more details on how the company’s revenues and earnings will likely trend for the quarter. So, what are some of the trends that are likely to drive Coca-Cola’s
KO
results?

The company will likely continue to benefit from pricing actions resulting in growth for both at-home and away-from-home channels, primarily in North America. Looking at Q1 2023, Coca-Cola’s revenues were up 5%, led by an 11% rise in price/mix and a 1% growth in concentrate sales, and this trend is expected to continue in the near term. North America and EMEA segments saw double-digit sales growth in Q1, while Latin America rose in high single-digits. The company’s adjusted operating margins were up 40 bps in Q1, partly due to the impact of the company’s refranchising of bottling operations. On a reported basis, the operating margin declined 180 bps due to currency headwinds. Our Coca-Cola Operating Income Comparison dashboard has more details. The earnings of $0.68 on a per share and adjusted basis were up 5% from $0.64 in the prior-year quarter.