Coca-Cola beats On Q2 Earnings With 8% Volume Growth

Coca-Cola Co KO reported second-quarter FY22 sales growth of 12% year-on-year, to $11.30 billion, beating the analyst consensus estimate of $10.54 billion.
Revenue performance included a 4% growth in concentrate sales and a 12% growth in price/mix.
Unit case volume grew 8% for the quarter.
The gross profit rose 2% to $6.5 billion with a profit margin of 57.3%.
The operating margin contracted 910 basis points to 20.7%, while the comparable operating margin lost 10 basis points to 30.7%.
Operating income for the quarter decreased 22% to $2.3 billion.
Adjusted EPS of $0.70 beat the analyst consensus of $0.67.
Cash flow generated from operating activities was $4.5 billion, an 18% decline Y/Y.
It held $8.9 billion in cash and equivalents as of July 1, 2022.
Outlook: Coca-Cola expects the suspension of Russian business to affect 1% - 2% of its net revenue and operating income.
Coca-Cola sees FY22 organic revenue growth of 12% - 13% and comparable EPS growth of 5% - 6%.
Coca-Cola expects FY22 free cash flow of about $10.5 billion and $12 billion in cash flow from operations.
Price Action: KO shares are trading higher by 1.30% at $63.00 in premarket on the last check Tuesday.

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