Coca-Cola (NYSE:KO) reported net income of US$ 2.547 billion in the second quarter of 2023, which represents an increase of 34% compared to the same period of the previous year. On the same basis of comparison, revenue totaled US$ 11.972 billion, an increase of 6%.
The results reflect the increase in sales, the consumer base and the launch of new beverages in markets such as China and North America.
Sales volume was balanced in the quarter. Developed markets were balanced as growth in Mexico was offset by declines in the US and Spain. Developing and emerging markets were also balanced as growth in India and Brazil was offset by business suspension in Russia in 2022 and a decline in Pakistan.
Coca-Cola Zero Sugar grew 5%, reflecting strong growth in Latin America and North America. Sparkling flavors declined 1%, driven by a decline in Europe, Middle East and Africa, partially offset by growth in Asia Pacific and Latin America.
Operating profit grew 3%, which included items that impact comparability and a 10-point currency drop. Neutral operating revenue grew 15%, driven by strong organic revenue growth across all operating segments, partially offset by an increase in marketing investments and higher operating costs.
Earnings per share (EPS) rose 34% to $0.59. For 2023, the company expects to deliver revenue growth of 8% to 9%. We are running efficiently and effectively locally while maintaining flexibility globally. The strength of the first half results and the resilience of our business give us the confidence to increase our guidance for 2023, said James Quincey, president and CEO of Coca-Cola.
Coca-Cola Femsa’s profit and revenue grow in the 2nd quarter with record volumes
Coca-Cola Femsa reported net attributable profit of 4.9 billion Mexican pesos (US$ 290 million) in the second quarter, growth of 6.4% in the annual comparison. The bottler added revenue of 61.4 billion Mexican pesos (US$ 3.6 billion) in the period, up 7.2% over the same period of 2022.
The company’s volumes totaled 1.01 billion units between April and June, an increase of 7% in the annual comparison and a historic mark for a quarter, due to the increase in all territories, including strong performance in Mexico, Brazil, Guatemala and Uruguay.
“Our efforts to optimize costs and drive efficiencies resulted in sequential margin improvements. On the digital front, the launch of Juntos+, our omnichannel B2B platform, allowed us to reach more than US$ 1 billion in digital sales in the first six months of the year”, says Ian Craig, CEO of Coca-Cola Femsa, in a note.
In South America, including Brazil, Coca-Cola Femsa’s revenue fell 2.2% in the second quarter compared to the previous year. Volumes rose 3.8% in the same period of comparison, with good performance in all locations.