The Coca-Cola Company reported sales of its sports drinks segment declined 1 percent in the first quarter, primarily driven by declines in Bodyarmor and Powerade in the U.S.
Overall sales grew 5 percent to $11.0 billion, and organic revenues (non-GAAP) grew 12 percent. Revenue performance included 11 percent growth in price/mix and 1 percent growth in concentrate sales. Concentrate sales were 2 points behind unit case volume, mainly due to the timing of concentrate shipments and the impact of one less day in the quarter.
Operating margin was 30.7 percent versus 32.5 percent in the prior year, while the comparable operating margin (non-GAAP) was 31.8 percent versus 31.4 percent for the previous year. Operating margin decline was primarily driven by items impacting comparability and currency headwinds. Comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments and higher operating costs versus the prior year as well as currency headwinds.
EPS grew 12 percent to $0.72 and comparable EPS (non-GAAP) rose 5 percent to $0.68. Comparable EPS (non-GAAP) performance included the impact of a 7-point currency headwind.
“We are encouraged by our first quarter 2023 results,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “Our system alignment is stronger than ever, and our networked organization is allowing us to adapt as needed. We continue to invest for the long term, strengthening our capabilities to drive sustainable value for our stakeholders. We have the right portfolio, the right strategy, and the right execution to deliver in the marketplace. We are confident in our ability to deliver on our 2023 objectives.”
The company’s brands include Coca-Cola, Sprite, Fanta, Dasani, Topo Chico, Bodyarmor, Powerade, Costa, Georgia, Gold Peak, Ayataka, Minute Maid, Simply, innocent, Del Valle, Fairlife, and AdeS.
