10-KPeriod: FY2022

COCA COLA CO Annual Report, Year Ended Dec 31, 2022

Filed February 21, 2023For Securities:KO

Summary

The Coca-Cola Company reported solid performance in its 2022 10-K filing, demonstrating resilience despite a challenging macroeconomic environment. The company saw an 11% increase in net operating revenues, reaching $43,004 million, driven by a 5% growth in both unit case and concentrate sales volume, alongside favorable pricing and product/geographic mix. This growth was achieved across all operating segments, particularly notable in Latin America and North America. Despite inflationary pressures and increased commodity and transportation costs which impacted gross profit margin, Coca-Cola's strategic focus on brand investment, innovation, and consumer-centric marketing continues to drive results. The company also highlighted its commitment to sustainability and its robust financial position, supported by strong cash flow generation and prudent capital allocation. Investors should note the ongoing significant tax dispute with the IRS, which could have a material impact on future financial results if decided unfavorably, although the company remains confident in its defense.

Financial Highlights

55 data points
Beta

Revenue

$43.00B

58.1% Gross Margin

Net Income

$9.54B

22.2% Net Margin

EPS (Diluted)

$2.19

Total Assets

$92.76B

Cash & Equivalents

$9.52B

Free Cash Flow

$9.53B

Financial Statements
Beta
Revenue$43.00B
Cost of Revenue$18.00B
Gross Profit$25.00B
SG&A Expenses$12.88B
Operating Income$10.91B
Interest Expense$882.00M
Net Income$9.54B
EPS (Basic)$2.20
EPS (Diluted)$2.19
Shares Outstanding (Basic)4.33B
Shares Outstanding (Diluted)4.35B

Key Highlights

  • 1Net operating revenues increased by 11% to $43,004 million in 2022.
  • 2Unit case volume and concentrate sales volume both grew by 5% year-over-year.
  • 3Gross profit margin decreased to 58.1% from 60.3% due to increased costs and foreign currency headwinds.
  • 4The company continues to focus on strategic priorities including brand investment, innovation, and consumer-centric marketing.
  • 5A significant risk factor highlighted is the ongoing IRS tax dispute, with potential liabilities estimated up to $14 billion.
  • 6The company repurchased approximately 21.3 million shares of common stock for $1.3 billion in 2022.
  • 7Dividends paid increased to $7,616 million in 2022, marking the 61st consecutive annual increase.

Frequently Asked Questions

Coca-Cola's net operating revenue for 2022 was $43,004 million, an increase of 11% compared to 2021.

The company faced increased commodity and transportation costs, which impacted gross profit margin. They managed this through favorable pricing initiatives and favorable channel and package mix, and plan to continue taking actions to mitigate these costs in 2023.

The company is involved in a significant tax dispute with the IRS concerning transfer pricing for tax years 2007-2009. While the Tax Court has predominantly sided with the IRS, the company is appealing and estimates a potential aggregate incremental tax and interest liability of approximately $14 billion as of December 31, 2022, should the IRS's methodology be applied to subsequent years. The company maintains its position is strong and is defending it vigorously.